Disclosure of Interest (Authorized Foreign Banks) Regulations

Version of section 3 from 2006-03-22 to 2009-02-11:

  •  (1) Subject to subsection (1.1), an authorized foreign bank shall disclose to a person who requests the authorized foreign bank to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated

    • (a) where a statement of account is provided in respect of the deposit account, by means of a written statement delivered to that person, at or before the time the deposit account is opened; or

    • (b) where no statement of account is provided in respect of the deposit account, by means of

      • (i) a written statement copies of which are available and displayed in each branch of the authorized foreign bank where such accounts are kept, or

      • (ii) a general notice that is displayed in each branch of the authorized foreign bank where such accounts are kept.

  • (1.1) In the case of the opening of a deposit account on a telephone request as contemplated by subsection 564(3) of the Act, an authorized foreign bank must, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.

  • (2) A written statement and a general notice referred to in subsection (1) or a written statement referred to in section (1.1) shall include

    • (a) the annual rate of interest;

    • (b) the frequency of payment of interest;

    • (c) the manner, if any, in which the balance in the deposit account affects the rate of interest; and

    • (d) any other circumstance that affects the rate of interest.

  • (3) For the purpose of subsection (1.1), the statement is deemed to be provided to a customer

    • (a) if the customer consents to receiving it by electronic means, on the day recorded by a server of the authorized foreign bank as the time of sending it by electronic means to the customer;

    • (b) if the customer consents to receiving it by fax, on the day recorded by a fax machine of the authorized foreign bank as the time of sending it to the customer;

    • (c) if it is sent to the customer by mail, on the fifth day after the postmark date on the statement; and

    • (d) if it is provided to the customer in any other way, on the day on which the statement is received by the customer.

  • SOR/2001-468, s. 1
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