GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Trust and Loan Companies Act — T-19.8 413
Restriction on deposit taking 413 (1) A company shall not accept deposits in Canada unless (a) it is a member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act ; (b) it has been authorized under subsection 26.03(1) of that Act to accept deposits without being a member institution, as defined in section 2 of that Act; or (c) the order approving the commencement and carrying on of business in Canada by the company authorizes it to accept deposits solely in accordance with subsection (2). Deposits that fall below $150,000 (2) A company referred to in paragraph (1)(b) or (c) shall ensure that, on each day that is at least 30 days after the company receives the authorization referred to in that paragraph, A/B ≤ 0.01 where A is the sum of all amounts each of which is the sum of all the deposits held by the company at the end of a day in the preceding 30 days each of which deposits is less than $150,000 and payable in Canada; and B is the sum of all amounts each of which is the sum of all deposits held by the company at the end of a day in those preceding 30 days and payable in Canada. Exchange rate (3) For the purpose of subsection (2), the rate of exchange to be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada is to be determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act . Definition of deposit (4) For the purpose of subsection (2), deposit has the meaning that would be given to that term by the schedule to the Canada Deposit Insurance Corporation Act for the purposes of deposit insurance if that schedule were read without reference to subsections 2(2), (5) and (6) of that schedule, but does not include prescribed deposits. Regulations (5) The Governor in Council may make regulations (a) prescribing the deposits referred to in subsection (4); and (b) prescribing terms and conditions with respect to the acceptance of those deposits. 1991, c. 45, s. 413; 2007, c. 6, s. 358
Trust and Loan Companies Act — T-19.8 413.1
Notice before opening account or providing prescribed product 413.1 (1) Before a company referred to in paragraph 413(1)(b) or (c) opens a deposit account in Canada or provides in Canada any prescribed product that relates to a deposit, the company shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product (a) a notice in writing that deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and (b) any other information that may be prescribed. Other notice (2) A company referred to in paragraph 413(1)(b) or (c) shall, in accordance with any regulations that may be made, (a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Canada, to inform the public that deposits with the company are not insured by the Canada Deposit Insurance Corporation; and (b) include in its advertisements notices to inform the public that deposits with the company are not insured by the Canada Deposit Insurance Corporation. Regulations (3) The Governor in Council may make regulations (a) prescribing the manner in which notices referred to in subsection (1) are to be given and the additional information to be contained in the notices; and (b) respecting notices for the purpose of subsection (2). 2007, c. 6, s. 358
Trust and Loan Companies Act — T-19.8 413.2
Deposits less than $150,000 413.2 (1) Subject to the regulations, a company referred to in paragraph 413(1)(b) or (c) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada. Definition of deposit (2) In this section, deposit has the meaning assigned by subsection 413(4). Regulations (3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, a company referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada. 2007, c. 6, s. 358
Trust and Loan Companies Act — T-19.8 413.3
Shared premises 413.3 (1) Subject to the regulations, no company referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act , that is affiliated with the company. Limitation (2) Subsection (1) only applies in respect of premises or any portion of premises on which both the company and the member institution carry on business with the public and to which the public has access. Adjacent premises (3) Subject to the regulations, no company referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act , that is affiliated with the company, unless the company clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution. Regulations (4) The Governor in Council may make regulations (a) respecting the circumstances in which, and the conditions under which, a company referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and (b) respecting the circumstances in which, and the conditions under which, a company referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3). 2007, c. 6, s. 358
Trust and Loan Companies Act — T-19.8 414
Restriction on guarantees 414 (1) A company shall not guarantee on behalf of any person the payment or repayment of any sum of money unless (a) the sum of money is a fixed sum of money with or without interest thereon; and (b) the person on whose behalf the company has undertaken to guarantee the payment or repayment has an unqualified obligation to reimburse the company for the full amount of the payment or repayment to be guaranteed. Exception (2) Paragraph (1)(a) does not apply where the person on whose behalf the company has undertaken to guarantee a payment or repayment is a subsidiary of the company. Idem (3) Notwithstanding subsection (1), a company may guarantee repayment of the principal or payment of the interest, or both, of any moneys entrusted to the company for investment, on such terms and conditions as are agreed on. Regulations (4) The Governor in Council may make regulations imposing terms and conditions in respect of guarantees permitted by this section. 1991, c. 45, s. 414; 1997, c. 15, s. 376; 2001, c. 9, s. 532
Trust and Loan Companies Act — T-19.8 415
Restriction on securities activities 415 A company shall not deal in Canada in securities to the extent prohibited or restricted by such regulations as the Governor in Council may make for the purposes of this section.
Trust and Loan Companies Act — T-19.8 415.1
Prohibition 415.1 (1) It is prohibited for a company to issue a debt obligation in relation to which the amounts of principal and interest owing are guaranteed to be paid from loans or other assets held by an entity that is created and organized for the principal purpose of holding those loans or other assets and with the intention of legally isolating those loans or other assets from the company, unless (a) the debt obligation is a covered bond as defined in section 21.5 of the National Housing Act ; (b) the company is a registered issuer as defined in section 21.5 of that Act other than one whose right to issue covered bonds has been suspended; and (c) the debt obligation is issued under a registered program as defined in section 21.5 of that Act. Exception (2) The Governor in Council may make regulations exempting any type of debt obligation from the application of subsection (1). 2012, c. 19, s. 361
Trust and Loan Companies Act — T-19.8 416
Restriction on insurance business 416 (1) A company shall not undertake the business of insurance except to the extent permitted by this Act or the regulations. Restriction on acting as agent (2) A company shall not act in Canada as agent for any person in the placing of insurance and shall not lease or provide space in any branch in Canada of the company to any person engaged in the placing of insurance. Regulations (3) The Governor in Council may make regulations respecting the matters referred to in subsection (1) and regulations respecting relations between companies and (a) entities that undertake the business of insurance; or (b) insurance agents or insurance brokers. Saving (4) Nothing in this section precludes a company from (a) requiring insurance to be placed by a borrower for the security of the company; or (b) obtaining group insurance for its employees or the employees of any bodies corporate in which it has a substantial investment pursuant to section 453. No pressure (5) No company shall exercise pressure on a borrower to place insurance for the security of the company in any particular insurance company, but a company may require that an insurance company chosen by a borrower meet with its approval, which shall not be unreasonably withheld. Definition of business of insurance (6) In this section, business of insurance includes (a) the issuance of any annuity if the liability in respect of the annuity is contingent on the death of a person; and (b) the issuance of any debt obligation, any of whose terms and conditions are established on the basis of mortality considerations, under which the issuer is obliged to make periodic payments. 1991, c. 45, s. 416; 2012, c. 19, s. 205
Trust and Loan Companies Act — T-19.8 417
Restriction on leasing 417 A company shall not engage in Canada in any personal property leasing activity in which a financial leasing entity, within the meaning of subsection 449(1), is not permitted to engage. 1991, c. 45, s. 417; 2001, c. 9, s. 533
Trust and Loan Companies Act — T-19.8 418
Restriction on residential mortgages 418 (1) A company shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance such a loan, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan. Exception (2) Subsection (1) does not apply in respect of (a) a loan made or guaranteed under the National Housing Act or any other Act of Parliament by or pursuant to which a different limit on the value of property on the security of which the company may make a loan is established; (b) a loan if repayment of the amount of the loan that exceeds the maximum amount set out in subsection (1) is guaranteed or insured by a government agency or a private insurer approved by the Superintendent; (c) the acquisition by the company from an entity of securities issued or guaranteed by the entity that are secured on any residential property, whether in favour of a trustee or otherwise, or the making of a loan by the company to the entity against the issue of such securities; or (d) a loan secured by a mortgage where (i) the mortgage is taken back by the company on a property disposed of by the company, including where the disposition is by way of a realization of a security interest, and (ii) the mortgage secures payment of an amount payable to the company for the property. 1991, c. 45, s. 418; 1997, c. 15, s. 377; 2007, c. 6, s. 359
Trust and Loan Companies Act — T-19.8 418.1
Restriction on charges to borrowers 418.1 (1) Subject to any regulations made under subsection (2), a company 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 company of the insurance or guarantee. Regulations (2) The Governor in Council may make regulations (a) respecting the determination of the actual cost to a company for the purposes of subsection (1); (b) respecting the circumstances in which a company 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 company in Canada on the security of residential property, (i) the arrangements into which the company, its representatives and its employees may or may not enter, and (ii) the payments or benefits that the company, 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 company of information relating to insurance or a guarantee against default on a loan made by the company 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 company, its representatives or its employees and the insurer or the insurer’s affiliates, and (iii) the payments and benefits that the company, its representatives and its employees accept from an insurer or the insurer’s affiliates; (b) the time and place at which, the form and manner in which and the persons to whom information is to be disclosed; and (c) the circumstances under which a company is not required to disclose information. 2009, c. 2, s. 290; 2012, c. 5, s. 167(E)
Trust and Loan Companies Act — T-19.8 419
Policies re security interests 419 (1) The directors of a company shall establish and the company shall adhere to policies regarding the creation of security interests in property of the company to secure obligations of the company and the acquisition by the company of beneficial interests in property that is subject to security interests. Order to amend policies (2) The Superintendent may, by order, direct a company to amend its policies as specified in the order. Compliance (3) A company shall comply with an order made under subsection (2) within the time specified in the order. 1991, c. 45, s. 419; 1999, c. 31, s. 219(E); 2001, c. 9, s. 534; 2007, c. 6, s. 360(F)
Trust and Loan Companies Act — T-19.8 419.1
Regulations and guidelines 419.1 The Governor in Council may make regulations and the Superintendent may make guidelines respecting the creation by a company of security interests in its property to secure obligations of the company and the acquisition by the company of beneficial interests in property that is subject to security interests. 2001, c. 9, s. 534
Trust and Loan Companies Act — T-19.8 419.2
Exception 419.2 Sections 419 and 419.1 do not apply in respect of a security interest created by a company to secure an obligation of the company to the Bank of Canada or the Canada Deposit Insurance Corporation. 2001, c. 9, s. 534
Trust and Loan Companies Act — T-19.8 420
Restriction on receivers 420 A company shall not grant to a person the right to appoint a receiver or a receiver and manager of the property or business of the company.
Trust and Loan Companies Act — T-19.8 421
Restriction on partnerships 421 (1) Except with the approval of the Superintendent, a company may not be a general partner in a limited partnership or a partner in a general partnership. Meaning of general partnership (2) For the purposes of subsection (1), general partnership means any partnership other than a limited partnership. 1991, c. 45, s. 421; 2001, c. 9, s. 535
Trust and Loan Companies Act — T-19.8 422
Separate and distinct 422 (1) A company shall keep money and other assets acquired or held in trust by the company separate and distinct from its own assets and shall keep a separate account for each trust. Common trust fund (2) Unless the instrument creating a trust otherwise provides, a company may invest money it holds in trust in one or more common trust funds.
Trust and Loan Companies Act — T-19.8 423
Deposit acceptance 423 (1) A company may, without the intervention of any other person, (a) accept a deposit from any person whether or not the person is qualified by law to enter into contracts; and (b) pay all or part of the principal of the deposit and all or part of the interest thereon to or to the order of that person. Exception (2) Paragraph (1)(b) does not apply if, before payment, the money deposited in the company pursuant to paragraph (1)(a) is claimed by some other person (a) in any action or proceeding to which the company is a party and in respect of which service of a writ or other process originating that action or proceeding has been made on the company, or (b) in any other action or proceeding pursuant to which an injunction or order made by the court requiring the company not to make payment of that money or make payment thereof to some person other than the depositor has been served on the company, and, in the case of any such claim so made, the money so deposited may be paid to the depositor with the consent of the claimant or to the claimant with the consent of the depositor. Guaranteed trust money (3) A company that is a trust company pursuant to subsection 57(2) shall accept deposits only as guaranteed trust money. Profit (4) Notwithstanding subsection (3), a company that is a trust company pursuant to subsection 57(2) that accepts deposits may retain the interest and profit resulting from the investment thereof in excess of the amount of interest payable to its depositors in respect thereof. Assets to be identified (5) Where a company that is a trust company pursuant to subsection 57(2) accepts deposits, the company shall identify on its books assets to be held in respect thereof equal to the aggregate amount of the deposits. Execution of trust (6) A company is not bound to see to the execution of any trust to which any deposit made under the authority of this Act is subject, other than a trust of which the company is a trustee. Payment when company has notice of trust (7) Subsection (6) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the company has notice of the trust if it acts on the order of or under the authority of the holder or holders of the account into which the deposit is made. 1991, c. 45, s. 423; 2001, c. 9, s. 536
Trust and Loan Companies Act — T-19.8 424
payment of the deposit or instrument, the Bank of Canada is liable to pay, at its agency in the province in which the deposit or instrument was payable, an amount equal to the amount so paid to it together with interest, if interest was payable under the terms of the deposit or instrument, (a) for a period not exceeding ten years from the day on which the payment was received by the Bank of Canada until the date of payment to the claimant; and (b) at such rate and computed in such manner as the Minister determines. Enforcing liability (4) The liability of the Bank of Canada under subsection (3) may be enforced by action against the Bank of Canada in the court in the province in which the deposit or instrument was payable. Application of subsection (1) (5) Subsection (1) applies only in respect of deposits made, and cheques, drafts and bills of exchange issued, certified or accepted after May 31, 1990. Application (6) This section shall not apply until the day that is eight years after the day on which this section comes into force. 1991, c. 45, s. 424; 1993, c. 34, s. 127; 2007, c. 6, s. 361 2021, c. 23, s. 143
Trust and Loan Companies Act — T-19.8 425
Notice of unpaid amount 425 (1) A company shall send, by mail and by electronic means, to each person to whom a deposit referred to in paragraph 424(1)(a) is payable, or to each person to whom or at whose request an instrument referred to in paragraph 424(1)(b) was issued, certified or accepted, at their recorded address and electronic address in so far as they are known to the company, a notice stating that the deposit or instrument remains unpaid. When notice to be given (2) A notice required by subsection (1) shall be given during the month of January next following the end of the first two year period, and also during the month of January next following the end of the first five year period, (a) in the case of a deposit made for a fixed period, after the fixed period has terminated; (b) in the case of any other deposit, in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor; and (c) in the case of a cheque, draft or bill of exchange, in respect of which the instrument has remained unpaid. When notice to be sent (3) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period (a) [Repealed before coming into force, 2008, c. 20, s. 3] (b) in the case of any other deposit, in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor; and (c) [Repealed before coming into force, 2008, c. 20, s. 3] 1991, c. 45, s. 425; 2007, c. 6, s. 362 2008, c. 20, s. 3 2021, c. 23, s. 144
Trust and Loan Companies Act — T-19.8 425.1
Definitions 425.1 The following definitions apply in this section and in sections 431 to 434, 444.1 and 444.3. member company means a company that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act . ( société membre ) personal deposit account means a deposit account in the name of one or more natural persons that is kept by that person or those persons for a purpose other than that of carrying on business. ( compte de dépôt personnel ) retail deposit account means a personal deposit account that is opened with a deposit of less than $150,000 or any greater amount that may be prescribed. ( compte de dépôt de détail ) 2001, c. 9, s. 538
Trust and Loan Companies Act — T-19.8
member company means a company that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act . ( société membre )
Trust and Loan Companies Act — T-19.8
personal deposit account means a deposit account in the name of one or more natural persons that is kept by that person or those persons for a purpose other than that of carrying on business. ( compte de dépôt personnel )
Trust and Loan Companies Act — T-19.8
retail deposit account means a personal deposit account that is opened with a deposit of less than $150,000 or any greater amount that may be prescribed. ( compte de dépôt de détail )
Trust and Loan Companies Act — T-19.8 426
Account charges 426 A company shall not, directly or indirectly, charge or receive any sum for the keeping of an account unless the charge is made by express agreement between the company and a customer or by order of a court.