Bill C-8
If you have any questions or comments regarding the accessibility of this publication, please contact us at accessible@parl.gc.ca.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Superinten- dent's approval
|
(6) Subject to subsection (7) and the
regulations, a bank may not acquire control of,
or acquire or increase a substantial investment
in, an entity referred to in any of paragraphs
(1)(g) to (j) and (4)(c) and (d), unless the bank
obtains the approval of the Superintendent.
|
|
Exception
|
(7) Subsection (6) does not apply in respect
of a particular transaction if
|
|
|
|
|
|
|
|
|
|
|
Control not
required
|
(8) A bank need not control an entity
referred to in paragraph (1)(j), or an entity that
is incorporated or formed otherwise than by or
under an Act of Parliament or of the
legislature of a province, if the laws or
customary business practices of the country
under the laws of which the entity was
incorporated or formed do not permit the bank
to control the entity.
|
|
Giving up
control
prohibited
|
(9) A bank that controls, within the meaning
of paragraphs 3(1)(a) and (d), an entity
referred to in paragraph (1)(a) or (b) may not
give up control, within the meaning of
paragraph 3(1)(a) or (d), of the entity while
continuing to control, within the meaning of
the other paragraph, the entity.
|
|
Prohibition on
giving up
control in fact
|
(10) A bank that, under paragraph (4)(b), (c)
or (d), controls an entity may not, without the
prior written approval of the Minister, give up
control, within the meaning of paragraph
3(1)(d), of the entity while it continues to
control the entity.
|
|
Giving up
control
|
(11) A bank that, under subsection (4),
controls an entity may, with the prior written
approval of the Superintendent, give up
control of the entity while keeping a
substantial investment in the entity if
|
|
|
|
|
|
|
|
Subsections
do not apply
|
(12) If a bank controls, within the meaning
of paragraph 3(1)(a), (b) or (c), an entity,
subsections (5) and (6) do not apply in respect
of any subsequent increases by the bank of its
substantial investment in the entity so long as
the bank continues to control the entity.
|
|
Approval for
indirect
investments
|
469. (1) If a bank obtains the approval of the
Minister under subsection 468(5) to acquire
control of, or to acquire or increase a
substantial investment in, an entity and,
through that acquisition or increase, the bank
indirectly acquires control of, or acquires or
increases a substantial investment in, another
entity that would require the approval of the
Minister under subsection 468(5) or the
Superintendent under subsection 468(6) and
that indirect acquisition or increase is
disclosed to the Minister in writing before the
approval is obtained, the bank is deemed to
have obtained the approval of the Minister or
the Superintendent for that indirect
acquisition or increase.
|
|
Approval for
indirect
investments
|
(2) If a bank obtains the approval of the
Superintendent under subsection 468(6) to
acquire control of, or to acquire or increase a
substantial investment in, an entity and,
through that acquisition or increase the bank
indirectly acquires control of, or acquires or
increases a substantial investment in, another
entity that would require the approval of the
Superintendent under that subsection and that
indirect acquisition or increase is disclosed to
the Superintendent in writing before the
approval is obtained, the bank is deemed to
have obtained the approval of the
Superintendent for that indirect acquisition or
increase.
|
|
Undertakings
|
470. (1) If a bank controls a permitted
entity, other than an entity referred to in any of
paragraphs 468(1)(a) to (f), the bank shall
provide the Superintendent with any
undertakings that the Superintendent may
require regarding
|
|
|
|
|
|
|
|
Undertakings
|
(2) If a bank acquires control of an entity
referred to in any of paragraphs 468(1)(g) to
(j), the bank shall provide the Superintendent
with any undertakings concerning the entity
that the Superintendent may require.
|
|
Agreements
with other
jurisdictions
|
(3) The Superintendent may enter into an
agreement with the appropriate official or
public body responsible for the supervision of
an entity referred to in any of paragraphs
468(1)(g) to (j) in each province or in any
other jurisdiction concerning any matters
referred to in paragraphs (1)(a) and (b) or any
other matter the Superintendent considers
appropriate.
|
|
Access to
records
|
(4) Despite any other provision of this Part,
a bank shall not control a permitted entity,
other than an entity referred to in any of
paragraphs 468(1)(a) to (f), unless, in the
course of the acquisition of control or within
a reasonable time after the control is acquired,
the bank obtains from the permitted entity an
undertaking to provide the Superintendent
with reasonable access to the records of the
permitted entity.
|
|
|
Exceptions and Exclusions |
|
Temporary
investments in
entity
|
471. (1) Subject to subsection (4), a bank
may, by way of a temporary investment,
acquire control of, or acquire or increase a
substantial investment in, an entity but, within
two years, or any other period that may be
specified or approved by the Superintendent,
after acquiring control or after acquiring or
increasing the substantial investment, as the
case may be, it shall do all things necessary to
ensure that it no longer controls the entity or
has a substantial investment in the entity.
|
|
Transitional
|
(2) Despite subsection (1), if a bank that was
in existence immediately before June 1, 1992
had an investment in an entity on September
27, 1990 that is a substantial investment
within the meaning of section 10 and the bank
subsequently increases that substantial
investment by way of a temporary investment,
the bank shall, within two years, or any other
period that is specified or approved by the
Superintendent, after increasing the
substantial investment, do all things necessary
to ensure that its substantial investment in the
entity is no greater than it was on September
27, 1990.
|
|
Extension
|
(3) The Superintendent may, in the case of
any particular bank that makes an application
under this subsection, extend the period of two
years, or the other period specified or
approved by the Superintendent, that is
referred to in subsection (1) or (2) for any
further period or periods, and on any terms and
conditions, that the Superintendent considers
necessary.
|
|
Temporary
investment
|
(4) If a bank, by way of temporary
investment, acquires control of, or acquires or
increases a substantial investment in, an entity
for which the approval of the Minister under
subsection 468(5) is required, the bank must,
within 90 days after acquiring control or after
acquiring or increasing the substantial
investment,
|
|
|
|
|
|
|
|
Indetermi- nate extension
|
(5) If a bank, by way of temporary
investment, acquires control of, or acquires or
increases a substantial investment in, an entity
for which the approval of the Superintendent
under subsection 468(6) is required, the
Superintendent may, in the case of any
particular bank that makes an application
under this subsection, permit the bank to
retain control of the entity or to continue to
hold the substantial investment in the entity
for an indeterminate period, on any terms and
conditions that the Superintendent considers
necessary.
|
|
Loan
workouts
|
472. (1) Despite anything in this Part, if a
bank or any of its subsidiaries has made a loan
to an entity and, under the terms of the
agreement between the bank, or any of its
subsidiaries, and the entity with respect to the
loan and any other documents governing the
terms of the loan, a default has occurred, the
bank may acquire
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligation of
bank
|
(2) If a bank acquires shares or ownership
interests in an entity under subsection (1), the
bank shall, within five years after acquiring
them, do all things necessary to ensure that the
bank does not control the entity or have a
substantial investment in the entity.
|
|
Transitional
|
(3) Despite subsection (1), if a bank that was
in existence immediately before June 1, 1992
had an investment in an entity on September
27, 1990 that is a substantial investment
within the meaning of section 10 and the bank
later increases that substantial investment by
way of an investment made under subsection
(1), the bank shall, within five years after
increasing the substantial investment, do all
things necessary to ensure that its substantial
investment in the entity is no greater than it
was on September 27, 1990.
|
|
Extension
|
(4) The Superintendent may, in the case of
any particular bank that makes an application
under this subsection, extend the period
referred to in subsection (2) or (3) for any
further period or periods, and on any terms and
conditions, that the Superintendent considers
necessary.
|
|
Exception -
entities
controlled by
foreign
governments
|
(5) Despite anything in this Part, if a bank
has made a loan to, or holds a debt obligation
of, the government of a foreign country or an
entity controlled by the government of a
foreign country and, under the terms of the
agreement between the bank and that
government or the entity, as the case may be,
and any other documents governing the terms
of the loan or debt obligation, a default has
occurred, the bank may acquire all or any of
the shares of, or ownership interests in, that
entity or in any other entity designated by that
government, if the acquisition is part of a debt
restructuring program of that government.
|
|
Time for
holding shares
|
(6) If a bank acquires any shares or
ownership interests under subsection (5), the
bank may, on any terms and conditions that the
Superintendent considers appropriate, hold
those shares or ownership interests for an
indeterminate period or for any other period
that the Superintendent may specify.
|
|
Exception
|
(7) If, under subsection (1), a bank acquires
control of, or acquires or increases a
substantial investment in, an entity that it
would otherwise be permitted to acquire or
increase under section 468, the bank may
retain control of the 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 (2)
or (3), including any extension of it granted
under subsection (4).
|
|
Realizations
|
473. (1) Despite anything in this Act, a bank
may acquire
|
|
|
|
|
|
|
|
|
|
|
|
if the investment or interest is acquired
through the realization of a security interest
held by the bank or any of its subsidiaries.
|
|
Disposition
|
(2) Subject to subsection 73(2), if a bank
acquires control of, or acquires a substantial
investment in, an entity by way of the
realization of a security interest held by the
bank or any of its subsidiaries, the bank shall,
within five years after the day on which
control or the substantial investment is
acquired, do all things necessary, or cause its
subsidiary to do all things necessary, as the
case may be, to ensure that the bank no longer
controls the entity or has a substantial
investment in the entity.
|
|
Transitional
|
(3) Despite subsection (2), if a bank that was
in existence immediately before June 1, 1992
had an investment in an entity on September
27, 1990 that is a substantial investment
within the meaning of section 10 and the bank
later increases that substantial investment by
way of a realization of a security interest under
subsection (1), the bank shall, within five
years after increasing the substantial
investment, do all things necessary to ensure
that its substantial investment in the entity is
no greater than it was on September 27, 1990.
|
|
Extension
|
(4) The Superintendent may, in the case of
any particular bank that makes an application
under this subsection, extend the period
referred to in subsection (2) or (3) for any
further period or periods, and on any terms and
conditions, that the Superintendent considers
necessary.
|
|
Exception
|
(5) If, under subsection (1), a bank acquires
control of, or acquires or increases a
substantial investment in, an entity that it
would otherwise be permitted to acquire or
increase under section 468, the bank may
retain control of the 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 (2) or (3),
including any extension of it granted under
subsection (4).
|
|
Regulations
restricting
ownership
|
474. The Governor in Council may make
regulations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Limits |
|
Exclusion
from portfolio
limits
|
475. (1) Subject to subsection (3), the value
of all loans, investments and interests
acquired by a bank and any of its prescribed
subsidiaries under section 472 or as a result of
a realization of a security interest is not to be
included in calculating the value of loans,
investments and interests of the bank and its
prescribed subsidiaries under sections 476 to
478
|
|
|
|
|
|
|
|
Extension
|
(2) The Superintendent may, in the case of
any particular bank, extend any period
referred to in subsection (1) for any further
period or periods, and on any terms and
conditions, that the Superintendent considers
necessary.
|
|
Exception
|
(3) Subsection (1) does not apply to an
investment or interest described in that
subsection if the investment or interest is
defined by a regulation made under section
479 to be an interest in real property and
|
|
|
|
|
|
|
|