Bill C-38
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Exception
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(7) If, under subsection (1), a bank 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 468, the bank 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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473. (1) Despite anything in this Act, a bank
may acquire
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if the investment or interest is acquired
through the realization of a security interest
held by the bank or any of its subsidiaries.
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Disposition
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(2) Subject to subsection 73(2), if a bank
acquires control of, or acquires a substantial
investment in, an entity by way of the
realization of a security interest held by the
bank or any of its subsidiaries, the bank 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 bank 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 bank 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 bank
later increases that substantial investment by
way of a realization of a security interest under
subsection (1), the bank 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 bank that makes an application
under this subsection, extend the period
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 bank 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 468, the bank 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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474. The Governor in Council may make
regulations
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Portfolio Limits |
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Exclusion
from portfolio
limits
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475. (1) Subject to subsection (3), the value
of all loans, investments and interests
acquired by a bank and any of its prescribed
subsidiaries under section 472 or as a result of
a realization of a security interest is not to be
included in calculating the value of loans,
investments and interests of the bank and its
prescribed subsidiaries under sections 476 to
478
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Extension
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(2) The Superintendent may, in the case of
any particular bank, extend any period
referred to in subsection (1) 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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(3) Subsection (1) does not apply to an
investment or interest described in that
subsection if the investment or interest is
defined by a regulation made under section
479 to be an interest in real property and
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Real Property |
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Limit on total
property
interest
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476. A bank shall not, and shall not permit
its prescribed subsidiaries to, purchase or
otherwise acquire an interest in real property
or make an improvement to any real property
in which the bank or any of its prescribed
subsidiaries has an interest if the aggregate
value of all interests of the bank in real
property exceeds, or the acquisition of the
interest or the making of the improvement
would cause that aggregate value to exceed,
the prescribed percentage of the regulatory
capital of the bank.
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Equities |
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Limits on
equity
acquisitions
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477. A bank shall not, and shall not permit
its prescribed subsidiaries to,
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if the aggregate value of
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beneficially owned by the bank and its
prescribed subsidiaries, exceeds, or the
purchase or acquisition would cause that
aggregate value to exceed, the prescribed
percentage of the regulatory capital of the
bank.
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Aggregate Limit |
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Aggregate
limit
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478. A bank shall not, and shall not permit
its prescribed subsidiaries to,
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if the aggregate value of
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exceeds, or the acquisition or the making of
the improvement would cause that aggregate
value to exceed, the prescribed percentage of
the regulatory capital of the bank.
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Miscellaneous |
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Regulations
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479. For the purposes of this Part, the
Governor in Council may make regulations
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Divestment
order
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480. (1) The Superintendent may, by order,
direct a bank to dispose of, within any period
that the Superintendent considers reasonable,
any loan, investment or interest made or
acquired in contravention of this Part.
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Divestment
order
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(2) If, in the opinion of the Superintendent,
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the Superintendent may, by order, require the
bank, within any period that the
Superintendent considers reasonable, to do all
things necessary to ensure that the bank no
longer controls the body corporate or
unincorporated entity or has the ability to veto
or otherwise defeat any proposal referred to in
paragraph (b).
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Divestment
order
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(3) If
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the Superintendent may, by order, require the
bank, within any period that the
Superintendent considers reasonable, to do all
things necessary to ensure that the bank no
longer has a substantial investment in the
entity to which the undertaking relates.
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Exception
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(4) Subsection (2) does not apply in respect
of an entity in which a bank has a substantial
investment permitted by this Part.
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Deemed
temporary
investment
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481. If a bank controls or has a substantial
investment in an entity as permitted by this
Part and the bank becomes aware of a change
in the business or affairs of the entity that, if
the change had taken place before the
acquisition of control or of the substantial
investment, would have caused the entity not
to be a permitted entity or would have been
such that approval for the acquisition would
have been required under subsection 468(5) or
(6), the bank is deemed to have acquired, on
the day the bank becomes aware of the change,
a temporary investment in respect of which
section 471 applies.
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Asset
transactions
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482. (1) A bank shall not, and shall not
permit its subsidiaries to, without the approval
of the Superintendent, acquire assets from a
person or transfer assets to a person if
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A + B > C
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where
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A is the value of the assets;
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B is the total value of all assets that the bank
and its subsidiaries acquired from or
transferred to that person in the twelve
months ending immediately before the
acquisition or transfer; and
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C is ten per cent of the value of the total
assets of the bank, as shown in the last
annual statement of the bank prepared
before the acquisition or transfer.
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Exception
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(2) The prohibition in subsection (1) does
not apply in respect of
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Exception
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(3) The approval of the Superintendent is
not required if
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Value of
assets
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(4) For the purposes of ``A'' in subsection
(1), the value of the assets is
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