GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bank Act — B-1.01 489
Prohibited transactions 489 (1) Except as provided in this Part, a bank shall not, directly or indirectly, enter into any transaction with a related party of the bank. Transaction of entity (2) Without limiting the generality of subsection (1), a bank is deemed to have indirectly entered into a transaction in respect of which this Part applies where the transaction is entered into by an entity that is controlled by the bank. Exception (3) Subsection (2) does not apply where an entity that is controlled by a bank is a financial institution incorporated or formed under the laws of a province and is subject to regulation and supervision, satisfactory to the Minister, regarding transactions with related parties of the bank. Idem (4) Subsection (2) does not apply in respect of transactions entered into by an entity that is controlled by a bank if the transaction is a prescribed transaction or is one of a class of prescribed transactions.
Bank Act — B-1.01 490
Nominal value transactions 490 Notwithstanding anything in this Part, a bank may enter into a transaction with a related party of the bank if the value of the transaction is nominal or immaterial to the bank when measured by criteria that have been established by the conduct review committee of the bank and approved in writing by the Superintendent.
Bank Act — B-1.01 491
Secured loans 491 A bank may make a loan to or a guarantee on behalf of a related party of the bank or take an assignment of or otherwise acquire a loan to a related party of the bank if (a) the loan or guarantee is fully secured by securities of or guaranteed by the Government of Canada or the government of a province; or (b) the loan is a loan permitted by section 418 made to a related party who is a natural person on the security of a mortgage of the principal residence of that related party.
Bank Act — B-1.01 492
Deposits 492 A bank may enter into a transaction with a related party of the bank if the transaction consists of a deposit by the bank with a financial institution that is a direct clearer or a member of a clearing group under the by-laws of the Canadian Payments Association and the deposit is made for clearing purposes.
Bank Act — B-1.01 493
Borrowing, etc., from related party 493 A bank may borrow money from, take deposits from, or issue debt obligations to, a related party of the bank.
Bank Act — B-1.01 494
Acquisition of assets 494 (1) A bank may purchase or otherwise acquire from a related party of the bank (a) securities of, or securities guaranteed by, the Government of Canada or the government of a province; (b) assets fully secured by securities of, or securities guaranteed by, the Government of Canada or the government of a province; or (c) goods for use in the ordinary course of business. Sale of assets (2) Subject to section 482, a bank may sell any assets of the bank to a related party of the bank if (a) the consideration for the assets is fully paid in money; and (b) there is an active market for those assets. Asset transactions with financial institutions (3) Notwithstanding any of the provisions of subsections (1) and (2), a bank may, in the normal course of business and pursuant to arrangements that have been approved by the Superintendent in writing, acquire or dispose of any assets, other than real property, from or to a related party of the bank that is a financial institution. Asset transactions in restructuring (4) Notwithstanding any of the provisions of subsections (1) and (2), a bank may acquire any assets from, or dispose of any assets to, a related party of the bank as part of, or in the course of, a restructuring, if the acquisition or disposition has been approved in writing by the Superintendent. Goods or space for use in business (5) A bank may lease assets (a) from a related party of the bank for use in the ordinary course of business of the bank, or (b) to a related party of the bank if the lease payments are made in money. Approval under section 236 (6) A bank may acquire any assets from, or dispose of any assets to, a related party of the bank under a sale agreement that is approved by the Minister under section 236. 1991, c. 46, s. 494; 2007, c. 6, s. 45
Bank Act — B-1.01 495
Services 495 (1) A bank may enter into a transaction with a related party of the bank if the transaction (a) subject to subsection (2), consists of a written contract for the purchase by the bank of services used in the ordinary course of business; (b) subject to subsection (4), involves the provision of services normally offered to the public by the bank in the ordinary course of business; (c) consists of a written contract with a financial institution or an entity in which the bank is permitted to have a substantial investment pursuant to section 468 that is a related party of the bank (i) for the networking of any services provided by the bank or the financial institution or entity, or (ii) for the referral of any person by the bank to the financial institution or entity, or for the referral of any person by the financial institution or entity to the bank; (d) consists of a written contract for such pension or benefit plans or their management or administration as are incidental to directorships or to the employment of officers or employees of the bank or its subsidiaries; or (e) involves the provision by the bank of management, advisory, accounting, information processing or other services in relation to any business of the related party. Order concerning management by employees (2) Where a bank has entered into a contract pursuant to paragraph (1)(a) and the contract, when taken together with all other such contracts entered into by the bank, results in all or substantially all of the management functions of the bank being exercised by persons who are not employees of the bank, the Superintendent may, by order, if the Superintendent considers that result to be inappropriate, require the bank, within such time as may be specified in the order, to take all steps necessary to ensure that management functions that are integral to the carrying on of business by the bank are exercised by employees of the bank to the extent specified in the order. Exception (3) Despite subsection 489(2), a bank is deemed not to have indirectly entered into a transaction in respect of which this Part applies if the transaction is entered into by an entity that is controlled by the bank and the business of which is limited to the activity referred to in paragraph 468(2)(c) and the transaction is on terms and conditions at least as favourable to the bank as market terms and conditions, as defined in subsection 501(2). Services (4) The provision of services, for the purposes of paragraph (1)(b), does not include the making of loans or guarantees. 1991, c. 46, s. 495; 1997, c. 15, s. 70; 2007, c. 6, s. 46
Bank Act — B-1.01 495.1
Transactions with holding companies 495.1 (1) Subject to subsection (2) and sections 495.2 and 495.3, if a widely held bank holding company or a widely held insurance holding company has a significant interest in any class of shares of a bank, the bank may enter into any transaction with the holding company or with any other related party of the bank that is an entity in which the holding company has a substantial investment. Policies and procedures (2) The bank shall adhere to policies and procedures established under subsection 195(3) when entering into the transaction. 2001, c. 9, s. 129
Bank Act — B-1.01 495.2
Restriction 495.2 (1) If a bank enters into a transaction with a related party of the bank with whom the bank may enter into transactions under subsection 495.1(1) and that is not a federal financial institution, the bank shall not directly or indirectly make, take an assignment of or otherwise acquire a loan to the related party, make an acceptance, endorsement or other guarantee on behalf of the related party or make an investment in the securities of the related party if, immediately following the transaction, the aggregate financial exposure, as that expression is defined by the regulations, of the bank would exceed (a) in respect of all transactions of the bank with the related party, the prescribed percentage of the bank’s regulatory capital or, if no percentage is prescribed, five per cent of the bank’s regulatory capital; or (b) in respect of all transactions of the bank with such related parties of the bank, the prescribed percentage of the bank’s regulatory capital or, if no percentage is prescribed, ten per cent of the bank’s regulatory capital. Order (2) If the Superintendent is of the opinion that it is necessary for the protection of the interests of the depositors and creditors of a bank, the Superintendent may, by order, (a) reduce the limit in paragraph (1)(a) or (b) that would otherwise apply to the bank; and (b) impose limits on transactions by the bank with related parties with whom the bank may enter into transactions under subsection 495.1(1) that are federal financial institutions. Order (3) The Superintendent may, by order, increase the limit in paragraph (1)(a) or (b) that would otherwise apply to a bank on transactions by the bank with related parties that are financial institutions that are regulated in a manner acceptable to the Superintendent. 2001, c. 9, s. 129
Bank Act — B-1.01 497
Board approval required 497 (1) Except with the concurrence of at least two thirds of the directors present at a meeting of the board of directors of the bank, a bank shall not, with respect to a related party of the bank referred to in subsection 496(1), (a) make, take an assignment of or otherwise acquire a loan to the related party, including a margin loan referred to in section 498, (b) make a guarantee on behalf of the related party, or (c) make an investment in the securities of the related party if, immediately following the transaction, the aggregate of (d) the principal amount of all outstanding loans to the related party that are held by the bank and its subsidiaries, other than (i) loans referred to in paragraph 491(b), and (ii) where the related party is a full-time senior officer of the bank, loans to the related party that are permitted by subsection 496(2), (e) the sum of all outstanding amounts guaranteed by the bank and its subsidiaries on behalf of the related party, and (f) where the related party is an entity, the book value of all investments by the bank and its subsidiaries in the securities of the entity would exceed 2 per cent of the regulatory capital of the bank. Limit on transactions with directors, officers and their interests (2) A bank shall not, with respect to a related party of the bank referred to in subsection 496(1), (a) make, take an assignment of or otherwise acquire a loan to the related party, including a margin loan referred to in section 498, (b) make a guarantee on behalf of the related party, or (c) make an investment in the securities of the related party if, immediately following the transaction, the aggregate of (d) the principal amount of all outstanding loans to all related parties of the bank referred to in subsection 496(1) that are held by the bank and its subsidiaries, other than (i) loans referred to in section 491, and (ii) loans permitted by subsection 496(2), (e) the sum of all outstanding amounts guaranteed by the bank and its subsidiaries on behalf of all related parties of the bank referred to in subsection 496(1), and (f) the book value of all investments by the bank and its subsidiaries in the securities of all entities that are related parties of the bank referred to in subsection 496(1) would exceed 50 per cent of the regulatory capital of the bank. Exclusion of de minimus transactions (3) Loans, guarantees and investments that are referred to in section 490 shall not be included in calculating the aggregate of loans, guarantees and investments referred to in subsections (1) and (2). 1991, c. 46, s. 497; 1997, c. 15, s. 72
Bank Act — B-1.01 498
Margin loans 498 The Superintendent may establish terms and conditions with respect to the making by a bank of margin loans to a director or senior officer of the bank. 1991, c. 46, s. 498; 1997, c. 15, s. 73
Bank Act — B-1.01 499
Exemption by order 499 (1) A bank may enter into a transaction with a related party of the bank if the Superintendent, by order, has exempted the transaction from the provisions of section 489. Conditions for order (2) The Superintendent shall not make an order referred to in subsection (1) unless the Superintendent is satisfied that the decision of the bank to enter into the transaction has not been and is not likely to be influenced in any significant way by a related party of the bank and does not involve in any significant way the interests of a related party of the bank. 1991, c. 46, s. 499; 1996, c. 6, s. 8
Bank Act — B-1.01 500
Prescribed transactions 500 A bank may enter into a transaction with a related party of the bank if the transaction is a prescribed transaction or one of a class of prescribed transactions.
Bank Act — B-1.01 501
Market terms and conditions 501 (1) Except as provided in subsections 496(4) to (6), any transaction entered into with a related party of the bank shall be on terms and conditions that are at least as favourable to the bank as market terms and conditions. Meaning of market terms and conditions (2) For the purposes of subsection (1), market terms and conditions means (a) in respect of a service or a loan facility or a deposit facility offered to the public by the bank in the ordinary course of business, terms and conditions that are no more or less favourable than those offered to the public by the bank in the ordinary course of business; and (b) in respect of any other transaction, (i) terms and conditions, including those relating to price, rent or interest rate, that might reasonably be expected to apply in a similar transaction in an open market under conditions requisite to a fair transaction between parties who are at arm’s length and who are acting prudently, knowledgeably and willingly, or (ii) if the transaction is one that would not reasonably be expected to occur in an open market between parties who are at arm’s length, terms and conditions, including those relating to price, rent or interest rate, that would reasonably be expected to provide the bank with fair value, having regard to all the circumstances of the transaction, and that would be consistent with the parties to the transaction acting prudently, knowledgeably and willingly. 1991, c. 46, s. 501; 2001, c. 9, s. 130
Bank Act — B-1.01 502 and 503
502 and 503 [Repealed, 1997, c. 15, s. 74]
Bank Act — B-1.01 504
Bank obligation 504 (1) Where, in respect of any proposed transaction permitted by this Part, other than those referred to in section 490, a bank has reason to believe that the other party to the transaction is a related party of the bank, the bank shall take all reasonable steps to obtain from the other party full disclosure, in writing, of any interest or relationship, direct or indirect, that would make the other party a related party of the bank. Reliance on information (2) A bank and any person who is a director or an officer, employee or agent of the bank may rely on any information contained in any disclosure received by the bank pursuant to subsection (1) or any information otherwise acquired in respect of any matter that might be the subject of such a disclosure and no action lies against the bank or any such person for anything done or omitted in good faith in reliance on any such information.
Bank Act — B-1.01 505
Notice to Superintendent 505 Where a bank has entered into a transaction that the bank is prohibited by this Part from entering into or where a bank has entered into a transaction for which approval is required under subsection 497(1) without having obtained the approval, the bank shall, on becoming aware of that fact, notify the Superintendent without delay. 1991, c. 46, s. 505; 1997, c. 15, s. 75
Bank Act — B-1.01 506
Order to void contract or to grant other remedy 506 (1) If a bank enters into a transaction that it is prohibited from entering into by this Part, the bank or the Superintendent may apply to a court for an order setting aside the transaction or for any other appropriate remedy, including an order directing that the related party of the bank involved in the transaction account to the bank for any profit or gain realized or that any director or senior officer of the bank who authorized the transaction compensate the bank for any loss or damage incurred by the bank. Time limit (2) An application under subsection (1) in respect of a particular transaction may only be made within the period of three months following the day the notice referred to in section 505 in respect of the transaction is given to the Superintendent or, if no such notice is given, the day the Superintendent becomes aware of the transaction. Certificate (3) For the purposes of subsection (2), a document purporting to have been issued by the Superintendent, certifying the day on which the Superintendent became aware of the transaction, shall, in the absence of evidence to the contrary, be received in evidence as conclusive proof of that fact without proof of the signature or of the official character of the person appearing to have signed the document and without further proof. 1991, c. 46, s. 506; 2001, c. 9, s. 131
Bank Act — B-1.01 507
 Canada if the foreign bank or any entity associated with the foreign bank (a) is an authorized foreign bank; (b) is a foreign insurance company; (c) has received the approval of the Minister under paragraph 522.22(1)(f); or (d) controls, or is a major owner of, (i) a Canadian entity referred to in any of paragraphs 468(1)(a) to (i), or (ii) a Canadian entity that is a financial services entity. Associated entity that has a financial establishment in Canada (16) For the purposes of this Part, an entity associated with a foreign bank has, or is deemed to have, a financial establishment in Canada if the entity, the foreign bank or any other entity associated with the foreign bank (a) is an authorized foreign bank; (b) is a foreign insurance company; (c) has received the approval of the Minister under paragraph 522.22(1)(f); or (d) controls, or is a major owner of, (i) a Canadian entity referred to in any of paragraphs 468(1)(a) to (i), or (ii) a Canadian entity that is a financial services entity. Regulations concerning exemption from associated status (17) The Governor in Council may make regulations (a) respecting the exemption, from the application of any provision of this Act, of any class or classes of entities associated with a foreign bank from the status of being associated with a foreign bank; and (b) authorizing the Minister, by order, and subject to any terms and conditions that the Minister considers appropriate, to deem, for the purposes of any provision of this Act, any entity not to be an entity associated with a foreign bank. Revocation or variation of order (18) The Minister may, by further order, revoke or vary any order referred to in paragraph (17)(b) and any such revocation or variation comes into effect three months after the date the further order is made unless the Minister and the entity to which the order relates agree that the revocation or variation is to take effect at some other time agreed to by them. Publication (19) If the Minister makes an order referred to in paragraph (17)(b) or subsection (18), the Minister shall publish in the Canada Gazette a notice of the making of the order. 1991, c. 46, s. 507; 1997, c. 15, s. 76; 1999, c. 28, s. 27; 2001, c. 9, s. 132; 2007, c. 6, s. 48; 2018, c. 27, s. 141
Bank Act — B-1.01
designated foreign bank [Repealed, 2007, c. 6, s. 48]
Bank Act — B-1.01
designation order [Repealed, 2007, c. 6, s. 48]
Bank Act — B-1.01
exemption order [Repealed, 2007, c. 6, s. 48]
Bank Act — B-1.01
finance entity means a Canadian entity that is a finance entity as defined in the regulations. ( entité s’occupant de financement )
Bank Act — B-1.01
financial leasing entity means a Canadian entity that is a financial leasing entity as defined in subsection 464(1). ( entité s’occupant de crédit-bail )
Bank Act — B-1.01 (a)
financial services entity means an entity, other than an entity referred to in any of paragraphs 468(1)(a) to (i) or a leasing entity, that engages in activities at least the prescribed portion — or if no portion is prescribed, 10 per cent — of which, determined in the prescribed manner, consists of one or more of the following activities: (a) providing any financial service; (b) acting as a financial agent; (c) providing investment counselling and portfolio management services; (d) issuing payment, credit or charge cards and, in cooperation with others, including other financial institutions, operating a payment, credit or charge card plan; (e) engaging in the activities referred to in the definition closed-end fund , mutual fund distribution entity or mutual fund entity in subsection 464(1); (f) engaging in prescribed activities, under prescribed terms and conditions, if any are prescribed; (g) engaging in any activity referred to in paragraphs (a) to (f) as an agent for another entity referred to in any of those paragraphs or in any of paragraphs 468(1)(a) to (j); or (h) acquiring or holding control of, or becoming a major owner of, an entity referred to in any of paragraphs (a) to (g) or any of paragraphs 468(1)(a) to (j). ( entité s’occupant de services financiers )
Bank Act — B-1.01
foreign cooperative credit society means an entity that is incorporated or formed, and regulated, otherwise than by or under an Act of Parliament or of the legislature of a province, and that, outside Canada, engages in or carries on the business of a cooperative credit society. ( société coopérative de crédit étrangère )
Bank Act — B-1.01
foreign insurance company means a foreign company as defined in subsection 2(1) of the Insurance Companies Act . ( société d’assurances étrangère )
Bank Act — B-1.01
foreign securities dealer means an entity that is incorporated or formed, and regulated, otherwise than by or under an Act of Parliament or of the legislature of a province, and that, outside Canada, engages in or carries on the business of dealing in securities. ( courtier de valeurs mobilières étranger )
Bank Act — B-1.01 (a)
leasing activities means (a) the financial leasing of personal property and the related activities that a financial leasing entity may engage in; and (b) all other leasing of personal property. ( activités de location )
Bank Act — B-1.01 (a)
leasing entity means an entity that engages in only (a) leasing activities; or (b) leasing activities and activities other than those described in paragraphs (a) to (h) of the definition financial services entity . ( entité s’occupant de location )
Bank Act — B-1.01
limited commercial entity means a Canadian entity that a foreign bank or an entity associated with a foreign bank may control in accordance with subsection 522.09(1) or (2), or in which a foreign bank or an entity associated with a foreign bank is permitted to acquire a substantial investment in accordance with that subsection. ( entité à activités commerciales restreintes )
Bank Act — B-1.01 (a)
non-bank affiliate of a foreign bank means a Canadian entity, other than a bank, (a) in which a foreign bank or an entity associated with a foreign bank holds a substantial investment, or (b) that is controlled by a foreign bank or an entity associated with a foreign bank, but a Canadian entity is not a non-bank affiliate of a foreign bank by reason only that a bank that is a subsidiary of the foreign bank or of the entity associated with a foreign bank controls, or holds a substantial investment in, the Canadian entity. ( établissement affilié à une banque étrangère )
Bank Act — B-1.01
permitted Canadian entity means a Canadian entity that a foreign bank or an entity associated with a foreign bank may control in accordance with section 522.08, or in which a foreign bank or an entity associated with a foreign bank is permitted to acquire a substantial investment in accordance with that section. ( entité canadienne admissible )