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Restriction
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(3) A society may not acquire control of, or
acquire or increase a substantial investment
in, an entity whose business includes any
activity referred to in any of paragraphs (2)(a)
to (e) if the entity engages in the business of
accepting deposit liabilities or if the activities
of the entity include
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Control
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(4) Subject to subsection (6) and the
regulations, a society may not acquire control
of, or acquire or increase a substantial
investment in,
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Minister's
approval
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(5) Subject to the regulations, a society may
not, without the prior written approval of the
Minister, acquire control of, or acquire or
increase a substantial investment in, a
permitted entity.
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Control not
required
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(6) A society need not control an entity
referred to in paragraph (1)(c), or an entity that
is incorporated or formed otherwise than by or
under an Act of Parliament or of the
legislature of a province, if the laws or
customary business practices of the country
under the laws of which the entity was
incorporated or formed do not permit the
society to control the entity.
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Prohibition on
giving up
control in fact
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(7) A society that, under subsection (4),
controls an entity may not, without the prior
written approval of the Minister, give up
control, within the meaning of paragraph
3(1)(d), of the entity while it continues to
control the entity.
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Subsections
do not apply
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(8) If a society controls, within the meaning
of paragraph 3(1)(a), (b) or (c), an entity,
subsection (5) does not apply in respect of any
subsequent increases by the society to its
substantial investment in the entity so long as
the society continues to control the entity.
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Regulations
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(9) The Governor in Council may make
regulations
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Approval for
indirect
investments
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555. If a society obtains the approval of the
Minister under subsection 554(5) to acquire
control of, or to acquire or increase a
substantial investment in, an entity and,
through that acquisition or increase, the
society indirectly acquires control of, or
acquires or increases a substantial investment
in, another entity that would require the
approval of the Minister under subsection
554(5) and that indirect acquisition or
increase is disclosed to the Minister in writing
before the approval is obtained, the society is
deemed to have obtained the approval of the
Minister for that indirect acquisition or
increase.
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Undertakings
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556. (1) If a society controls a permitted
entity, other than an entity referred to in any of
paragraphs 554(1)(a) to (c), the society shall
provide the Superintendent with any
undertakings that the Superintendent may
require regarding
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Undertakings
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(2) If a society acquires control of an entity
referred to in paragraph 554(1)(b) or (c), the
society shall provide the Superintendent with
any undertakings concerning the entity that
the Superintendent may require.
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Agreements
with other
jurisdictions
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(3) The Superintendent may enter into an
agreement with the appropriate official or
public body responsible for the supervision of
any entity referred to in paragraph 554(1)(b)
or (c) in each province or in any other
jurisdiction concerning any matters referred
to in paragraphs (1)(a) and (b) or any other
matter the Superintendent considers
appropriate.
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Access to
records
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(4) Despite any other provision of this Part,
a society shall not control a permitted entity,
other than an entity referred to in paragraph
554(1)(a), unless, in the course of the
acquisition of control or within a reasonable
time after the control is acquired, the society
obtains from the permitted entity an
undertaking to provide the Superintendent
with reasonable access to the records of the
permitted entity.
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Exceptions and Exclusions
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Temporary
investments in
entity
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557. (1) Subject to subsection (4), a society
may, by way of a temporary investment,
acquire control of, or acquire or increase a
substantial investment in, an entity but, within
two years, or any other period that may be
specified or approved by the Superintendent,
after acquiring control or after acquiring or
increasing the substantial investment, as the
case may be, it shall do all things necessary to
ensure that it no longer controls the entity or
has a substantial investment in the entity.
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Transitional
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(2) Despite subsection (1), if a society that
was in existence immediately before June 1,
1992 had an investment in an entity on
September 27, 1990 that is a substantial
investment within the meaning of section 10
and the society subsequently increases that
substantial investment by way of a temporary
investment, the society shall, within two
years, or any other period that is specified or
approved by the Superintendent, after
increasing the substantial investment, do all
things necessary to ensure that its substantial
investment in the entity is no greater than it
was on September 27, 1990.
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Extension
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(3) The Superintendent may, in the case of
any particular society that makes an
application under this subsection, extend the
period of two years, or the other period
specified or approved by the Superintendent,
that is referred to in subsection (1) or (2) for
any further period or periods, and on any terms
and conditions, that the Superintendent
considers necessary.
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Temporary
investment
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(4) If a society, by way of temporary
investment, acquires control of, or acquires or
increases a substantial investment in, an entity
for which the approval of the Minister under
subsection 554(5) is required, the society
must, within 90 days after acquiring control or
after acquiring or increasing the substantial
investment,
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Loan
workouts
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558. (1) Despite anything in this Part, if a
society or any of its subsidiaries has made a
loan to an entity and, under the terms of the
agreement between the society, or any of its
subsidiaries, and the entity with respect to the
loan and any other documents governing the
terms of the loan, a default has occurred, the
society may acquire
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Obligation
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(2) If a society acquires shares or ownership
interests in an entity under subsection (1), the
society shall, within five years after acquiring
them, do all things necessary to ensure that the
society does not control the entity or have a
substantial investment in the entity.
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Transitional
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(3) Despite subsection (1), if a society that
was in existence immediately before June 1,
1992 had an investment in an entity on
September 27, 1990 that is a substantial
investment within the meaning of section 10
and the society later increases that substantial
investment by way of an investment made
under subsection (1), the society shall, within
five years after increasing the substantial
investment, do all things necessary to ensure
that its substantial investment in the entity is
no greater than it was on September 27, 1990.
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Extension
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(4) The Superintendent may, in the case of
any particular society that makes an
application under this subsection, extend the
period of five years referred to in subsection
(2) or (3) for any further period or periods, and
on any terms and conditions, that the
Superintendent considers necessary.
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Exception -
entities
controlled by
foreign
governments
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(5) Despite anything in this Part, if a society
has made a loan to, or holds a debt obligation
of, the government of a foreign country or an
entity controlled by the government of a
foreign country and, under the terms of the
agreement between the society and that
government or the entity, as the case may be,
and any other documents governing the terms
of the loan or debt obligation, a default has
occurred, the society may acquire all or any of
the shares of, or ownership interests in, that
entity or in any other entity designated by that
government, if the acquisition is part of a debt
restructuring program of that government.
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Time for
holding shares
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(6) If a society acquires any shares or
ownership interests under subsection (5), the
society may, on any terms and conditions that
the Superintendent considers appropriate,
hold those shares or ownership interests for an
indeterminate period or for any other period
that the Superintendent may specify.
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Exception
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(7) If, under subsection (1), a society
acquires control of, or acquires or increases a
substantial investment in, an entity that it
would otherwise be permitted to acquire or
increase under section 554, the society may
retain control of the entity or continue to hold
the substantial investment for an
indeterminate period, if the approval in
writing of the Minister is obtained before the
end of the period referred to in subsection (2)
or (3), including any extension of it granted
under subsection (4).
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Realizations
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559. (1) Despite anything in this Act, a
society may acquire
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if the investment or interest is acquired
through the realization of a security interest
held by the society or any of its subsidiaries.
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Disposition
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(2) If a society acquires control of, or
acquires a substantial investment in, an entity
by way of the realization of a security interest
held by the society or any of its subsidiaries,
the society shall, within five years after the
day on which control or the substantial
investment is acquired, do all things
necessary, or cause its subsidiary to do all
things necessary, as the case may be, to ensure
that the society no longer controls the entity or
has a substantial investment in the entity.
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Transitional
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(3) Despite subsection (2), if a society that
was in existence immediately before June 1,
1992 had an investment in an entity on
September 27, 1990 that is a substantial
investment within the meaning of section 10
and the society later increases that substantial
investment by way of a realization of a
security interest under subsection (1), the
society shall, within five years after increasing
the substantial investment, do all things
necessary to ensure that its substantial
investment in the entity is no greater than it
was on September 27, 1990.
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Extension
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(4) The Superintendent may, in the case of
any particular society that makes an
application under this subsection, extend the
period of five years referred to in subsection
(2) or (3) for any further period or periods, and
on any terms and conditions, that the
Superintendent considers necessary.
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Exception
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(5) If, under subsection (1), a society
acquires control of, or acquires or increases a
substantial investment in, an entity that it
would otherwise be permitted to acquire or
increase under section 554, the society may
retain control of the entity or continue to hold
the substantial investment for an
indeterminate period if the approval in writing
of the Minister is obtained before the end of
the period referred to in subsection (2) or (3),
including any extension of it granted under
subsection (4).
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Regulations
restricting
ownership
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560. The Governor in Council may make
regulations restricting the ownership under
sections 554 to 559 by a society of shares of a
body corporate or of ownership interest in an
unincorporated entity and imposing terms and
conditions applicable to societies that own
such shares or interests.
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438. Paragraph 562(b) of the Act is
replaced by the following:
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1993, c. 34,
s. 84(F);
1997, c. 15,
ss. 295 and
296
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439. Sections 563 to 566 of the Act are
replaced by the following:
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Limit on total
property
interest
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563. A society shall not, and shall not
permit its prescribed subsidiaries to,
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if the aggregate value of all interests of the
society in real property exceeds, or the
acquisition of the interest or the making of the
improvement would cause that aggregate
value to exceed, an amount determined in
accordance with the regulations.
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Regulations
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564. For the purposes of this Part, the
Governor in Council may make regulations
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Equities
|
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Limits on
equity
acquisitions
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565. A society shall not, and shall not
permit its prescribed subsidiaries to,
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if the aggregate value of
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