Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7)

Assented to 2016-06-22

DIVISION 41991, c. 46Amendments to the Bank Act (Federal Credit Unions)

Marginal note:2010, c. 12, s. 1911
  •  (1) Subsection 35.1(1) of the French version of the Bank Act is replaced by the following:

    Marginal note:Prorogation
    • 35.1 (1) Sous réserve des autres dispositions de la présente partie, le ministre ne peut délivrer des lettres patentes prorogeant comme coopérative de crédit fédérale la société coopérative de crédit locale qui en fait la demande aux termes du paragraphe 33(2) que s’il estime qu’elle s’est conformée aux règlements relatifs aux exigences de notification et de divulgation.

  • Marginal note:2014, c. 39, s. 272

    (2) The portion of subsection 35.1(2) of the French version of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Prorogation en vue d’une fusion

      (2) Sous réserve des autres dispositions de la présente partie, le ministre ne peut délivrer des lettres patentes prorogeant comme coopérative de crédit fédérale la société coopérative de crédit locale qui en fait la demande aux termes des paragraphes 33(3) ou (4) que si :

  • (3) Section 35.1 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Exemption

      (4) For the purpose of facilitating the continuance as a federal credit union of a local cooperative credit society, the Minister may, on application and by order, subject to any terms and conditions that he or she considers appropriate, exempt the local cooperative credit society from any requirement of this Part or of the regulations made under this Part, if he or she is of the opinion that it has acted in a manner that substantially complies with the requirement.

 The Act is amended by adding the following after section 39:

Marginal note:Transitional — federal credit unions
  • 39.01 (1) When the Minister issues letters patent continuing a local cooperative credit society as a federal credit union under subsection 35(1), he or she may, on application and by order, subject to any terms and conditions that he or she considers appropriate, exempt the federal credit union resulting from the continuance from any requirement of Part VI — or of the regulations made under this Act — relating to voting, if he or she is of the opinion that the federal credit union will act in a manner that substantially complies with the requirement.

  • Marginal note:Duration

    (2) The order shall specify the period of the exemption, which may not extend beyond the third anniversary of the effective date of the letters patent.

Marginal note:Transitional — loan guarantee

39.02 For the purpose of supporting a federal credit union during the period that begins on the effective date of the federal credit union’s letters patent issued under subsection 35(1) and ends on the third anniversary of that date, the Minister may, subject to any terms and conditions that he or she considers appropriate and for the period that he or she considers appropriate, guarantee the repayment of a loan that a federal financial institution makes to the federal credit union.

Marginal note:2014, c. 39, s. 276

 Subsection 229(1.1) of the Act is replaced by the following:

  • Marginal note:Exception

    (1.1) In the case of an application made under subsection 223(1.2) or (1.3), the Minister shall not issue letters patent of amalgamation unless the Minister has issued, under subsection 35(1), letters patent continuing as a federal credit union each applicant that was a local cooperative credit society.

DIVISION 5Bank Recapitalization Regime (Bail-in)

R.S., c. C-3Canada Deposit Insurance Corporation Act

Marginal note:1996, c. 6, s. 21(2)
  •  (1) The definition affaires internes in section 2 of the French version of the Canada Deposit Insurance Corporation Act is repealed.

  • (2) Section 2 of the Act is amended by adding the following in alphabetical order:

    domestic systemically important bank

    domestic systemically important bank has the same meaning as in section 2 of the Bank Act; (banque d’importance systémique nationale)

  • (3) Section 2 of the French version of the Act is amended by adding the following in alphabetical order:

    affairs

    affaires Les activités commerciales de l’institution membre ainsi que les relations entre celle-ci, les entités de son groupe et leurs associés, actionnaires, administrateurs et dirigeants. (affairs)

  •  (1) Paragraph 10(1)(a) of the Act is replaced by the following:

    • (a) acquire assets from a member institution;

    • (a.1) make or guarantee loans or advances, with or without security, to a member institution;

    • (a.11) make or guarantee a deposit with a member institution;

    • (a.12) assume liabilities of a member institution;

  • (2) Paragraph 10(1)(f) of the Act is replaced by the following:

    • (f) acquire assets and assume liabilities of a member institution from its liquidator or receiver;

  • (3) Section 10 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Assets and liabilities

      (3.1) A corporation described in paragraph (2)(a) or (b) may acquire assets and assume liabilities of a member institution from that institution or from its liquidator or receiver.

  •  (1) Subsection 29(1) of the Act is amended by striking out “and” at the end of paragraph (b) and by adding the following after that paragraph:

    • (b.1) if the member institution is a domestic systemically important bank, provide an assessment of its capacity to absorb losses that it is required to maintain under section 485 of the Bank Act; and

  • Marginal note:2001, c. 9, s. 210

    (2) Subsection 29(3) of the Act is replaced by the following:

    • Marginal note:Right of Corporation to information

      (3) The Corporation is entitled to all information obtained by or produced by or for the person, whether in the course of conducting the examination or inspection or otherwise, regarding the affairs of the member institution or any of its affiliates or of any person dealing with the member institution or any of its affiliates.

Marginal note:R.S., c. 18 (3rd Supp.), s. 62; 1996, c. 6, s. 35; 2005, c. 30, s. 106

 Subsection 30(1) of the Act is replaced by the following:

Marginal note:Reporting breaches
  • 30 (1) If, in the Corporation’s opinion, a member institution is in breach of a provision of this Act or the regulations, a by-law of the Corporation or a condition of its policy of deposit insurance, the Corporation may send a report of the facts to the chief executive officer or chairperson of the board of directors of the member institution. The report may be sent by registered mail or delivered by hand and a copy of it must be provided to the Minister.

Marginal note:1996, c. 6, s. 41; 1999, c. 31, s. 28(F)

 Sections 39.11 and 39.12 of the Act are replaced by the following:

Marginal note:Request of Corporation

39.11 On receipt of a report made by the Superintendent under section 39.1, the Corporation may

  • (a) after determining that a transaction referred to in section 39.2 is reasonably likely to be expeditiously carried out after the making of the order, request the Minister to recommend that one or more orders be made under subsection 39.13(1); or

  • (b) in the case of a domestic systemically important bank, request the Minister to recommend that one or more orders be made under subsection 39.13(1) and that an order be made under subsection 39.13(1.3).

Marginal note:Recommendation of Minister

39.12 If a request referred to in section 39.11 is made by the Corporation, the Minister may, if he or she is of the opinion that it is in the public interest to do so, recommend to the Governor in Council that one or more orders be made under subsection 39.13(1) in respect of the federal member institution and, in the case of a domestic systemically important bank, that an order be made under subsection 39.13(1.3) in respect of that institution.

 
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