Bill C-38
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Specialized
business
management
or advisory
services
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(2) A retail association may engage, under
prescribed terms and conditions, if any are
prescribed, in specialized business
management or advisory services.
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Restriction
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(3) Except as authorized by or under this
Act, an association shall not deal in goods or
engage in any trade or business.
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Regulations
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(4) The Governor in Council may make
regulations
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296. Paragraph 377(a) of the Act is
replaced by the following:
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297. The Act is amended by adding the
following after section 378:
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Restriction on
deposit taking
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378.1 A retail association shall not accept
deposits in Canada unless it is a member
institution within the meaning of section 2 of
the Canada Deposit Insurance Corporation
Act.
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298. (1) The portion of subsection 379(1)
of the Act before paragraph (a) is replaced
by the following:
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Restriction on
guarantees
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379. (1) An association shall not guarantee
on behalf of any person the payment or
repayment of any sum of money unless
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1997, c. 15,
s. 139
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(2) Subsection 379(2) of the French
version of the Act is replaced by the
following:
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Exception
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(2) Dans les cas où la personne visée au
paragraphe (1) est une filiale de l'association
garante, celle-ci peut garantir une somme qui
n'est pas fixe.
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(3) Subsection 379(3) of the Act is
replaced by the following:
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Exception
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(3) Paragraph (1)(a) does not apply in
respect of a guarantee given on behalf of a
central, within the meaning of section 472, or
a local cooperative credit society if the
payment guaranteed represents the obligation
of the central or the local cooperative credit
society to settle for payment items in
accordance with the by-laws and rules of the
Canadian Payments Association.
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299. Sections 382 and 383 of the Act are
replaced by the following:
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Restriction on
leasing
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382. An association shall not engage in
Canada in any personal property leasing
activity in which a financial leasing entity ,
within the meaning of subsection 386(1), is
not permitted to engage.
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Restriction on
residential
mortgages
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382.1 (1) A retail association shall not make
a loan in Canada on the security of residential
property in Canada for the purpose of
purchasing, renovating or improving that
property, or refinance such a loan, if the
amount of the loan, together with the amount
then outstanding of any mortgage having an
equal or prior claim against the property,
would exceed 75% of the value of the property
at the time of the loan.
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Exception
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(2) Subsection (1) does not apply in respect
of
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Policies re
security
interests
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383. (1) The directors of an association
shall establish and the association shall adhere
to policies regarding the creation of security
interests in property of the association to
secure obligations of the association and the
acquisition by the association of beneficial
interests in property that is subject to security
interests.
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Order to
amend
policies
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(2) The Superintendent may, by order,
direct an association to amend its policies as
specified in the order.
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Compliance
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(3) An association shall comply with an
order made under subsection (2) within the
time specified in the order.
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Regulations
and guidelines
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383.1 The Governor in Council may make
regulations and the Superintendent may make
guidelines respecting the creation by an
association of security interests in its property
to secure obligations of the association and the
acquisition by the association of beneficial
interests in property that is subject to security
interests.
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Exception
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383.2 Sections 383 and 383.1 do not apply
in respect of a security interest created by an
association to secure an obligation of the
association to the Bank of Canada or the
Canada Deposit Insurance Corporation.
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300. Subsection 385(1) of the Act is
replaced by the following:
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Restriction on
partnerships
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385. (1) Except with the approval of the
Superintendent, an association may not be a
general partner in a limited partnership or a
partner in a general partnership.
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301. The Act is amended by adding the
following after section 385:
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Deposit Acceptance |
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Deposit
acceptance
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385.01 (1) A retail association may, without
the intervention of any other person,
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Exception
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(2) Paragraph (1)(b) does not apply if,
before payment, the money deposited in the
association pursuant to paragraph (1)(a) is
claimed by some other person
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If such a claim is made, the money so
deposited may be paid to the depositor with
the consent of the claimant or to the claimant
with the consent of the depositor.
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Execution of
trust
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385.02 (1) An association is not bound to
see to the execution of any trust to which any
deposit made under the authority of this Act is
subject.
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Payment
when
association
has notice of
trust
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(2) Subsection (1) applies regardless of
whether the trust is express or arises by the
operation of law, and it applies even when the
association 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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Unclaimed Balances |
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Unclaimed
balances
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385.03 (1) Where
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the retail association shall pay to the Bank of
Canada not later than December 31 in each
year an amount equal to the principal amount
of the deposit or instrument, plus interest, if
any, calculated in accordance with the terms
of the deposit or instrument, and payment
accordingly discharges the association from
all liability in respect of the deposit or
instrument.
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Particulars
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(2) A retail association shall, on making a
payment under subsection (1), provide the
Bank of Canada, for each deposit or
instrument in respect of which the payment is
made, with all the particulars of the deposit or
instrument listed in subsection 431.1(3) or
431.2(2), as the case may be, current as of the
day the payment is made.
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Payment to
claimant
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(3) Subject to section 22 of the Bank of
Canada Act, if a payment has been made to the
Bank of Canada under subsection (1) in
respect of any deposit or instrument, and if
payment is demanded or the instrument is
presented at the Bank of Canada by the person
who, but for that section, would be entitled to
receive payment of the deposit or instrument,
the Bank of Canada is liable to pay, at its
agency in the province in which the deposit or
instrument was payable, an amount equal to
the amount so paid to it together with interest,
if interest was payable under the terms of the
deposit or instrument,
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Enforcing
liability
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(4) The liability of the Bank of Canada
under subsection (3) may be enforced by
action against the Bank of Canada in the court
in the province in which the deposit or
instrument was payable.
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Application of
subsection (1)
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(5) Subsection (1) applies only in respect of
deposits made, and cheques, drafts and bills of
exchange issued, certified or accepted, after
the day that subsection comes into force.
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Notice of
unpaid
amount
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385.04 (1) A retail association shall mail to
each person, insofar as is known to the
association, to whom a deposit referred to in
paragraph 385.03(1)(a) is payable, or to
whom or at whose request an instrument
referred to in paragraph 385.03(1)(b) was
issued, certified or accepted, at the person's
recorded address, a notice stating that the
deposit or instrument remains unpaid.
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When notice
to be given
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(2) A notice required by subsection (1) must
be given during the month of January next
following the end of the first two year period,
and also during the month of January next
following the end of the first five year period,
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