1997, c. 15, s. 43	102. Subsection 413(2) of the Act is repealed.
1997, c. 15, s. 43	103. (1) Subsection 413.1(1) of the Act is replaced by the following:
Notice before opening account	413.1 (1) Before a bank to which paragraph 413(1)(b) applies opens a deposit account in Canada, the bank shall give the person requesting the opening of the account, in the prescribed manner,
	(a) a notice in writing that the deposit will not be insured by the Canada Deposit Insurance Corporation; and
	(b) any other information that may be prescribed.
1997, c. 15, s. 43	(2) Subsection 413.1(3) of the Act is replaced by the following:
Regulations	(3) The Governor in Council may make regulations
	(a) prescribing the manner in which notices referred to in subsection (1) are to be given and the additional information to be contained in the notices; and
	(b) respecting notices for the purpose of subsection (2).
	104. The Act is amended by adding the following after section 413.1:
Deposits less than $150,000	413.2 (1) Subject to the regulations, a bank to which paragraph 413(1)(b) applies may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.
Meaning of ``deposit''	(2) In this section, ``deposit'' has the meaning assigned to that term by subsection 413(5).
Regulations	(3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, a bank referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.
Shared premises	413.3 (1) Subject to the regulations, no bank to which paragraph 413(1)(b) applies shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the bank.
Limitation	(2) Subsection (1) only applies in respect of premises or any portion of premises on which both the bank and the member institution carry on business with the public and to which the public has access.
Adjacent premises	(3) Subject to the regulations, no bank to which paragraph 413(1)(b) applies shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the bank, unless the bank clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution.
Regulations	(4) The Governor in Council may make regulations
	(a) respecting the circumstances in which, and the conditions under which, a bank to which paragraph 413(1)(b) applies may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and
	(b) respecting the circumstances in which, and the conditions under which, a bank to which paragraph 413(1)(b) applies may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3).
	105. (1) The portion of subsection 414(1) of the Act before paragraph (a) is replaced by the following:
Restriction on guarantees	414. (1) A bank shall not guarantee on behalf of any person the payment or repayment of any sum of money unless
1997, c. 15, s. 44	(2) Subsection 414(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 la banque garante, celle-ci peut garantir une somme qui n'est pas fixe.
	106. Section 417 of the Act is replaced by the following:
Restriction on leasing	417. A bank shall not engage in Canada in any personal property leasing activity in which a financial leasing entity, as defined in subsection 464(1), is not permitted to engage.
	107. Section 419 of the Act is replaced by the following:
Policies re security interests	419. (1) The directors of a bank shall establish and the bank shall adhere to policies regarding the creation of security interests in property of the bank to secure obligations of the bank and the acquisition by the bank of beneficial interests in property that is subject to security interests.
Order to amend policies	(2) The Superintendent may, by order, direct a bank to amend its policies as specified in the order.
Compliance	(3) A bank shall comply with an order made under subsection (2) within the time specified in the order.
Regulations and guidelines	419.1 The Governor in Council may make regulations and the Superintendent may make guidelines respecting the creation by a bank of security interests in its property to secure obligations of the bank and the acquisition by the bank of beneficial interests in property that is subject to security interests.
Exception	419.2 Sections 419 and 419.1 do not apply in respect of a security interest created by a bank to secure an obligation of the bank to the Bank of Canada or the Canada Deposit Insurance Corporation.
	108. Subsection 421(1) of the Act is replaced by the following:
Restriction on partnerships	421. (1) Except with the approval of the Superintendent, a bank may not be a general partner in a limited partnership or a partner in a general partnership.
	109. Subsection 422(1) of the Act is repealed.
1999, c. 28, s. 22	110. Section 422.1 of the Act is replaced by the following:
Definition of ``non-WTO Member bank subsidiary''	422.1 In section 422.2, ``non-WTO Member bank subsidiary'' means a bank that is a subsidiary of a foreign bank and that is not controlled by a WTO Member resident.
	111. Subsection 437(3) of the Act is replaced by the following:
Execution of trust	(3) A bank is not bound to see to the execution of any trust to which any deposit made under the authority of this Act is subject.
Payment when bank has notice of trust	(4) Subsection (3) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the bank 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.
	112. The heading ``Interest and Charges'' before section 440 of the Act is repealed.
	113. The Act is amended by adding the following before section 440 of the Act:
Definitions	439.1 The following definitions apply in this section and in sections 445 to 448.2, 458.1, 459.2 and 459.4.
``low-fee retail deposit account'' « compte de dépôt de détail à frais modiques »	``low-fee retail deposit account'' means a retail deposit account that has the prescribed characteristics.
``member bank'' « banque membre »	``member bank'' means a bank that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act.
``personal deposit account'' « compte de dépôt personnel »	``personal deposit account'' means a deposit account in the name of one or more natural persons that is kept by that person or those persons for a purpose other than that of carrying on business.
``retail deposit account'' « compte de dépôt de détail »	``retail deposit account'' means a personal deposit account that is opened with a deposit of less than $150,000 or any greater amount that may be prescribed.
	114. Subsection 441(2) of the Act is replaced by the following:
Exception	(2) Subsection (1) does not apply in respect of an interest-bearing deposit account that is opened with a deposit in excess of $150,000 or any greater amount that may be prescribed.
	115. Section 444 of the Act is repealed.
1997, c. 15, s. 48	116. (1) The portion of subsection 445(1) of the Act before paragraph (a) is replaced by the following:
Disclosure required on opening a deposit account	445. (1) Subject to subsections (2) to (4), a bank shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, the bank provides in writing to the individual who requests the opening of the account
1997, c. 15, s. 48	(2) Subsections 445(2) to (5) of the Act are replaced by the following:
Exception	(2) If a deposit account is not a personal deposit account and the amount of a charge applicable to the account cannot be established at or before the time the account is opened, the bank shall, as soon as is practicable after the amount is established, provide the customer in whose name the account is kept with a notice in writing of the amount of the charge.
Exception	(3) If a bank has a deposit account in the name of a customer and the customer by telephone requests the opening of another deposit account in the name of the customer and the bank has not complied with subsection (1) in respect of the opening of that other account, the bank shall not open the account unless it provides the customer orally with any information prescribed at or before the time the account is opened.
Disclosure in writing	(4) If a bank opens an account under subsection (3), it shall, not later than seven business days after the account is opened, provide to the customer in writing the agreement and information referred to in subsection (1).
Right to close account	(5) A customer may, within 14 business days after a deposit account is opened under subsection (3), close the account without charge and in such case is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open.
Regulations	(6) For the purposes of subsection (4), the Governor in Council may make regulations prescribing circumstances in which, and the time when, the agreement and information will be deemed to have been provided to the customer.
	117. Section 448 of the Act is replaced by the following:
Application	448. Sections 445 to 447 apply only in respect of charges applicable to deposit accounts with the bank in Canada and services provided by the bank in Canada.
Retail deposit accounts	448.1 (1) Subject to regulations made under subsection (3), a member bank shall, at any prescribed point of service in Canada or any branch in Canada at which it opens retail deposit accounts through a natural person, open a retail deposit account for an individual who meets the prescribed conditions at his or her request made there in person.
No minimum deposit or balance requirements	(2) A member bank shall not require that, in the case of an account opened under subsection (1), the individual make an initial minimum deposit or maintain a minimum balance.
Regulations	(3) The Governor in Council may make regulations
	(a) for the purposes of subsection (1), defining ``point of service'' and prescribing points of service;
	(b) respecting circumstances in which subsection (1) does not apply; and
	(c) prescribing conditions to be met by an individual for the purposes of subsection (1).
Low-fee retail deposit accounts - regulations	448.2 The Governor in Council may make regulations
	(a) requiring a member bank, at any prescribed point of service in Canada or any branch referred to in subsection 448.1(1), to open a low-fee retail deposit account for an individual who meets the prescribed conditions at his or her request made there in person;
	(b) for the purposes of paragraph (a), defining ``point of service'' and prescribing points of service;
	(c) prescribing the characteristics, including the name, of a low-fee retail deposit account;
	(d) respecting circumstances in which a regulation made under paragraph (a) does not apply; and
	(e) prescribing conditions to be met by an individual for the purposes of paragraph (a).
	118. Section 449 of the Act, as enacted by section 49 of An Act to amend certain laws relating to financial institutions, being chapter 15 of the Statutes of Canada, 1997, is replaced by the following:
Definition of ``cost of borrowing''	449. For the purposes of this section and sections 449.1 to 456, ``cost of borrowing'' means, in respect of a loan made by a bank,
	(a) the interest or discount applicable to the loan;
	(b) any amount charged in connection with the loan that is payable by the borrower to the bank; and
	(c) any charge prescribed to be included in the cost of borrowing.
	For those purposes, however, ``cost of borrowing'' does not include any charge prescribed to be excluded from the cost of borrowing.
	119. The Act is amended by adding the following before section 455:
	Complaints
	120. (1) Paragraph 455(1)(a) of the Act is replaced by the following:
	(a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from a bank;
	(2) If this section comes into force before paragraph 455(1)(a) of the Act, as enacted by section 52 of An Act to amend certain laws relating to financial institutions, being chapter 15 of the Statutes of Canada, 1997, comes into force, then section 52 of that Act is repealed.
	(3) Subsection 455(2) of the Act is replaced by the following:
Procedures to be filed with Commissioner	(2) A bank shall file with the Commissioner a copy of its procedures established under paragraph (1)(a).
	121. The Act is amended by adding the following after section 455:
Designation of complaints body	455.1 (1) The Minister may, for the purposes of this section, designate a body corporate incorporated under Part II of the Canada Corporations Act whose purpose, in the view of the Minister, under its letters patent is dealing with complaints, made by persons having requested or received products or services from its member financial institutions, that have not been resolved to the satisfaction of those persons under procedures established by those financial institutions under paragraph 455(1)(a).
Obligation to be member	(2) A bank shall be a member of any body corporate that is designated under subsection (1).