C-335
First Session, Thirty-ninth Parliament,
55 Elizabeth II, 2006
HOUSE OF COMMONS OF CANADA
BILL C-335
An Act to amend the Bank Act (bank amalgamations)
first reading, June 19, 2006
Mr. Martin (Winnipeg Centre)
391069
SUMMARY
The purpose of this enactment is to prevent the amalgamation of banks with each other or with federally incorporated bodies to create one bank, unless the Superintendent of Financial Institutions advises the Minister of Finance that the amalgamation is necessary to prevent an insolvency or informs the Minister that none of the applicants wishing to merge is about to become insolvent. In the latter case, the merger would have to be approved by a resolution of the Senate and House of Commons.
Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
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1st Session, 39th Parliament,
55 Elizabeth II, 2006
house of commons of canada
BILL C-335
An Act to amend the Bank Act (bank amalgamations)
1991, c. 46
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1. Subsection 223(1) of the Bank Act is replaced by the following:
Application to amalgamate
223. (1) On the joint application of two or more bodies corporate incorporated by or under an Act of Parliament, including banks and bank holding companies, the Minister may issue letters patent amalgamating and continuing the applicants as one bank, if
(a) the Minister is advised in writing by the Superintendent that, in the opinion of the Superintendent, at least one of the applicants is not financially sound and the amalgamation would prevent the applicant from becoming insolvent, whether or not the Superintendent has
(i) taken control of any applicant or of the assets of any applicant under subsection 648(1), or
(ii) taken control of any applicant or the assets of any applicant under subsection 510(1) of the Trust and Loan Companies Act; or
(b) the Superintendent provides the Minister with a written statement informing the Minister that, in the opinion of the Superintendent, none of the applicants is about to become insolvent, the statement is tabled in the House of Commons by the Minister and the amalgamation is approved by a resolution of the House of Commons supported by a majority of the members of that House and a resolution of the Senate supported by a majority of the members of that House.
Definitions
(1.1) The definitions in this subsection apply in subsection (1).
“insolvent”« insolvable »
“insolvent” means insolvent within the meaning of the Winding-up and Restructuring Act.
“joint application”« requête conjointe »
“joint application” includes a joint application for letters patent of amalgamation continuing applicants as one bank, made to the Minister before the coming into force of subsection (1).
Definition of “amalgamation”
(1.2) In subsection (1) and sections 224 to 231, “amalgamation” and any other grammatical forms of that word include the acquisition or establishment of control over the business of a bank or a body corporate.
2. Subsection 229(1) of the Act is replaced by the following:
Issue of letters patent
229. (1) Where an application has been made to the Minister in accordance with section 228, the Minister may, subject to the conditions set out in subsection 223(1), issue letters patent of amalgamation continuing the applicants as one bank.
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