Bill C-8
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Order
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(3) The Superintendent may, by order,
increase the limit in paragraph (1)(a) or (b)
that would otherwise apply to a bank on
transactions by the bank with related parties
that are financial institutions that are
regulated in a manner acceptable to the
Superintendent.
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Assets
transactions
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495.3 (1) Despite subsection 494(3), a bank
shall not, without the approval of the
Superintendent and its conduct review
committee, directly or indirectly acquire
assets from a related party of the bank with
whom the bank may enter into transactions
under subsection 495.1(1) that is not a federal
financial institution, or directly or indirectly
transfer assets to such a related party 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
directly or indirectly acquired from, or di
rectly or indirectly transferred to, that re
lated party in the twelve months ending
immediately before the acquisition or
transfer; and
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C is five per cent, or the percentage that may
be prescribed, of the total value of the as
sets 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 assets purchased or
otherwise acquired under subsection 494(1),
assets sold under subsection 494(2) or any
other assets as may be prescribed.
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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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130. Paragraph 501(2)(b) of the Act is
replaced by the following:
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131. Section 506 of the Act is replaced by
the following:
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Order to void
contract or to
grant other
remedy
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506. (1) If a bank enters into a transaction
that it is prohibited from entering into by this
Part, the bank or the Superintendent may
apply to a court for an order setting aside the
transaction or for any other appropriate
remedy, including an order directing that the
related party of the bank involved in the
transaction account to the bank for any profit
or gain realized or that any director or senior
officer of the bank who authorized the
transaction compensate the bank for any loss
or damage incurred by the bank.
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Time limit
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(2) An application under subsection (1) in
respect of a particular transaction may only be
made within the period of three months
following the day the notice referred to in
section 505 in respect of the transaction is
given to the Superintendent or, if no such
notice is given, the day the Superintendent
becomes aware of the transaction.
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Certificate
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(3) For the purposes of subsection (2), a
document purporting to have been issued by
the Superintendent, certifying the day on
which the Superintendent became aware of
the transaction, shall, in the absence of
evidence to the contrary, be received in
evidence as conclusive proof of that fact
without proof of the signature or of the official
character of the person appearing to have
signed the document and without further
proof.
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1991, c. 47,
par.
756(1)(b);
1994, c. 47,
s. 26; 1997, c.
15, ss. 76 to
85; 1999, c.
28, ss. 27 to
34, c. 31,
s. 15(F)
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132. Part XII of the Act is replaced by the
following:
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PART XII |
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FOREIGN BANKS |
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DIVISION 1 |
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INTERPRETATION AND APPLICATION |
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Definitions
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507. (1) The following definitions apply in
this Part.
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``designated
foreign bank'' « banque étrangère désignée »
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``designated foreign bank'' means a foreign
bank that is the subject of a designation
order.
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``designation
order'' « arrêté de désignation »
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``designation order'' means an order made
under subsection 508(1).
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``exemption
order'' « arrêté d'exemption »
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``exemption order'' means an order made
under subsection 509(1).
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``finance
entity'' « entité s'occupant de finance- ment »
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``finance entity'' means a Canadian entity that
is a finance entity as defined in the
regulations.
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``financial
leasing
entity'' « entité s'occupant de crédit-bail »
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``financial leasing entity'' means a Canadian
entity that is a financial leasing entity as
defined in subsection 464(1).
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``financial
services
entity'' « entité s'occupant de services financiers »
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``financial services entity'' means an entity,
other than an entity referred to in any of
paragraphs 468(1)(a) to (i) or a leasing
entity, that engages in activities at least the
prescribed portion - or if no portion is
prescribed, 10 per cent - of which,
determined in the prescribed manner,
consists of one or more of the following
activities:
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``foreign
cooperative
credit
society'' « société coopérative de crédit étrangère »
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``foreign cooperative credit society'' means
an entity that is incorporated or formed, and
regulated, otherwise than by or under an
Act of Parliament or of the legislature of a
province, and that, outside Canada, engages
in or carries on the business of a cooperative
credit society.
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``foreign
insurance
company'' « société d'assurances étrangère »
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``foreign insurance company'' means a
foreign company as defined in subsection
2(1) of the Insurance Companies Act.
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``foreign
securities
dealer'' « courtier de valeurs mobilières étranger »
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``foreign securities dealer'' means an entity
that is incorporated or formed, and
regulated, otherwise than by or under an
Act of Parliament or of the legislature of a
province, and that, outside Canada, engages
in or carries on the business of dealing in
securities.
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``leasing
activities'' « activités de location »
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``leasing activities'' means
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``leasing
entity'' « entité s'occupant de location »
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``leasing entity'' means an entity that engages
in only
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``limited
commercial
entity'' « entité à activités commerciales restreintes »
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``limited commercial entity'' means a
Canadian entity that a foreign bank or an
entity associated with a foreign bank may
control in accordance with section 522.09,
or in which a foreign bank or an entity
associated with a foreign bank is permitted
to acquire a substantial investment in
accordance with that section.
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``non-bank
affiliate of a
foreign bank'' « établisse- ment affilié à une banque étrangère »
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``non-bank affiliate of a foreign bank'' means
a Canadian entity, other than a bank,
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``permitted
Canadian
entity'' « entité canadienne admissible »
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``permitted Canadian entity'' means a
Canadian entity that a foreign bank or an
entity associated with a foreign bank may
control in accordance with section 522.08,
or in which a foreign bank or an entity
associated with a foreign bank is permitted
to acquire a substantial investment in
accordance with that section.
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``representa- tive office'' « bureau de représenta- tion »
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``representative office'' means an office
established to represent a foreign bank in
Canada that is not subject to the direction
of, or management by, an entity
incorporated or formed by or under an Act
of Parliament or of the legislature of a
province, and the personnel of which are
employed directly or indirectly by the
foreign bank.
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``specialized
financing
entity'' « entité s'occupant de financement spécial »
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``specialized financing entity'' means a
Canadian entity that is a specialized
financing entity as defined in the
regulations.
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Entity
associated
with foreign
bank
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(2) For the purposes of this Part,
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Entity deemed
to be
associated
with a foreign
bank
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(3) For the purposes of this Part, the
Minister may deem an entity to be associated
with a foreign bank if, in the opinion of the
Minister, it is reasonable to conclude that
under any agreement, commitment or
understanding, whether formal or informal,
verbal or written,
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Deemed
substantial
investment by
foreign bank
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(4) For the purposes of this Part, a foreign
bank is deemed to hold a substantial
investment in a Canadian entity if
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would, if they were one person, hold a
substantial investment in the Canadian entity.
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Deemed
substantial
investment by
entity
associated
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(5) For the purposes of this Part, an entity
associated with a foreign bank is deemed to
hold a substantial investment in a Canadian
entity if
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would, if they were one person, hold a
substantial investment in the Canadian entity.
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Deemed
control by
foreign bank
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(6) For the purposes of this Part, a foreign
bank is deemed to control a Canadian entity if
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