GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bank Act — B-1.01 556
Deposit acceptance 556 (1) Subject to this Part, an authorized foreign bank 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 on it to or to the order of that person. Exception (2) Paragraph (1)(b) does not apply if, before payment, the money deposited in the authorized foreign bank pursuant to paragraph (1)(a) is claimed by some other person (a) in any action or proceeding to which the authorized foreign bank 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 authorized foreign bank, or (b) in any other action or proceeding pursuant to which an injunction or order made by the court requiring the authorized foreign bank not to make payment of that money or make payment of it to some person other than the depositor has been served on the authorized foreign bank, and, if a claim is made, the deposited money may be paid to the depositor with the consent of the claimant, or to the claimant with the consent of the depositor. Execution of trust (3) An authorized foreign bank is not, in respect of its business in Canada, bound to see to the execution of any trust to which a deposit made under the authority of this Act is subject. Payment when authorized foreign bank has notice of trust (4) Subsection (3) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the authorized foreign bank 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. 46, s. 556; 1999, c. 28, s. 35; 2001, c. 9, s. 148
Bank Act — B-1.01 557
 of any deposit or instrument, and if payment is demanded or the instrument is presented at the Bank of Canada by the person who, but for that section, would be entitled to receive 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 any rate and computed in any manner that 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. 1991, c. 46, s. 557; 1999, c. 28, s. 35; 2007, c. 6, s. 87 2021, c. 23, s. 147
Bank Act — B-1.01 558
Notice of unpaid amount 558 (1) An authorized foreign bank shall send, by mail and by electronic means, to each person to whom a deposit referred to in paragraph 557(1)(a) is payable, or to each person to whom or at whose request an instrument referred to in paragraph 557(1)(b) was issued, certified or accepted, at their recorded address and electronic address in so far as they are known to the authorized foreign bank, a notice stating that the deposit or instrument remains unpaid. When notice to be sent (2) 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) after the fixed period has terminated, in the case of a deposit made for a fixed period; (b) in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor, in the case of any other deposit; and (c) in respect of which the instrument has remained unpaid, in the case of a cheque, draft or bill of exchange. Notification of transfer to the Bank of Canada (3) The notice to be sent during the month of January next following the end of the first nine-year period determined under paragraphs (2)(a) to (c), as the case may be, must also (a) [Repealed before coming into force, 2008, c. 20, s. 3] (b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument. 1991, c. 46, ss. 558, 580; 1996, c. 6, s. 20; 1999, c. 28, s. 35; 2007, c. 6, s. 88 2008, c. 20, s. 3 2021, c. 23, s. 148
Bank Act — B-1.01 577
Transmission in case of death 577 (1) Where the transmission of a debt owing by an authorized foreign bank by reason of a deposit, of property held by an authorized foreign bank as security or for safe-keeping or of rights with respect to a safety deposit box and property deposited in it takes place because of the death of a person, the delivery to the authorized foreign bank of the following is sufficient justification and authority for giving effect to the transmission in accordance with the claim: (a) an affidavit or declaration in writing in form satisfactory to the authorized foreign bank signed by or on behalf of a person claiming by virtue of the transmission stating the nature and effect of the transmission; and (b) one of the following, namely, (i) if the claim is based on a will or other testamentary instrument or on a grant of probate of a will or testamentary instrument or on such a grant and letters testamentary or other document of like import or on a grant of letters of administration or other document of like import, purporting to be issued by any court or authority in Canada or elsewhere, an authenticated copy or certificate of the document under the seal of the court or authority without proof of the authenticity of the seal or other proof, or (ii) if the claim is based on a notarial will, an authenticated copy of the notarial will. Evidence of transmission (2) Nothing in subsection (1) shall be construed to prevent an authorized foreign bank from refusing to give effect to a transmission until there has been delivered to the authorized foreign bank any documentary or other evidence of or in connection with the transmission that it may consider necessary. 1991, c. 46, s. 577; 1999, c. 28, s. 35
Bank Act — B-1.01 578
Branch of account with respect to deposits 578 (1) For the purposes of this Act, the branch of account with respect to a deposit account is (a) the branch the address or name of which appears on the specimen signature card or other signing authority signed by a depositor with respect to the deposit account or that is designated by agreement between the authorized foreign bank and the depositor at the time of opening of the deposit account; or (b) if no branch has been identified or agreed on as provided in paragraph (a), the branch that is designated as the branch of account with respect to the deposit account by the authorized foreign bank by notice in writing to the depositor. Where debt payable (2) The amount of any debt owing by an authorized foreign bank by reason of a deposit in a deposit account in the authorized foreign bank is payable to the person entitled to the amount only at the branch of account and the person is not entitled to demand payment or to be paid at any other branch of the authorized foreign bank. Exception where authorization (3) Notwithstanding subsection (2), an authorized foreign bank may permit either occasionally or as a regular practice, the person to whom it is indebted by reason of a deposit in a deposit account in the authorized foreign bank to withdraw money owing by reason of the deposit at a branch of the authorized foreign bank other than the branch of account or to draw cheques or other orders for the payment of the money at a branch other than the branch of account. Situs of indebtedness (4) The indebtedness of an authorized foreign bank by reason of a deposit in a deposit account in the authorized foreign bank is deemed for all purposes to be situated at the place where the branch of account is situated. Non-application of subsection (2) (5) Subsection (2) does not apply where the business in Canada of the authorized foreign bank is being wound up under the Winding-up and Restructuring Act . 1991, c. 46, s. 578; 1999, c. 28, s. 35
Bank Act — B-1.01 579
this section. designated office means a place designated in accordance with regulations made for the purpose of subsection (3). ( bureau désigné ) enforcement notice , in respect of a support order or support provision, means a garnishee summons or other instrument issued under the laws of a province for the enforcement of the support order or support provision. ( avis d’exécution ) support order means an order or judgment or interim order or judgment for family financial support. ( ordonnance alimentaire ) support provision means a provision of an agreement relating to the payment of maintenance or family financial support. ( disposition alimentaire ) 1991, c. 46, s. 579; 1999, c. 28, s. 35; 2001, c. 9, s. 160; 2005, c. 19, s. 58
Bank Act — B-1.01 580
Deemed loan 580 For the purposes of sections 425 to 436, as incorporated by section 555, where an authorized foreign bank accepts a bill of exchange drawn on it and not payable on demand or pays or makes money available for the payment of such a bill of exchange, or issues a guarantee, or otherwise makes a promise to effect a payment, the authorized foreign bank is deemed to lend money or make an advance. 1991, c. 46, s. 580; 1999, c. 28, s. 35
Bank Act — B-1.01 581
Investment standards 581 An authorized foreign bank shall establish and adhere to investment and lending policies, standards and procedures that a reasonable and prudent person would apply in respect of a portfolio of investments and loans to avoid undue risk of loss and obtain a reasonable return. 1991, c. 46, s. 581; 1999, c. 28, s. 35
Bank Act — B-1.01 582
Requirement to maintain assets on deposit 582 (1) An authorized foreign bank shall maintain on deposit in Canada with a Canadian financial institution approved by the Superintendent unencumbered assets of a type approved by the Superintendent the total value of which determined in accordance with the accounting principles referred to in subsection 308(4) shall equal (a) in the case of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2), one hundred thousand dollars; and (b) in any other case, the greater of (i) five million dollars, and (ii) five per cent of the liabilities of the authorized foreign bank in respect of its business in Canada. Deposit agreement (2) The assets referred to in subsection (1) shall be kept with the Canadian financial institution pursuant to a deposit agreement entered into with the prior approval of the Superintendent. 1991, c. 46, s. 582; 1999, c. 28, s. 35; 2001, c. 9, s. 161
Bank Act — B-1.01 583
Financial year 583 (1) The financial year of an authorized foreign bank in respect of its business in Canada may end on any of March 31, June 30, September 30 or December 31. First financial year (2) If the first financial year of an authorized foreign bank would end less than four months after the authorized foreign bank has obtained an order under subsection 534(1) approving the commencement and carrying on of business in Canada, the first financial year of the authorized foreign bank ends on March 31, June 30, September 30 or December 31, as the case may be, in the next calendar year. 1991, c. 46, s. 583; 1999, c. 28, s. 35
Bank Act — B-1.01 584
Definitions 584 In sections 585 to 596, the expressions firm of accountants and member have the meanings assigned to those expressions by section 313. 1991, c. 46, s. 584; 1999, c. 28, s. 35
Bank Act — B-1.01 586
Disqualification of auditor 586 (1) An auditor that ceases to be qualified under subsection 585(2) shall resign without delay after any member of the firm of accountants becomes aware that the firm has ceased to be qualified. Disqualification order (2) Any interested person may apply to a court for an order declaring that an authorized foreign bank’s auditor has ceased to be qualified under subsection 585(2) and declaring the office of auditor to be vacant. 1991, c. 46, s. 586; 1999, c. 28, s. 35
Bank Act — B-1.01 587
Revocation of appointment 587 (1) An authorized foreign bank may at any time revoke the appointment of its auditor. Revocation by Superintendent (2) The Superintendent may at any time revoke the appointment of an auditor made under subsection 585(1) or 589(1) by notice in writing signed by the Superintendent and sent by registered mail to the auditor and to the principal officer of the authorized foreign bank addressed to the usual place of business of the auditor and to the principal office of the authorized foreign bank, respectively. 1991, c. 46, s. 587; 1999, c. 28, s. 35
Bank Act — B-1.01 588
Ceasing to hold office 588 (1) An auditor ceases to hold office when (a) the auditor resigns; or (b) the appointment of the auditor is revoked by the authorized foreign bank or the Superintendent. Effective date of resignation (2) The resignation of an auditor becomes effective at the time a written resignation is sent to the authorized foreign bank or at the time specified in the resignation, whichever is later. 1991, c. 46, s. 588; 1999, c. 28, s. 35
Bank Act — B-1.01 589
Filling vacancy 589 (1) Where a vacancy occurs in the office of auditor of an authorized foreign bank under any of sections 585 to 588, the authorized foreign bank shall without delay fill the vacancy and, where it fails to do so, the Superintendent may fill the vacancy. Designation of member of firm (2) Where the Superintendent has appointed a firm of accountants to fill a vacancy, the Superintendent shall designate the member of the firm who is to conduct the audit on behalf of the firm. 1991, c. 46, s. 589; 1999, c. 28, s. 35
Bank Act — B-1.01 590
Statement of auditor 590 An auditor of an authorized foreign bank who (a) resigns, or (b) receives a notice or otherwise learns that another person is to be appointed in the auditor’s stead, whether because of the auditor’s resignation or revocation of appointment or because the auditor’s term of office has expired or is about to expire, shall submit to the principal officer of the authorized foreign bank and the Superintendent a written statement giving the reasons for the resignation or the reasons why the auditor opposes any proposed action. 1991, c. 46, s. 590; 1999, c. 28, s. 35
Bank Act — B-1.01 591
Duty of replacement auditor 591 (1) Where an auditor of an authorized foreign bank has resigned or the appointment of an auditor has been revoked, no firm of accountants shall accept an appointment or consent to be appointed as auditor of the authorized foreign bank until the firm has requested and received from the other auditor a written statement of the circumstances and reasons why the other auditor resigned or why, in the other auditor’s opinion, the other auditor’s appointment was revoked. Exception (2) Notwithstanding subsection (1), a firm of accountants may accept an appointment or consent to be appointed as auditor of an authorized foreign bank if, within fifteen days after a request under that subsection is made, no reply from the other auditor is received. Effect of non-compliance (3) Unless subsection (2) applies, an appointment as auditor of an authorized foreign bank is void if subsection (1) has not been complied with. 1991, c. 46, s. 591; 1999, c. 28, s. 35
Bank Act — B-1.01 592
Examination of annual return 592 (1) The auditor of an authorized foreign bank shall make any examination that the auditor considers necessary to enable the auditor to report on the annual return. Auditing standards (2) The auditor’s examination shall, except as otherwise specified by the Superintendent, be conducted in accordance with the auditing standards referred to in subsection 323(2). Filing (3) The auditor’s report shall be filed with the Superintendent within five months after the end of the financial year of the authorized foreign bank. Report to Superintendent and extended examination (4) The Superintendent may, in writing, require that an authorized foreign bank’s auditor report to the Superintendent on the extent of the auditor’s procedures in the examination of the authorized foreign bank’s annual return and may, in writing, require that the auditor enlarge or extend the scope of that examination or direct that any other particular procedure be performed in any particular case, and the auditor shall comply with any requirement of the Superintendent and report to the Superintendent on it. Special examination (5) The Superintendent may, in writing, require that the auditor of the authorized foreign bank make a particular examination relating to the adequacy of the procedures adopted by the authorized foreign bank in respect of its business in Canada for the safety of its depositors and creditors, or any other examination that, in the Superintendent’s opinion, the public interest may require, and report to the Superintendent on it. Special audit (6) The Superintendent may direct that a special audit or report be made if, in the opinion of the Superintendent, it is so required and may appoint for that purpose a firm of accountants qualified under subsection 585(2) to be the auditor. Expenses payable by authorized foreign bank (7) The expenses entailed by any examination, audit or report referred to in any of subsections (4) to (6) are payable by the authorized foreign bank on being approved in writing by the Superintendent. 1991, c. 46, s. 592; 1999, c. 28, s. 35
Bank Act — B-1.01 593
Right to information 593 (1) On the request of the auditor of an authorized foreign bank, the present or former principal officers, directors, officers, employees or representatives of the authorized foreign bank shall, to the extent that they are reasonably able to do so, (a) permit access to any records, assets and security held by the authorized foreign bank, or any entity in which the authorized foreign bank has a substantial investment under Part XII, and (b) provide any information and explanations that are, in the opinion of the auditor, necessary to enable the auditor to perform the duties of auditor of the authorized foreign bank. No civil liability (2) A person who in good faith makes an oral or written communication under subsection (1) shall not be liable in any civil action arising from having made the communication. 1991, c. 46, s. 593; 1999, c. 28, s. 35
Bank Act — B-1.01 594
Auditor’s report to principal officer 594 (1) The auditor of an authorized foreign bank shall make a report to the principal officer of the authorized foreign bank in writing on the annual return not later than five months after the end of the financial year in respect of which the annual return is prepared. Auditor’s opinion (2) In the report, the auditor shall state whether, in the auditor’s opinion, the annual return presents fairly, in accordance with the accounting principles referred to in subsection 308(4), the financial position of the business in Canada of the authorized foreign bank as at the end of the financial year to which it relates and the results of the operations and changes in the financial position of the business in Canada of the authorized foreign bank for that financial year. Auditor’s remarks (3) In the report, the auditor shall include any remarks that the auditor considers necessary when (a) the examination has not been made in accordance with the auditing standards referred to in subsection 592(2); (b) the annual return has not been prepared on a basis consistent with that of the preceding financial year; or (c) the annual return does not present fairly, in accordance with the accounting principles referred to in subsection 308(4), the financial position of the business in Canada of the authorized foreign bank as at the end of the financial year to which it relates or the results of the operations or changes in the financial position of the authorized foreign bank for that financial year. 1991, c. 46, s. 594; 1999, c. 28, s. 35; 2001, c. 9, s. 162
Bank Act — B-1.01 595
Additional reports to principal officer 595 (1) It is the duty of the auditor of an authorized foreign bank to report in writing to the principal officer of the authorized foreign bank any transactions or conditions in respect of the business in Canada of the authorized foreign bank that have come to the auditor’s attention affecting the well-being of the authorized foreign bank that in the auditor’s opinion are not satisfactory and require rectification and, without restricting the generality of the foregoing, the auditor shall, as occasion requires, make a report to the principal officer in respect of transactions in respect of the business in Canada of the authorized foreign bank that have come to the auditor’s attention and that in the auditor’s opinion have not been within the powers of the authorized foreign bank. Transmission of report (2) The auditor shall, at the time of transmitting the report to the principal officer, provide the Superintendent with a copy of it. 1991, c. 46, s. 595; 1999, c. 28, s. 35
Bank Act — B-1.01 596
Qualified privilege for statements 596 Any oral or written statement or report made under this Act by the auditor or a former auditor of an authorized foreign bank has qualified privilege. 1991, c. 46, s. 596; 1999, c. 28, s. 35