Bill C-8
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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 total value of the 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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Total value of
all assets
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(5) For the purposes of subsection (1), the
total value of all assets that the bank or any of
its subsidiaries has acquired during the period
of twelve months referred to in subsection (1)
is the purchase price of the assets or, if the
assets are shares of, or ownership interests in,
an entity the assets of which immediately after
the acquisition were included in the annual
statement of the bank, the fair market value of
the assets of the entity at the date of the
acquisition.
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Total value of
all assets
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(6) For the purposes of subsection (1), the
total value of all assets that the bank or any of
its subsidiaries has transferred during the
period of twelve months referred to in
subsection (1) is the book value of the assets
as stated in the last annual statement of the
bank prepared before the transfer or, if the
assets are shares of, or ownership interests in,
an entity the assets of which were included in
the last annual statement of the bank before
the transfer, the value of the assets of the entity
as stated in the annual statement.
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Transitional
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483. Nothing in this Part requires
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But if the loan or investment would be
precluded or limited by this Part, the amount
of the loan or investment may not, except as
provided in subsections 471(2), 472(3) and
473(3), be increased after that date.
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Saving
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484. A loan or investment referred to in
section 483 is deemed not to be prohibited by
the provisions of this Part.
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128. (1) Subsection 487(2) of the Act is
amended by striking out the word ``or'' at
the end of paragraph (b) and by adding the
following after paragraph (c):
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1997, c. 15,
s. 69
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(2) Subsection 487(4) of the Act is
replaced by the following:
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Exception for
holding body
corporate
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(4) A holding body corporate of a bank is
not a related party of the bank if the holding
body corporate is a Canadian financial
institution that is referred to in any of
paragraphs (a) to (d) of the definition
``financial institution'' in section 2.
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129. The Act is amended by adding the
following after section 495:
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Transactions
with holding
companies
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495.1 (1) Subject to subsection (2) and
sections 495.2 and 495.3, if a widely held bank
holding company or a widely held insurance
holding company has a significant interest in
any class of shares of a bank, the bank may
enter into any transaction with the holding
company or with any other related party of the
bank that is an entity in which the holding
company has a substantial investment.
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Policies and
procedures
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(2) The bank shall adhere to policies and
procedures established under subsection
195(3) when entering into the transaction.
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Restriction
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495.2 (1) If a bank enters into a transaction
with a related party of the bank with whom the
bank may enter into transactions under
subsection 495.1(1) and that is not a federal
financial institution, the bank shall not
directly or indirectly make, take an
assignment of or otherwise acquire a loan to
the related party, make an acceptance,
endorsement or other guarantee on behalf of
the related party or make an investment in the
securities of the related party if, immediately
following the transaction, the aggregate
financial exposure, as that expression is
defined by the regulations, of the bank would
exceed
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Order
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(2) If the Superintendent is of the opinion
that it is necessary for the protection of the
interests of the depositors and creditors of a
bank, the Superintendent may, by order,
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