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(B) information that relates to the
business of a permitted entity, as
defined in subsection 386(1), or
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(C) any other prescribed information,
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(ii) providing advisory or other services
in the design, development or
implementation of information
management systems,
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(iii) designing, developing or marketing
computer software, and
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(iv) designing, developing,
manufacturing or selling, as an ancillary
activity to any activity referred to in any
of subparagraphs (i) to (iii) that the
association is engaging in, computer
equipment integral to the provision of
information services related to the
business of financial institutions or to the
provision of financial services;
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(h) with the prior written approval of the
Minister, develop, design, hold, manage or
otherwise deal with data transmission
systems, information sites, communication
devices or information platforms or portals
that are used
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(i) to provide information that is
primarily financial or economic in
nature,
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(ii) to provide information that relates to
the business of a permitted entity, as
defined in subsection 386(1), or
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(iii) for a prescribed purpose or in
prescribed circumstances; and
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(i) if it is a retail association,
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(i) act as a financial agent,
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(ii) provide investment counselling
services and portfolio management
services,
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(iii) issue payment, credit or charge cards
and, in cooperation with others including
other financial institutions, operate a
payment, credit or charge card plan,
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(iv) promote merchandise and services to
the holders of any payment, credit or
charge card issued by the association,
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(v) engage in the sale of
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(A) tickets, including lottery tickets,
on a non-profit public service basis in
connection with special, temporary
and infrequent non-commercial
celebrations or projects that are of
local, municipal, provincial or
national interest,
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(B) urban transit tickets, and
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(C) tickets in respect of a lottery
sponsored by the federal government
or a provincial or municipal
government or an agency of any such
government or governments, and
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(vi) act as receiver, liquidator or
sequestrator.
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| Specialized
business
management
or advisory
services
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(2) A retail association may engage, under
prescribed terms and conditions, if any are
prescribed, in specialized business
management or advisory services.
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| Restriction
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(3) Except as authorized by or under this
Act, an association shall not deal in goods or
engage in any trade or business.
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| Regulations
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(4) The Governor in Council may make
regulations
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(a) respecting what an association may or
may not do with respect to the provision of
services and products referred to in
paragraphs (1)(g) and (h) and subsection
(2) ; and
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(b) imposing terms and conditions in
respect of the provision of investment
counselling and portfolio management
services and the provision of services and
products referred to in paragraphs (1)(g)
and (h) and subsection (2) .
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296. Paragraph 377(a) of the Act is
replaced by the following:
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(a) act as agent for any entity referred to in
paragraph 375(1)(a), any member of a
cooperative credit society or, if the
association is a retail association , any other
person in respect of the provision of any
service that is provided by a financial
institution, a permitted entity as defined in
subsection 386(1) or a prescribed entity and
may enter into an arrangement with any
person in respect of the provision of that
service; or
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297. The Act is amended by adding the
following after section 378:
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| Restriction on
deposit taking
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378.1 A retail association shall not accept
deposits in Canada unless it is a member
institution within the meaning of section 2 of
the Canada Deposit Insurance Corporation
Act.
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298. (1) The portion of subsection 379(1)
of the Act before paragraph (a) is replaced
by the following:
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| Restriction on
guarantees
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379. (1) An association shall not guarantee
on behalf of any person the payment or
repayment of any sum of money unless
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| 1997, c. 15,
s. 139
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(2) Subsection 379(2) of the French
version of the Act is replaced by the
following:
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| Exception
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(2) Dans les cas où la personne visée au
paragraphe (1) est une filiale de l'association
garante, celle-ci peut garantir une somme qui
n'est pas fixe.
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(3) Subsection 379(3) of the Act is
replaced by the following:
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| Exception
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(3) Paragraph (1)(a) does not apply in
respect of a guarantee given on behalf of a
central, within the meaning of section 472, or
a local cooperative credit society if the
payment guaranteed represents the obligation
of the central or the local cooperative credit
society to settle for payment items in
accordance with the by-laws and rules of the
Canadian Payments Association.
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299. Sections 382 and 383 of the Act are
replaced by the following:
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| Restriction on
leasing
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382. An association shall not engage in
Canada in any personal property leasing
activity in which a financial leasing entity ,
within the meaning of subsection 386(1), is
not permitted to engage.
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| Restriction on
residential
mortgages
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382.1 (1) A retail association shall not make
a loan in Canada on the security of residential
property in Canada for the purpose of
purchasing, renovating or improving that
property, or refinance such a loan, 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 75% 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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(a) a loan made or guaranteed under the
National Housing Act or any other Act of
Parliament by or under which a different
limit on the value of property on the security
of which the association may make a loan is
established;
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(b) a loan if repayment of the amount of the
loan that exceeds the maximum amount set
out in subsection (1) is guaranteed or
insured by a government agency or a private
insurer approved by the Superintendent;
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(c) the acquisition by the association from
an entity of securities issued or guaranteed
by the entity that are secured on any
residential property, whether in favour of a
trustee or otherwise, or the making of a loan
by the association to the entity against the
issue of such securities; or
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(d) a loan secured by a mortgage where
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(i) the mortgage is taken back by the
association on a property disposed of by
the association, including where the
disposition is by way of a realization of a
security interest, and
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(ii) the mortgage secures payment of an
amount payable to the association for the
property.
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| Policies re
security
interests
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383. (1) The directors of an association
shall establish and the association shall adhere
to policies regarding the creation of security
interests in property of the association to
secure obligations of the association and the
acquisition by the association of beneficial
interests in property that is subject to security
interests.
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| Order to
amend
policies
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(2) The Superintendent may, by order,
direct an association to amend its policies as
specified in the order.
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| Compliance
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(3) An association shall comply with an
order made under subsection (2) within the
time specified in the order.
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| Regulations
and guidelines
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383.1 The Governor in Council may make
regulations and the Superintendent may make
guidelines respecting the creation by an
association of security interests in its property
to secure obligations of the association and the
acquisition by the association of beneficial
interests in property that is subject to security
interests.
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| Exception
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383.2 Sections 383 and 383.1 do not apply
in respect of a security interest created by an
association to secure an obligation of the
association to the Bank of Canada or the
Canada Deposit Insurance Corporation.
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300. Subsection 385(1) of the Act is
replaced by the following:
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| Restriction on
partnerships
|
385. (1) Except with the approval of the
Superintendent, an association may not be a
general partner in a limited partnership or a
partner in a general partnership.
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301. The Act is amended by adding the
following after section 385:
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| Deposit
acceptance
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385.01 (1) A retail association may, without
the intervention of any other person,
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(a) accept a deposit from any person
whether or not the person is qualified by law
to enter into contracts; and
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(b) pay all or part of the principal of the
deposit and all or part of the interest on that
principal to or to the order of that person.
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| Exception
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(2) Paragraph (1)(b) does not apply if,
before payment, the money deposited in the
association pursuant to paragraph (1)(a) is
claimed by some other person
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(a) in any action or proceeding to which the
association is a party and in respect of
which service of a writ or other process
originating that action or proceeding has
been made on the association; or
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(b) in any other action or proceeding
pursuant to which an injunction or order
made by the court requiring the association
not to make payment of that money or make
payment thereof to some person other than
the depositor has been served on the
association.
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If such a claim is made, the money so
deposited may be paid to the depositor with
the consent of the claimant or to the claimant
with the consent of the depositor.
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| Execution of
trust
|
385.02 (1) An association is not bound to
see to the execution of any trust to which any
deposit made under the authority of this Act is
subject.
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| Payment
when
association
has notice of
trust
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(2) Subsection (1) applies regardless of
whether the trust is express or arises by the
operation of law, and it applies even when the
association has notice of the trust if it acts on
the order of or under the authority of the holder
or holders of the account into which the
deposit is made.
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| Unclaimed
balances
|
385.03 (1) Where
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(a) a deposit has been made in Canada that
is payable in Canada in Canadian currency
and in respect of which no transaction has
taken place and no statement of account has
been requested or acknowledged by the
creditor during a period of ten years
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(i) in the case of a deposit made for a
fixed period, from the day on which the
fixed period terminated, and
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(ii) in the case of any other deposit, from
the day on which the last transaction took
place or a statement of account was last
requested or acknowledged by the
creditor, whichever is later, or
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(b) a cheque, draft or bill of exchange
(including any such instrument drawn by
one branch of a retail association on another
branch of the association but not including
such an instrument issued in payment of a
dividend on the capital of an association)
payable in Canada in Canadian currency
has been issued, certified or accepted by an
association in Canada and no payment has
been made in respect of the instrument for
a period of ten years after the date of issue,
certification, acceptance or maturity,
whichever is later,
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the retail association shall pay to the Bank of
Canada not later than December 31 in each
year an amount equal to the principal amount
of the deposit or instrument, plus interest, if
any, calculated in accordance with the terms
of the deposit or instrument, and payment
accordingly discharges the association from
all liability in respect of the deposit or
instrument.
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| Particulars
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(2) A retail association shall, on making a
payment under subsection (1), provide the
Bank of Canada, for each deposit or
instrument in respect of which the payment is
made, with all the particulars of the deposit or
instrument listed in subsection 431.1(3) or
431.2(2), as the case may be, current as of the
day the payment is made.
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| Payment to
claimant
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(3) Subject to section 22 of the Bank of
Canada Act, if a payment has been made to the
Bank of Canada under subsection (1) in
respect of any deposit or instrument, and if
payment is demanded or the instrument is
presented at the Bank of Canada by the person
who, but for that section, would be entitled to
receive payment of the deposit or instrument,
the Bank of Canada is liable to pay, at its
agency in the province in which the deposit or
instrument was payable, an amount equal to
the amount so paid to it together with interest,
if interest was payable under the terms of the
deposit or instrument,
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(a) for a period not exceeding ten years
from the day on which the payment was
received by the Bank of Canada until the
date of payment to the claimant; and
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(b) at the rate and computed in the manner
that the Minister determines.
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| Enforcing
liability
|
(4) The liability of the Bank of Canada
under subsection (3) may be enforced by
action against the Bank of Canada in the court
in the province in which the deposit or
instrument was payable.
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| Application of
subsection (1)
|
(5) Subsection (1) applies only in respect of
deposits made, and cheques, drafts and bills of
exchange issued, certified or accepted, after
the day that subsection comes into force.
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| Notice of
unpaid
amount
|
385.04 (1) A retail association shall mail to
each person, insofar as is known to the
association, to whom a deposit referred to in
paragraph 385.03(1)(a) is payable, or to
whom or at whose request an instrument
referred to in paragraph 385.03(1)(b) was
issued, certified or accepted, at the person's
recorded address, a notice stating that the
deposit or instrument remains unpaid.
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| When notice
to be given
|
(2) A notice required by subsection (1) must
be given during the month of January next
following the end of the first two year period,
and also during the month of January next
following the end of the first five year period,
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(a) in the case of a deposit made for a fixed
period, after the fixed period has
terminated;
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(b) in the case of any other deposit in respect
of which no transaction has taken place and
no statement of account has been requested
or acknowledged by the creditor; and
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(c) in the case of a cheque, draft or bill of
exchange, in respect of which the
instrument has remained unpaid.
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