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(b) if the Minister is not satisfied that the
transaction to which the application relates
should be approved, a notice to that effect,
advising the applicant of the right to make
representations to the Minister in respect of
the matter.
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| Notice of
decision
|
(2) Subject to subsections (4) and 362(2), if
an application involves the acquisition of
control of an association, the Minister shall,
within a period of forty-five days after the
certified date referred to in subsection 360(1),
send to the applicant
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(a) a notice approving the transaction to
which the application relates; or
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(b) if the Minister is not satisfied that the
transaction to which the application relates
should be approved, a notice to that effect,
advising the applicant of the right to make
representations to the Minister in respect of
the matter.
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| Extension of
period for
notice
|
(3) If the Minister is unable to complete the
consideration of an application within the
period referred to in subsection (1), the
Minister shall
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(a) within that period, send a notice to that
effect to the applicant; and
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(b) within a further period of thirty days
after the date of the sending of the notice
referred to in paragraph (a) or within any
other further period that may be agreed on
by the applicant and the Minister, send a
notice referred to in paragraph (1)(a) or (b)
to the applicant.
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| Further
extensions
|
(4) If the Minister considers it appropriate
to do so, the Minister may extend the period
referred to in subsection (2) for one or more
periods of forty-five days.
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302. Section 362 of the Act is renumbered
as subsection 362(1) and is amended by
adding the following:
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| Reasonable
opportunity to
make
representation
s
|
(2) If after receipt of the notice referred to
in paragraph 361(2)(b) the applicant advises
the Minister that the applicant wishes to make
representations, the Minister must provide the
applicant with a reasonable opportunity
within a period of forty-five days after the date
of the notice, or within any further period that
may be agreed on by the applicant and the
Minister, to make representations in respect of
the matter.
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303. Sections 363 and 364 of the Act are
replaced by the following:
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| Notice of
decision
|
363. (1) Within a period of thirty days after
the expiration of the period for making
representations referred to in subsection
362(1), the Minister shall, in the light of any
such representations and having regard to the
matters to be taken into account, send a notice
to the applicant indicating whether or not the
Minister approves the transaction to which the
application relates.
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| Notice of
decision
|
(2) Within a period of forty-five days after
the expiration of the period for making
representations referred to in subsection
362(2), the Minister shall, in the light of any
such representations and having regard to the
matters to be taken into account, send a notice
to the applicant indicating whether or not the
Minister approves the transaction to which the
application relates.
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| Deemed
approval
|
364. If the Minister does not send a notice
under subsection 361(1) or (3) or 363(1)
within the period provided for in those
subsections, the Minister is deemed to have
approved the transaction to which the
application relates.
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304. The portion of subsection 368(1) of
the Act before paragraph (a) is replaced by
the following:
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| Disposition of
shareholdings
|
368. (1) If, with respect to any association,
a person contravenes section 354 or 354.1 or
fails to comply with any terms and conditions
imposed under section 359, the Minister may,
if the Minister deems it in the public interest
to do so, by order,
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305. The Act is amended by adding the
following immediately before section 375:
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| 1997, c. 15,
s. 137
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306. (1) The portion of subsection 375(1)
of the Act before subparagraph (a)(i) is
replaced by the following:
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| Main business
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375. (1) Subject to this Act, an association
shall not engage in or carry on any business
other than such business as generally
appertains to the business of
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(a) providing financial services to one or
more of the following:
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| 1997, c. 15,
s. 137
|
(2) Subparagraphs 375(1)(a)(iii) to (v) of
the Act are replaced by the following:
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(ii.1) another association,
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(iii) a cooperative credit society,
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(iv) a cooperative corporation, or
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(v) an entity controlled by an entity or
group of entities described by any of
subparagraphs (i) to (iv); and
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(3) Subsection 375(3) of the Act is
replaced by the following:
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| Restriction
|
(3) Subject to any order that may be made
by the Superintendent under section 61 or 62,
an association shall not receive money on
deposit from a local cooperative credit
society, or a cooperative corporation, that is
not a member of the association.
|
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| 1997, c. 15,
s. 138
|
307. Section 376 of the Act is replaced by
the following:
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| Additional
businesses
|
375.1 (1) In addition to engaging in or
carrying on any business that an association is
permitted to engage in or carry on under
subsection 375(1), an association may, with
the approval of the Minister and subject to any
order of the Superintendent that may be made
under section 61 or 62,
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(a) provide financial services to persons or
entities that are not persons or entities
referred to in any of subparagraphs
375(1)(a)(i) to (v); or
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(b) provide clearing, settlement and
payment services to members of the
Canadian Payments Association and
engage in or carry on ancillary services
related to those clearing, settlement and
payment services.
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| Terms and
conditions
|
(2) The Minister may impose any terms and
conditions in respect of the provision of
financial services provided by a retail
association as the Minister considers
necessary or appropriate. The Minister may
also vary or revoke any of those terms and
conditions.
|
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| Regulations
|
(3) 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)(a) and (b); and
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(b) imposing terms and conditions in
respect of the provision of services and
products referred to in paragraphs (1)(a)
and (b).
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| Additional
activities
|
376. (1) In addition, an association may
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(a) hold, manage and otherwise deal with
real property;
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(b) act as a custodian of property on behalf
of any entity referred to in paragraph
375(1)(a) or, if the association is a retail
association, on behalf of any person to
whom the association may provide
financial services;
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(c) receive money on deposit, on such terms
as to interest and time and mode of
repayment as may be agreed on, from
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(i) the government of Canada, a province
or a municipality in Canada, or any
agency thereof, and
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(ii) a deposit protection agency;
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(d) make loans to and investments in
entities that are not members of the
association;
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(e) make loans to officers and employees of
the association;
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(f) provide management, investment,
administrative, advisory, educational,
promotional, technical, research and
consultative services to the entities
described in paragraph 375(1)(a);
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(g) outside Canada, or with the prior written
approval of the Minister, in Canada,
provide the following services to entities
described in paragraph 375(1)(a) or, if the
association is a retail association, to any
person:
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(i) collecting, manipulating and
transmitting
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(A) information that is primarily
financial or economic in nature,
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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 information that the
Minister may, by order, specify,
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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,
manufacture, sell 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
|
(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
|
(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
|
(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);
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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); and
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(c) respecting the circumstances in which
associations may be exempted from the
requirement to obtain the approval of the
Minister before carrying on a particular
activity referred to in paragraph (1)(g) or
(h).
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308. Paragraphs 377(a) and (b) of the Act
are 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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(b) refer any person to any such financial
institution or entity.
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309. The Act is amended by adding the
following after section 378:
|
|
| Restriction on
deposit taking
|
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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|
310. (1) The portion of subsection 379(1)
of the Act before paragraph (a) is replaced
by the following:
|
|
| Restriction on
guarantees
|
379. (1) An association shall not guarantee
on behalf of any person the payment or
repayment of any sum of money unless
|
|
| 1997, c. 15,
s. 139
|
(2) Subsection 379(2) of the French
version of the Act is replaced by the
following:
|
|
| Exception
|
(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:
|
|
| Exception
|
(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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|
311. Sections 382 and 383 of the Act are
replaced by the following:
|
|
| Restriction on
leasing
|
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.
|
|
| Restriction on
residential
mortgages
|
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.
|
|
| Exception
|
(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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