Bill C-10

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Coming into Force

September 8, 2008

221. (1) Sections 123 to 127 and subsection 220(1) are deemed to have come into force on September 8, 2008.

January 28, 2009

(2) Sections 122 and 128 to 219 and subsection 220(2) are deemed to have come into force on January 28, 2009.

PART 4

EMPLOYMENT INSURANCE

1996, c. 23

Employment Insurance Act

222. Section 66 of the Employment Insurance Act is amended by adding the following after subsection (3):

Premium rate for 2010

(4) Despite subsections (1) to (3), the premium rate for the year 2010 is 1.73%.

223. The Act is amended by adding the following after section 73:

Benefit enhancements under this Act

73.1 There shall be credited to the Employment Insurance Account on August 1, 2010 the amount determined by the Minister of Finance that corresponds to the cost of the benefit enhancement measures under this Act, provided for in the budget tabled in Parliament on January 27, 2009 in which the cost is estimated to be $2,900,000,000.

224. (1) Schedule I to the Act is replaced by the Schedule I set out in Schedule 8 to this Act.

(2) Schedule I to the Act is replaced by the Schedule I set out in Schedule 9 to this Act.

Claimants Not in Canada

Subsection 55(7)

225. The maximum number of weeks for which benefits may be paid to a claimant referred to in subsection 55(7) of the Employment Insurance Regulations whose benefit period has not ended before the second Sunday before the day on which this Act receives royal assent and does not begin after September 11, 2010 is to be determined in accordance with Schedule 10.

Pilot Project Relating To Extended Benefits

Pilot Project No. 10

226. (1) Section 77.6 of the Employment Insurance Regulations is deemed to cease to have effect on the second Saturday before the day on which this Act receives royal assent.

Transitional

(2) The maximum number of weeks for which benefits may be paid in a benefit period that is established for a claimant who is included in Pilot Project No. 10 and whose benefit period has not ended before the second Sunday before the day on which this Act receives royal assent is to be determined in accordance with Schedule I to the Employment Insurance Act, as enacted by subsection 224(1).

Premium Rates Provided for Under the Employment Insurance Act

Deeming provision

227. Section 66.1 of the Employment Insurance Act, as enacted by section 9 of chapter 5 of the Statutes of Canada, 2001, is deemed to have read as follows:

Premium rates for 2002 and 2003

66.1 Notwithstanding section 66, the premium rates for the years 2002 and 2003 are 2.2% and 2.1%, respectively.

Deeming provision

228. Section 66.3 of the Employment Insurance Act, as enacted by section 25 of chapter 22 of the Statutes of Canada, 2004, is deemed to have read as follows:

Premium rate for 2005

66.3 Notwithstanding section 66, the premium rate for the year 2005 is 1.95%.

Transitional Provision

Application

229. Subsection 224(1) applies with respect to every claimant whose benefit period has not ended before the day on which that subsection comes into force and whose benefit period does not begin after September 11, 2010.

Coordinating Amendments

2008, c. 28

230. (1) In this section, “other Act” means the Budget Implementation Act, 2008.

(2) If section 127 of the other Act comes into force before section 222 of this Act, then

(a) that section 222 is deemed never to have come into force and is repealed; and

(b) section 66 of the Employment Insurance Act is amended by adding the following after subsection (1):

Premium rate for 2010

(1.1) Despite subsection (1), the premium rate for the year 2010 is 1.73%.

(3) If section 222 of this Act comes into force before section 127 of the other Act, then, on the day on which that section 127 comes into force, section 66 of the Employment Insurance Act is amended by adding the following after subsection (1):

Premium rate for 2010

(1.1) Despite subsection (1), the premium rate for the year 2010 is 1.73%.

(4) If section 127 of the other Act comes into force on the same day as section 222 of this Act, then that section 222 is deemed to have come into force before that section 127 and subsection (3) applies as a consequence.

Coming into Force

Retroactive effect

231. (1) Subsection 224(1) is deemed to have come into force on the second Sunday before the day on which this Act receives royal assent.

September 12, 2010

(2) Subsection 224(2) comes into force on September 12, 2010.

PART 5

STABILITY AND EFFICIENCY OF THE FINANCIAL SYSTEM

Division 1

R.S., c. F-11

Financial Administration Act

232. The Financial Administration Act is amended by adding the following after section 60.1:

PART IV.1

STABILITY AND EFFICIENCY OF THE FINANCIAL SYSTEM

Definitions

60.2 (1) The following definitions apply in this section.

“debt obligation”
« titre de créance »

“debt obligation” means a bond, debenture, note or other evidence of indebtedness of an entity, whether secured or unsecured.

“entity”
« entité »

“entity” means an entity that, in the Minister’s opinion, is operating in Canada.

“financial markets”
« marchés financiers »

“financial markets” includes markets for money, bonds, equities, derivatives, foreign exchange and commodities.

“financial system”
« système financier »

“financial system” includes financial institutions, financial markets and payment systems as defined in section 36 of the Canadian Payments Act.

“security”
« titre »

“security” means

(a) in relation to a corporation, a share, a class of shares or a debt obligation of the corporation, and includes any conversion or exchange privilege, option or other right to acquire a share of the corporation; and

(b) in relation to any other entity, any ownership interest in or debt obligation of the entity.

Contracts

(2) Subject to subsection (3), the Minister may, with the Governor in Council’s authorization, enter into, on behalf of Her Majesty in right of Canada, any contract that in the Minister’s opinion is necessary to promote the stability or maintain the efficiency of the financial system in Canada, including such a contract to

(a) purchase, acquire, hold, lend or sell or otherwise dispose of securities of an entity;

(b) create a charge on, or right or interest in, securities of an entity held by the Minister;

(d) provide a line of credit to an entity;

(e) guarantee any debt, obligation or financial asset of an entity; or

(f) provide loan insurance or credit insurance for the benefit of an entity in respect of any debt, obligation or financial asset of the entity.

Non-application to certain entities

(3) Paragraph (2)(a) does not apply to

(a) shares, as defined in subsection 973.2(15) of the Bank Act, of a bank or bank holding company, as defined in section 2 of that Act;

(b) shares, as defined in subsection 459.9(14) of the Cooperative Credit Associations Act, of an association as defined in section 2 of that Act;

(c) shares, as defined in subsection 1016.7(15) of the Insurance Companies Act, of a company or insurance holding company, as defined in subsection 2(1) of that Act; or

(d) shares, as defined in subsection 527.9(15) of the Trust and Loan Companies Act, of a company as defined in section 2 of that Act.

Section 90 does not apply

(4) Section 90 does not apply if the Minister purchases, acquires or sells or otherwise disposes, under paragraph (2)(a), of shares within the meaning of that section.

Section 61 and Surplus Crown Assets Act do not apply

(5) Section 61 and the Surplus Crown Assets Act do not apply if the Minister holds, loans or sells or otherwise disposes of securities under paragraph (2)(a).

Payments out of C.R.F.

(6) Any amount payable under or in connection with a contract entered into under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, at the times and in the manner that the Minister considers appropriate.

Retroactive effect

(7) This section applies to any contract entered into on or after November 30, 2008.

Division 2

R.S., c. C-3

Canada Deposit Insurance Corporation Act

Amendments to the Act

233. Section 2 of the Canada Deposit Insurance Corporation Act is amended by adding the following in alphabetical order:

“bridge institution”
« institution- relais »

“bridge institution” means a federal institution that is designated as a bridge institution by an order made under paragraph 39.13(1)(c);

234. The Act is amended by adding the following after section 7:

Power of Governor in Council

7.1 (1) The Governor in Council may, by order, exempt the Corporation from the requirement that it pursue its objects in a manner that will minimize its exposure to loss when it takes any action to address a situation that is specified in the order.

Condition precedent

(2) The Governor in Council may make the order only if the Minister is of the opinion, after consultation with the Board, the Governor of the Bank of Canada and the Superintendent, that the requirement that the Corporation pursue its objects in a manner that will minimize its exposure to loss, in respect of a situation that will be specified in the order, might have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

Repeal

(3) The Governor in Council may repeal the order only if the Minister is of the opinion that the requirement that the Corporation pursue its objects in a manner that will minimize its exposure to loss, in respect of the situation specified in the order, will no longer have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

Coming into force

7.2 (1) An order made under subsection 7.1(1) has effect from the time that it is made.

Statutory Instruments Act

(2) The Statutory Instruments Act does not apply to the order.

Publication

(3) The Minister shall cause a notice to be published in the Canada Gazette that the order has been made or repealed as soon as the Minister is of the opinion that the publication of the notice will not have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

Recovery of loss

7.3 After the publication of a notice in the Canada Gazette that an order was made under subsection 7.1(1), the Corporation shall, in accordance with its by-laws, collect a special premium from member institutions or any class of member institutions in order to recover the loss that the Corporation determines it incurred as a result of pursuing its objects without regard to the requirement that it do so in a manner that minimizes its exposure to loss.

235. The Act is amended by adding the following after section 10:

Exemption — shares of member institution

10.01 (1) To enable the Corporation to acquire, hold or dispose of shares under paragraph 10(1)(f.1), the Minister may, by order, exempt any person or share specified in the order from any of the following provisions:

(a) sections 372, 373, 374, 375, 376, 376.1, 376.2, 377, 377.1, 379, 385, 401.2 and 401.3 of the Bank Act;

(b) sections 407, 407.01, 407.02, 407.03, 407.1, 407.2, 408, 411, 428 and 430 of the Insurance Companies Act; and

Conditions

(2) The exemption may be subject to conditions.

Duration of exemption

(3) The exemption ceases to have effect five years after the day on which it comes into force.

Extension

(4) The Minister may, by order, extend the duration of the exemption if general market conditions so warrant.

Statutory Instruments Act

(5) The Statutory Instruments Act does not apply to an order made under this section.

1996, c. 6, s. 24; 1997, c. 15, s. 111(E)

236. (1) The portion of subsection 10.1(3) of the Act before paragraph (b) is replaced by the following:

Total indebtedness

(3) The total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed

(a) $15,000,000,000 or, if it is greater, the amount determined in accordance with subsections (3.1) to (3.5); or

(2) Section 10.1 of the Act is amended by adding the following after subsection (3):

Increase

(3.1) Subject to subsections (3.3) and (3.4), the amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed is increased each year to the amount determined by the formula

A + (A × B)

where

A is the amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed on January 1 of the current year; and

B is the rate determined by the formula set out in subsection (3.2).

Rate

(3.2) The rate referred to in the description of B in subsection (3.1) is determined by the formula

(C – D) / D

where

C is the total amount of deposits insured by the Corporation on April 30 of the current year; and

D is the total amount of deposits insured by the Corporation on April 30 of the previous year.

Rounding

(3.3) The amount determined under subsection (3.1) shall be rounded to the nearest billion dollars or, if the amount is equidistant from two consecutive multiples of one billion dollars, it shall be rounded to the higher of those two multiples.

No change

(3.4) The amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed does not change if the amount determined for D in subsection (3.2) is greater than the amount determined for C in that subsection.

Date effective

(3.5) The new amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed comes into effect on December 31 of the current year.

Publication

(3.6) The Corporation shall publish the new amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed in its annual report following the day on which the new amount comes into effect.

237. The Act is amended by adding the following after section 11:

Minister’s direction

11.1 (1) The Minister may, after consultation with the Board, the Governor of the Bank of Canada and the Superintendent, give a written direction to the Corporation if the Minister is of the opinion that not giving the direction might have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

Compliance without regard to minimizing loss

(2) The Corporation shall comply with the direction without regard to the requirement referred to in paragraph 7(c) that it pursue its objects in a manner that will minimize its exposure to loss.

Implementation

(3) The Corporation’s directors shall ensure that the direction is implemented in a prompt and efficient manner and, if in so doing they act in accordance with section 115 of the Financial Administration Act, they are not accountable for any consequences arising from the implementation of the direction.

Notification of implementation

(4) After implementing the direction, the Corporation shall notify the Minister without delay that the direction has been implemented.

Best interests

(5) The Corporation’s compliance with a direction is deemed to be in its best interests.

Statutory Instruments Act

11.2 (1) The Statutory Instruments Act does not apply to a direction given under subsection 11.1(1).

Publication

(2) The Minister shall cause a notice to be published in the Canada Gazette that a direction was given under subsection 11.1(1) as soon as the Minister is of the opinion that the publication of the notice will not have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

Recovery of loss

11.3 After the publication of a notice in the Canada Gazette that a direction was given under subsection 11.1(1), the Corporation shall, in accordance with its by-laws, collect a special premium from member institutions or any class of member institutions in order to recover the loss that the Corporation determines it incurred as a result of complying with the direction.

R.S., c. 18 (3rd Supp.), s. 52(1)

238. Subsection 14(2.7) of the Act is replaced by the following:

Preparatory examination

(2.7) If the Corporation believes that it would be in the best interests of both the depositors with the member institution and the Corporation that preparations be made to make a payment under this Act in respect of a deposit held by a member institution, the Corporation may make or cause to be made by any person designated by the Corporation, an examination of the books, records and accounts of the member institution relating to its deposit liabilities. For the purposes of the examination, the Corporation and the person designated by it have a right of access to those books, records and accounts and are entitled to require the member institution’s directors, officers, auditors and any receiver or liquidator of the member institution to furnish any information and explanations regarding the deposits held by the member institution that the Corporation or person may require.

R.S., c. 18 (3rd Supp.), s. 58

239. Section 24 of the Act is replaced by the following:

Where premiums payable

24. All premiums payable shall be paid to the Corporation at its head office.

240. The Act is amended by adding the following after section 25.1:

Non-application to special premium

25.2 Section 21, subsection 22(2), section 23 and subsection 37(5) do not apply to a special premium.

By-laws — special premium

25.3 (1) In respect of each order made under subsection 7.1(1) or each direction given under subsection 11.1(1), the Board may make by-laws respecting the recovery from member institutions or any class of member institutions of the loss referred to in section 7.3 or 11.3, as the case may be, including by-laws

(a) fixing the special premium payable by member institutions or any class of member institutions or providing for the manner of fixing the special premium;

(b) establishing a system of classifying member institutions in different classes;

(c) establishing the criteria or factors to be taken into account or procedures to be followed by the Corporation in determining the class in which a member institution is classified; or

(d) respecting the time and manner in which a special premium shall be paid.

When by-law not effective

(2) A by-law made under subsection (1) is not effective unless it has been approved in writing by the Minister.

1992, c. 26, s. 11

241. The heading before section 39.1 of the Act is replaced by the following:

Vesting in Corporation and Appointing Corporation as Receiver

242. Section 39.1 of the Act is amended by adding the following after subsection (3):

Urgency

(4) Despite subsections (1) and (3), the Superintendent may report to the Corporation orally if he or she is of the opinion that the federal member institution’s circumstances must be considered without delay.

1996, c. 6, s. 41

243. (1) Subsection 39.13(1) of the Act is replaced by the following:

Order

39.13 (1) The Governor in Council may, on the recommendation of the Minister made under section 39.12, by order,

(a) vest the shares and subordinated debt of the federal member institution in the Corporation;

(b) appoint the Corporation as receiver in respect of the federal member institution; or

Condition precedent

(1.1) The making of an order, under paragraph (1)(b), appointing the Corporation as receiver of the federal member institution is a condition precedent to the making of an order under paragraph (1)(c) in respect of the federal member institution.

1996, c. 6, s. 41

(2) The portion of subsection 39.13(2) of the French version of the Act before paragraph (a) is replaced by the following:

But du décret portant dévolution

(2) Le décret portant dévolution :

1996, c. 6, s. 41

(3) The portion of subsection 39.13(3) of the French version of the Act before paragraph (a) is replaced by the following:

Décret nommant séquestre

(3) Le décret pris en vertu de l’alinéa (1)b) fait de la Société le séquestre unique de tout ou partie de l’actif et de l’entreprise de l’institution fédérale membre, selon les termes du décret, et lui donne le pouvoir, entre autres :

244. The Act is amended by adding the following after section 39.13:

Order to exempt or adapt

39.131 (1) The Governor in Council may, by order,

(a) exempt a federal member institution in respect of which an order directing the incorporation of a bridge institution is made, a bridge institution or a subsidiary of any of those institutions from the application of any provision of this Act or the regulations or of the following Acts or regulations made under them:

(i) the Bank Act,

(ii) the Canadian Payments Act,

(iii) the Cooperative Credit Associations Act,

(iv) the Financial Consumer Agency of Canada Act,

(v) the Insurance Companies Act,

(vi) the Office of the Superintendent of Financial Institutions Act,

(vii) the Trust and Loan Companies Act, and

(viii) the Winding-up and Restructuring Act; or

(b) provide that any provision of this Act or the regulations or of the Acts referred to in paragraph (a) or regulations made under them applies to a federal member institution in respect of which an order directing the incorporation of a bridge institution is made, a bridge institution or a subsidiary of any of those institutions only in the manner and to the extent provided for in the order and adapt that provision for the purpose of that application.

Scope or conditions

(2) The exemption may be limited in scope or duration or made subject to conditions.

Coming into force

39.132 (1) An order made under subsection 39.131(1) has effect from the time that it is made.

Statutory Instruments Act

(2) The Statutory Instruments Act does not apply to the order.

Publication

(3) The Minister shall cause the order to be published in the Canada Gazette as soon as the Minister considers appropriate.

1996, c. 6, s. 41

245. (1) Paragraph 39.15(1)(a) of the Act is replaced by the following:

(a) no action or other civil proceeding may be commenced or continued against the federal member institution or in respect of its assets other than a proceeding under the Winding-up and Restructuring Act commenced by the Corporation or the Attorney General of Canada;

1996, c. 6, s. 41

(2) Subsection 39.15(1) of the Act is amended by striking out “and” at the end of paragraph (d) and by replacing paragraph (e) with the following:

(e) no person may terminate or amend any agreement with the federal member institution or claim an accelerated payment, or forfeiture of the term, under any such agreement with the federal member institution by reason only of

(i) the federal member institution’s insolvency,

(ii) a default, before the order was made, by the federal member institution in the performance of its obligations under the agreement,

(iii) the making of the order, or

(iv) the agreement being assigned to or assumed by the bridge institution; and

(f) no person may terminate the federal member institution’s membership in an organization by reason only of

(i) the default by the federal member institution in the performance of its obligations under the rules of the organization,

(ii) the making of the order, or

(iii) the federal member institution’s membership being transferred to the bridge institution.

1996, c. 6, s. 41

(3) Paragraph 39.15(2)(b) of the Act is replaced by the following:

(b) provides, in substance, that the federal member institution ceases to have the rights — or, in the case of a bridge institution, does not have the rights — to use or deal with assets that the federal member institution or bridge institution would otherwise have, on

(i) the federal member institution’s insolvency,

(ii) the default by the federal member institution in the performance of its obligations,

(iii) the making of the order, or

(iv) the agreement being assigned to or assumed by the bridge institutions.

(4) Section 39.15 of the Act is amended by adding the following after subsection (2):

Organization’s rules — no force or effect

(2.1) If an order is made under subsection 39.13(1), any stipulation in the rules of an organization is of no force or effect if it

(a) has the effect of providing for or permitting anything that, in substance, is contrary to paragraph (1)(f) or 39.13(3)(b); or

(b) provides, in substance, that the federal member institution ceases to have the rights — or, in the case of the bridge institution, does not have the rights — of a member of the organization, that the federal member institution or the bridge institution would otherwise have, on

(i) the federal member institution’s insolvency,

(ii) the default by the federal member institution in the performance of its obligations,

(iii) the making of the order, or

(iv) the federal member institution’s membership being transferred to the bridge institution.

(5) Section 39.15 of the Act is amended by adding the following after subsection (3):

Clearing agent

(3.1) A member of the Canadian Payments Association that acts as a clearing agent for a federal member institution at the time an order directing the incorporation of a bridge institution is made with respect to the federal member institution shall act as a clearing agent for the bridge institution, if the Corporation undertakes to

(a) unconditionally guarantee the federal member institution’s obligations to the clearing agent as clearing agent; or

(b) ensure that the federal member institution’s obligations to the clearing agent as clearing agent are assumed by the bridge institution.

2001, c. 9, s. 212(2)

(6) Paragraph 39.15(6)(b) of the Act is replaced by the following:

(b) the Superintendent, on the application of the federal member institution, exempted the security agreement from the application of those paragraphs and that subsection before the making of an order under subsection 39.13(1) and, in the case of an order directing the incorporation of a bridge institution, the Corporation does not undertake to ensure that the obligations secured by the security interest will be assumed by the bridge institution and does not undertake to unconditionally guarantee payment of the obligations secured by the security interest.

(7) Section 39.15 of the Act is amended by adding the following after subsection (7):

Corporation’s undertaking — eligible financial contracts

(7.1) If an order directing the incorporation of a bridge institution is made, the actions referred to in subsection (7) may not be taken by reason only that the order or an order appointing the Corporation as receiver is made in respect of the federal member institution or that the eligible financial contract is assigned to the bridge institution if the Corporation undertakes to

(a) unconditionally guarantee the payment of any amount due or that may become due — in accordance with the provisions of the eligible financial contract — by the federal member institution; or

(b) ensure that all obligations arising from the eligible financial contract will be assumed by the bridge institution.

246. The Act is amended by adding the following after section 39.15:

Stay of proceedings — bridge institution

39.151 Any action or other civil proceeding to which a bridge institution becomes a party by virtue of acquiring assets or assuming liabilities of a federal member institution shall be stayed for a period of 90 days at the bridge institution’s request.

1996, c. 6, s. 41

247. Subsections 39.2(5) and (6) of the Act are replaced by the following:

Approval by Minister

(5) A transaction referred to in subsection (1) or (2) has no force or effect until it is approved by the Minister, unless it is between the Corporation, as receiver for a federal member institution, and a bridge institution.

Novation

(6) Any person who assumes a liability of the federal member institution under a transaction referred to in subsection (1) or (2) becomes liable — instead of the federal member institution — to discharge the liability, on approval of the transaction by the Minister or as soon as the person assumes the liability if the transaction does not require the Minister’s approval.

Exception

(7) Subsection (6) does not apply to the bridge institution’s assumption of any portion of the federal member institution’s liability that is not insured by the Corporation.

Novation — trust

(8) A trust company within the meaning of subsection 57(2) of the Trust and Loan Companies Act that is designated as a bridge institution may become a trustee in substitution for the federal member institution without formality or the consent of any beneficiary of the trust.

248. The Act is amended by adding the following after section 39.2:

Terms and conditions of transactions

39.201 (1) If the Corporation as receiver for a federal member institution carries out a transaction with a bridge institution, the Corporation shall establish the terms and conditions of the transaction, including

(a) which assets the bridge institution shall acquire and the consideration to be paid for the assets acquired; and

(b) which liabilities the bridge institution shall assume and the consideration to be paid for the liabilities assumed.

Reasonable consideration

(2) The consideration referred to in paragraph (1)(a) shall be reasonable in the circumstances.

Compensation

(3) Nothing in subsections (1) and (2) prevents the federal member institution from seeking compensation under subsections 39.24(2) and (3) and sections 39.25 to 39.361.

Deposit liabilities

39.202 (1) A bridge institution shall assume all of the liabilities with respect to a federal member institution’s deposits that are insured by the Corporation.

Subrogation

(2) If the bridge institution assumes any portion of a federal member institution’s liability that is not insured by the Corporation, the bridge institution is subrogated to all the rights and interests of the creditor against the federal member institution in relation to the entire liability and may maintain an action in respect of those rights and interests in its own name or in the name of the creditor.

Creditor’s rights and interests

(3) As soon as the bridge institution receives an amount equal to the liabilities that are not insured by the Corporation that it assumed, the rights and interests in respect of the balance remaining revert to the creditor.

Liquidator bound

39.203 (1) The liquidator of a federal member institution appointed under the Winding-up and Restructuring Act is bound by the terms and conditions of any transaction that involves the sale or other disposition of the federal member institution’s assets or the assumption by a bridge institution of any portion of the federal member institution’s liabilities and shall carry out those transactions or cause them to be carried out.

Expenses

(2) All costs, charges and expenses properly incurred by the liquidator in complying with the terms and conditions of any transaction referred to in subsection (1), including the liquidator’s remuneration, are payable by the bridge institution.

1996, c. 6, s. 41

249. Section 39.21 of the Act is replaced by the following:

Right transferable

39.21 If the assets that are sold under a transaction described in section 39.2 or by a bank designated as a bridge institution include any outstanding security under section 426 or 427 of the Bank Act, the buyer of the assets may hold the security for the life of the loan to which the security relates and all the provisions of that Act relating to the security and its enforcement continue to apply to the buyer as though the buyer were a bank.

250. Section 39.24 of the Act is amended by adding the following after subsection (2):

Period

(2.1) The period referred to in subsection (2) is 180 days if an order directing the incorporation of a bridge institution is made in respect of a federal member institution that is the subject of an order made under paragraph 39.13(1)(b).

251. The Act is amended by adding the following after section 39.37:

Creation and Operation of Bridge Institutions

Incorporation

39.371 (1) The Minister shall, without delay after an order is made under paragraph 39.13(1)(c), issue letters patent incorporating a federal institution.

Incorporating Act

(2) The letters patent are issued under whichever of the following Acts regulates the federal member institution that is the subject of the Superintendent’s report under subsection 39.1(1) or (3):

(a) the Bank Act;

(b) the Cooperative Credit Associations Act; or

Order to commence and carry on business

(3) The Superintendent shall, without delay after the letters patent are issued, make an order approving the commencement and carrying on of business by the federal institution referred to in subsection (1).

Content of Superintendent’s order — limitation

(4) The Superintendent’s order shall not prohibit the federal institution, during the period that it is designated as a bridge institution, from accepting deposits in Canada and shall not make the federal institution, during that period, subject to subsection 413(3) of the Bank Act, subsection 378.1(2) of the Cooperative Credit Associations Act or subsection 413(2) of the Trust and Loan Companies Act.

Duration

39.3711 (1) Subject to section 39.3715, the federal institution referred to in subsection 39.371(1) is designated as a bridge institution for a period of two years.

Extensions

(2) The Governor in Council may, by order, on the recommendation of the Minister, grant up to three extensions — of one year each — of the period referred to in subsection (1).

Bridge institution not an agent

39.3712 A bridge institution is not an agent of the Corporation or Her Majesty in right of Canada.

Financial assistance

39.3713 The Corporation shall provide the financial assistance that a bridge institution needs in order to discharge its obligations, except for its obligations to the Corporation, as they become due.

Shares held by Corporation

39.3714 The Corporation may hold shares in a bridge institution only if the Corporation is the sole shareholder.

Termination of designation

39.3715 A federal institution’s designation as a bridge institution terminates if

(a) the Corporation is no longer the sole shareholder; or

(b) the federal institution is amalgamated with a body corporate that is not a bridge institution.

Mandatory dissolution of bridge institution

39.3716 If a bridge institution’s designation has not terminated under section 39.3715, the federal institution’s board of directors shall take all necessary steps to dissolve the federal institution if

(a) all or substantially all of the federal institution’s assets have been sold or otherwise disposed of; and

(b) all or substantially all of its liabilities have been assumed or discharged.

Winding-up of federal member institution

39.3717 (1) If the Corporation considers that substantially all of the transfers of assets and liabilities of a federal member institution to a bridge institution have been substantially completed, the Corporation shall apply for a winding-up order under the Winding-up and Restructuring Act in respect of the federal member institution.

Creditor

(2) For the purposes of the Winding-up and Restructuring Act, the Corporation is deemed to be a creditor of the federal member institution.

Exception

(3) If the Superintendent has taken control of the federal member institution or its assets and has requested the Attorney General of Canada to apply for a winding-up order or informs the Corporation that he or she intends to request that the Attorney General of Canada apply for that order, the Corporation is not required to apply for a winding-up order.

Power of the Corporation

39.3718 (1) The Corporation may hold any federal institution’s shares that the Corporation acquires in the course of a sale or other disposition of its shares of the bridge institution or that a bridge institution acquires in the course of a sale or other disposition of its assets.

Maximum period

(2) The Corporation may hold the shares for a period of no more than five years from the day on which they are acquired and may dispose of them.

Extension

(3) The Minister may, by order, extend the period referred to in subsection (2) if general market conditions so warrant.

Provisions inapplicable

(4) The following provisions do not apply with respect to the shares referred to in subsection (1):

(a) sections 401.2 and 401.3 of the Bank Act;

(b) sections 428 and 430 of the Insurance Companies Act; and

Remuneration and benefits

39.3719 An employee or officer of the Corporation shall not receive remuneration or benefits from a bridge institution for being a director or officer of that institution.

Not a successor employer

39.372 If a bridge institution becomes the employer of the federal member institution’s employees, it is not a successor employer to the federal member institution and is not liable for the obligations that the federal member institution has as employer or former employer.

Corporation’s directions

39.3721 (1) The Corporation may give directions to the board of directors of a bridge institution.

Notification of implementation

(2) After implementing a direction, the board of directors of the bridge institution shall notify the Corporation without delay that the direction has been implemented.

By-laws — Corporation

39.3722 (1) The Corporation may give directions to the board of directors of a bridge institution to make, amend or repeal any by-law.

By-laws — board of directors

(2) The board of directors of a bridge institution may, with the approval of the Corporation, make, amend or repeal any by-law.

Meaning of “by-law”

(3) For the purposes of subsections (1) and (2), “by-law” means a by-law of the bridge institution.

Regulation to exempt or adapt

39.3723 (1) The Governor in Council may, by regulation,

(a) exempt federal member institutions in respect of which an order directing the incorporation of a bridge institution is made, bridge institutions or subsidiaries of any of those institutions, or any class of those institutions or class of their subsidiaries, from the application of any provision of this Act or the regulations or of the following Acts or regulations made under them:

(i) the Bank Act,

(ii) the Canadian Payments Act,

(iii) the Cooperative Credit Associations Act,

(iv) the Financial Consumer Agency of Canada Act,

(v) the Insurance Companies Act,

(vi) the Office of the Superintendent of Financial Institutions Act,

(vii) the Trust and Loan Companies Act, and

(viii) the Winding-up and Restructuring Act; or

(b) provide that any provision of this Act or the regulations or of the Acts referred to in paragraph (a) or regulations made under them applies to federal member institutions in respect of which an order directing the incorporation of a bridge institution is made, bridge institutions or subsidiaries of any of those institutions, or any class of those institutions or class of their subsidiaries, only in the manner and to the extent provided for in the regulation and adapt that provision for the purpose of that application.

Scope or conditions

(2) The exemption may be limited in scope or duration or subject to conditions.

252. The Act is amended by adding the following after section 45.1:

Directors and officers of bridge institution

45.11 Directors and officers of a bridge institution are not liable for any damages, payment, compensation or indemnity that any person may suffer or claim by reason of anything done or omitted to be done, in good faith, in the exercise, execution or performance of any powers, duties and functions as directors or officers of the bridge institution.

253. The Act is amended by adding the following after section 45.2:

Disclosures prohibited — bridge institution

45.3 (1) Subject to subsection 12(1) of the Privacy Act, any information with respect to the affairs of a federal institution designated as a bridge institution or of any person dealing with it is confidential, shall be treated accordingly and shall not be disclosed.

Duration of prohibition

(2) The prohibition applies only during the period that the federal institution is designated as a bridge institution.

Exception — entity or person

(3) The prohibition does not apply if the information is disclosed

(a) to any government agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision;

(b) to any other agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision;

(c) to the Financial Transactions and Reports Analysis Centre of Canada established by section 41 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, for the purpose of complying with that Act;

(d) to the Corporation for the purposes of fulfilling its functions under this Act or as a shareholder of the federal institution designated as a bridge institution;

(e) to the Minister of Finance, the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance;

(f) to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for the purposes of policy analysis related to the regulation of financial institutions;

(g) to the Canada Revenue Agency solely for the purpose of the Income Tax Act or the Excise Tax Act; or

(h) to any other entity or person that is prescribed by regulation, in any circumstance or condition prescribed by regulation.

Other exceptions

(4) The prohibition does not apply if the information is disclosed

(a) in the normal conduct of the business of the federal institution designated as a bridge institution;

(b) for the purposes of selling the shares or assets of the federal institution designated as a bridge institution;

(d) for the purpose of preparing the Corporation’s annual report and its corporate plan or if the information is disclosed in those documents;

(e) in any circumstance that is prescribed by regulation; or

(f) in any other circumstance that the board of directors of the federal institution designated as a bridge institution considers necessary.

Regulations

(5) The Governor in Council may make regulations

(a) specifying the circumstances in which the prohibition does not apply; or

(b) specifying, for the purpose of paragraph (3)(h), the entity to which or person to whom information may be disclosed and the circumstances and conditions under which the information may be disclosed to that entity or person.

254. Section 3 of the schedule to the Act is amended by adding the following after subsection (6):

Tax-free savings account

(6.1) Despite subsection (2), for the purposes of deposit insurance with the Corporation, if moneys received by a member institution from a depositor in accordance with a tax-free savings account, within the meaning assigned by section 146.2 of the Income Tax Act, constitute a deposit or part of a deposit by or for the benefit of an individual, the aggregate of those moneys and any other moneys received from the same depositor in accordance with any other tax-free savings account that constitute a deposit or part of a deposit by or for the benefit of the same individual is deemed to be a single deposit separate from any other deposit of or for the benefit of that individual.

Consequential Amendments

R.S., c. A-1

Access to Information Act

255. Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to

Canada Deposit Insurance Corporation Act

Loi sur la Société d’assurance-dépôts du Canada

and a corresponding reference to “subsection 45.3(1)”.

R.S., c. C-21; 2001, c. 9, s. 218

Canadian Payments Act

256. Subsection 4(1) of the Canadian Payments Act is amended by striking out “and” at the end of paragraph (c) and by adding the following after that paragraph:

(c.1) every cooperative credit association, loan company or trust company that is designated as a bridge institution under the Canada Deposit Insurance Corporation Act; and

R.S., c. F-11

Financial Administration Act

257. (1) Section 85 of the Financial Administration Act is amended by adding the following after subsection (2):

Exemption for federal member institution

(2.1) Divisions I to IV do not apply to a member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, any shares of which are held by the Canada Deposit Insurance Corporation as the result of the granting of an exemption referred to in section 10.01 of that Act.

(2) Section 85 of the Act is amended by adding the following after subsection (3):

Exemption — bridge institution

(4) Sections 88 and 89.2 to 104 and Divisions II to IV do not apply to

(a) a bridge institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act; or

(b) the Canada Deposit Insurance Corporation, as a parent Crown corporation in respect of a wholly-owned subsidiary that is a bridge institution.

R.S., c. W-11; 1996, c. 6, s. 134

Winding-up and Restructuring Act

258. Section 3 of the Winding-up and Restructuring Act is amended by striking out “or” at the end of paragraph (i), by adding “or” at the end of paragraph (j) and by adding the following after paragraph (j):

(k) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which the Canada Deposit Insurance Corporation has been appointed as receiver, a transfer of part of the business of the federal member institution to a bridge institution has been substantially completed.

Coming into Force

Order in council

259. (1) The provisions of this Division, except for sections 235 and 254 and subsection 257(1), come into force on a day or days to be fixed by order of the Governor in Council.

Retroactivity

(2) Section 254 is deemed to have come into force on January 27, 2009.

Division 3

R.S., c. E-20; 2001, c. 33, s. 2(F)

Export Development Act

1993, c. 26, s. 4(1)

260. (1) Subsection 10(1) of the Export Development Act is replaced by the following:

Purposes

10. (1) The Corporation is established for the purposes of supporting and developing, directly or indirectly,

(a) domestic trade and Canadian capacity to engage in that trade and to respond to domestic business opportunities; and

(b) Canada’s export trade and Canadian capacity to engage in that trade and to respond to international business opportunities.

Complementary to commercial products and services

(1.01) The Corporation shall carry out its purposes, with respect to domestic trade and domestic business, in a manner that complements the products and services available from commercial financial institutions and commercial insurance providers.

2001, c. 33, s. 8

(2) Paragraph 10(3)(b) of the Act is replaced by the following:

(b) $45,000,000,000.

261. Subsection 11(1) of the Act is replaced by the following:

Authorized capital

11 (1) The authorized capital of the Corporation is $3,000,000,000 divided into 30 million shares of the par value of $100 each.

1993, c. 26, s. 8

262. (1) The portion of subsection 24(1) of the Act before paragraph (a) is replaced by the following:

Limit of liability

24. (1) Subject to subsection (2), in respect of transactions entered into under section 23, the total of the following shall at no time exceed $20,000,000,000:

1993, c. 26, s. 8

(2) The portion of subsection 24(1) of the English version of the Act after paragraph (c) is repealed.

Repeal

263. (1) Paragraph 10(1)(a) and subsection 10(1.01) of the Act, as enacted by subsection 260(1), are repealed two years after the day on which they come into force.

Extension

(2) The Governor in Council may, by order, extend the period referred to in subsection (1).

Arrangement entered into before repeal

(3) The repeal of paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), has no effect on any arrangement Export Development Canada entered into in order to carry out its purpose referred to in that paragraph. Despite the repeal, Export Development Canada may take any steps and do anything that it considers necessary or desirable to implement the arrangement or that it considers related to the arrangement.

Application suspended

(4) Subsections 5(2) and 6(2) and (3) of the Export Development Canada Exercise of Certain Powers Regulations do not apply for the period beginning on the day on which paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), comes into force and ending on the day on which that paragraph is repealed.

Transactions entered into before repeal

(5) Despite subsection (4), subsections 5(2) and 6(2) and (3) of the Export Development Canada Exercise of Certain Powers Regulations do not apply to a new transaction that Export Development Canada enters into during the period that paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), is in force, even after that paragraph is repealed. Despite the repeal, Export Development Canada may take any steps and do anything that it considers necessary or desirable to implement the transaction or that it considers related to the transaction.

Division 4

1995, c. 28

Business Development Bank of Canada Act

264. Subsection 23(1) of the Business Development Bank of Canada Act is replaced by the following:

Authorized capital

23. (1) The authorized capital of the Bank consists of an unlimited number of common shares with a par value of $100 each and an unlimited number of preferred shares without par value, but the paid-in capital of the Bank, together with any contributed surplus relating to it and any proceeds referred to in paragraph 30(2)(d) that have been prescribed as equity, must not at any time exceed $3,000,000,000.

Division 5

1998, c. 36

Canada Small Business Financing Act

Amendments to the Act

265. (1) Subsection 4(2) of the Canada Small Business Financing Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:

(b) in the case of a loan made before April 1, 2009, the outstanding loan amount in relation to the borrower does not exceed $250,000 or any prescribed lesser amount; and

(c) in the case of a loan made after March 31, 2009, the outstanding loan amount in relation to the borrower does not exceed $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner.

(2) Subsection 4(3) of the Act is replaced by the following:

Meaning of outstanding loan amount

(3) The outstanding loan amount referred to in paragraph (2)(b) or (c) is the aggregate of the amount of the proposed loan and the principal amount outstanding, in respect of the borrower and all borrowers that are related to that borrower within the meaning of the regulations, of all loans made under this Act and guaranteed business improvement loans made under the Small Business Loans Act.

266. Subsection 6(2) of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

(c) 10%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it before April 1, 2009 that exceeds $500,000, and

(d) 12%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it after March 31, 2009 that exceeds $500,000.

267. Subsection 7(1) of the Act is replaced by the following:

Maximum loan size

7. (1) The Minister is not liable to make any payment to a lender, in respect of any loss sustained by it as a result of a loan made to a borrower, if the borrower has disclosed to the lender the outstanding amount of the loan or the lender has actual knowledge of that amount and if the outstanding loan amount in relation to the borrower is more than

(a) in the case of a loan made before April 1, 2009, $250,000 or any prescribed lesser amount; and

(b) in the case of a loan made after March 31, 2009, $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner.

Coming into Force

Coming into force

268. This Division comes into force on April 1, 2009 or, if it is later, on the day on which this Act receives royal assent.

Division 6

Legislation Governing Financial Institutions

1991, c. 46

Bank Act

269. Paragraph 409(2)(d) of the French version of the Bank Act is replaced by the following:

d) l’émission de cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, l’exploitation d’un système de telles cartes.

270. The Act is amended by adding the following after section 418:

Restriction on charges to borrowers

418.1 (1) Subject to any regulations made under subsection (2), a bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the bank of the insurance or guarantee.

Regulations

(2) The Governor in Council may make regulations

(a) respecting the determination of the actual cost to a bank for the purposes of subsection (1);

(b) respecting the circumstances in which a bank is exempt from the application of subsection (1);

(c) respecting, in relation to insurance or a guarantee against default on a loan made by a bank in Canada on the security of residential property,

(i) the arrangements into which the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not enter, and

(ii) the payments or benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not accept from an insurer or the insurer’s affiliates; and

(d) respecting any other matters necessary to carry out the purposes of subsection (1).

Regulations — disclosure

(3) The Governor in Council may make regulations respecting the disclosure by a bank of information relating to insurance or a guarantee against default on a loan made by the bank in Canada on the security of residential property, including regulations respecting

(a) the information that must be disclosed, including information relating to

(i) the person who benefits from the insurance or guarantee,

(ii) the arrangements between

(A) the bank or any affiliates that it controls, or the representatives or the employees of each, and

(B) the insurer or the insurer’s affiliates, and

(iii) the payments and benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, accept from an insurer or the insurer’s affiliates;

(b) the time, place and manner in which and the persons to whom information is to be disclosed; and

271. The Act is amended by adding the following after section 458.2:

Regulations — activities

458.3 The Governor in Council may make regulations respecting any matters involving a bank’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

(a) what a bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 409 and any ancillary, related or incidental activities or services; and

(b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

1999, c. 28, s. 35(1)

272. Paragraph 538(2)(d) of the French version of the Act is replaced by the following:

273. The Act is amended by adding the following after section 551:

Restriction on charges to borrowers

552. (1) Subject to any regulations made under subsection (2), an authorized foreign bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the authorized foreign bank of the insurance or guarantee.

Regulations

(2) The Governor in Council may make regulations

(a) respecting the determination of the actual cost to an authorized foreign bank for the purposes of subsection (1);

(b) respecting the circumstances in which an authorized foreign bank is exempt from the application of subsection (1);

(c) respecting, in relation to insurance or a guarantee against default on a loan made by an authorized foreign bank in Canada on the security of residential property,

(i) the arrangements into which the authorized foreign bank, its representatives and its employees may or may not enter, and

(ii) the payments or benefits that the authorized foreign bank, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

(d) respecting any other matters necessary to carry out the purposes of subsection (1).

Regulations — disclosure

(3) The Governor in Council may make regulations respecting the disclosure by an authorized foreign bank of information relating to insurance or a guarantee against default on a loan made by the authorized foreign bank in Canada on the security of residential property, including regulations respecting

(a) the information that must be disclosed, including information relating to

(i) the person who benefits from the insurance or guarantee,

(ii) the arrangements between the authorized foreign bank, its representatives or its employees and the insurer or the insurer’s affiliates, and

(iii) the payments and benefits that the authorized foreign bank, its representatives and its employees accept from an insurer or the insurer’s affiliates;

(b) the time, place and manner in which and the persons to whom information is to be disclosed; and

274. The Act is amended by adding the following after section 575:

Regulations — activities

575.1 The Governor in Council may make regulations respecting any matters involving an authorized foreign bank’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

(a) what an authorized foreign bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 538 and any ancillary, related or incidental activities or services; and

(b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

275. The Act is amended by adding the following after section 973.1:

Orders to Exempt or Adapt

Order

973.2 (1) On the recommendation of the Minister, the Governor in Council may, by order,

(a) provide that any provision of this Act or the regulations shall not apply to a bank, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and

(b) provide that any provision of this Act or the regulations applies to a bank, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.

Minister’s recommendation

(2) The Minister may make a recommendation under subsection (1) only if the Minister

(a) is of the opinion that the order would relate to

(i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of a bank by, or the transfer or issue of shares of a bank to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or

(ii) the management of the business and affairs or the regulation and supervision of a bank during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the bank, or during the time that shares of the bank are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and

(b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

Terms and conditions

(3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a bank by, or transfer or issue of shares of a bank to, Her Majesty in right of Canada or Her Majesty’s agent or agency.

Repeal of order under subsection (1)

(4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).

Terms, conditions and undertakings

(5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a bank to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the bank that the Minister considers appropriate, including any terms and conditions or undertakings relating to

(a) the remuneration of the bank’s senior officers, as defined in section 646.1, and directors;

(b) the appointment or removal of the bank’s senior officers, as defined in section 646.1, and directors;

(d) the bank’s lending policies and practices.

Acquisition

(6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a bank on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the bank may record in its securities register the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty.

Payment out of C.R.F.

(7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares.

Registration of shares

(8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the bank’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.

Disposition by Minister

(9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

Disposition by agent or agency

(10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

Consideration by Minister

(11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a bank on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.

Mandatory disposition

(12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

Not a Crown corporation

(13) Even if the acquisition of a bank’s shares under subsection (6) would otherwise cause the bank to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the bank is not a Crown corporation for the purposes of that Act.

Statutory Instruments Act

(14) The Statutory Instruments Act does not apply to an order made under this section.

Definition of “shares”

(15) For the purposes of this section, “shares” includes any conversion or exchange privilege, option or right to acquire shares.

Bank holding company

(16) For the purposes of this section, a reference to a “bank” includes a reference to a “bank holding company”, and the references to “section 646.1” in paragraphs (5)(a) and (b) are to be read, in relation to a bank holding company, as references to “section 962”.

1991, c. 48

Cooperative Credit Associations Act

276. Subparagraph 376(1)(i)(iii) of the French version of the Cooperative Credit Associations Act is replaced by the following:

(iii) émettre des cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, exploiter un système de telles cartes,

277. The Act is amended by adding the following after section 382.1:

Restriction on charges to borrowers

382.2 (1) Subject to any regulations made under subsection (2), a retail association that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the retail association of the insurance or guarantee.

Regulations

(2) The Governor in Council may make regulations

(a) respecting the determination of the actual cost to a retail association for the purposes of subsection (1);

(b) respecting the circumstances in which a retail association is exempt from the application of subsection (1);

(c) respecting, in relation to insurance or a guarantee against default on a loan made by a retail association in Canada on the security of residential property,

(i) the arrangements into which the retail association, its representatives and its employees may or may not enter, and

(ii) the payments or benefits that the retail association, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

(d) respecting any other matters necessary to carry out the purposes of subsection (1).

Regulations — disclosure

(3) The Governor in Council may make regulations respecting the disclosure by a retail association of information relating to insurance or a guarantee against default on a loan made by the retail association in Canada on the security of residential property, including regulations respecting

(a) the information that must be disclosed, including information relating to

(i) the person who benefits from the insurance or guarantee,

(ii) the arrangements between the retail association, its representatives or its employees and the insurer or the insurer’s affiliates, and

(iii) the payments and benefits that the retail association, its representatives and its employees accept from an insurer or the insurer’s affiliates;

(b) the time, place and manner in which and the persons to whom information is to be disclosed; and

278. The Act is amended by adding the following after section 385.251:

Regulations — activities

385.252 The Governor in Council may make regulations respecting any matters involving a retail association’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

(a) what a retail association may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under paragraph 375.1(1)(a) and subparagraphs 376(1)(i)(i) to (iii) and any ancillary, related or incidental activities or services; and

(b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

279. The Act is amended by adding the following after section 459.8:

Orders to Exempt or Adapt

Order

459.9 (1) On the recommendation of the Minister, the Governor in Council may, by order,

(a) provide that any provision of this Act or the regulations shall not apply to an association, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and

(b) provide that any provision of this Act or the regulations applies to an association, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.

Minister’s recommendation

(2) The Minister may make a recommendation under subsection (1) only if the Minister

(a) is of the opinion that the order would relate to

(i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of an association by, or the transfer or issue of shares of an association to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or

(ii) the management of the business and affairs or the regulation and supervision of an association during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the association, or during the time that shares of the association are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and

Terms and conditions

(3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of an association by, or transfer or issue of shares of an association to, Her Majesty in right of Canada or Her Majesty’s agent or agency.

Repeal of order under subsection (1)

(4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).

Terms, conditions and undertakings

(5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of an association to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the association that the Minister considers appropriate, including any terms and conditions or undertakings relating to

(a) the remuneration of the association’s senior officers, as defined in section 441.01, and directors;

(b) the appointment or removal of the association’s senior officers, as defined in section 441.01, and directors;

(d) the association’s lending policies and practices.

Acquisition

(6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of an association on behalf of or in trust for Her Majesty if an order is made under subsection (1).

Payment out of C.R.F.

Registration of shares

(8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the association’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.

Disposition by Minister

Disposition by agent or agency

Consideration by Minister

(11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of an association on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.

Mandatory disposition

Statutory Instruments Act

(13) The Statutory Instruments Act does not apply to an order made under this section.

Definition of “shares”

(14) For the purposes of this section, “shares” includes membership shares and any conversion or exchange privilege, option or right to acquire shares or membership shares.

2001, c. 9

Financial Consumer Agency of Canada Act

280. The definition “consumer provision” in section 2 of the Financial Consumer Agency of Canada Act is replaced by the following:

“consumer provision”
« disposition visant les consommateurs »

“consumer provision” means

(a) paragraphs 157(2)(e) and (f), section 413.1, subsection 418.1(3), sections 439.1 to 459.5, subsections 540(2) and (3) and 545(4) and (5), paragraphs 545(6)(b) and (c), subsection 552(3) and sections 559 to 576.2 of the Bank Act together with any regulations made under or for the purposes of those provisions;

(b) paragraphs 167(2)(f) and (g), subsection 382.2(3) and sections 385.05 to 385.28 of the Cooperative Credit Associations Act together with any regulations made under or for the purposes of those provisions;

(c) paragraphs 165(2)(f) and (g), subsection 469.1(3), sections 479 to 489.3, subsection 542.061(3) and sections 598 to 607.2 of the Insurance Companies Act together with any regulations made under or for the purposes of those provisions;

(d) paragraphs 161(2)(e) and (f), subsection 418.1(3) and sections 425.1 to 444.3 of the Trust and Loan Companies Act together with any regulations made under or for the purposes of those provisions; and

(e) subsection 469.1(3) as set out in paragraph 17(1)(f) of the Green Shield Canada Act and the provisions referred to in paragraph 17(1)(f.1) of that Act as they apply to Green Shield Canada in accordance with section 17 of that Act together with any regulations made under or for the purposes of those provisions.