307. Sections 598 and 599 of the Act are replaced by the following:
Definition of ``cost of borrowing''	598. For the purposes of this section and sections 598.1 to 605, ``cost of borrowing'' means, in respect of a loan or an advance on the security or against the cash surrender value of a policy made by a foreign company,
	(a) the interest or discount applicable to the loan or advance; and
	(b) such charges in connection with the loan or advance as are payable by the borrower to the foreign company, or to any person from whom the foreign company receives any charges directly or indirectly, and as are prescribed to be included in the cost of borrowing.
	For those purposes, however, ``cost of borrowing'' does not include prescribed charges.
Rebate of borrowing costs	598.1 (1) Where a foreign company makes a loan in respect of which the disclosure requirements of section 599 apply, and the loan is not secured by a mortgage on real property and is required to be repaid either on a fixed future date or by instalments, the foreign company shall, if there is a prepayment of the loan, rebate to the borrower a portion of the charges included in the cost of borrowing in respect of the loan.
Exception	(2) The charges to be rebated do not include the interest or discount applicable to the loan.
Regulations	(3) The Governor in Council may make regulations governing the rebate of charges under subsection (1). The rebate shall be made in accordance with those regulations.
Disclosing borrowing costs	599. (1) A foreign company shall not include in its assets in Canada any loan to a natural person that is repayable in Canada unless the cost of borrowing, as calculated and expressed in accordance with section 600, and other prescribed information have , in the prescribed manner and at the prescribed time , been disclosed by the foreign company to the borrower.
Non-appli- cation	(2) Subsection (1) does not apply in respect of a loan that is of a prescribed class of loans .
	308. (1) Section 601 of the Act is renumbered as subsection 601(1).
	(2) Subparagraph 601(1)(a)(i) of the Act is replaced by the following:
	(i) any terms and conditions relating to that right, including the particulars of the circumstances in which the borrower may exercise that right, and
	(3) Subsection 601(1) of the Act is amended by striking out the word ``and'' at the end of paragraph (a) and by adding the following after paragraph (b):
	(c) at such time and in such manner as may be prescribed, any changes respecting the cost of borrowing or the loan agreement as may be prescribed;
	(d) particulars of any other rights and obligations of the borrower; and
	(e) any other prescribed information, at such time and in such form and manner as may be prescribed.
	(4) Section 601 of the Act is amended by adding the following after subsection (1):
Disclosure re charge cards	(2) If a foreign company makes a loan to a natural person through the use of a credit, payment or charge card and the loan is repayable in Canada, the foreign company shall, in addition to disclosing the costs of borrowing and any charges or penalties described in paragraph (1)(b), disclose to the person, in accordance with the regulations,
	(a) particulars of the person's rights and obligations;
	(b) any charges for which the person becomes responsible by accepting or using the card;
	(c) at such time and in such manner as may be prescribed, such changes respecting the cost of borrowing or the loan agreement as may be prescribed; and
	(d) any other prescribed information, at such time and in such form and manner as may be prescribed.
Additional disclosure re other loans	(3) If a foreign company under any arrangement, including a line of credit, makes a loan in respect of which the disclosure requirements of section 599 apply and the loan is not one in respect of which subsection (1) or (2) applies, the foreign company shall, in addition to disclosing the costs of borrowing, disclose to the person, in accordance with the regulations,
	(a) any charges or penalties described in paragraph (1)(b);
	(b) particulars of the person's rights and obligations;
	(c) any charges for which the person is responsible under the arrangement;
	(d) at such time and in such manner as may be prescribed, such changes respecting the cost of borrowing under the arrangement as may be prescribed; and
	(e) any other prescribed information, at such time and in such form and manner as may be prescribed.
	309. The Act is amended by adding the following after section 601:
Renewal statement	601.1 If a foreign company makes a loan in respect of which the disclosure requirements of section 599 apply and the loan is secured by a mortgage on real property, the foreign company shall disclose to the borrower at such time and in such manner as may be prescribed, such information as may be prescribed respecting the renewal of the loan.
Disclosure in advertising	601.2 No person shall authorize the publication, issue or appearance of any advertisement in Canada relating to loans offered to natural persons by a foreign company and purporting to disclose any information about the cost of borrowing or other prescribed information unless the advertisement contains prescribed information in such form and manner as may be prescribed.
	310. Section 603 of the Act is replaced by the following:
Regulations re borrowing costs	603. The Governor in Council may make regulations
	(a) respecting the manner in which, and the time at which, a foreign company is to disclose to a borrower
	(i) the cost of borrowing,
	(ii) any rebate of the cost of borrowing, and
	(iii) any other information relating to a loan referred to in section 601;
	(b) respecting the contents of any statement disclosing the cost of borrowing and other information required to be disclosed by a foreign company to a borrower;
	(c) respecting the manner of calculating the cost of borrowing;
	(d) respecting the circumstances under which the cost of borrowing is to be expressed as an amount in dollars and cents;
	(e) specifying any class of loans that are not to be subject to section 598.1 , subsection 599(1) or 601(1) or (3) or section 601.1 or 601.2 or the regulations or any specified provisions of the regulations ;
	(f) specifying any class of advances that are not to be subject to section 602 or the regulations or any specified provisions of the regulations ;
	(g) respecting the manner in which and the time at which any rights, obligations, charges or penalties referred to in sections 598.1 to 602 are to be disclosed;
	(h) prohibiting the imposition of any charge or penalty referred to in section 601;
	(i) respecting the nature or amount of any charge or penalty referred to in section 601 and the costs of the foreign company that may be included or excluded in the determination of the charge or penalty;
	(j) requiring any charge or penalty referred to in section 601 to be reasonable;
	(k) respecting the method of calculating the amount of rebate of the cost of borrowing, or the portion of the cost of borrowing referred to in subparagraph 601(1) (a)(ii);
	(l) respecting advertisements made by a foreign company regarding loans;
	(m) respecting the renewal of loans; and
	(n) respecting such other matters or things as are necessary to carry out the purposes of sections 598.1 to 602.
	311. Paragraph 604(1)(a) of the Act is replaced by the following:
	(a) establish procedures for dealing with complaints made by customers in Canada of the foreign company about
	(i) the application of charges applicable to arrangements referred to in subsection 601(3) or payment, credit or charge cards with the foreign company, or
	(ii) the disclosure of or manner of calculating the cost of borrowing in respect of a loan repayable in Canada or an advance on the security or against the cash surrender value of a policy in Canada made by the foreign company;
	312. Subsection 605(1) of the Act is replaced by the following:
Contacting Superinten- dent	605. (1) If a customer of a foreign company has a complaint about an arrangement referred to in subsection 601(3), a payment, credit or charge card referred to in subsection 601(2) or the disclosure of or manner of calculating the cost of borrowing in respect of a loan repayable in Canada or an advance on the security or against the cash surrender value of a policy in Canada, the foreign company shall, in the prescribed manner, provide the customer with prescribed information on how to contact the Office of the Superintendent of Financial Institutions.
	313. Paragraph 606(2)(b) of the Act is replaced by the following:
	(b) that is made for business purposes and the principal amount of which is more than $100,000 or such other amount as may be prescribed.
	314. Section 607 of the Act is replaced by the following:
Regulations re customer information	607. The Governor in Council may make regulations
	(a) requiring a foreign company to establish procedures regarding the collection, retention, use and disclosure of any information about its customers in Canada or any class of customers in Canada;
	(b) requiring a foreign company to establish procedures for dealing with complaints made by a customer in Canada about the collection, retention, use or disclosure of information about the customer;
	(c) respecting the disclosure by a foreign company of information relating to the procedures referred to in paragraphs (a) and (b);
	(d) requiring a foreign company to designate the officers and employees of the company who are responsible for
	(i) implementing the procedures referred to in paragraph (b), and
	(ii) receiving and dealing with complaints made by a customer, in Canada, of the foreign bank about the collection, retention, use or disclosure of information about the customer;
	(e) requiring a foreign company to report information relating to
	(i) complaints made by its customers in Canada about the collection, retention, use or disclosure of information, and
	(ii) its actions taken to deal with the complaints; and
	(f) defining ``information'', ``collection'' and ``retention'' for the purposes of paragraphs (a) to (e) and the regulations made under those paragraphs.
	315. Subsection 612(2) of the Act is replaced by the following:
Exception	(2) Notwithstanding paragraphs (1)(a) and (c), a foreign company may vest in trust a substantial investment in the shares of a real property corporation, as defined in subsection 490(1) .
	316. Paragraph 622(a) of the Act is replaced by the following:
	(a) the transaction was entered into on terms and conditions that are at least as favourable to the foreign company as market terms and conditions, as defined in subsection 534(2) ; and
	317. Subsection 623(1) of the Act is replaced by the following:
Appointment of actuary	623. (1) A foreign company that is required by this Act to provide the Superintendent with the report of an actuary shall without delay appoint a person to be the actuary of the foreign company for its insurance business in Canada.
	318. Section 624 of the Act and the heading before it are repealed.
	319. Subsection 626(1) of the Act is replaced by the following:
Ceasing to hold office	626. (1) A person ceases to hold office as the actuary of a foreign company when
	(a) the person resigns as actuary of the foreign company;
	(b) the person ceases to be an actuary ;
	(c) the person dies; or
	(d) the appointment of the person as actuary of the foreign company is revoked by the foreign company.
1996, c. 6, s. 89	320. Subsection 629.1(1) of the Act is replaced by the following:
Superinten- dent may appoint actuary	629.1 (1) The Superintendent may appoint an actuary to value the matters referred to in paragraph 629(1)(a) or (b) in relation to a foreign company if the Superintendent is of the opinion that the appointment is necessary. That actuary may not be an actuary of the foreign company.
	321. Section 630 of the Act is replaced by the following:
Report to chief agent	630. The actuary of a foreign company shall meet with the chief agent of the foreign company at least once during each financial year in order to report, in accordance with generally accepted actuarial practice, on the financial position of the insurance business in Canada of the foreign company, and, where a direction that may be made by the Superintendent so specifies, the expected future financial condition of the foreign company as it affects its insurance business in Canada .
	322. Section 665 of the Act is amended by adding the following after subsection (3):
Accounting principles	(4) The annual return shall be prepared in accordance with the accounting principles referred to in subsection 331(4).
	323. Section 666 of the Act is repealed.
	324. Section 670 of the Act is replaced by the following:
Registers	670. (1) The Superintendent shall cause a register to be maintained in respect of each company or society for which an order has been made approving the commencement and carrying on of business.