Bill C-398

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First Reading

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	2nd Session, 35th Parliament, 45-46 Elizabeth II, 1996-97
	The House of Commons of Canada
	BILL C-398
	An Act to amend the Bank Act (amalgamation)
1991, cc. 46, 47, 48; 1992, cc. 27, 51; 1993, cc. 6, 28, 34, 44; 1994, cc. 24, 26, 47; 1996, c. 6	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	*1. Subsection 223(2) of the Bank Act* is replaced by the following:**
Restriction	(2) Notwithstanding any other provision in this Act, on the joint application of
	(a) two or more banks named in Schedule I,
	(b) one or more banks named in Schedule I and one or more banks named in Schedule II, or
	(c) one or more banks named in Schedule I and one or more bodies corporate incorporated by or under an Act of Parliament where any of those bodies is a deposit-taking institution to which the Trust and Loan Companies Act applies that has equity of more than seven hundred and fifty million dollars,
	the Minister shall not issue letters patent amalgamating and continuing the applicants as one bank unless
	(d) the Minister is advised by the Superintendant, whether or not the Superintendant has
	(i) taken control of any applicant or of the assets of any applicant under subsection 538(1), or
	(ii) taken control of any applicant or of the assets of any applicant under subsection 510(1) of the Trust and Loan Companies Act;
	as the case may be, that, in the opinion of the Superintendant, at least one of the applicants is not financially sound and the amalgamation would prevent the applicant from becoming insolvent, and
	(e) the amalgamated bank would be a bank named in Schedule I.
Interpreta- tion	(3) For the purposes of subsection (2),
``equity'' « capitaux propres »	``equity'', in respect of a body corporate, means the sum of the shareholders' equity of the body corporate and the minority interests in entities controlled by the body corporate as they appear in the consolidated financial statements of the body corporate;
``insolvent'' « insolva- ble »	``insolvent'' means insolvent within the meaning of the Winding-up and Restructuring Act.
``joint application'' « requête conjointe »	``joint application'' means a joint application made to the Minister before, on or after the coming into force of subsection (2).
Interpreta- tion	(4) For the purposes of this section and sections 224 to 231,``amalgamation'' includes the acquisition or establishment of control over the business of a bank or a body corporate.

Bill C-398

BILL C-398