Bill C-8
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Non-applicati
on re federal
institutions
associated
with a foreign
bank
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509.1 Subsection 510(1) does not apply to
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DIVISION 2 |
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GENERAL PROHIBITIONS AND EXCEPTIONS |
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Prohibited
activities
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510. (1) Except as permitted by this Part, a
foreign bank or an entity associated with a
foreign bank shall not
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Deeming re
acts of agent,
etc. - foreign
banks
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(2) For the purposes of this Part, a foreign
bank is deemed to be carrying out or to have
carried out anything prohibited by subsection
(1) if it is carried out by a nominee or agent of
the foreign bank acting as such.
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Deeming re
acts of agent,
etc. -
associated
entities
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(3) For the purposes of this Part, an entity
associated with a foreign bank is deemed to be
carrying out or to have carried out anything
prohibited by subsection (1) if it is carried out
by a nominee or agent of the entity associated
with the foreign bank acting as such.
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Exception re
accessing
accounts
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511. Nothing in paragraphs 510(1)(a) to (c)
is to be construed as prohibiting a foreign bank
or an entity associated with a foreign bank
from entering into an arrangement with one or
more Canadian financial institutions by which
customers of the foreign bank or the entity
who are natural persons not ordinarily resident
in Canada may access in Canada their
accounts located outside Canada through the
use of automated banking machines located in
Canada and operated by the Canadian
financial institution or institutions.
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Exception re
quotations
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512. Nothing in paragraphs 510(1)(a) to (c)
is to be construed as prohibiting a foreign bank
or an entity associated with a foreign bank
from establishing, maintaining or using a
private telephone service or similar facility for
the purpose of quoting to customers in
Canada, or entering with customers in Canada
into verbal agreements relating to, foreign
exchange, deposit or loan rates if there is no
accounting or information processing
involved in the private telephone service or
similar facility.
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Exception re
automated
services
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513. (1) A foreign bank, or an entity
associated with a foreign bank, that has
received the approval of the Minister under
paragraph 522.22(1)(f) to engage in or carry
on the business of dealing in securities or the
business of a cooperative credit society may
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Non-applicati
on
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(2) Paragraph 510(1)(c) does not apply to
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Exception re
real property
holding and
management
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514. Except as may be prescribed,
paragraphs 510(1)(a) and (b) do not apply in
respect of the holding, managing and other
dealing with real property in Canada by a
foreign bank or an entity associated with a
foreign bank.
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Non-applicati
on re
Canadian
entity
associated
with a foreign
bank
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515. Paragraphs 510(1)(a) and (b) do not
apply to a Canadian entity that is an entity
associated with a foreign bank and that is held
or acquired in accordance with this Part.
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Change of
status
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516. (1) If a foreign bank maintains a branch
or engages in or carries on business in Canada
that it maintained or engaged in or carried on
before becoming a foreign bank and that
branch or business is not permitted by or under
this Part, the foreign bank may continue to
maintain that branch or engage in or carry on
that business for a period of six months from
the time it became a foreign bank or for any
other shorter period that may be specified or
approved by the Minister.
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Change of
status
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(2) If a foreign bank holds control of or
holds a substantial investment in a Canadian
entity and it did so before becoming a foreign
bank and that holding is not permitted by or
under this Part, the foreign bank may continue
to hold control of, or a substantial investment
in, the Canadian entity for a period of six
months from the time it became a foreign bank
or for any other shorter period that may be
specified or approved by the Minister.
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Change of
status
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517. (1) If an entity associated with a
foreign bank maintains a branch or engages in
or carries on business in Canada that it
maintained or engaged in or carried on before
the foreign bank became a foreign bank and
that branch or business is not permitted by or
under this Part, the entity may continue to
maintain that branch or engage in or carry on
that business for a period of six months from
the time the foreign bank became a foreign
bank or for any other shorter period that may
be specified or approved by the Minister.
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Change of
status
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(2) If an entity associated with a foreign
bank holds control of or holds a substantial
investment in a Canadian entity and it did so
before the foreign bank became a foreign bank
and that holding is not permitted by or under
this Part, the entity may continue to hold
control of, or a substantial investment in, the
Canadian entity for a period of six months
from the time the foreign bank became a
foreign bank or for any other shorter period
that may be specified or approved by the
Minister.
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Restriction
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517.1 If an order has been made under
subsection 973.1(1) in respect of a foreign
bank or an entity associated with a foreign
bank and section 516 applies to the foreign
bank or section 517 applies to the entity, as the
case may be, the period under section 516 or
517 may not extend beyond the expiry of the
period referred to in the order made under
subsection 973.1(1).
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Prohibition re
guarantee and
acceptance of
securities and
bills
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518. (1) Subject to subsections (2) to (4),
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Exception
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(2) Subsection (1) does not apply in respect
of the guarantee or acceptance by a foreign
bank of securities, bills of exchange or
depository bills that are issued by
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Exception
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(3) Subsection (1) does not apply in respect
of
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Exception
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(4) Despite subsection (1), a foreign bank,
or an entity associated with a foreign bank,
that has received the approval of the Minister
under paragraph 522.22(1)(f) to engage in or
carry on the business of dealing in securities or
the business of a cooperative credit society
may
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Prohibited
activities -
non-bank
affiliates
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519. (1) Despite anything in this Part, but
subject to subsection (5) and section 509, a
non-bank affiliate of a foreign bank shall not,
in Canada,
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Disclosure of
status
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(2) Despite anything in this Part, but subject
to subsections (4) to (6) and section 509, a
non-bank affiliate of a foreign bank that
carries on as part of its business the provision
of financial services shall not borrow money
in Canada from the public without disclosing
that
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Manner of
disclosure
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(3) The disclosure shall be
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Exception for
certain
borrowing
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(4) Subsection (2) does not apply
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Exception -
deposit-taking
institutions
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(5) Subsections (1) and (2) do not apply to
a non-bank affiliate that is
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Exception -
insurance
company or
securities
dealer
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(6) Subsection (2) does not apply if the
non-bank affiliate is
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Prohibition re
deposits
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520. (1) Despite anything in this Part, but
subject to subsection (5) and section 509, a
foreign bank - or an entity that is associated
with a foreign bank and that is incorporated or
formed otherwise than by or under an Act of
Parliament or of the legislature of a
province - shall not, as part of its business in
Canada,
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Disclosure of
status
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(2) Despite anything in this Part, but subject
to subsections (4) to (6) and section 509, a
foreign bank or entity referred to in subsection
(1) that carries on, as part of its business in
Canada, the provision of financial services
shall not borrow money in Canada from the
public without disclosing that
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