Bank Act — B-1.01 486
Related party of bank 486 (1) For the purposes of this Part, a person is a related party of a bank where the person (a) is a person who has a significant interest in a class of shares or in membership shares of the bank; (b) is a director or senior officer of the bank or of a body corporate that controls the bank or is acting in a similar capacity in respect of an unincorporated entity that controls the bank; (c) is the spouse or common-law partner, or a child who is less than eighteen years of age, of a person described in paragraph (a) or (b); (d) is an entity that is controlled by a person referred to in any of paragraphs (a) to (c); (e) is an entity in which a person who controls the bank has a substantial investment; (f) is an entity in which the spouse or common-law partner, or a child who is less than eighteen years of age, of a person who controls the bank has a substantial investment; or (g) is a person, or forms part of a class of persons, designated under subsection (3) or (4) as, or deemed under subsection (5) to be, a related party of the bank. (h) [Repealed, 1997, c. 15, s. 68] Exception — subsidiaries and substantial investments of banks (2) Where an entity in which a bank has a substantial investment would, but for this subsection, be a related party of the bank only because a person who controls the bank controls the entity or has a substantial investment in the entity, and the person does not control the entity or have a substantial investment in the entity otherwise than through the person’s controlling interest in the bank, the entity is not a related party of the bank. Designated related party (3) For the purposes of this Part, the Superintendent may, with respect to a particular bank, designate as a related party of the bank (a) any person or class of persons whose direct or indirect interest in or relationship with the bank or a related party of the bank might reasonably be expected to affect the exercise of the best judgment of the bank in respect of a transaction; or (b) any person who is a party to any agreement, commitment or understanding referred to in section 9 if the bank referred to in that section is the particular bank. Idem (4) Where a person is designated as a related party of a bank pursuant to subsection (3), the Superintendent may also designate any entity in which the person has a substantial investment and any entity controlled by such an entity to be a related party of the bank. Deemed related party (5) Where, in contemplation of a person becoming a related party of a bank, the bank enters into a transaction with the person, the person is deemed for the purposes of this Part to be a related party of the bank in respect of that transaction. Holders of exempted shares (6) The Superintendent may, by order, designate a class of non-voting shares of a bank for the purpose of this subsection. If a class of non-voting shares of a bank is so designated, a person is deemed, notwithstanding paragraph (1)(a), not to be a related party of the bank if the person would otherwise be a related party of the bank only because the person has a significant interest in that class. Determination of substantial investment (7) For the purpose of determining whether an entity or a person has a substantial investment for the purposes of paragraph (1)(e) or (f), the references to “control” and “controlled” in section 10 shall be construed as references to “control, within the meaning of section 3, determined without regard to paragraph 3(1)(d)” and “controlled, within the meaning of section 3, determined without regard to paragraph 3(1)(d)”, respectively. Determination of control (8) For the purposes of paragraph (1)(d), controlled means “controlled, within the meaning of section 3, determined without regard to paragraph 3(1)(d)”. 1991, c. 46, s. 486; 1997, c. 15, s. 68; 2000, c. 12, s. 7; 2010, c. 12, s. 2078