Source: http://www.bclaws.ca/civix/document/LOC/complete/statreg/--%20F%20--/Financial%20Institutions%20Act%20%5BRSBC%201996%5D%20c.%20141/00_Act/96141_03.xml
Timestamp: 2017-10-21 03:01:29
Document Index: 134844560

Matched Legal Cases: ['art 3', 'art 2', 'art 2', 'art 6', 'art 6', 'art 6', 'art 6', 'art 6', 'art 6', 'art 1']

Part 3 — Business Authorization and Business
Division 1 — Business Authorization of Financial Institution
59 (1) A trust company must not carry on trust business unless
(a) it is authorized to do so by a business authorization issued to it under this Division,
(b) it is carrying on business in accordance with section 70 (d), or
(c) it is authorized to carry on trust business without a business authorization by regulations under section 70 (e).
(1.1) A credit union must not carry on
(a) deposit business unless it is authorized to do so by a business authorization issued to it under this Division, or
(b) trust business unless it is authorized to do so by a business authorization issued to it under this Division or it is authorized by regulations under section 70 (e).
(2) An insurance company must not carry on insurance business unless authorized to do so by a business authorization issued to it under this Division.
(3) A business authorization issued to a trust company must be confined to trust business.
(4) A business authorization issued to an insurance company
(a) may be confined to
(i) general insurance business or life insurance business, or
(ii) one or more classes of insurance, or
(b) may authorize both general insurance business and life insurance business.
(5) A business authorization issued to a credit union may be confined to deposit business or may authorize both deposit business and trust business.
Business authorizations for corporations now in business
60 (1) Without the necessity of an application, a credit union incorporated or amalgamated under the Credit Union Act, R.S.B.C. 1979, c. 69, is deemed to have a business authorization, issued under this Division on September 15, 1990, to carry on deposit business.
(2) On application under section 61 (5) of a credit union described in subsection (1), the commission, if satisfied that the credit union
(a) was carrying on trust business immediately before September 15, 1990, and
(b) has the financial and managerial capacity to carry on trust business,
may issue to the credit union a business authorization to carry on both trust business and deposit business.
(3) [Repealed 2004-48-41.]
61 (1) A financial institution other than
(a) a financial institution described in section 60 (1) or (2) of the Financial Institutions Act, S.B.C. 1989, c. 47, or
(b)	a society that is named in an order of the commission made under section 193 (2),
must file with the commission, within one year after the date of its incorporation under this Act or under the Credit Union Incorporation Act or its continuation into British Columbia, an application in the form established by the commission for a business authorization.
(2) The commission, by order applicable to a financial institution named in it, may extend the period referred to in subsection (1) before or after the expiry of that period for a further period not exceeding 6 months, but not more than one order may be made in respect of the same financial institution.
(3) A society that is named in an order of the commission made under section 193 (2) must file with the commission, by a date not later than 30 days before the date specified under section 193 (2) (b) in the order under section 193 (2), an application in the form established by the commission for a business authorization.
(4) On an amalgamation referred to in section 20 of this Act, the amalgamated financial institution must, within 30 days after the date of amalgamation, file with the commission an application in the form established by the commission for a business authorization.
(4.1) On the issue of a certificate of amalgamation under section 20 (7) (b) of the Credit Union Incorporation Act, the commission must issue the appropriate business authorization for which the credit union would qualify under this Part.
(5) A credit union that has a business authorization confined to deposit business may file with the commission at any time an application in the form established by the commission for a business authorization for the credit union to carry on both trust business and deposit business.
(6) [Repealed 2004-48-42.]
(7) An insurance company that has a business authorization confined to
(a)	general insurance business or life insurance business, or
(b) one or more classes of insurance
may file with the commission at any time an application in the form established by the commission for a business authorization for the insurance company to carry on
(c) both general insurance business and life insurance business, or
(d) one or more additional classes of insurance.
(8) On application in accordance with this section, the commission may issue a business authorization to a financial institution if the commission is satisfied that
(a) the financial institution has a capital base that
(i) is adequate, taking into account the class of business that it proposes to carry on, the expected volume of its business and the restrictions on its business, and
(ii) is at least equal to the appropriate minimum imposed under section 67 (1),
(b) the financial institution has at least 5 directors and, in the case of a trust company or insurance company, at least 1/3 of the directors are unaffiliated directors,
(c) [Repealed 2004-48-42.]
(i) the financial institution is an insurance company that will carry on insurance business, and
(ii) there is an insurance compensation plan designated by regulation for the purpose of section 66 (2),
the financial institution that will carry on insurance business will not carry on a class of insurance business in respect of which insurance is offered under that plan unless the financial institution is a member of that plan, and
(e) the financial institution has a proposed plan of operations that is feasible.
(9) Before issuing a business authorization to a financial institution, the commission may
(a) conduct an investigation, and
(b) require the financial institution to provide the commission with additional information, verifications, forecasts of business operations or documents
that the commission considers necessary for the evaluation of the application.
Conditions on business authorization
62 If conditions of any class of business authorization are prescribed under section 289 (3) (g), the conditions are applicable to and are conclusively deemed to be part of every business authorization of that class, whether issued before or after the coming into force of the regulation prescribing the conditions.
Certificate of business authorization
63 A certificate of the commission that on a day stated in the certificate
(a) a financial institution was or was not authorized as set out in the certificate under a business authorization to carry on trust business, deposit business, insurance business, or both trust business and deposit business, or
(b) the business authorization of a financial institution was revoked
Voluntary revocation of business authorization
64 (1) On the written application of a financial institution, the commission may revoke the financial institution's business authorization, effective on a date specified by the commission, and in that case sections 249 (8) and 250 apply.
(2) If a financial institution proposes to cease doing business, it must give the superintendent at least 30 days' written notice.
Division 2 — Operation of Financial Institutions
65 (1) Subject to section 14 (1) of this Act and to section 13 (1) of the Credit Union Incorporation Act, a financial institution that has a business authorization must not carry on business other than
(a)	the business authorized under its business authorization,
(b) business that
(i) is ancillary to the business authorized under its business authorization, or
(ii) is a financial or related service that does not constitute business for which a business authorization is required, and
(c) business or an activity of a prescribed type.
(2) A contravention of this section does not affect or invalidate
(a) a transaction entered into by a financial institution, or
(b) a contractual right or civil remedy that a person may have in respect of such a transaction.
Membership in insurance plan
66 (1) [Repealed 2004-48-44.]
(2) If an insurance compensation plan has been designated by regulation for the purpose of this subsection, an insurance company must not carry on a class of insurance business in respect of which insurance is offered under that plan unless the insurance company is a member of that plan.
67 (1) A financial institution must at all times ensure that it has adequate liquid assets and an adequate capital base in relation to the business carried on by it, in accordance with the regulations.
(2) If the commission considers that the liquid assets or capital base of a financial institution are, or within one year will be, inadequate in relation to the business carried on by it whether or not the financial institution is complying with the regulations, the commission may order the financial institution to acquire additional liquid assets or increase its capital base in the amount and form and by the date specified in the order.
(2.1) Whether or not a credit union is otherwise complying with the regulations, if the amount of the capital base of a credit union does not comprise a prescribed percentage of the calculated value of the credit union's risk weighted assets, the credit union must obtain the commission's written consent before engaging in
(a) prescribed activities, or
(b) prescribed activities in prescribed circumstances or that have or may have prescribed consequences.
(3) Without first receiving the written consent of the commission, a trust company or an insurance company must not
(a) redeem or purchase or otherwise acquire shares issued by it, or
(b) declare a dividend, except a dividend in shares
68 [Repealed 2004-48-46.]
Restriction on right to appoint receiver
69 (1) Unless it first receives the written consent of the commission, a financial institution must not grant to a person the right to appoint a receiver or a receiver manager of the property or business of the financial institution.
(2) The commission must not consent under subsection (1) if the commission believes on reasonable grounds that the person, in the public interest, ought not to be in a position to control or influence a financial institution.
Division 3 — Trust Business
Unauthorized trust business by corporations prohibited
70 A corporation must not carry on trust business in British Columbia unless the corporation is
(a) a trust company, an extraprovincial trust corporation or a credit union that has a business authorization to carry on trust business,
(b) a law corporation as defined in section 1 (1) of the Legal Profession Act,
(c)	[Repealed 1998-9-100.]
(d) a corporation that is carrying on the business of a trustee in bankruptcy, receiver, receiver manager or liquidator and that is licensed as a trustee in bankruptcy under the Bankruptcy and Insolvency Act (Canada), or
(e) a corporation that is carrying on a prescribed trust business or class of trust business or a prescribed corporation or class of corporations that is carrying on a prescribed trust business or class of trust business.
71 [Repealed 1998-42-10.]
72 A trust company or credit union must keep any asset acquired or held in trust by it separate and distinct from the assets of the trust company or credit union not held in trust and must keep a separate account for each trust, but, unless the instrument creating a trust otherwise provides, a trust company or credit union may, subject to the regulations, co-mingle assets held in trust in a common trust fund for the purposes of investment.
73 (1) Subject to the terms of the instrument creating a trust, the liability of a trust company or credit union to persons interested in an estate held by the trust company or credit union as executor, administrator, trustee, receiver, liquidator, assignee, committee under the Patients Property Act, attorney under Part 2 of the Power of Attorney Act or representative granted power over an adult's financial affairs under section 7 (1) (b) of the Representation Agreement Act is the same as if the estate were held by an individual in the like capacity, and the powers of the trust company or credit union are the same as the powers of an individual holding an estate in the like capacity.
(2) A trust company or credit union authorized to carry on trust business may be appointed
(a) a sole trustee, notwithstanding that but for this Act it would be necessary to appoint more than one trustee, or
(b) the holder of an office mentioned in subsection (1) jointly with another person,
and the appointment may be made whether the trustee is required under a deed, will or other instrument creating a trust or whether the appointment is under the Trustee Act or otherwise.
(3) Revocation of the business authorization of a trust company or credit union is sufficient cause to remove that company or credit union from an appointment or office held by it under this or another Act.
(4) Despite any rule, practice or statutory provision, it is not necessary for a trust company or credit union to give security for the due performance of its duty as executor, administrator, trustee, receiver, liquidator, assignee, committee under the Patients Property Act, attorney under Part 2 of the Power of Attorney Act or representative granted power over an adult's financial affairs under section 7 (1) (b) of the Representation Agreement Act unless so ordered by a court.
74 Unless the trust company or credit union is a trustee under the trust, a trust company or credit union is not bound to see to the execution of a trust, whether express, implied or constructive.
Division 4 — Insurance Business
74.1 In this Division, "mutual company" has the same meaning as "mutual fire insurance company" in Division 4 of Part 6.
Unauthorized insurance business prohibited
75 A person must not carry on insurance business in British Columbia unless the person is
(a)	an insurance company or extraprovincial insurance corporation that has a business authorization to carry on insurance business,
(b) a company registered under the Insurance (Captive Company) Act,
(c)	a member of a reciprocal exchange as defined in section 186 for which a permit under section 187 has been issued and is in effect,
(d) licensed under Division 2 of Part 6 as an insurance agent, insurance salesperson, insurance adjuster or employed insurance adjuster and is carrying on the insurance business only in that capacity,
(e) the deposit insurance corporation, the Canada Deposit Insurance Corporation or the Insurance Corporation of British Columbia,
(f) an insurer
(i) [Repealed 2004-48-48.]
(ii) that administers an insurance compensation plan designated by regulation for the purpose of section 66 (2),
(g) a society described in section 193 (1) (a) to (g) that, immediately before September 15, 1990, was carrying on the business of insurance,
(h) a credit union that is carrying on insurance business only by making or participating in contracts of insurance as permitted by section 82 of the Credit Union Incorporation Act, or
(i)	a central credit union that is carrying on insurance business only by providing or arranging insurance as permitted by section 90 (2) of the Credit Union Incorporation Act.
76 (1) Despite section 75,
(a)	any person may require insurance to be placed by a borrower as security for a loan,
(b) any person may
(i) adjust a loss,
(ii) prosecute or maintain a writ, action or proceeding, or
(iii) perform an obligation
under or arising out of a contract of insurance that was made or issued in British Columbia at a time when the person was authorized to carry on insurance business,
(c) an insurance agent licensed under Division 2 of Part 6 who is authorized by the resident to effect the contract of insurance may negotiate or procure a contract of insurance between a resident of British Columbia and an insurer prohibited by section 75 from carrying on business in British Columbia, subject to the requirements or conditions, if any, imposed by regulation,
(d) an insurer referred to in paragraph (c) may, without a business authorization, enter into a contract of insurance in the circumstances set out in that paragraph, and
(e) a person or insurer is exempted from the requirement to have a business authorization to carry on insurance business when permitted by the regulations.
(2) An insurance agent licensed under Division 2 of Part 6 who, under subsection (1) (c), procures or negotiates a contract of insurance must keep a record showing the particulars of the contract and at the request of the Commissioner of Income Tax or of the commission, must provide the record to the Commissioner of Income Tax or commission as requested.
(a) the sum imposed by way of tax under section 4 of the Insurance Premium Tax Act in respect of an insurance contract lawfully made under subsection (1) (c) has been paid,
(b)	the insurer described in subsection (1) (c) has notified the commission that it proposes to make an inspection for the purpose of the insurance contract or to adjust or appraise a loss under the contract, and
(c) the commission has given written approval to the proposed activity by the insurer,
the insurer may make the inspection or adjust and appraise the loss.
(4) The approval referred to in subsection (3) (c) is valid for all necessary inspections, adjustment and appraisals during the period specified in the approval.
(5) The commission may suspend, cancel or refuse to issue an approval referred to in subsection (3) (c) if an insurer contravenes a provision of this Act.
(a) establish adequate reserves against the value, as determined by the company's actuary,
(i) under section 126.23 (1) (a), of its actuarial and other policy liabilities, and
(ii) under section 126.23 (1) (b), of any other matter specified in an order made by the commission, and
(b) include those reserves in the liabilities set out in its annual return.
78 An insurance company, in accordance with the regulations, may reinsure its liability under, or interest in, a lawful contract.
Rebates of premiums prohibited
79 (1) A person, in relation to the sale of insurance, must not, directly or indirectly, pay or allow, or offer or agree to pay or allow, a rebate of premium or part of it or other consideration or thing of value intended to be a rebate of premium, unless the rebate of premium is less than a prescribed amount or percentage.
(2) This section does not apply to or in respect of
(a) a payment by way of dividend, of patronage allocation, of bonus or of profit that is provided for by a contract of insurance,
(b) a person who is licensed under Division 2 of Part 6 as an insurance agent or insurance salesperson and who negotiates for or procures insurance on the agent's or salesperson's own person or property, and receives for own use the regular agent's commission having first in good faith negotiated or placed insurance on other persons or property the premiums for which, in the aggregate, are not less than the aggregate of the premiums for the insurance negotiated or procured on the agent's or salesperson's own person or property, or
(c) the payment of a fee for a referral under section 178 (2).
Separation of class funds of insurance company
80 (1) An insurance company transacting more than one class of insurance business must
(a) keep separate accounts for each class, and
(b) account for all premiums and claims in relation to each class as a separate fund.
(2) The investments of a separate fund kept under subsection (1) need not be kept separate from the investments of another fund.
Coverage by property insurer
80.1 An insurer that has a business authorization for property insurance may insure a vehicle against loss or damage under a policy that includes coverage for loss or damage to property.
Obligation of insurer with respect to agent's commission
"agent" means an insurance agent
(a) licensed under Division 2 of Part 6,
(b) authorized by an insurer that has a business authorization for property insurance to solicit, obtain or take applications for insurance, and to collect or receive premiums, on its behalf, and
(c) whose compensation or profit for those activities consists wholly of a commission on premiums derived from that business;
"premium" has the same meaning as in the Insurance Act.
(2) The commission, if any, on a policy that includes insurance against loss or damage to property and is issued at the head office of an insurer in British Columbia must be paid to an agent, and there must be written on the policy the words "Issued on behalf of ________________, authorized agent at ________________", with the name of the agent and of the place where the agent carries on business.
(3) The person in charge of the head office of an insurer in British Columbia must immediately, on the issue of a policy referred to in subsection (2), notify the agent of the date of the policy, the name of the insured and the property insured.
(a)	a mutual company,
(b) a contract of reinsurance,
(c) a contract insuring property in transit that is in the possession or custody of a railway company or common carrier, or
(d) a contract insuring movable property owned by a railway company or other common carrier and used in the course of its business as such.
80.3 (1) An insurer must
(a) establish procedures for dealing with complaints made to the insurer by persons who have requested or received in British Columbia products or services from the insurer,
(b) designate an officer or employee who is responsible for implementing those procedures, and
(c) designate one or more officers or employees who are responsible for receiving and dealing with those complaints.
(a) a mutual company, or
(b) a prescribed class of insurers.
(3) The procedures established under subsection (1) do not apply in relation to
(a) a matter to which section 12 of the Insurance Act applies, or
(b)	complaints respecting a prescribed class of insurance.
(4) An insurer must
(a) publish the procedures it establishes under subsection (1) on websites through which its products or services are offered in British Columbia, and
(b) provide those procedures in writing to any person who requests them.
Division 5 — Deposits and Borrowing of Trust Companies and Credit Unions
Unauthorized deposit business prohibited
81 (1) A person must not carry on deposit business in British Columbia unless the person is
(a) an extraprovincial trust corporation that has a business authorization to carry on deposit business,
(b) a credit union or extraprovincial credit union that has a business authorization to carry on deposit business,
(c) a bank, or
(d) a corporation that is a subsidiary of a bank and is a loan company to which the Trust and Loan Companies Act (Canada) applies.
(2) Subsection (1) does not prohibit an insurance company or extraprovincial insurance company from carrying on life insurance business in accordance with a business authorization issued to it.
Deposits in credit unions
82 (1) A credit union may receive money on deposit only from, or on behalf of,
(b) the government of Canada,
(c) the government of British Columbia,
(d) a public body,
(e) any 2 or more members jointly on behalf of a partnership or an unincorporated association if the directors of the credit union are satisfied that a majority of the members of the association or partnership are persons who are eligible for membership in the credit union,
(f) a member acting as trustee, whether for a named beneficiary or otherwise,
(g) a member in joint ownership with another person,
(h) a person, including the credit union, acting as trustee or agent as permitted by this Act, and
(i) a person in a prescribed class of persons,
and the credit union may allow interest on deposits at a rate and in the manner determined by its directors.
(2) A deposit permitted under subsection (1) (e) may be recorded in the books of the credit union in the name of the unincorporated association or partnership, and the credit union is not obliged to
(a) see to the application of the money so deposited or any interest on it, whether or not it has notice of any trust, or
(b) determine the powers of the members, the association or the partnership,
and the association or partnership or a member of the association or partnership is not entitled to notice of, to be represented at or to vote at meetings of the credit union.
Deposits from persons unable to contract
83 A credit union, without the intervention of any other person being required, may
(a) accept a deposit from any person whether or not the person is qualified by law to enter into ordinary contracts, and
(b) pay any or all of the principal of the deposit and any or all of the interest to the order of the person.
84 (1) A person who has deposits, non-equity shares or both with a credit union may nominate a person in writing to receive the amount at the death of the depositor.
(2) On receiving a certificate of death, or certified copy of a certificate of death, as described in section 38 of the Vital Statistics Act or an affidavit showing that a person who has made a nomination under subsection (1) has died, the credit union must substitute on its books the name of the nominee in place of the name of the person or must pay to the nominee the amount due in accordance with the instructions of the nominee.
(3) A payment by a credit union in accordance with this section is valid and effectual discharge of the credit union with respect to a demand by a person against the credit union as to the amount paid.
Inactive deposits
85 (1) In this section, "administrator" has the same meaning as in the Unclaimed Property Act.
(1.1) If a debt is owing by a credit union because of a deposit and no transaction has taken place and no statement of account has been requested or acknowledged by the creditor during a period of 10 years,
(a)	in the case of a deposit made for a fixed period, from the day on which the fixed period terminated, and
(b) in the case of any other deposit, from the day on which the last transaction took place or a statement of account was last requested or acknowledged by the creditor, whichever is later,
then, the debt is an inactive deposit for the purposes of this section.
(2) If the amount of an inactive deposit, including interest, is less than $100, then, subject to subsection (6), the credit union may treat it as income of the credit union.
(3) If the amount of an inactive deposit, including interest, is $100 or more, then, within 30 days after the debt becomes an inactive deposit, the credit union must mail written notice to the depositor, at the depositor's last address known to the credit union, informing the depositor that the debt has become an inactive deposit and will be dealt with under this section if the depositor does not, within 30 days after the date of the notice, give instructions as to the disposition of the deposit.
(4) If, under subsection (3), a credit union mails written notice to its depositor and does not, within 30 days after the date of the notice, receive instructions from its depositor as to the disposition of the deposit, then the credit union must pay to the administrator an amount equal to the debt, including interest if any, in accordance with the terms and conditions of the debt, and the payment discharges the credit union from all liability to the creditor in respect of the debt and interest.
(5) Money paid to the administrator under subsection (4) is deemed to be an unclaimed money deposit under the Unclaimed Property Act.
(6) If, under subsection (2), a credit union has treated a debt and interest as income and payment is demanded of the credit union by the person who, but for that subsection, would be entitled to receive payment of the debt, the credit union must pay to that person
(a)	an amount equal to the amount so treated as income, and
(b) if interest was payable in accordance with the terms and conditions of the debt or instrument, interest on the amount so treated as income
(i) for the period not exceeding 5 years from the day on which the debt and interest were treated as income until the date of payment to the claimant, and
(ii) at the prescribed rate.
(7) If a credit union has under subsection (2) treated a debt and interest as income or under subsection (4) has paid an amount to the administrator, the credit union must keep all related signature cards and signing authorities or microfilm copies of them for a prescribed period after which the credit union may destroy them.
Limitation on lending
86 A credit union must not exercise its powers to lend money or guarantee an obligation at any time when it is in contravention of the requirements of section 67 in respect of adequate liquid assets.
87 (1) A trust company or credit union must not issue a note under which the indebtedness evidenced is subordinated in right of payment to all other indebtedness not evidenced by a subordinated note unless the note so issued meets each of the following requirements:
(a) the note is evidenced by a certificate in a form approved by the commission and contains a statement in it to the effect of the statements made in paragraphs (b) and (c) and contains the information that it is a subordinated note and contains any other information that the commission requires in approving the form of certificate;
(b) the borrowing evidenced by the note does not constitute a deposit of money with the trust company or credit union that issues the note and is not insured by the Canada Deposit Insurance Corporation or the deposit insurance corporation;
(c) in the event of the insolvency or winding up of the trust company or credit union, the indebtedness evidenced by the note is subordinated in right of payment to all other indebtedness that is not evidenced by a subordinated note.
(2) A trust company or credit union or person acting on behalf of a trust company or credit union, in any offering, circular, advertisement, correspondence or literature relating to a subordinated note issued or to be issued, must not refer to the subordinated note otherwise than as a subordinated note, and the trust company or credit union must indicate clearly in the offering, circular, advertisement, correspondence or literature that the money secured by the subordinated note is not an insured deposit.
Division 6 — Marketing of Financial Products
88-90 [Repealed 2004-48-56.]
Disclosure of identity in advertising, etc
91 In all advertising, correspondence, application forms, evidences of indebtedness and other documents in its control relating to its business, a financial institution must ensure that its identity is clearly stated.
Insurers to file policy forms
92 The commission may order an insurer to file a copy of any form that is specified or otherwise described in the order and is used or intended to be used by the insurer in its insurance business.
Requirements of out of province insurers
92.1 (1) In this section, "insurer", "policy", "third party liability insurance coverage", "vehicle insurance" and "vehicle liability policy" have the same meanings as in the Insurance (Vehicle) Act.
(2) An insurer that issues a policy evidencing a contract of vehicle insurance that provides third party liability insurance coverage outside British Columbia must file with the superintendent, in a form established by the superintendent,
(a)	a power of attorney authorizing the superintendent to accept service of notice or process for the insurer in any action or proceeding against the insurer arising out of a vehicle accident in British Columbia, and
(b) an undertaking
(i) to appear in any action or proceeding against the insurer or its insured arising out of a vehicle accident in British Columbia, and of which the insurer has knowledge,
(ii) that on receipt from the superintendent of any notice or process served on the superintendent in respect of its insured, or in respect of its insured and another or others, and sent by the superintendent to the insurer as provided, the insurer will immediately have the notice or process personally served on its insured,
(iii) not to set up any defence to any claim, action or proceeding, under a policy issued by the insurer, that might not be set up if the policy had been issued in British Columbia in accordance with the law of British Columbia relating to vehicle liability policies, and
(iv) to satisfy up to the limits of liability stated in the policy, and in any event to an amount not less than the limits of liability established under Part 1 of the Insurance (Vehicle) Act and the regulations under that Part any judgment rendered against the insurer or its insured by a court in British Columbia in the action or proceeding referred to in subparagraph (iii).
Prohibition against unfair forms of contract
93 (1) If, in the opinion of the commission, a form of contract in use between a financial institution and its customers or a form of application or advertisement relating to such a contract is unfair, misleading or deceptive, the commission by order may prohibit the use of that form by a financial institution.
(2) If, in the opinion of the commission, an insurer is issuing contracts of insurance for less than fair market value, the commission may order the insurer to cease doing so.
94 A financial institution or person acting in a transaction with the approval of a financial institution must not place undue pressure on, or coerce, a person to obtain a product or service from another person, including the financial institution, its subsidiaries, affiliates or agents, as a condition of obtaining another product or service from the financial institution.
95 [Repealed 2004-48-58.]
Substitute action of commission
96 (1) If the commission is satisfied that a customer, in respect of a transaction, has
(a)	a cause of action,
(b) a defence to an action,
(c) grounds for setting aside a default judgment, or
(d) grounds for an appeal or to contest an appeal,
then, on behalf of the customer, the commission may institute or assume the conduct of any proceedings, or defend any proceedings, with a view to enforcing or protecting the rights of the customer respecting a contravention or suspected contravention of those rights or of any enactment or law relating to the protection or interests of customers.
(2) The commission must not institute, assume the conduct of or defend any proceedings under subsection (1) unless the commission
(a) considers that the conduct of the financial institution or other person involved in the transaction was misleading, deceptive or unconscionable, and
(b) first obtains
(i) the irrevocable written consent of the customer, and
(ii) the written consent of the minister.
(3) In respect of proceedings referred to in subsection (1),
(a) the commission, on behalf of the customer, has the same rights in and control over the proceedings, including the same right to settle an action or part of an action, as the customer,
(b) the commission, without consulting or seeking the further consent of the customer, may conduct the proceedings in the manner the commission considers appropriate, and
(c) any money, excluding costs, recovered by the commission belongs to and must be paid to the customer without deduction, and any amount, excluding costs, awarded against the customer must be paid by and is recoverable from the customer, but in every case any costs of the proceedings awarded by the court having jurisdiction must be borne by, or paid to and retained by, the commission, as the case may be.
(a) a party to proceedings to which this section applies files a counterclaim, or
(b) the customer on whose behalf the proceedings are being defended is entitled to file a counterclaim,
and that counterclaim is not related to
(c) the cause of action, and
(d) the interests of the customer as a customer,
the court having jurisdiction in the proceedings must, on the application of the commission, order
(e) that the counterclaim be heard separately, and
(f) that the customer be made a party to the counterclaim in the customer's own right,
and the court may make other orders or give directions in that regard that it considers just.