Financial System Review Act (S.C. 2012, c. 5)
Full Document:
Assented to 2012-03-29
Marginal note:R.S., c. 18 (3rd Supp.), s. 62
193. The portion of subsection 30(2) of the English version of the Act before paragraph (a) is replaced by the following:
Marginal note:Presentation of report to directors
(2) The chief executive officer or chairperson of the board of directors of a member institution to whom a report has been sent or delivered under subsection (1) shall, within 15 days after the receipt of the report, cause
194. Subsection 33(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) has not begun to accept deposits within a period of two years beginning on the day on which it became a member institution.
Marginal note:2007, c. 6, s. 416(2)
195. Subsection 34(5) of the Act is replaced by the following:
Marginal note:Amendment of order
(5) If the policy of deposit insurance of a federal member institution is cancelled by the Corporation under paragraph 33(1)(b) or (c) or subsection 33(2), the Superintendent must, under paragraph 54(1)(a) of the Bank Act, paragraph 62(1)(a) of the Cooperative Credit Associations Act or paragraph 58(1)(b) of the Trust and Loan Companies Act, as the case may be, amend the federal member institution’s order approving the commencement and carrying on of business to prohibit the institution from accepting deposits in Canada.
196. Section 39.13 of the Act is amended by adding the following after subsection (5):
Marginal note:Non-liability — environmental matters
(5.1) Without limiting the generality of subsection (5) and despite anything in federal or provincial law, the Corporation, as receiver, is not liable in that capacity for any environmental condition that arose or environmental damage that occurred
(a) before the Corporation’s appointment as receiver; or
(b) after the Corporation’s appointment as receiver unless it is established that the condition arose or the damage occurred as a result of the Corporation’s gross negligence or wilful misconduct or, in Quebec, the Corporation’s gross or intentional fault.
Marginal note:Reports, etc., still required
(5.2) Nothing in subsection (5.1) exempts the Corporation, as receiver, from any duty to report or make disclosure imposed by a law referred to in that subsection.
Marginal note:Non-liability — certain orders
(5.3) Without limiting the generality of subsection (5) and despite anything in federal or provincial law but subject to subsection (5.2), if an order is made that has the effect of requiring the Corporation, as receiver, to remedy any environmental condition or environmental damage affecting property involved in the receivership, the Corporation, as receiver, is not liable for failure to comply with the order, and is not liable for any costs that are or would be incurred by any person in carrying out the terms of the order,
(a) if, within the time that is specified in the order, or within 10 days after the appointment of the Corporation as receiver if the order is in effect when the Corporation is appointed as receiver, the Corporation, as receiver,
(i) complies with the order, or
(ii) on notice to the person who issued the order, abandons, disposes of or otherwise releases any interest in any real property, or any right in any immovable, affected by the condition or damage; or
(b) if the Corporation, as receiver, had, before the order was made, abandoned, disposed of or otherwise released any interest in any real property, or any right in any immovable, affected by the condition or damage.
Marginal note:Non-liability — employees
(5.4) Without limiting the generality of subsection (5) and despite anything in federal or provincial law, the Corporation, as receiver, is not liable in respect of a liability, including one as a successor employer,
(a) that is in respect of the employees or former employees of the federal member institution or a predecessor of the federal member institution or in respect of a pension plan for the benefit of those employees or former employees; and
(b) that existed before the Corporation is appointed as receiver or that is calculated by reference to a period before the Corporation’s appointment.
Marginal note:Liability of other successor employers
(5.5) Subsection (5.4) does not affect the liability of a successor employer other than the Corporation, as receiver.
Marginal note:2009, c. 2, s. 244
197. (1) The portion of paragraph 39.131(1)(a) of the Act before subparagraph (i) is replaced by the following:
(a) exempt a federal member institution in respect of which an order directing the incorporation of a bridge institution is made, a bridge institution, a subsidiary of any of those institutions or any other person from the application of any provision of this Act or the regulations or of the following Acts or regulations made under them:
Marginal note:2009, c. 2, s. 244
(2) Paragraph 39.131(1)(b) of the Act is replaced by the following:
(b) provide that any provision of this Act or the regulations or of the Acts referred to in paragraph (a) or regulations made under them applies to a federal member institution in respect of which an order directing the incorporation of a bridge institution is made, a bridge institution, a subsidiary of any of those institutions or any other person but only in the manner and to the extent provided for in the order and adapt that provision for the purpose of that application.
Marginal note:2009, c. 2, s. 245(1)
198. Paragraph 39.15(1)(a) of the Act is replaced by the following:
(a) no action or other civil proceeding before a judicial or quasi-judicial body and no arbitration may be commenced or continued against the federal member institution or in respect of its assets other than a proceeding under the Winding-up and Restructuring Act commenced by the Corporation or the Attorney General of Canada;
Marginal note:2009, c. 2, s. 246
199. Section 39.151 of the Act is replaced by the following:
Marginal note:Stay of proceedings — bridge institution
39.151 (1) Any action or other civil proceeding before a judicial or quasi-judicial body and any arbitration, to which a bridge institution may become a party by virtue of acquiring an asset or assuming a liability of the federal member institution shall be stayed for a period of 90 days from the day on which the bridge institution acquires the asset or assumes the liability.
Marginal note:Waiver
(2) The bridge institution may waive the stay referred to in subsection (1).
Marginal note:Assignments — bridge institution
39.152 (1) Subject to subsection (2), if an agreement with a federal member institution is assigned to or assumed by a bridge institution
(a) a person is prohibited from terminating or amending the agreement, or claiming an accelerated payment or forfeiture of the term under the agreement, by reason only of
(i) the federal member institution’s insolvency;
(ii) a non-monetary default by the federal member institution in the performance of its obligations under the agreement;
(iii) a monetary default by the federal member institution under the agreement that is remedied by the bridge institution within 60 days following the assignment or assumption of the agreement;
(iv) the making of an order under subsection 39.13(1), or
(v) the agreement being assigned to or assumed by a bridge institution; and
(b) any stipulation in the agreement that has the effect of providing for or permitting anything that, in substance, is contrary to any of subparagraphs (a)(i) to (v) or provides, in substance, that the bridge institution does not have the rights to use or deal with assets that the bridge institution would otherwise have by reason of the occurrence of any circumstance described in those subparagraphs, is of no force or effect.
Marginal note:Exception
(2) Subparagraphs (1)(a)(ii) and (iii) do not apply to an eligible financial contract as defined in subsection 39.15(9).
Marginal note:Membership in an organization
(3) If a bridge institution becomes a member of an organization in place of a federal member institution, it is prohibited for the organization to terminate the bridge institution’s membership by reason only of
(a) the federal member institution’s insolvency;
(b) the making of an order under subsection 39.13(1);
(c) a default by the federal member institution in the performance of its obligations under the rules of the organization; or
(d) the federal member institution’s membership being transferred to the bridge institution.
Marginal note:1996, c. 6, s. 41
200. The portion of subsection 39.17(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Leave of court
39.17 (1) A superior court may, on any terms that it considers proper, grant leave to a person to do anything that the person would otherwise be prevented from doing by section 39.15 or lift, or reduce the length of, a stay under section 39.151 if the court is satisfied
Marginal note:2009, c. 2, s. 251
201. Section 39.372 of the Act is replaced by the following:
Marginal note:Non-liability with respect to employees
39.372 (1) If a bridge institution becomes the employer of employees of a federal member institution, the bridge institution is not liable in respect of a liability, including one as a successor employer,
(a) that is in respect of the employees or former employees of the federal member institution or a predecessor of the federal member institution or in respect of a pension plan for the benefit of those employees or former employees; and
(b) that exists before the bridge institution becomes the employer or that is calculated by reference to a period before the bridge institution becomes the employer.
Marginal note:Liability of other successor employers
(2) Subsection (1) does not affect the liability of a successor employer other than the bridge institution.
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