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Bill C-82

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Oath of directors and staff

16. Before a person starts to act as a director, officer or employee of the Bank, the person shall take an oath, or make a solemn affirmation, of fidelity and secrecy before a commissioner for taking affidavits. The oath or solemn affirmation must be in the form set out in Schedule I.

98. (1) Section 18 of the Act is amended by adding the following after paragraph (g):

    (g.1) buy and sell any other securities, treasury bills, obligations, bills of exchange or promissory notes in accordance with the policies, standards and procedures established by the Bank under section 19;

1992, c. 1, s. 142(1) (Sch. V, item 6(2))

(2) Paragraph 18(l) of the Act is replaced by the following:

    (l) accept deposits from the Government of Canada and pay interest on those deposits;

    (l.1) accept deposits from any bank or other member of the Canadian Payments Association;

    (l.2) pay interest on the deposits referred to in paragraph (l.1) if the money deposited is to be used for the purpose of making loans or advances referred to in paragraph (h);

    (l.3) accept deposits from the government of any province or from any corporation or agency of the Government of Canada;

1992, c. 1, s. 142(1) (Sch. V, item 6(2))

(3) Paragraphs 18(n) to (p) of the Act are replaced by the following:

    (n) acquire, hold, lease or dispose of real property;

    (o) accept deposits of money that are authorized or required by an Act of Parliament to be transferred to the Bank, and, in accordance with that Act, pay interest on money so deposited and pay out money to any person entitled to it under that Act; and

    (p) carry on any business activity that is incidental to or consequential on something the Bank is allowed or required to do by this Act.

99. The Act is amended by adding the following after section 18:

Investment policies

19. (1) The Bank shall establish policies, standards and procedures in accordance with which it may buy and sell securities or instruments referred to in paragraph 18(g.1). Those policies, standards and procedures must be consistent with the ones that a reasonable and prudent person would apply in respect of a portfolio of investments to avoid undue risks.

Policies to be published

(2) The Bank shall cause the policies, standards and procedures established under subsection (1) to be published in the Canada Gazette.

1991, c. 46, s. 582

100. Subsection 22(1) of the Act is replaced by the following:

Time limit for unpaid debts

22. (1) The Bank is not liable in respect of any unpaid debt in respect of which a federal financial institution has made a payment to the Bank under the relevant Act in respect of the federal financial institution if

    (a) the amount paid to the Bank was less than $500; and

    (b) at least twenty years have gone by since the later of

      (i) the last time a transaction took place on the books of the federal financial institution in respect of the unpaid debt, and

      (ii) the last time a statement of account was requested of or acknowledged to the federal financial institution by the former creditor in respect of the unpaid debt.

Time limit for instruments

(1.1) The Bank is not liable in respect of any instrument in respect of which a federal financial institution has made a payment to the Bank under the relevant Act in respect of the federal financial institution if

    (a) the amount paid to the Bank was less than $500; and

    (b) no payment has been made in respect of the instrument for at least twenty years after the day the instrument was issued or accepted.

Time limit for liquidation claims

(1.2) The Bank is not liable in respect of any claim against a liquidator in respect of the winding-up of a federal financial institution if

    (a) the amount of the claim has been paid to the Minister and by the Minister to the Bank under the relevant Act in respect of the federal financial institution;

    (b) the amount paid to the Bank was less than $500; and

    (c) at least twenty years have gone by since the later of

      (i) the last time a transaction took place on the books of the federal financial institution in respect of the subject-matter of the claim, and

      (ii) the last time a statement of account was requested of or acknowledged to the federal financial institution by the former creditor in respect of the subject-matter of the claim.

101. Paragraph 23(b) of the English version of the Act is replaced by the following:

    (b) purchase, or make loans on the security of, its own shares or the shares of any bank, except the Bank for International Settlements;

102. Subsection 24(1) of the Act is replaced by the following:

Fiscal agent of Canadian Government

24. (1) The Bank shall act as fiscal agent of the Government of Canada.

Charge for acting

(1.1) With the consent of the Minister, the Bank may charge for acting as fiscal agent of the Government of Canada.

103. The Act is amended by adding the following after section 24:

Definition of ``financial institution''

24.1 (1) In this section, ``financial institution'' has the same meaning as in section 3 of the Office of the Superintendent of Financial Institutions Act.

Information requirement

(2) A financial institution shall provide the Bank with such information as the Bank may require, at such times and in such form as the Bank may require.

Limitation

(3) A financial institution shall not be required under subsection (2) to provide the Bank with information about the accounts or affairs of any particular person.

104. Subsections 29(1) and (2) of the Act are replaced by the following:

Weekly balance sheet

29. (1) The Bank shall, as soon as practicable after the close of business on Wednesday of each week, make up and transmit to the Minister in the form of Schedule II a balance sheet as at the close of business on that day.

Monthly balance sheet

(2) The Bank shall, on or before the seventh day of each month,

    (a) make up and transmit to the Minister, in the form of Schedule II, a balance sheet as at the last business day of the preceding month; and

    (b) provide to the Minister in the form of Schedule III, information regarding the Bank's investments in securities issued or guaranteed by the Government of Canada.

105. Subsection 30(2) of the Act is replaced by the following:

Financial statements to Minister

(2) Within two months after the end of each financial year, the Bank shall send to the Minister its audited financial statements for the financial year, in the form prescribed by the by-laws of the Bank.

Signing of statements

(2.1) The financial statements must be signed by the Governor or the Deputy Governor and the Chief Accountant or Acting Chief Accountant of the Bank.

Other information

(2.2) The financial statements must be accompanied by any summary or report by the Governor that the Governor considers desirable or that is required by the Minister. A copy of the signed and audited financial statements must without delay be published in the Canada Gazette.

106. Paragraph 35(1)(c) of the English version of the Act is replaced by the following:

    (c) the duties and conduct of officers and employees of the Bank;

107. Schedule I to the Act is replaced by the following:

SCHEDULE I
(Section 16)

OATH OR SOLEMN AFFIRMATION OF OFFICE

I, ..............., do solemnly swear (or affirm) that I will faithfully and to the best of my judgment and ability perform the duties that are required of me as a director (officer or employee, as the case may be) of the Bank of Canada and that relate to any office or position in the Bank held by me.

I also solemnly swear (or affirm) that I will not communicate any information relating to the affairs of the Bank to any person not legally entitled to the information, that I will not allow information relating to the affairs of the Bank to be communicated to any person not legally entitled to it, and that I will not allow any person to inspect or have access to any books or documents belonging to or in the possession of the Bank and relating to the business of the Bank unless that person is legally entitled to inspect those books or documents or to have access to them.

108. The heading ``statement of assets and liabilities as at ...., 19...'' in Schedule II to the Act is replaced by the following:

BALANCE SHEET
AS AT .....

109. The portion of the French version of Schedule II to the Act after section 6 is amended by replacing the expression ``état'' with the expression ``bilan'', with such modifications as the circumstances require.

110. Schedule II to the Act is amended by repealing, under the column heading ``assets'', paragraph 4(f) and by renumbering, under the column heading ``assets'', paragraph 4(g) as paragraph 4(f).

R.S., c. C-3

CANADA DEPOSIT INSURANCE CORPORATION ACT

1996, c. 6, s. 24

111. The portion of subsection 10.1(3) of the English version of the Canada Deposit Insurance Corporation Act before paragraph (a) is replaced by the following:

Total indebtedness

(3) The total principal indebtedness outstanding at any time in respect of borrowings under this section shall not exceed

112. Section 14 of the Act is amended by adding the following after subsection (2.5):

Interest on index-linked deposits

(2.51) The interest referred to in subsection (2.3) or (2.5) in relation to a deposit held by a member institution shall be determined in accordance with rules prescribed by the by-laws if a payment to be made by the member institution in respect of the deposit is to be determined, in whole or in part, by reference in any way to

    (a) the market price of a security, commodity or financial instrument;

    (b) the exchange rate between any two currencies;

    (c) a reference rate determined by reference to any one or more of those prices or rates; or

    (d) any other kind of variable index or reference point that may be described in rules prescribed by the by-laws.

113. The Act is amended by adding the following after section 14:

Sale of information to liquidator

14.1 (1) The Corporation may sell to the liquidator of a member institution appointed under the Winding-up and Restructuring Act any information that was gathered or produced at the expense of the Corporation, if that expense is not one that may be recovered by the Corporation from the member institution under subsection 14(2.8).

Payment part of winding-up costs

(2) Any amount paid by the liquidator for that information is deemed for the purpose of section 94 of the Winding-up and Restructuring Act to be a cost incurred in the winding-up of the member institution.

114. The Act is amended by adding the following after section 26:

BANKS WITHOUT DEPOSIT INSURANCE

Interpreta-
tion

26.01 For the purposes of sections 26.02 to 26.06, ``deposit'' has the meaning that would be given to it by the schedule, for the purposes of deposit insurance, if the schedule were read without reference to subsections 2(2), (5) and (6) of the schedule.

Application

26.02 A bank may apply to the Corporation for authorization to accept deposits payable in Canada without being a member institution. The application must be in a form that is acceptable to the Corporation and must contain such information as the Corporation may require.

Granting of application

26.03 (1) Subject to section 26.04, the Corporation may give that authorization if

    (a) the bank is not affiliated with any member institution;

    (b) the sum of all the deposits held by the bank that are less than $150,000 and payable in Canada is less than one per cent of the sum of all the deposits held by the bank that are payable in Canada;

    (c) the bank has informed all its depositors, in accordance with such rules as may be prescribed by the by-laws,

      (i) that the bank has applied to become authorized to accept deposits without being a member institution,

      (ii) that after the bank receives that authorization, no deposit with the bank will be insured in whole or in part by the Corporation, and

      (iii) that the bank's obligation to repay the deposit to the depositor will be assumed by a member institution if an option referred to in subparagraph (d)(i) or (ii) is not exercised;

    (d) in respect of each deposit that is held by the bank, the bank has

      (i) obtained from the depositor an acknowledgement in writing that the deposit will no longer be insured in whole or in part by the Corporation after the bank receives authorization to accept deposits without being a member institution,

      (ii) at the request in writing of the depositor, paid to the depositor the principal amount of the deposit and interest determined in accordance with rules prescribed by the by-laws, or

      (iii) except where the depositor has requested that the deposit be paid to the depositor as provided under subparagraph (ii), obtained from a member institution an agreement in writing to assume the bank's liability in relation to the deposit on the same terms and conditions; and

    (e) the bank has paid to the Corporation a fee determined in accordance with rules prescribed by the by-laws.

Exchange rate

(2) For the purpose of subsection (1), the rate of exchange that shall be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada shall be determined in accordance with rules prescribed by the by-laws.

Minister to be informed

26.04 (1) Before giving an authorization under subsection 26.03(1), the Corporation must inform the Minister that it proposes to give the authorization.

Minister may prevent authorization

(2) If the Minister is of the opinion that giving the authorization would not be in the public interest, the Minister may, within thirty days after being informed about the proposal to give the authorization, direct the Corporation not to give the authorization.

Authoriza-
tion after 30 days

(3) If the Minister does not issue that direction within those thirty days, the Corporation may then give the authorization under subsection 26.03(1).

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