Cheque Holding Policy Disclosure (Banks) Regulations

SOR/2002-39

Registration 3 January, 2002

BANK ACT

Cheque Holding Policy Disclosure (Banks) Regulations

P.C. 2002-1 3 January, 2002

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 459.4^a and 978^b of the Bank Act^c, hereby makes the annexed Cheque Holding Policy Disclosure (Banks) Regulations.

^a S.C. 2001, c. 9, s. 125^b S.C. 2001, c. 9, s. 183^c S.C. 1991, c. 46

CHEQUE HOLDING POLICY DISCLOSURE (BANKS) REGULATIONS

DISCLOSURE

Disclosure of policy

1. (1) When a person opens, at a bank, a personal deposit account to which the person may deposit cheques, the bank must give the person a written statement that sets out the policies of the bank concerning the holding of funds payable to the person in respect of the cheques, including

(a) for a cheque drawn on a financial institution's branch located in Canada, the maximum period during which the bank may hold the funds before releasing them to the person; and

(b) for a cheque drawn on a financial institution's branch located outside Canada, an estimate of the maximum period during which the bank may hold the funds before releasing them to the person.

Disclosure in agreement or separate document

(2) The statement may be part of an agreement that is signed when the account is opened or it may be in a separate document.

Statement to be available on request

2. A bank must, on request from a person, give the person a statement of the bank's policies referred to in subsection 1(1).

Notice of change in policy

3. If a bank changes its policies referred to in subsection 1(1), the bank must disclose the change to every customer in whose name a personal deposit account is kept with the bank. The disclosure must be made

(a) in the case of a customer to whom a statement of account is provided,

(i) by means of a notice in writing provided to the customer at least 30 days before the effective date of the change, or

(ii) if the customer has instructed the bank in writing to provide such a notice to another person, by means of a notice in writing provided to that other person at least 30 days before the effective date of the change; and

(b) in the case of a customer to whom a statement of account is not provided, by means of a notice that is displayed, for a period of at least 60 days immediately before the effective date of the change, at all branches of the bank where personal deposit accounts are kept.

COMING INTO FORCE

Coming into force

4. These Regulations come into force on the day on which they are registered.