53. Subsections 62(2) to (6) of the Act are repealed.
	54. Subsections 273(2) to (4) of the Act are repealed.
	55. Subsections 409(2) and (3) of the Act are replaced by the following:
Regulations and guidelines	(2) The Governor in Council may make regulations and the Superintendent may make guidelines respecting the maintenance by associations of adequate capital and adequate and appropriate forms of liquidity.
Directives	(3) Notwithstanding that an association is complying with regulations or guidelines made under subsection (2), the Superintendent may, by order, direct the association
	(a) to increase its capital; or
	(b) to provide additional liquidity in such forms and amounts as the Superintendent may require.
1994, c. 26, s. 28	56. Section 423 of the Act is replaced by the following:
Exemption by order	423. (1) An association may enter into a transaction with a related party of the association if the Superintendent, by order, has exempted the transaction from the provisions of section 413.
Conditions for order	(2) The Superintendent shall not make an order referred to in subsection (1) unless the Superintendent is satisfied that the decision of the association to enter into the transaction has not been and is not likely to be influenced in any significant way by a related party of the association and does not involve in any significant way the interests of a related party of the association.
1994, c. 26, s. 28	57. Section 436 of the Act is replaced by the following:
Disclosure by Superin- tendent	436. (1) The Superintendent shall disclose at such times and in such manner as the Minister may determine, such information obtained by the Superintendent under this Act as the Minister considers ought to be disclosed for the purposes of the analysis of the financial condition of an association and that
	(a) is contained in returns filed pursuant to the Superintendent's financial regulatory reporting requirements in respect of associations; or
	(b) has been obtained as a result of an industry-wide or sectoral survey conducted by the Superintendent in relation to an issue or circumstances that could have an impact on the financial condition of associations.
Prior consultation required	(2) The Minister shall consult with the Superintendent before making any determination under subsection (1).
Disclosure by an association	436.1 An association shall make available to the public such information concerning
	(a) the compensation of its executives, as that expression is defined by the regulations, and
	(b) its business and affairs for the purpose of the analysis of its financial condition,
	in such form and manner and at such times as may be required by or pursuant to such regulations as the Governor in Council may make for the purpose.
Exceptions to disclosure	436.2 No information obtained by an association regarding any of its customers shall be disclosed or made available under subsection 436(1) or section 436.1.
Report respecting disclosure	436.3 The Superintendent shall prepare a report, to be included in the report referred to in section 25 of the Office of the Superintendent of Financial Institutions Act, respecting the disclosure of information by associations and describing the state of progress made in enhancing the disclosure of information in the financial services industry.
	58. Section 440 of the Act is repealed.
	59. The Act is amended by adding the following after section 441:
	Disqualification from Election or Appointment
Application	441.1 (1) This section applies only in respect of an association
	(a) that has been notified by the Superintendent that this section so applies where the association is subject to measures requiring it to maintain or improve its safety and soundness, which measures have been specified by the Superintendent by way of
	(i) conditions or limitations in respect of the order approving the commencement and carrying on of the association's business, or
	(ii) a written agreement or undertaking between the association and the Superintendent; or
	(b) that is the subject of
	(i) a direction made pursuant to section 439, or
	(ii) an order made pursuant to subsection 409(3) requiring the association to increase its capital.
Information to be provided	(2) An association shall provide the Superintendent with the name of
	(a) each person who has been nominated for election or appointment as a member of its board of directors, and
	(b) each person who has been selected by the directors of the association for appointment as chief executive officer, secretary, treasurer, controller, or any other officer reporting directly to the association's board of directors or chief executive officer,
	together with such other information about the background, business record and experience of the person as the Superintendent may require.
When information to be provided	(3) The information required by subsection (2) shall be provided to the Superintendent at least thirty days prior to the date or proposed date of the election or appointment or within such shorter period as the Superintendent may allow.
Disqualifi- cation	(4) Where, in respect of an association, the Superintendent is of the opinion that on the basis of the competence, business record, experience or character of a person referred to in
	(a) paragraph (2)(a), the person is not suitable for a position as a member of the board of directors of the association, or
	(b) paragraph (2)(b), the person is not suitable for the discharge of the duties and responsibilities associated with the position referred to in that paragraph,
	the Superintendent may, subject to subsection (5), by order, disqualify the person from being elected or appointed to the position.
Representa- tions may be made	(5) The Superintendent must in writing notify the association and the person concerned of any action that the Superintendent proposes to take under subsection (4) and must afford them an opportunity within fifteen days after the date of the notice to make representations to the Superintendent in relation to the matter.
Prohibition	(6) Where an order has been made under subsection (4) disqualifying a person from being elected or appointed to a position, the person shall not be, and the association shall not permit the person to be, elected or appointed to the position.
	60. Subsection 442(1) of the Act is replaced by the following:
Superin- tendent may take control	442. (1) Subject to this Act, where any of the circumstances described in subsection (1.1) exist in respect of an association, the Superintendent may
	(a) take control, for a period not exceeding sixteen days, of the assets of the association and the assets held under the administration of the association; or
	(b) unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so,
	(i) take control, for a period exceeding sixteen days, of the assets of the association and the assets held under the administration of the association,
	(ii) where control of assets has been taken under paragraph (a), continue the control beyond the sixteen days referred to in that paragraph, or
	(iii) take control of the association.
Circumstan- ces for taking control	(1.1) Control by the Superintendent under subsection (1) may be taken in respect of an association where
	(a) the association has failed to pay its liabilities or, in the opinion of the Superintendent, will not be able to pay its liabilities as they become due and payable;
	(b) in the opinion of the Superintendent, a practice or state of affairs exists in respect of the association that may be materially prejudicial to the interests of its creditors;
	(c) the assets of the association are not, in the opinion of the Superintendent, sufficient to give adequate protection to its creditors;
	(d) any asset appearing on the books or records of the association or held under the administration of the association is not, in the opinion of the Superintendent, satisfactorily accounted for;
	(e) the regulatory capital of the association has, in the opinion of the Superintendent, reached a level or is eroding in a manner that may detrimentally affect its creditors; or
	(f) the association has failed to comply with an order of the Superintendent under paragraph 409(3)(a).
Notice of proposed action	(1.2) The Superintendent must notify
	(a) an association of any action proposed to be taken in respect of it under paragraph (1)(b) and of its right to make written representations to the Superintendent within the time specified in the notice, not exceeding ten days after it receives the notice; and
	(b) where the action proposed to be taken under subsection (1) is in respect of a central, within the meaning of Part XVI, the minister of the Crown in right of the province in which the central is incorporated who is responsible for the supervision of the central.
	61. Sections 443 to 445 of the Act are repealed.
	62. Sections 446 to 449 of the Act are replaced by the following:
Powers of directors and officers suspended	446. (1) Where the Superintendent takes control of an association pursuant to subparagraph 442(1)(b)(iii), the powers, duties, functions, rights and privileges of the directors of the association and of the officers of the association responsible for its management are suspended.
Superin- tendent to manage association	(2) Where the Superintendent takes control of an association pursuant to subparagraph 442(1)(b)(iii), the Superintendent shall manage the business and affairs of the association and in so doing the Superintendent
	(a) may perform any of the duties and functions that the persons referred to in subsection (1) were performing prior to the taking of control; and
	(b) has and may exercise any power, right or privilege that any such person had or could have exercised prior to the taking of control.
Persons to assist	(3) Where the Superintendent takes control of an association pursuant to subparagraph 442(1)(b)(iii), the Superintendent may appoint one or more persons to assist in the management of the association.
Expiration of control	447. Control by the Superintendent under subsection 442(1) of an association or of the assets of an association and the assets held under the administration of the association expires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the association stating that the Superintendent is of the opinion that the circumstances leading to the taking of control by the Superintendent have been substantially rectified and that the association can resume control of its business and affairs.
Superin- tendent may request winding-up	447.1 The Superintendent may, at any time before the receipt of a request under section 448 to relinquish control of an association or of the assets of an association and the assets held under the administration of the association, request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the association where
	(a) the assets of the association and the assets held under the administration of the association are under the control of the Superintendent pursuant to subparagraph 442(1)(b)(i) or (ii); or
	(b) the association is under the control of the Superintendent pursuant to subparagraph 442(1)(b)(iii).
Requirement to relinquish control	448. Where no action has been taken by the Superintendent under subsection 447.1 and, after thirty days following the taking of control by the Superintendent under subsection 442(1) of an association or of the assets of an association and the assets held under the administration of the association, the Superintendent receives from the board of directors a notice in writing requesting the Superintendent to relinquish control, the Superintendent must, not later than twelve days after receipt of the notice,
	(a) comply with the request; or
	(b) request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the association.
Advisory committee	449. The Superintendent may, from among the associations that are subject to an assessment under section 23 of the Office of the Superintendent of Financial Institutions Act and required to share in the expenses resulting from the taking of control of an association pursuant to subsection 442(1), appoint a committee of not more than six members to advise the Superintendent in respect of assets, management and all other matters pertinent to the duties and responsibilities of the Superintendent in exercising control of the association.
	63. Subsection 450(1) of the Act is replaced by the following:
Expenses payable by associations	450. (1) Where the Superintendent has taken control of an association pursuant to subparagraph 442(1)(b)(iii) and the control expires or is relinquished pursuant to section 447 or paragraph 448(a), the Superintendent may direct that the association be liable for repayment of all or part of the expenses resulting from the taking of control of the association and assessed against and paid by other associations pursuant to section 23 of the Office of the Superintendent of Financial Institutions Act, together with such interest in respect thereof at such rate as is specified by the Superintendent.
	64. Section 451 of the English version of the Act is replaced by the following:
Priority of claim in liquidation	451. In the case of the winding-up of an association, the expenses resulting from the taking of control of the association under subsection 442(1) and assessed against and paid by other associations pursuant to section 23 of the Office of the Superintendent of Financial Institutions Act, and interest in respect thereof at such rate as is specified by the Superintendent, constitute a claim of Her Majesty in right of Canada against the assets of the association that ranks after all other claims but prior to any claim in respect of the membership shares or shares of the association.
1991, c. 48, par. 498(a)	65. Subsection 462(1) of the Act is replaced by the following:
Appeal to Federal Court	462. (1) An appeal lies to the Federal Court from any direction of the Minister made under subsection 368(1).