Additional
activities
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(2) A society may
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By-law
required
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(3) A society shall not carry on the business
of insuring risks unless it is authorized to do so
by a by-law of the society passed on the
recommendation of the society's actuary and
approved by the Superintendent.
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Classes of
insurance
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(4) A society shall not insure a risk that is
not within a class of insurance that is specified
in the order of the Superintendent approving
the commencement and carrying on of
business by the society. The classes that may
be specified in that order are the class of life
insurance, the class of accident and sickness
insurance or both of those classes.
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Restriction on
leasing
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(5) A society shall not engage in Canada in
any financial leasing of personal property.
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Separate
accounts
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542.01 A society shall maintain a separate
account in respect of each class of insurance
in which it is authorized to insure risks.
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Actuary's
certificate
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542.02 A society's actuary shall certify
whether the society's rates of benefit are
reasonable, and whether the amounts of
insurance to be issued by the society are
reasonable, having regard to
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Segregated
fund
restriction
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542.03 (1) Only a society that is authorized
to insure risks within the class of life insurance
may
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Segregated
funds required
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(2) A society that issues policies described
in paragraph (1)(a) or accepts or retains
amounts described in paragraph (1)(b) shall
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Creation and
maintenance
of segregated
funds
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(3) For the purpose of establishing or
maintaining a segregated fund required by
subsection (2), a society may, subject to the
regulations, transfer an amount to the separate
account maintained in respect of the
segregated fund.
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Transfers
from
segregated
funds
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(4) A society may, with the approval of the
Superintendent, return the current value of an
amount transferred under subsection (3) to the
account from which the amount was
transferred.
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Claims against
segregated
funds
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(5) A claim against a segregated fund
maintained under subsection (2) under a
policy, or for an amount in respect of which the
fund is maintained, has priority over any other
claim against the assets of that fund, including
the claims referred to in section 161 of the
Winding-up and Restructuring Act, except to
the extent that the payment of that other claim
is secured by a security interest in or on a
specific, identifiable asset of the segregated
fund.
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Where fund
can satisfy
claim
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(6) The liability of a society under a policy
or for an amount in respect of which a
segregated fund is maintained under
subsection (2) does not, except to the extent
that the assets of the fund are insufficient to
satisfy a claim for any minimum amount that
the society agrees to pay under the policy or in
respect of the amount, give rise to a claim
against any assets of the society, other than the
assets of that fund.
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Where fund
cannot satisfy
claim
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(7) To the extent that the assets of the fund
are insufficient to satisfy the liability of a
society under a policy or for an amount in
respect of which a segregated fund is
maintained under subsection (2), that liability
gives rise to a claim against the assets of the
society, other than the assets of that fund, and
that claim has the priority referred to in
subsection 161(2) of the Winding-up and
Restructuring Act.
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Regulations
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542.04 (1) The Governor in Council may
make regulations limiting the extent to which
a society may cause itself to be reinsured
against risks undertaken by it.
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Regulation
may delegate
to Superin- tendent
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(2) A regulation made under subsection (1)
may provide that the Superintendent may, by
order, determine the matters or exercise the
discretion that the regulation specifies.
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Annuities
restriction
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542.05 A society may issue annuities in
Canada only if it is authorized to insure risks
within the class of life insurance.
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Residential
mortgages
restriction
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542.06 (1) A society shall not make a loan
in Canada on the security of residential
property in Canada for the purpose of
purchasing, renovating or improving the
property, if the amount of the loan, together
with the amount then outstanding of any
mortgage having an equal or prior claim
against the property, would exceed
seventy-five per cent of the value of the
property at the time of the loan.
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Exception
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(2) Subsection (1) does not apply in respect
of
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Restriction on
security
interests
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542.07 (1) Subject to subsection (3), a
society shall not create a security interest in
any property of the society as security for an
obligation of the society unless
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Encumbered
property
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(2) A society shall notify the
Superintendent in writing of any beneficial
interest in real and personal property acquired
by the society, other than by way of
realization, that is subject to a security
interest.
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Exceptions
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(3) Subsection (1) does not apply in respect
of security interests created on
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Restriction on
receivers
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542.08 A society shall not grant to a person
the right to appoint a receiver or a receiver and
manager of the property or business of the
society.
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Restriction on
partnerships
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542.09 Except by order of the
Superintendent, a society shall not be a
general partner in a limited partnership or a
partner in any partnership other than a limited
partnership.
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General
restriction
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542.1 (1) A society shall not, and shall not
permit its prescribed subsidiaries to, enter into
any debt obligation, within the meaning
assigned to that expression by the regulations,
or permit its prescribed subsidiaries to issue
any share, other than a common share, if as a
result the aggregate of the total debt
obligations of the society, determined in the
prescribed manner, and the stated capital of
the society would exceed the prescribed
percentage of the total assets of the society.
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Exception
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(2) A society need not include in the
aggregate amount calculated for the purpose
of subsection (1) the value of any debt
obligation or the stated capital of any shares if
the value of the debt obligation or the stated
capital of the shares is included as part of the
regulatory capital of the society.
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Restriction on
guarantees
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542.11 (1) A society shall not guarantee on
behalf of any person other than itself the
payment or repayment of any sum of money
unless
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Exception
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(2) Paragraph (1)(a) does not apply where
the person on whose behalf the society has
undertaken to guarantee a payment or
repayment is a subsidiary of the society.
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Regulations
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(3) The Governor in Council may make
regulations imposing terms and conditions in
respect of guarantees permitted by this
section.
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Prepayment
protected
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542.12 (1) A society shall not make a loan
to a natural person if the loan would be
repayable in Canada and the terms would
prohibit prepayment of the money advanced
or any instalment of that money before its due
date.
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Non- application of subsection (1)
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(2) Subsection (1) does not apply in respect
of a loan
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286. (1) Subsection 544(1) of the French
version of the Act is replaced by the
following:
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Siège
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544. (1) La société de secours maintient en
permanence un siège au Canada, au lieu
indiqué dans son acte constitutif ou ses
règlements administratifs.
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(2) Section 544 of the Act is amended by
adding the following after subsection (2):
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Change of
head office
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(2.1) The supreme governing body of a
society may, by resolution passed and
approved by at least two-thirds of the votes
cast at a meeting, change the address of the
head office within the place specified in the
society's by-laws.
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Notice of
change of
address
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(2.2) If there is a change of address of the
head office of a society, the society shall send
a notice of the change to the Superintendent
within fifteen days after the change.
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287. Section 548 of the Act is amended by
adding the following after subsection (2):
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Copies to
Superin- tendent
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(3) Within thirty days after a by-law of a
society comes into effect or is amended, the
society shall send a copy of the by-law or the
amendment to the Superintendent. A society
shall send to the Superintendent, within six
months after the coming into force of this
subsection, its by-laws that are in effect on the
coming into force of this subsection.
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288. The portion of subsection 549(1) of
the Act before paragraph (a) is replaced by
the following:
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Return
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549. (1) Every society shall, each year
before June 30 of that year, provide the
Superintendent with a return showing
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289. Section 550 of the Act is amended by
striking out the word ``or'' at the end of
paragraph (a), by adding the word ``or'' at
the end of paragraph (b) and by adding the
following after paragraph (b):
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290. (1) Subsection 552(1) of the Act is
replaced by the following:
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Restriction on
substantial
investments
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552. (1) Subject to subsections (1.1) and (2),
no society shall acquire or increase a
substantial investment in any entity, other than
an entity referred to in section 554 or 555.
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Exception -
indirect
investment
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(1.1) A society may acquire or increase a
substantial investment in an entity, other than
an entity referred to in section 554 or 555, by
way of
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(2) The portion of subsection 552(2) of the
Act before paragraph (a) is replaced by the
following:
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Exception -
temporary
investments,
realizations
and loan
work-outs
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(2) A society may acquire or increase a
substantial investment in an entity by way of
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291. (1) Paragraph 554(1)(a) of the Act is
replaced by the following:
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(2) Subsection 554(1) of the Act is
amended by adding the following after
paragraph (e):
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(3) Subsection 554(1) of the Act is
amended by adding the following after
paragraph (g):
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(4) Paragraph 554(2)(b) of the Act is
replaced by the following:
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