Bill C-38
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Restriction on
leasing
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550. An authorized foreign 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.
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1999, c. 28,
s. 35(1)
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137. Section 552 of the Act is repealed.
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1999, c. 28,
s. 35(1)
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138. Subsection 553.1(1) of the Act is
replaced by the following:
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Restriction on
partnerships
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553.1 (1) Except with the approval of the
Superintendent, an authorized foreign bank
may not, in respect of its business in Canada,
be a general partner in a limited partnership or
a partner in a general partnership.
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1999, c. 28,
s. 35(1)
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139. Subsection 556(3) of the Act is
replaced by the following:
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Execution of
trust
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(3) An authorized foreign bank is not, in
respect of its business in Canada, bound to see
to the execution of any trust to which a deposit
made under the authority of this Act is subject.
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Payment
when
authorized
foreign bank
has notice of
trust
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(4) Subsection (3) applies regardless of
whether the trust is express or arises by the
operation of law, and it applies even when the
authorized foreign 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.
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1999, c. 28,
s. 35(1)
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140. The headings before section 559 of
the Act are replaced by the following:
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Accounts |
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1999, c. 28,
s. 35(1)
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140.1 Subsection 560(2) of the Act is
replaced by the following:
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Exception
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(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 is prescribed.
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1999, c. 28,
s. 35(1)
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141. (1) The portion of subsection 564(1)
of the Act before paragraph (a) is replaced
by the following:
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Disclosure
required on
opening a
deposit
account
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564. (1) Subject to subsections (2) to (4) , an
authorized foreign bank shall not open a
deposit account in the name of a customer
unless, at or before the time the account is
opened, it provides in writing to the individual
who requests the opening of the account
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1999, c. 28,
s. 35(1)
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(2) Subsections 564(2) to (5) of the Act are
replaced by the following:
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Exception
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(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 authorized foreign 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.
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Exception
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(3) If an authorized foreign 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, the authorized foreign
bank shall not open such an account unless it
provides the customer orally with any
information prescribed at or before the time
the account is opened.
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Disclosure in
writing
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(4) If an authorized foreign 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).
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Right to close
account
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(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.
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Regulations
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(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.
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1999, c. 28,
s. 35(1)
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142. The heading before section 567 of the
Act is converted from roman type to italics.
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143. Section 567 of the Act, as enacted by
subsection 35(4) of An Act to amend the
Bank Act, the Winding-up and Restructuring
Act and other Acts relating to financial
institutions and to make consequential
amendments to other Acts, being chapter 28
of the Statutes of Canada, 1999, is replaced
by the following:
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Definition of
``cost of
borrowing''
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567. For the purposes of this section and
sections 567.1 to 574, ``cost of borrowing'' in
respect of a loan made by an authorized
foreign bank means
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For those purposes, however, ``cost of
borrowing'' does not include any charge
prescribed to be excluded from the cost of
borrowing.
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144. The Act is amended by adding the
following before section 573:
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Complaints |
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1999, c. 28,
s. 35(1)
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145. (1) Paragraph 573(1)(a) of the Act is
replaced by the following:
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(2) If this section comes into force before
paragraph 573(1)(a) of the Act, as enacted
by subsection 35(9) of An Act to amend the
Bank Act, the Winding-up and Restructuring
Act and other Acts relating to financial
institutions and to make consequential
amendments to other Acts, being chapter 28
of the Statutes of Canada, 1999, comes into
force, then subsection 35(9) of that Act is
repealed.
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1999, c. 28,
s. 35(1)
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(3) Subsection 573(2) of the Act is
replaced by the following:
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Procedures to
be filed with
Commissioner
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(2) An authorized foreign bank shall file
with the Commissioner a copy of its
procedures established under paragraph
(1)(a) .
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146. The Act is amended by adding the
following after section 573:
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Obligation to
be member
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573.1 An authorized foreign bank shall be
a member of any body corporate that is
designated under subsection 455.1(1).
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1999, c. 28,
s. 35(1)
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147. (1) Section 574 of the Act is replaced
by the following:
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Information
on contacting
Agency
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574. (1) An authorized foreign bank shall,
in the prescribed manner, provide a person
requesting or receiving a product or service
from it with prescribed information on how to
contact the Agency if the person has a
complaint about an arrangement referred to in
subsection 570(3), a payment, credit or charge
card, the disclosure of or manner of
calculating the cost of borrowing in respect of
a loan, or about any other obligation of the
authorized foreign bank under a consumer
provision.
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Report
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(2) The Commissioner shall prepare a
report, to be included in the report referred to
in section 34 of the Financial Consumer
Agency of Canada Act , respecting
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(2) If this section comes into force before
subsection 574(1) of the Act, as enacted by
subsection 35(10) of An Act to amend the
Bank Act, the Winding-up and Restructuring
Act and other Acts relating to financial
institutions and to make consequential
amendments to other Acts, being chapter 28
of the Statutes of Canada, 1999, then
subsection 35(10) of that Act is repealed.
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1999, c. 28,
s. 35(1)
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148. (1) Subsections 576.1(1) to (3) of the
Act are replaced by the following:
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Restriction on
tied selling
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576.1 (1) An authorized foreign bank shall
not impose undue pressure on, or coerce, a
person to obtain a product or service from a
particular person, including the authorized
foreign bank and any of its affiliates, as a
condition for obtaining another product or
service from the authorized foreign bank.
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Favourable
authorized
foreign bank
product or
service tied to
other sale
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(2) For greater certainty, an authorized
foreign bank may offer a product or service to
a person on more favourable terms or
conditions than the authorized foreign bank
would otherwise offer, where the more
favourable terms and conditions are offered
on the condition that the person obtain another
product or service from any particular person.
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Favourable
other sale tied
to authorized
foreign bank
product or
service
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(3) For greater certainty, an affiliate of an
authorized foreign bank may offer a product or
service to a person on more favourable terms
or conditions than the affiliate would
otherwise offer, where the more favourable
terms and conditions are offered on the
condition that the person obtain another
product or service from the authorized foreign
bank.
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(2) Section 576.1 of the Act is amended by
adding the following after subsection (4):
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Disclosure
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(4.1) An authorized foreign bank shall
disclose the prohibition on coercive tied
selling set out in subsection (1) in a statement
in plain language that is clear and concise,
displayed and available to customers and the
public at all of its branches.
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149. The Act is amended by adding the
following after section 576.1:
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Regulations re
disclosure
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576.2 The Governor in Council may,
subject to any other provisions of this Act
relating to the disclosure of information, make
regulations respecting the disclosure of
information by authorized foreign banks or
any prescribed class of authorized foreign
banks, including regulations respecting
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1999, c. 28,
s. 35(1)
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150. Section 579 of the Act is replaced by
the following:
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Effect of writ,
etc.
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579. (1) Subject to subsections (3) and (4),
the following documents are binding on
property belonging to a person and in the
possession of a authorized foreign bank, or on
money owing to a person by reason of a
deposit account in a authorized foreign bank,
only where the document or a notice of it is
served at the branch of the authorized foreign
bank that has possession of the property or that
is the branch of account in respect of the
deposit account, as the case may be:
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Notices
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(2) Any notification sent to a authorized
foreign bank with respect to a customer of the
authorized foreign bank, other than a
document referred to in subsection (1) or (3),
constitutes notice to the authorized foreign
bank and fixes the authorized foreign bank
with knowledge of its contents only if sent to
and received at the branch of the authorized
foreign bank that is the branch of account of an
account held in the name of that customer.
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Support
orders and
support
provisions
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(3) A notice of a support order or support
provision may be served at an office of a
authorized foreign bank designated by the
regulations in respect of a province if the order
or provision can be enforced under the laws of
that province.
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Effect of
service
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(4) A notice of a support order or support
provision served under subsection (3) at a
designated office of a authorized foreign bank
in a province does not have effect until the
second day following the day of service.
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Regulations
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(5) The Governor in Council may make
regulations
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Definitions
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(6) The definitions in this subsection apply
in this section.
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``designa- ted office'' « bureau désigné »
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``designated office'' means a place designated
under subsection (3);
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``support
order'' « ordonnance alimentaire »
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``support order'' means an order or judgment
or interim order or judgment for family
financial support, or any process under the
laws of a province for the enforcement of
any such order or judgment;
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``support
provision'' « disposition alimentaire »
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``support provision'' means a provision of an
agreement relating to the payment of
maintenance or family financial support.
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1999, c. 28,
s. 35(1)
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151. Subparagraph 582(1)(b)(i) of the Act
is replaced by the following:
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1999, c. 28,
s. 35(1)
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152. Subsection 594(1) of the Act is
replaced by the following:
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Auditor's
report to
principal
officer
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594. (1) The auditor of an authorized
foreign bank shall make a report to the
principal officer of the authorized foreign
bank in writing on the annual return not later
than five months after the end of the financial
year in respect of which the annual return is
prepared.
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1999, c. 28,
s. 35(1)
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153. (1) Paragraph 597(1)(b) of the Act is
replaced by the following:
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(2) Section 597 of the Act is amended by
adding the following after subsection (6):
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Electronic
access
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(7) An authorized foreign bank may make
the information contained in records referred
to in subsection (1) available to persons by any
system of mechanical or electronic data
processing or any other information storage
device that is capable of reproducing the
records in intelligible written form within a
reasonable time.
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1999, c. 28,
s. 35(1)
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154. Subsection 606(1) of the Act is
replaced by the following:
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Confidential
information
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606. (1) Subject to sections 608 and 609, all
information regarding the business or affairs
of an authorized foreign bank, or regarding a
person dealing with an authorized foreign
bank, that is obtained by the Superintendent,
or by any person acting under the direction of
the Superintendent, as a result of the
administration or enforcement of any Act of
Parliament, and all information prepared from
that information , is confidential and shall be
treated accordingly.
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1999, c. 28,
s. 35(1)
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155. Section 612 of the Act is replaced by
the following:
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Report
respecting
disclosure
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612. The Superintendent shall prepare a
report respecting the disclosure of information
by authorized foreign banks and describing
the state of progress made in enhancing the
disclosure of information in the financial
services industry. The report is to be included
in the report referred to in section 40 of the
Office of the Superintendent of Financial
Institutions Act.
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