GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bank Act — B-1.01 471
Temporary investments in entity 471 (1) Subject to subsection (4), a bank may, by way of a temporary investment, acquire control of, or acquire or increase a substantial investment in, an entity but, within two years, or any other period that may be specified or approved by the Superintendent, after acquiring control or after acquiring or increasing the substantial investment, as the case may be, it shall do all things necessary to ensure that it no longer controls the entity or has a substantial investment in the entity. Transitional (2) Despite subsection (1), if a bank that was in existence immediately before June 1, 1992 had an investment in an entity on September 27, 1990 that is a substantial investment within the meaning of section 10 and the bank subsequently increases that substantial investment by way of a temporary investment, the bank shall, within two years, or any other period that is specified or approved by the Superintendent, after increasing the substantial investment, do all things necessary to ensure that its substantial investment in the entity is no greater than it was on September 27, 1990. Extension (3) The Superintendent may, in the case of any particular bank that makes an application under this subsection, extend the period of two years, or the other period specified or approved by the Superintendent, that is referred to in subsection (1) or (2) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary. Temporary investment (4) If a bank, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 468(5) if the bank had acquired the control, or acquired or increased the substantial investment, under section 468, the bank must, within 90 days after acquiring control or after acquiring or increasing the substantial investment, (a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or (b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity. Indeterminate extension (5) If a bank, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Superintendent would have been required under subsection 468(6) if the bank had acquired the control, or acquired or increased the substantial investment, under section 468, the Superintendent may, on application, permit the bank to retain control of the entity or to continue to hold the substantial investment in the entity for an indeterminate period, on any terms and conditions that the Superintendent considers appropriate. 1991, c. 46, s. 471; 2001, c. 9, s. 127; 2007, c. 6, s. 41
Bank Act — B-1.01 473
Realizations 473 (1) Despite anything in this Act, a bank may acquire (a) an investment in a body corporate, (b) an interest in an unincorporated entity, or (c) an interest in real property if the investment or interest is acquired through the realization of a security interest held by the bank or any of its subsidiaries. Disposition (2) Subject to subsection 73(2), if a bank acquires control of, or acquires a substantial investment in, an entity by way of the realization of a security interest held by the bank or any of its subsidiaries, the bank shall, within five years after the day on which control or the substantial investment is acquired, do all things necessary, or cause its subsidiary to do all things necessary, as the case may be, to ensure that the bank no longer controls the entity or has a substantial investment in the entity. Transitional (3) Despite subsection (2), if a bank that was in existence immediately before June 1, 1992 had an investment in an entity on September 27, 1990 that is a substantial investment within the meaning of section 10 and the bank later increases that substantial investment by way of a realization of a security interest under subsection (1), the bank shall, within five years after increasing the substantial investment, do all things necessary to ensure that its substantial investment in the entity is no greater than it was on September 27, 1990. Extension (4) The Superintendent may, in the case of any particular bank that makes an application under this subsection, extend the period referred to in subsection (2) or (3) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary. Exception (5) If, under subsection (1), a bank acquires control of, or acquires or increases a substantial investment in, an entity that it would otherwise be permitted to acquire or increase under section 468, the bank may retain control of the entity or continue to hold the substantial investment for an indeterminate period if the approval in writing of the Minister is obtained before the end of the period referred to in subsection (2) or (3), including any extension of it granted under subsection (4). 1991, c. 46, s. 473; 1997, c. 15, s. 60; 2001, c. 9, s. 127
Bank Act — B-1.01 474
Regulations restricting ownership 474 The Governor in Council may make regulations (a) for the purposes of subsection 468(4), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the banks or other entities in respect of which that subsection does not apply, including prescribing banks or other entities on the basis of the activities they engage in; (b) for the purposes of subsection 468(5) or (6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the banks or other entities in respect of which either of those subsections does not apply, including prescribing banks or other entities on the basis of the activities they engage in; (c) for the purposes of subsection 468(11), permitting a bank to give up control of an entity; and (d) restricting the ownership by a bank of shares of a body corporate or of ownership interests in an unincorporated entity under sections 468 to 473 and imposing terms and conditions applicable to banks that own such shares or interests. 1991, c. 46, s. 474; 1997, c. 15, s. 61; 2001, c. 9, s. 127
Bank Act — B-1.01 475
Exclusion from portfolio limits 475 (1) Subject to subsection (3), the value of all loans, investments and interests acquired by a bank and any of its prescribed subsidiaries under section 472 or as a result of a realization of a security interest is not to be included in calculating the value of loans, investments and interests of the bank and its prescribed subsidiaries under sections 476 to 478 (a) for a period of twelve years following the day on which the interest was acquired, in the case of an interest in real property; and (b) for a period of five years after the day on which the loan, investment or interest was acquired, in the case of a loan, investment or interest, other than an interest in real property. Extension (2) The Superintendent may, in the case of any particular bank, extend any period referred to in subsection (1) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary. Exception (3) Subsection (1) does not apply to an investment or interest described in that subsection if the investment or interest is defined by a regulation made under section 479 to be an interest in real property and (a) the bank or the subsidiary acquired the investment or interest as a result of the realization of a security interest securing a loan that was defined by a regulation made under section 479 to be an interest in real property; or (b) the bank or the subsidiary acquired the investment or interest under section 472 as a result of a default referred to in that section in respect of a loan that was defined by a regulation made under section 479 to be an interest in real property. 1991, c. 46, s. 475; 1997, c. 15, s. 62; 2001, c. 9, s. 127
Bank Act — B-1.01 476
Limit on total property interest 476 A bank shall not, and shall not permit its prescribed subsidiaries to, purchase or otherwise acquire an interest in real property or make an improvement to any real property in which the bank or any of its prescribed subsidiaries has an interest if the aggregate value of all interests of the bank in real property exceeds, or the acquisition of the interest or the making of the improvement would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the bank. 1991, c. 46, s. 476; 2001, c. 9, s. 127
Bank Act — B-1.01 477
Limits on equity acquisitions 477 A bank shall not, and shall not permit its prescribed subsidiaries to, (a) purchase or otherwise acquire any participating shares of any body corporate or any ownership interests in any unincorporated entity, other than those of a permitted entity in which the bank has, or by virtue of the acquisition would have, a substantial investment, or (b) acquire control of an entity that holds shares or ownership interests referred to in paragraph (a), if the aggregate value of (c) all participating shares, excluding participating shares of permitted entities in which the bank has a substantial investment, and (d) all ownership interests in unincorporated entities, other than ownership interests in permitted entities in which the bank has a substantial investment, beneficially owned by the bank and its prescribed subsidiaries, exceeds, or the purchase or acquisition would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the bank. 1991, c. 46, s. 477; 2001, c. 9, s. 127
Bank Act — B-1.01 478
Aggregate limit 478 A bank shall not, and shall not permit its prescribed subsidiaries to, (a) purchase or otherwise acquire (i) participating shares of a body corporate, other than those of a permitted entity in which the bank has, or by virtue of the acquisition would have, a substantial investment, (ii) ownership interests in an unincorporated entity, other than ownership interests in a permitted entity in which the bank has, or by virtue of the acquisition would have, a substantial investment, or (iii) interests in real property, or (b) make an improvement to real property in which the bank or any of its prescribed subsidiaries has an interest if the aggregate value of (c) all participating shares and ownership interests referred to in subparagraphs (a)(i) and (ii) that are beneficially owned by the bank and its prescribed subsidiaries, and (d) all interests of the bank in real property referred to in subparagraph (a)(iii) exceeds, or the acquisition or the making of the improvement would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the bank. 1991, c. 46, s. 478; 1997, c. 15, s. 63; 2001, c. 9, s. 127
Bank Act — B-1.01 479
Regulations 479 For the purposes of this Part, the Governor in Council may make regulations (a) defining the interests of a bank in real property; (b) determining the method of valuing those interests; or (c) exempting classes of banks from the application of sections 475 to 478. 1991, c. 46, s. 479; 1997, c. 15, s. 64; 2001, c. 9, s. 127
Bank Act — B-1.01 480
Divestment order 480 (1) The Superintendent may, by order, direct a bank to dispose of, within any period that the Superintendent considers reasonable, any loan, investment or interest made or acquired in contravention of this Part. Divestment order (2) If, in the opinion of the Superintendent, (a) an investment by a bank or any entity it controls in shares of a body corporate or in ownership interests in an unincorporated entity enables the bank to control the body corporate or the unincorporated entity, or (b) the bank or any entity it controls has entered into an arrangement whereby it or its nominee may veto any proposal put before (i) the board of directors of a body corporate, or (ii) a similar group or committee of an unincorporated entity, or whereby no proposal may be approved except with the consent of the bank, the entity it controls or the nominee, the Superintendent may, by order, require the bank, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the bank no longer controls the body corporate or unincorporated entity or has the ability to veto or otherwise defeat any proposal referred to in paragraph (b). Divestment order (3) If (a) a bank (i) fails to provide or obtain within a reasonable time the undertakings referred to in subsection 470(1), (2) or (4), or (ii) is in default of an undertaking referred to in subsection 470(1) or (2) and the default is not remedied within ninety days after the day of receipt by the bank of a notice from the Superintendent of the default, or (b) a permitted entity referred to in subsection 470(4) is in default of an undertaking referred to in that subsection and the default is not remedied within ninety days after the day of receipt by the bank of a notice from the Superintendent of the default, the Superintendent may, by order, require the bank, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the bank no longer has a substantial investment in the entity to which the undertaking relates. Exception (4) Subsection (2) does not apply in respect of an entity in which a bank has a substantial investment permitted by this Part. 1991, c. 46, s. 480; 2001, c. 9, s. 127
Bank Act — B-1.01 481
Deemed temporary investment 481 If a bank controls or has a substantial investment in an entity as permitted by this Part and the bank becomes aware of a change in the business or affairs of the entity that, if the change had taken place before the acquisition of control or of the substantial investment, would have caused the entity not to be a permitted entity or would have been such that approval for the acquisition would have been required under subsection 468(5) or (6), the bank is deemed to have acquired, on the day the bank becomes aware of the change, a temporary investment in respect of which section 471 applies. 1991, c. 46, s. 481; 1997, c. 15, s. 65; 2001, c. 9, s. 127
Bank Act — B-1.01 482
iples referred to in subsection 308(4), immediately before the transfer. Total value of all assets (5) For the purposes of subsection (1), the total value of all assets that the bank or any of its subsidiaries has acquired during the period of twelve months referred to in subsection (1) is the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which immediately after the acquisition were included in the annual statement of the bank, the fair market value of the assets of the entity at the date of the acquisition. Total value of all assets (6) For the purposes of subsection (1), the total value of all assets that the bank or any of its subsidiaries has transferred during the 12-month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the bank prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the bank if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 308(4), immediately before the transfer of the asset. 1991, c. 46, s. 482; 1997, c. 15, s. 66; 2001, c. 9, s. 127; 2007, c. 6, s. 43
Bank Act — B-1.01 483
Transitional 483 Nothing in this Part requires (a) the termination of a loan made before February 7, 2001; (b) the termination of a loan made after that date as a result of a commitment made before that date; (c) the disposal of an investment made before that date; or (d) the disposal of an investment made after that date as a result of a commitment made before that date. But if the loan or investment would be precluded or limited by this Part, the amount of the loan or investment may not, except as provided in subsections 471(2), 472(3) and 473(3), be increased after that date. 1991, c. 46, s. 483; 2001, c. 9, s. 127
Bank Act — B-1.01 484
Saving 484 A loan or investment referred to in section 483 is deemed not to be prohibited by the provisions of this Part. 1991, c. 46, s. 484; 2001, c. 9, s. 127
Bank Act — B-1.01 484.1
Domestic systemically important bank 484.1 (1) The Superintendent may, by order, designate a bank as a domestic systemically important bank unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so. Revocation (2) The Superintendent may, by order, revoke the designation unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so. Factors (3) In making the designation or revoking it, the Superintendent shall take into account all factors that he or she considers relevant, including whether the distress or failure of the bank could have a significant adverse impact on the financial system in Canada. Notice and publication (4) If a designation is made or revoked, the Superintendent shall, as soon as feasible, cause a notice of the designation or revocation, as the case may be, to be published in the Canada Gazette and on the website of the Office of the Superintendent of Financial Institutions. 2016, c. 7, s. 159
Bank Act — B-1.01 485
d by a bank or any of its subsidiaries has been made by the Superintendent and the value determined by the Superintendent to be the appropriate value of the asset varies materially from the value placed by the bank or subsidiary on the asset, the Superintendent shall send to the bank, the auditor or auditors of the bank and the audit committee of the bank a written notice of the appropriate value of the asset as determined by the Superintendent. 1991, c. 46, s. 485; 1996, c. 6, s. 7; 2016, c. 7, s. 160; 2017, c. 20, s. 111
Bank Act — B-1.01 485.01
Prescribed conditions 485.01 The Governor in Council may make regulations respecting the conditions that domestic systemically important banks must meet in issuing, originating or amending prescribed shares or liabilities. 2016, c. 7, s. 161
Bank Act — B-1.01 485.02
Regulations and guidelines — disclosure of information 485.02 The Governor in Council may make regulations and the Superintendent may make guidelines respecting the disclosure by domestic systemically important banks of information in relation to their capacity to absorb losses. 2016, c. 7, s. 162
Bank Act — B-1.01 485.1
Definition of senior officer 485.1 For the purposes of this Part, a senior officer of a body corporate is a person who is (a) a director of the body corporate who is a full-time employee of the body corporate; (b) the chief executive officer, chief operating officer, president, secretary, treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary of the body corporate; (c) a natural person who performs functions for the body corporate similar to those performed by a person referred to in paragraph (b); (d) the head of the strategic planning unit of the body corporate; (e) the head of the unit of the body corporate that provides legal services or human resources services to the body corporate; or (f) any other officer reporting directly to the body corporate’s board of directors, chief executive officer or chief operating officer. 1997, c. 15, s. 67
Bank Act — B-1.01 487
Non-application of Part 487 (1) This Part does not apply in respect of any transaction entered into prior to the coming into force of this Part but, after the coming into force of this Part, any modification of, addition to, or renewal or extension of a prior transaction is subject to this Part. Idem (2) This Part does not apply in respect of (a) the issue of shares of any class of shares, or of membership shares, of a bank when fully paid for in money or when issued (i) in accordance with any provisions for the conversion of other issued and outstanding membership shares or securities of the bank into shares of that class of shares, or into membership shares, (ii) as a share or membership share dividend, (iii) in exchange for shares, or membership shares, however designated, of a body corporate that has been continued as a bank under Part III, (iv) in accordance with the terms of an amalgamation or conversion under Part VI, (v) by way of consideration in accordance with the terms of a sale agreement under Part VI, or (vi) with the approval in writing of the Superintendent, in exchange for shares of another body corporate; (b) the payment of dividends or patronage allocations by a bank; (c) transactions that consist of the payment or provision by a bank to persons who are related parties of the bank of salaries, fees, stock options, pension benefits, incentive benefits or other benefits or remuneration in their capacity as directors, officers or employees of the bank; (d) transactions approved by the Minister under subsection 678(1) of this Act or subsection 715(1) of the Insurance Companies Act ; or (e) if a bank is controlled by a widely held bank holding company or a widely held insurance holding company, transactions approved by the Superintendent that are entered as part of, or in the course of, a restructuring of the holding company or of any entity controlled by it. Exception (3) Nothing in paragraph (2)(c) exempts from the application of this Part the payment by a bank of fees or other remuneration to a person for (a) the provision of services referred to in paragraph 495(1)(a); or (b) duties outside the ordinary course of business of the bank. Exception for holding body corporate (4) A holding body corporate of a bank is not a related party of the bank if the holding body corporate is a Canadian financial institution that is referred to in any of paragraphs (a) to (d) of the definition financial institution in section 2. Substantial investment — related party exception (5) Where a holding body corporate of a bank is, because of subsection (4), not a related party of the bank, any entity in which the holding body corporate has a substantial investment is not a related party of the bank if no related party of the bank has a substantial investment in the entity otherwise than through the control of the holding body corporate. 1991, c. 46, s. 487, c. 48, s. 494; 1997, c. 15, s. 69; 2001, c. 9, s. 128; 2010, c. 12, s. 2079; 2012, c. 5, s. 223
Bank Act — B-1.01 488
Meaning of transaction 488 (1) For the purposes of this Part, entering into a transaction with a related party of a bank includes (a) making a guarantee on behalf of the related party; (b) making an investment in any securities of the related party; (c) taking an assignment of or otherwise acquiring a loan made by a third party to the related party; and (d) taking a security interest in the securities of the related party. Interpretation (2) For the purposes of this Part, the fulfilment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit, is part of the transaction, and not a separate transaction. Meaning of loan (3) For the purposes of this Part, loan includes a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit, but does not include investments in securities or the making of an acceptance, endorsement or other guarantee. Security of a related party (4) For the purposes of this Part, security of a related party includes an option, transferable by delivery, to demand delivery of a specified number or amount of shares of the related party at a fixed price within a specified time. 1991, c. 46, s. 488; 2007, c. 6, s. 44