Registration of Bank Special Security Regulations (SOR/92-301)

Short Title

1 These Regulations may be cited as the Registration of Bank Special Security Regulations.

Interpretation

2 In these Regulations,

Act

Act means the Bank Act; (Loi)

certificate of release

certificate of release means a certificate of release referred to in paragraph 427(4)(b) of the Act; (certificat de dégagement)

notice of intention

notice of intention means a notice of intention referred to in paragraph 427(4)(a) of the Act; (préavis)

special security

special security means a security interest given under section 426 or 427 of the Act. (garantie particulière)

System of Registration

3 On receipt from a bank of a notice of intention for registration, an agent shall

• (a) register it by numbering it consecutively and endorsing it with the place, date and time of receipt thereof; and

• (b) provide to the bank a certified copy of the registered notice of intention, endorsed with the signature and title of the agent.

4 On receipt from a bank of a certificate of release, an agent shall

• (a) register it by numbering it consecutively and endorsing it with the place, date and time of receipt thereof and the number, place, date and time of registration of the notice of intention in respect of which the certificate is submitted for registration; and

• (b) provide to the bank a certified copy of the registered certificate of release, endorsed with the signature and title of the agent.

5 On registration of a certificate of release under section 4, the registration of the notice of intention to which the certificate relates is cancelled and the notice of intention may be removed from the system of registration and destroyed.

6 A registered certificate of release may be removed from the system of registration and destroyed after the expiration of five years after the date of receipt of the certificate of release.

• 7 (1) Every bank shall, annually during the month of March, send by registered mail to each appropriate agency a statement

  • (a) listing every notice of intention that was registered in the agency more than five years before the end of the preceding December in respect of which the special security that was given to the bank is still in effect, and indicating the number, place, date and time of registration thereof, and the name of the person who gave the special security; or

  • (b) stating that there are no notices of intention as described in paragraph (a).

• (2) At the time that a bank sends the statement referred to in subsection (1), the registration of each notice of intention listed in the statement is extended.

• (3) On receipt of a statement referred to in subsection (1), an agent shall cancel the registration of, and may remove from the system of registration, all notices of intention that

  • (a) were registered in the agency more than five years before the end of the December preceding the receipt of the statement; and

  • (b) are not shown in the statement.

Form of Security for Loans or Advances

• 8 (1) For the purposes of subsection 426(2) of the Act, the form of instrument for the giving of a special security is the form set out in Schedule I.

• (2) For the purposes of subsection 427(1) of the Act, the form of document for the giving of a special security is the form set out in Schedule II.

Form of Notice of Intention

9 For the purposes of subsection 427(5) of the Act, the form of a notice of intention is the form set out in Schedule III.

Payment of Fees

• 10 (1) Every person who requests a service in respect of the registration of a special security shall pay to the Bank of Canada at the appropriate agency a fee in the amount of

  • (a) for the registration of a notice of intention for an initial five-year period and the provision of a certified and endorsed copy thereof, eight dollars;

  • (b) for the registration of a notice of intention for each year beyond the initial five-year period, two dollars;

  • (c) for the provision of any of the following services, three dollars, namely,

    • (i) the registration of an amendment to a notice of intention registered in the agency and the provision of a certified and endorsed copy thereof,

    • (ii) the production for inspection or the provision of a copy of a notice of intention registered in the agency,

    • (iii) the production for inspection or the provision of a copy of a certificate of release registered in the agency, and

    • (iv) the production for inspection of a register maintained in the agency;

  • (d) for each search conducted by the personnel of the agency to ascertain whether a notice of intention in respect of a particular person is registered in the agency and, if so, to ascertain the name of the bank set out in the notice of intention, eight dollars; and

  • (e) for the provision of the following services, twelve dollars, namely,

    • (i) the registration of a notice of intention for an initial five-year period and the provision of a certified and endorsed copy thereof, and

    • (ii) a search conducted by the personnel of the agency to ascertain whether a person named in a notice of intention is named in any other notice of intention registered in the agency and, if so, to ascertain the name of the bank set out in the notice of intention.

• (2) Notwithstanding subparagraph (1)(c)(iii), no fee shall be charged for the registration in an appropriate agency of a certificate of release submitted by a bank or the provision to the bank of a certified and endorsed copy thereof.

SCHEDULE I(Subsection 8(1))

Special Security in Respect of Hydrocarbons or Minerals, or Other Property Described in Section 426 of the Bank Act

For good and valuable consideration, the undersigned hereby assigns over to theBank, hereinafter called “the bank”, as continuing security for the payment of all loans and advances that have been or that may be made by the bank to (insert the words “the undersigned” if signatory is the borrower; if not, insert name of borrower) or renewals of such loans and advances, or substitutions therefor, and interest on such loans and advances and on any such renewals or substitutions, the following property of which the undersigned is now or may hereafter become the owner, to wit

(description and location of property of any or all of the kinds mentioned in section 426 of the Bank ActFootnote ^*)

• Return to footnote ^*The description and location of property may be set out or continued on the back of the form or in a schedule annexed thereto.

This security is given under section 426 of the Bank Act.

The property now owned by the undersigned and hereby assigned is free from any mortgage, lien or charge thereon, other than previous assignments, if any, to (the bank or other person, as the case may be), and the undersigned warrants that the property that may hereafter be acquired by the undersigned and is hereby assigned shall be free from any mortgage, lien or charge thereon, other than any previous assignments to (the bank or other person, as the case may be).

Dated attheday of, 19.

(Signature)

• SOR/95-171, s. 2

SCHEDULE II(Subsection 8(2))

Special Security in Respect of Specified Property or Classes of Property Described in Section 427 of the Bank Act

For good and valuable consideration, the undersigned hereby assigns to theBank (hereinafter referred to as “the bank”), as continuing security for the payment of all loans and advances that have been or may be made by the bank to (insert the words “the undersigned” if signatory is the borrower; if not, insert name of borrower) or renewals of such loans and advances, or substitutions therefor, and interest on such loans and advances and on any such renewals or substitutions, all property and classes of property hereinafter described of which the undersigned is now or may hereafter become the owner, to wit

(description of property or classes of property, including the number, name and port of registry of any registered or recorded vesselsFootnote ^*)

• Return to footnote ^*The description of property and designation of place may be set out or continued on the back of the form or in a schedule annexed thereto.

and that is now or may hereafter be in the place or places hereinafter designated, to wit

(designation of place or placesFootnote ^*)

or, where the property consists in whole or in part of fishing vessels, fishing equipment and supplies or products of the sea, lakes and rivers, wherever such property may be.

This security is given under section 427 of the Bank Act.

The property now owned by the undersigned and hereby assigned is free from any mortgage, lien or charge thereon, other than previous assignments, if any, to (the bank or other person, as the case may be), and the undersigned warrants that the property that may hereafter be acquired by the undersigned and is hereby assigned shall be free from any mortgage, lien or charge thereon, other than any previous assignments to (the bank or other person, as the case may be).

Dated attheday of, 19.

(Signature)

• SOR/94-367, s. 2

SCHEDULE III(Section 9)

Notice of Intention

To Whom it May Concern:

(name of person, firm or company and mailing address)

hereby gives notice that it is intention to give security under section 427 of the Bank Act, to theBank.

Dated attheday of, 19.

(Signature)