Bill C-38
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Accounts |
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Definitions
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385.05 The definitions in this section apply
in this section, sections 385.1 to 385.13,
385.27 and 385.28.
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``member
association'' « association membre »
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``member association'' means a retail
association that is a member institution as
defined in section 2 of the Canada Deposit
Insurance Corporation Act.
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``personal
deposit
account'' « compte de dépôt personnel »
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``personal deposit account'' means a deposit
account in the name of one or more natural
persons that is kept by that person or those
persons for a purpose other than that of
carrying on business.
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``retail deposit
account'' « compte de dépôt de détail »
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``retail deposit account'' means a personal
deposit account that is opened with a
deposit of less than $150,000 or any greater
amount that may be prescribed.
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Account
charges
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385.06 A retail association shall not,
directly or indirectly, charge or receive any
sum for the keeping of an account unless the
charge is made by express agreement between
the association and a customer or by order of
a court.
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Disclosure on
opening
account
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385.07 (1) A retail association shall not
open or maintain an interest-bearing deposit
account in Canada in the name of any natural
person unless the association discloses, in
accordance with the regulations, to the person
who requests the association to open the
account, the rate of interest applicable to the
account and how the amount of interest to be
paid is to be calculated.
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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 may be prescribed.
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Disclosure in
advertise- ments
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385.08 No person shall authorize the
publication, issue or appearance of any
advertisement in Canada that indicates the
rate of interest offered by a retail association
on an interest-bearing deposit or a debt
obligation unless the advertisement discloses,
in accordance with the regulations, how the
amount of interest is to be calculated.
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Disclosure
regulations
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385.09 The Governor in Council may make
regulations respecting
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Disclosure
required on
opening a
deposit
account
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385.1 (1) Subject to subsections (2) to (4),
a retail association shall not open a deposit
account in the name of a customer unless, at or
before the time the account is opened, the
retail association provides in writing to the
individual who requests the opening of the
account
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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 retail association 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 a retail association 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 retail association 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 a retail association 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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Disclosure of
charges
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385.11 A retail association shall disclose, in
the prescribed manner and at the prescribed
time, to its customers and to the public, the
charges applicable to deposit accounts with
the association and the usual amount, if any,
charged by the association for services
normally provided by the association to its
customers and to the public.
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No increase or
new charges
without
disclosure
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385.12 (1) A retail association shall not
increase any charge applicable to a personal
deposit account with the association or
introduce any new charge applicable to a
personal deposit account with the association
unless the association discloses the charge in
the prescribed manner and at the prescribed
time to the customer in whose name the
account is kept.
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No increase or
new charges
without
disclosure
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(2) With respect to such services in relation
to deposit accounts, other than personal
deposit accounts, as are prescribed, a retail
association shall not increase any charge for
any such service in relation to a deposit
account with the association or introduce any
new charge for any such service in relation to
a deposit account with the association unless
the association discloses the charge in the
prescribed manner and at the prescribed time
to the customer in whose name the account is
kept.
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Application
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385.13 Sections 385.1 to 385.12 apply only
in respect of charges applicable to deposit
accounts with the retail association in Canada
and services provided by it in Canada.
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Borrowing Costs |
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Definition of
``cost of
borrowing''
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385.14 For the purposes of this section and
sections 385.15 to 385.24, ``cost of
borrowing'' means, in respect of a loan made
by a retail association,
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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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Rebate of
borrowing
costs
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385.15 (1) If a retail association makes a
loan in respect of which the disclosure
requirements of section 385.16 apply and the
loan is not secured by a mortgage on real
property and is required to be repaid either on
a fixed future date or by instalments, the
association shall, if there is a prepayment of
the loan, rebate to the borrower a portion of the
charges included in the cost of borrowing in
respect of the loan.
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Exception
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(2) The charges to be rebated do not include
the interest or discount applicable to the loan.
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Regulations
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(3) The Governor in Council may make
regulations governing the rebate of charges
under subsection (1). The rebate shall be made
in accordance with those regulations.
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Disclosing
borrowing
costs
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385.16 (1) A retail association shall not
make a loan to a natural person that is
repayable in Canada unless the cost of
borrowing, as calculated and expressed in
accordance with section 385.17, and other
prescribed information have in the prescribed
manner and at the prescribed time been
disclosed by the association to the borrower.
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Non-applicati
on
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(2) Subsection (1) does not apply in respect
of a loan that is of a prescribed class of loans.
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Calculating
borrowing
costs
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385.17 The cost of borrowing shall be
calculated, in the prescribed manner, on the
basis that all obligations of the borrower are
duly fulfilled and shall be expressed as a rate
per annum and, in prescribed circumstances,
as an amount in dollars and cents.
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Additional
disclosure
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385.18 (1) If a retail association makes a
loan in respect of which the disclosure
requirements of section 385.16 are applicable
and the loan is required to be repaid either on
a fixed future date or by instalments, the
association shall disclose to the borrower, in
accordance with the regulations,
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Disclosure in
credit card
applications
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(2) A retail association shall, in accordance
with the regulations, at such time and in such
manner as may be prescribed, provide
prescribed information in any application
forms or related documents that it prepares for
the issuance of credit, payment or charge cards
and provide prescribed information to any
person applying to it for a credit, payment or
charge card.
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Disclosure re
credit cards
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(3) If a retail association issues or has issued
a credit, payment or charge card to a natural
person, the association shall, in addition to
disclosing the costs of borrowing in respect of
any loan obtained through the use of the card,
disclose to the person, in accordance with the
regulations,
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Additional
disclosure re
other loans
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(4) If a retail association enters into or has
entered into an arrangement, including a line
of credit, for the making of a loan in respect of
which the disclosure requirements of section
385.16 apply and the loan is not a loan in
respect of which subsection (1) or (3) applies,
the association shall, in addition to disclosing
the costs of borrowing, disclose to the person
to whom the loan is made, in accordance with
the regulations,
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Renewal
statement
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385.19 If a retail association makes a loan
in respect of which the disclosure
requirements of section 385.16 apply and the
loan is secured by a mortgage on real property,
the association shall disclose to the borrower,
at such time and in such manner as may be
prescribed, such information as may be
prescribed respecting the renewal of the loan.
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Disclosure in
advertising
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385.2 No person shall authorize the
publication, issue or appearance of any
advertisement in Canada relating to
arrangements referred to in subsection
385.18(4), loans, credit cards, payment cards
or charge cards, offered to natural persons by
a retail association, and purporting to disclose
prescribed information about the cost of
borrowing or about any other matter unless the
advertisement contains such information as
may be required by the regulations, in such
form and manner as may be prescribed.
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Regulations re
borrowing
costs
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385.21 The Governor in Council may make
regulations
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