Bill C-407

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First Reading

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	1st Session, 36th Parliament, 46-47 Elizabeth II, 1997-98
	The House of Commons of Canada
	BILL C-407
	An Act to amend the Bank Act (bank mergers)
1991, cc. 46, 47, 48; 1992, cc. 27, 51; 1993, cc. 6, 28, 34, 44; 1994, cc. 24, 26, 47; 1996, c. 6; 1997, c. 15	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	*1. The portion of subsection 223(1) of the Bank Act* following paragraph (c) is replaced by the following:**

	the Minister may issue letters patent amalgamating and continuing the applicants as one bank provided
	(d) the Minister is advised, in writing, by the Superintendent, whether or not the Superintendent 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 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 Superintendent, at least one of the applicants is not financially sound and the amalgamation would prevent the applicant from becoming insolvent, or
	(e) the Superintendent provides the Minister with a written statement informing the Minister that, in the opinion of the Superintendent, none of the applicants is about to become insolvent, the statement is tabled in the House of Commons by the Minister and the amalgamation is approved by a resolution of the House of Commons supported by a majority of the members of that House and a resolution of the Senate supported by a majority of the members of that House.
Interpreta- tion	(1.1) The definitions in this subsection apply in subsection (1).
``insolvent'' «insolvable»	``insolvent'' means insolvent within the meaning of the Winding-up and Restructuring Act.
``joint application'' «requête conjointe»	``joint application'' includes a joint application for letters patent of amalgamation continuing applicants as one bank made to the Minister before the coming into force of subsection (1).
Interpreta- tion	(1.2) In subsection (1) and sections 224 to 231, ``amalgamation'' includes the acquisition or establishment of control over the business of a bank or a body corporate.
	2. Subsection 229(1) of the Act is replaced by the following:
Issue of letters patent	229. (1) Where an application has been made to the Minister in accordance with section 228, the Minister may, subject to the conditions set out in paragraphs 223(1)(d) and (e) , issue letters patent of amalgamation continuing the applicants as one bank.