Bill C-8
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Indirect
investments
through
federal
institutions
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(2) If a foreign bank or an entity associated
with a foreign bank acquires or holds control
of, or a substantial investment in, a Canadian
entity under subsection (1), none of the
requirements relating to designation and
approval set out in Division 5 apply in respect
of that acquisition or holding.
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Investments
through
provincial
institutions
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522.12 An entity that is associated with a
foreign bank and that is
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may acquire or hold control of, or a substantial
investment in, a Canadian entity that is not a
permitted Canadian entity or an entity referred
to in paragraphs 468(1)(a) to (i), and if it does
so, none of the requirements relating to
approval set out in Division 5 apply in respect
of that acquisition or holding.
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Indirect
investments
through
provincial
institutions
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522.13 A foreign bank or an entity
associated with a foreign bank may acquire or
hold control of, or a substantial investment in,
a Canadian entity, other than a permitted
Canadian entity or a Canadian entity referred
to in any of paragraphs 468(1)(a) to (i), by way
of
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Temporary
investments
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522.14 (1) Subject to the requirements
relating to designation set out in Division 5, a
foreign bank or an entity associated with a
foreign bank may, by way of temporary
investment, acquire or hold control of, or a
substantial investment in, a Canadian entity if
the foreign bank or the entity associated with
a foreign bank has a financial establishment in
Canada or would, by virtue of the temporary
investment, have a financial establishment in
Canada.
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Divestiture
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(2) If subsection (1) applies in respect of a
foreign bank or an entity associated with a
foreign bank, the foreign bank or entity shall
do all things necessary to ensure that, within
two years after acquiring the control or the
substantial investment or within any other
period that may be specified or approved by
the Minister, it no longer controls or has a
substantial investment in the entity.
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Extension
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(3) On application by a foreign bank, or an
entity associated with a foreign bank, the
Minister may extend the period referred to in
subsection (2) by any further period or
periods.
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Exception
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(4) When a foreign bank, or an entity
associated with a foreign bank, acquires or
holds, by way of a temporary investment,
control of, or a substantial investment in, a
Canadian entity for which the approval of the
Minister is required under this Part, the
foreign bank or entity associated with the
foreign bank shall, within 90 days after
acquiring control, or after acquiring the
substantial investment,
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Deemed
temporary
investment
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(5) If a foreign bank or an entity associated
with a foreign bank holds control of, or a
substantial investment in, a Canadian entity as
permitted by this Division and the foreign
bank or the entity associated with the foreign
bank becomes aware of a change in the
business, affairs or activities of the Canadian
entity that, if the change had taken place
before the acquisition of control or the
substantial investment, would have caused the
entity not to be a limited commercial entity or
a Canadian entity referred to in section 522.07
or 522.08 or would have been such that
approval for the acquisition would have been
required under any of paragraphs 522.22(1)(a)
to (e) or (g), the foreign bank or the entity
associated with the foreign bank is deemed to
have acquired, on the day it becomes aware of
the change, a temporary investment in respect
of which subsections (1) to (4) apply.
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Notification
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(6) Within 90 days after acquiring control or
a substantial investment under subsection (1)
or (5), a foreign bank or an entity associated
with a foreign bank shall notify the Minister in
writing of the acquisition.
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Acquisition
by loan
workout or
realization of
security
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522.15 (1) If a foreign bank or an entity
associated with a foreign bank acquires or
holds control of, or a substantial investment
in, a Canadian entity
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it may retain the control or the substantial
investment for five years, but it shall do all
things necessary to ensure that, within five
years after the acquisition, it no longer
controls the Canadian entity or holds a
substantial investment in the Canadian entity.
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Extension
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(2) On application by a foreign bank or an
entity associated with a foreign bank, the
Minister may extend the period referred to in
subsection (1) by any further period or
periods.
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Exception
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(3) If, under subsection (1), a foreign bank
or an entity associated with a foreign bank
acquires or holds control of, or a substantial
investment in, a Canadian entity for which the
approval of the Minister is required under
Division 5, the foreign bank or entity
associated with the foreign bank may retain
control of the Canadian 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 (1) or of
any extension granted under subsection (2).
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Branches
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Bank
branches
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522.16 A foreign bank may, under Part
XII.1, maintain a branch in Canada to carry on
business in Canada.
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Insurance
branches
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522.17 A foreign bank, or an entity that is
incorporated or formed otherwise than by or
under an Act of Parliament or of the
legislature of a province and that is associated
with a foreign bank may obtain an order under
Part XIII of the Insurance Companies Act to
insure, in Canada, risks.
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Business of a
cooperative
credit society
and dealing in
securities
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522.18 Subject to the requirements relating
to designation and approval set out in Division
5, a foreign bank - or an entity associated
with a foreign bank -
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Limited
commercial
branches
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522.19 (1) Subject to the requirements
relating to designation and approval in
Division 5 and subject to subsection (2), a
foreign bank, or an entity that is incorporated
or formed otherwise than by or under an Act
of Parliament or of the legislature of a
province and that is associated with a foreign
bank, that has a financial establishment in
Canada may maintain a branch in Canada or
engage in or carry on business in Canada, so
long as
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Prohibition
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(2) A foreign bank - or an entity
associated with a foreign bank - that
maintains a branch or engages in or carries on
any business under subsection (1) may not in
Canada engage in any leasing activities.
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DIVISION 5 |
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DESIGNATION AND APPROVALS |
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Non-applicati
on
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522.2 This Division does not apply in
respect of investments acquired and held,
branches maintained and businesses engaged
in or carried on in accordance with Division 3.
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Obligation to
be designated
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522.21 (1) A foreign bank that does not
have a financial establishment in Canada must
be a designated foreign bank or be associated
with a designated foreign bank in order to
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Entity
associated
with a
designated
foreign bank
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(2) An entity that is associated with a
foreign bank and that does not have a financial
establishment in Canada must be associated
with a designated foreign bank in order for the
entity to
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Designated
foreign bank
that has a
financial
establishment
in Canada
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(3) A foreign bank that has a financial
establishment in Canada must be a designated
foreign bank or be associated with a
designated foreign bank in order to
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Entity
associated
with
designated
foreign bank
that has a
financial
establishment
in Canada
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(4) An entity that is associated with a
foreign bank and that has a financial
establishment in Canada must be an entity
associated with a foreign bank that is a
designated foreign bank in order for the entity
to
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Minister's
approval
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522.22 (1) Subject to subsection (2) and the
regulations, a foreign bank or an entity
associated with a foreign bank may not,
without the prior written approval of the
Minister, given by order,
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Approval for
indirect
investments
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(2) Subject to the regulations, if a foreign
bank or an entity associated with a foreign
bank
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