523. (1) This Part applies only in respect of the business in Canada of authorized foreign banks.

(2) The assets and liabilities of an authorized foreign bank in respect of its business in Canada, as shown by its books and records, are considered to be the assets and liabilities of the authorized foreign bank in respect of its business in Canada.

1991, c. 46, s. 523; 1997, c. 15, s. 86; 1999, c. 28, s. 35.

524. (1) On application by a foreign bank, the Minister may make an order permitting the foreign bank to establish a branch in Canada to carry on business in Canada under this Part.

(2) The order may be made subject to the restrictions and requirements referred to in subsections 540(1) and (2), respectively.

(3) The Minister may make an order only if the Minister is satisfied that, if the application is made by a non-WTO Member foreign bank, treatment as favourable for banks to which this Act applies exists or will be provided in the jurisdiction in which the authorized foreign bank principally carries on business, either directly or through a subsidiary.

(4) The Minister may make an order only if the Minister is of the opinion, after consultation with the Superintendent, that

(a) the applicant is a bank in the jurisdiction under whose laws it was incorporated and is regulated in a manner acceptable to the Superintendent; and

(b) the applicant’s principal activity is the provision of

(i) financial services, or

(ii) services that would be permitted by this Act if they were provided by a bank in Canada.

1991, c. 46, s. 524; 1999, c. 28, s. 35; 2001, c. 9, s. 133.

524.1 No foreign bank may establish a branch in Canada to carry on business in Canada under this Part if the foreign bank or an entity affiliated with the foreign bank

(a) has control of or has a substantial investment in an entity that engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in; or

(b) engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in.

2001, c. 9, s. 134.

524.2 No authorized foreign bank and no entity affiliated with an authorized foreign bank may

(a) control or have a substantial investment in an entity that engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in; or

(b) engage in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in.

2001, c. 9, s. 134.

525. (1) An application for an order under subsection 524(1) shall be filed with the Superintendent, together with any other information, material and evidence that the Superintendent may require.

(2) Before filing an application, a foreign bank applicant shall, at least once a week for a period of four consecutive weeks, publish, in a form satisfactory to the Superintendent, a notice of intention to make the application in the Canada Gazette and in a newspaper in general circulation at or near the place where its principal office is to be situated.

(3) A person who objects to the proposed order may, within thirty days after the date of the last publication under subsection (2), submit the objection in writing to the Superintendent.

(4) On receipt of an objection, the Superintendent shall inform the Minister of it.

(5) On receipt of an objection, and if the application for the order has been received, the Superintendent shall, if satisfied that it is necessary and in the public interest to do so, hold or cause to be held a public inquiry into the objection as it relates to the application and, on completion of the inquiry, the Superintendent shall report the findings of the inquiry to the Minister.

(6) Within thirty days after receiving the report, the Minister shall make it available to the public.

(7) Subject to the approval of the Governor in Council, the Superintendent may make rules governing the proceedings at public inquiries held under this section.

1991, c. 46, s. 525; 1999, c. 28, s. 35.

526. Before making an order under subsection 524(1), the Minister shall take into account all matters that the Minister considers relevant to the application, including

(a) the nature and sufficiency of the financial resources of the foreign bank as a source of continuing financial support for the carrying on of its business in Canada;

(b) the soundness and feasibility of plans of the foreign bank for the future conduct and development of its business in Canada;

(c) the business record and past performance of the foreign bank;

(d) the reputation of the foreign bank for being operated in a manner that is consistent with the standards of good character and integrity;

(e) whether the proposed authorized foreign bank will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;

(f) the impact of any integration of the businesses and operations in Canada of the authorized foreign bank with those of its affiliates in Canada on the conduct of those businesses and operations; and

(g) the best interests of the financial system in Canada.

1991, c. 46, s. 526; 1999, c. 28, s. 35; 2001, c. 9, s. 135.

527. (1) An order made under subsection 524(1) shall set out

(a) the name of the authorized foreign bank and, where applicable, the name under which it is permitted to carry on business in Canada;

(b) the province in which the principal office of the authorized foreign bank is to be situated;

(c) whether the authorized foreign bank is subject to any restrictions and requirements referred to in subsection 524(2); and

(d) the date on which the order becomes effective.

(2) The Minister may set out in the order any provision not contrary to this Act that the Minister considers advisable in order to take into account the particular circumstances of the proposed authorized foreign bank with respect to the carrying on of business in Canada.

(3) The Minister may impose any terms and conditions in respect of the order that the Minister considers appropriate.

(4) The Superintendent shall cause to be published in the Canada Gazette a notice of the making of the order.

1991, c. 46, s. 527; 1999, c. 28, s. 35; 2005, c. 54, s. 79.

528. (1) On application by an authorized foreign bank, the Minister may, by further order,

(a) change the name under which it is permitted to carry on business in Canada or the province in which its principal office is to be situated as that name or province is set out in the order made under subsection 524(1) or in any other order made under this section;

(b) add any provision referred to in subsection 527(2) or any term or condition referred to in subsection 527(3) or change or remove any of those provisions, terms or conditions that are included in the order made under subsection 524(1) or in any other order made under this section; or

(c) add or remove the restrictions and requirements referred to in subsection 524(2).

(2) Before making an application under subsection (1), the authorized foreign bank must publish a notice of intention to make the application at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper of general circulation at or near the place where its principal office is situated.

1991, c. 46, s. 528; 1999, c. 28, s. 35; 2005, c. 54, s. 80.

529. (1) Subject to this section but notwithstanding any other provision of this Act or the regulations, the Minister may, on the recommendation of the Superintendent, by order, grant an authorized foreign bank permission to

(a) engage in a business activity specified in the order that an authorized foreign bank is not otherwise permitted by this Part to engage in;

(b) have liabilities that an authorized foreign bank is not otherwise permitted by this Part to have, if the authorized foreign bank or an affiliate of the authorized foreign bank had those liabilities at the time an application for an order under subsection 524(1) was made;

(c) hold assets that an authorized foreign bank is not otherwise permitted by this Part to hold, if the assets were held, at the time an application for an order under subsection 524(1) was made, by the authorized foreign bank or an affiliate of the authorized foreign bank;

(d) acquire and hold assets that an authorized foreign bank is not otherwise permitted by this Part to acquire or hold if the authorized foreign bank was obliged, at the time an application for an order under subsection 524(1) was made, to acquire those assets;

(e) [Repealed, 2001, c. 9, s. 136]

(f) in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), carry on business in Canada without having to deposit assets having a value of at least five million dollars, as required by subparagraphs 534(3)(a)(ii) and 582(1)(b)(i), where the authorized foreign bank continues to hold a substantial investment in

(i) a bank that is a subsidiary of the foreign bank and the Minister has approved an application for voluntary liquidation and dissolution made by the subsidiary under section 344, or

(ii) a company to which the Trust and Loan Companies Act applies and the Minister has approved an application for voluntary liquidation and dissolution made by the company under section 349 of that Act; or

(g) maintain outside Canada any records or registers required by this Act to be maintained in Canada and maintain and process outside Canada information and data relating to the preparation and maintenance of those records or registers.

(2) An order under subsection (1) may not be made if the effect of the order would be to permit an authorized foreign bank to

(a) contravene section 545, in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2); or

(b) have deposit liabilities so as to cause the authorized foreign bank to be in contravention of section 540, in the case of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2).

(3) Permission granted under subsection (1) shall be expressed to be granted for a period specified in the order not exceeding

(a) with respect to any activity described in paragraph (1)(a), thirty days after the day on which an order made under subsection 524(1) becomes effective in respect of the authorized foreign bank or, where the activity is conducted pursuant to an agreement existing on that day, on the expiration of the agreement;

(b) with respect to any matter described in paragraph (1)(b), ten years; and

(c) with respect to any matter described in any of paragraphs (1)(c) to (g), two years.

(4) Subject to subsection (5), the Minister may, on the recommendation of the Superintendent, by order, renew permission granted under subsection (1) with respect to any matter described in paragraphs (1)(b) to (f) for any further period or periods that the Minister considers necessary.

(5) The Minister may not grant to an authorized foreign bank any permission

(a) with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the day on which an order made under subsection 534(1) becomes effective in respect of the authorized foreign bank, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the authorized foreign bank that the authorized foreign bank will not be able at law to redeem or discharge at the end of the ten years any liabilities to which the permission relates;

(b) with respect to matters described in paragraphs (1)(c) and (d), that purports to be effective more than ten years after the day on which an order made under subsection 534(1) becomes effective in respect of the authorized foreign bank; and

(c) with respect to matters described in paragraph (1)(f), that purports to be effective more than seven years after the day on which an order made under subsection 534(1) becomes effective in respect of the authorized foreign bank.

1991, c. 46, s. 529; 1999, c. 28, s. 35; 2001, c. 9, s. 136.

530. (1) An order made under subsection 524(1) or 528(1) may not provide for the use of a name that is

(a) prohibited by an Act of Parliament;

(b) in the opinion of the Superintendent, deceptively misdescriptive;

(c) the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, any existing trade-mark, trade name or corporate name of a body corporate, except where

(i) the trade-mark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name, and

(ii) consent to the use of the trade-mark, trade name or corporate name is signified to the Superintendent in any manner that the Superintendent may require;

(d) the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, the known name under or by which any other entity carries on business or is identified; or

(e) reserved under section 43 for an existing or proposed bank or for an existing or proposed authorized foreign bank or under section 697 for an existing or proposed bank holding company.

(2) An order made under subsection 524(1) or 528(1) may provide for the use of a name referred to in section 47 of the Trust and Loan Companies Act.

1991, c. 46, s. 530; 1999, c. 28, s. 35; 2001, c. 9, s. 137.

531. An authorized foreign bank shall set out its name and, where applicable, any other permitted name, as set out in the order made under subsection 524(1) or 528(1), in legible characters in all contracts, invoices, negotiable instruments and other documents evidencing rights and obligations with respect to other parties that are issued or made by or on behalf of the authorized foreign bank.

1991, c. 46, s. 531; 1996, c. 6, s. 10; 1997, c. 15, s. 87; 1999, c. 28, s. 35.

532. (1) If through inadvertence or otherwise an order made under subsection 524(1) or 528(1) provides for the use of a name that is prohibited by section 530, the Superintendent may, by order, direct the authorized foreign bank to change the name without delay and the authorized foreign bank shall comply with that direction.

(2) Where an authorized foreign bank does not comply with a direction under subsection (1) within sixty days after the service of the direction, the Superintendent may revoke the name and assign another name and, until changed in accordance with section 528, that other name is the name of the authorized foreign bank.

1991, c. 46, s. 532; 1996, c. 6, s. 11; 1999, c. 28, s. 35.

532.1 to 532.4 [Repealed, 1999, c. 28, s. 35]

533. (1) Subject to section 531 and subsection (2), an authorized foreign bank may carry on business in Canada under a name other than the name set out in the order made under subsection 524(1) or 528(1).

(2) Where an authorized foreign bank carries on business in Canada under a name other than the name set out in the order, the Superintendent may, by order, direct the authorized foreign bank not to use that other name if the Superintendent is of the opinion that the other name is a name referred to in any of paragraphs 530(1)(a) to (e).

1991, c. 46, s. 533; 1999, c. 28, s. 35.

534. (1) On application by an authorized foreign bank, the Superintendent may make an order approving the commencement and carrying on of business in Canada by the authorized foreign bank.

(2) An authorized foreign bank may not commence to carry on business in Canada until it is authorized to do so by an order made under subsection (1).

(3) The Superintendent may make the order only if the Superintendent is satisfied that the authorized foreign bank has

(a) deposited in Canada unencumbered assets of a type approved by the Superintendent, the total value of which, determined in accordance with the accounting principles referred to in subsection 308(4), shall be

(i) in the case of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2), one hundred thousand dollars, or

(ii) in any other case, five million dollars or any greater amount that the Superintendent specifies;

(b) submitted a power of attorney in accordance with subsection 536(2); and

(c) complied with all other relevant requirements of this Act.

(4) The assets referred to in paragraph (3)(a) shall be kept with a Canadian financial institution approved by the Superintendent pursuant to a deposit agreement entered into with the prior approval of the Superintendent.

(5) The order under subsection (1) may contain any conditions or limitations that the Superintendent considers appropriate that are consistent with this Act and that relate to the carrying on of the business in Canada of the authorized foreign bank.

(6) In respect of an order made under subsection (1), the Superintendent may at any time, by further order,

(a) make the order subject to any conditions or limitations that the Superintendent considers appropriate that are consistent with this Act and that relate to the business in Canada of the authorized foreign bank, or

(b) amend or revoke any authorization contained in the order or any condition or limitation to which the order is subject,

but before making a further order the Superintendent shall provide the authorized foreign bank with an opportunity to make representations regarding that further order.

(7) On the making of an order under subsection (1), the authorized foreign bank shall publish a notice of the making of the order in a newspaper in general circulation at or near the place where its principal office is to be situated.

(8) The Superintendent shall cause to be published in the Canada Gazette a notice of the making of an order under subsection (1).

(9) The Superintendent shall not make an order under subsection (1) in respect of an authorized foreign bank more than one year after the day on which the order under subsection 524(1) in respect of the authorized foreign bank becomes effective.

(10) If an order under subsection (1) is not obtained within one year after the day on which the order under subsection 524(1) in respect of the authorized foreign bank becomes effective, the order made under subsection 524(1) is revoked.

1991, c. 46, s. 534; 1999, c. 28, s. 35; 2001, c. 9, s. 138.

535. (1) An authorized foreign bank shall at all times have a principal office in the province specified in the order made under subsection 524(1) or 528(1) with respect to it.

(2) An authorized foreign bank may change the address of its principal office within the province specified in the order made under subsection 524(1) or 528(1) with respect to it.

(3) An authorized foreign bank shall send to the Superintendent, within fifteen days after any change of address of its principal office, a notice of the change of address.

1991, c. 46, s. 535; 1999, c. 28, s. 35; 2005, c. 54, s. 81.

536. (1) An authorized foreign bank shall appoint an employee who is ordinarily resident in Canada to be its principal officer for the purposes of this Part.

(2) The authorized foreign bank shall provide the principal officer with a power of attorney expressly authorizing the principal officer to receive all notices under the laws of Canada from the Minister or Superintendent and shall without delay submit a copy of the power of attorney to the Superintendent.

(3) Where a vacancy occurs in the position of principal officer, the authorized foreign bank shall, without delay, fill the vacancy and submit a copy of the new power of attorney to the Superintendent.

1991, c. 46, s. 536; 1996, c. 6, s. 13; 1999, c. 28, s. 35.

537. (1) Subject to subsection (2), an authorized foreign bank shall not transfer all or substantially all of the liabilities in respect of its business in Canada.

(2) An authorized foreign bank may, with the approval of the Minister, transfer all or substantially all of the liabilities in respect of its business in Canada to another authorized foreign bank in respect of its business in Canada, to a bank or to a body corporate to which the Trust and Loan Companies Act applies.

(3) An approval may be given under subsection (2) only if

(a) notice of the authorized foreign bank’s intention to apply for the approval has been published at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the principal office of the transferring authorized foreign bank is situated; and

(b) the application for approval is supported by evidence satisfactory to the Minister that the requirement of paragraph (a) has been satisfied and that the entity to which the authorized foreign bank intends to make the transfer is an entity referred to in subsection (2).

1991, c. 46, s. 537; 1999, c. 28, s. 35.

537.1 [Repealed, 1999, c. 28, s. 35]

538. (1) Subject to this Act, an authorized foreign bank shall not carry on any business in Canada other than the business of banking and any business generally that appertains to the business of banking.

(2) For greater certainty, the business of banking includes

(a) providing any financial service;

(b) acting as a financial agent;

(c) providing investment counselling services and portfolio management services; and

(d) issuing payment, credit or charge cards and, in cooperation with others including other financial institutions, operating a payment, credit or charge card plan.

1991, c. 46, s. 538; 1996, c. 6, s. 15; 1997, c. 15, s. 88; 1999, c. 28, s. 35.

539. (1) In addition, an authorized foreign bank may, in Canada,

(a) hold, manage and otherwise deal with real property;

(b) provide prescribed bank-related data processing services;

(b.1) with the prior written approval of the Minister, engage in any of the following activities, namely,

(i) collecting, manipulating and transmitting

(A) information that is primarily financial or economic in nature,

(B) information that relates to the business of an entity in which a bank is permitted to acquire a substantial investment under section 468 or to the business of a Canadian entity acquired or held under section 522.08, and

(C) any other information that the Minister may, by order, specify,

(ii) providing advisory or other services in the design, development or implementation of information management systems,

(iii) designing, developing or marketing computer software, and

(iv) designing, developing, manufacturing or selling, as an ancillary activity to any activity referred to in any of subparagraphs (i) to (iii) that the authorized foreign bank is engaging in, computer equipment integral to the provision of information services related to the business of financial institutions or to the provision of financial services;

(b.2) with the prior written approval of the Minister, develop, design, hold, manage, manufacture, sell or otherwise deal with data transmission systems, information sites, communication devices or information platforms or portals that are used

(i) to provide information that is primarily financial or economic in nature,

(ii) to provide information that relates to the business of an entity in which a bank is permitted to acquire a substantial investment under section 468 or to the business of a Canadian entity acquired or held under section 522.08, or

(iii) for a prescribed purpose or in prescribed circumstances;

(b.3) engage in prescribed specialized business management or advisory services;

(c) promote merchandise and services to the holders of any payment, credit or charge card issued by the authorized foreign bank;

(d) engage in the sale of

(i) tickets, including lottery tickets, on a non-profit public service basis in connection with special, temporary and infrequent non-commercial celebrations or projects that are of local, municipal, provincial or national interest,

(ii) urban transit tickets, and

(iii) tickets in respect of a lottery sponsored by the federal government or a provincial or municipal government or an agency of any of those governments;

(e) act as a custodian of property; and

(f) act as receiver, liquidator or sequestrator.

(2) Except as authorized by or under this Act, an authorized foreign bank shall not deal in Canada in goods, wares or merchandise or engage in any trade or other business.

(3) The Governor in Council may make regulations

(a) respecting what an authorized foreign bank may or may not do with respect to the carrying on of the activities referred to in paragraphs (1)(b.1) to (b.3);

(b) imposing terms and conditions in respect of

(i) the provision of financial services referred to in paragraph 538(2)(a) that are financial planning services,

(ii) the provision of services referred to in paragraph 538(2)(c), and

(iii) the carrying on of the activities referred to in any of paragraphs (1)(b.1) to (b.3); and

(c) respecting the circumstances in which authorized foreign banks may be exempted from the requirement to obtain the approval of the Minister before carrying on a particular activity referred to in paragraph (1)(b.1) or (b.2).

1991, c. 46, s. 539; 1996, c. 6, s. 16; 1999, c. 28, s. 35; 2001, c. 9, s. 139.

539.1 Regulations made for the purpose of any of sections 409 to 411 apply in respect of authorized foreign banks with any modifications that the circumstances require unless regulations made under subsection 539(3) provide otherwise.

2001, c. 9, s. 140.

540. (1) Where subsection 524(2) applies, the authorized foreign bank shall not, in respect of its business in Canada,

(a) except as permitted by subsection (4), engage in the business of accepting deposit liabilities, or otherwise borrow money;

(b) subject to the regulations, act as an agent for any person in the taking of deposit liabilities; or

(c) guarantee any securities or accept any bills of exchange or depository bills that are

(i) issued by any person, and

(ii) intended by the issuer or any party to be sold or traded.

(2) Where subsection 524(2) applies, the authorized foreign bank shall, in accordance with any regulations that may be made,

(a) post notices in its branches in Canada that it does not accept deposits in Canada and that it is not a member institution of the Canada Deposit Insurance Corporation; and

(b) include in its advertisements the prescribed information.

(3) The Governor in Council may make regulations respecting notices and advertisements for the purpose of subsection (2).

(4) For the purposes of paragraph (1)(a), an authorized foreign bank may

(a) accept deposit liabilities or otherwise borrow money from

(i) a financial institution other than a foreign bank, or

(ii) a foreign bank that meets the conditions described in subparagraphs 521(1.07)(a)(i) and (ii),

by means of financial instruments that cannot be subsequently sold or traded; or

(b) accept deposit liabilities or otherwise borrow money, from prescribed classes of entities referred to in subparagraph (a)(i) or (ii), by means of financial instruments that can be sold to or traded with those classes of entities, in accordance with regulations made pursuant to subsection (6).

(5) Paragraph (1)(c) does not apply in respect of

(a) securities or bills of exchange that are sold to or traded with any entity referred to in subparagraph (4)(a)(i) or (ii) and that cannot be subsequently sold or traded; or

(b) securities or bills of exchange that can be sold to or traded with prescribed classes of entities referred to in subparagraph (4)(a)(i) or (ii), in accordance with regulations made pursuant to subsection (6).

(6) The Governor in Council may make regulations

(a) prescribing the class, type or amount of deposit liabilities or borrowings referred to in paragraph (4)(b);

(b) prescribing the class, type or amount of securities or bills of exchange referred to in paragraph (5)(b);

(c) prescribing the classes of entities referred to in paragraph (4)(b) or (5)(b);

(d) prescribing the terms and conditions respecting any sale or trade of financial instruments, securities or bills of exchange;

(d.1) respecting circumstances in which and the conditions under which an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) may act as agent for any person in the taking of deposit liabilities; and

(e) respecting such other matters or things as are necessary to carry out the purposes of this section.

1991, c. 46, s. 540; 1996, c. 6, s. 16; 1999, c. 28, s. 35; 2001, c. 9, s. 141.

541. (1) The provisions of this Act that apply in respect of an authorized foreign bank apply in respect of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2), with any modifications that may be required to take into account those restrictions and requirements.

(2) The following provisions do not apply in respect of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2):

(a) sections 545 and 546; and

(b) sections 559 to 566.

1991, c. 46, s. 541; 1996, c. 6, s. 16; 1999, c. 28, s. 35.

541.1 An authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) may, in respect of its business in Canada, guarantee any securities and accept any bills of exchange that are issued by any person and intended by the issuer or any party to be sold or traded.

1999, c. 28, s. 35.

542. Subject to section 22.1 of the Payment Clearing and Settlement Act, an authorized foreign bank may be a participant in a designated clearing and settlement system within the meaning of section 3 of that Act.

1991, c. 46, s. 542; 1996, c. 6, s. 17; 1999, c. 28, s. 35.

543. (1) Subject to sections 540, 546 and 549, an authorized foreign bank may, in Canada,

(a) act as agent for any person in respect of the provision of any service that is provided by a financial institution, an entity in which a bank is permitted to acquire a substantial investment under section 468 or a Canadian entity acquired or held under section 522.08 and may enter into an arrangement with any person in respect of the provision of that service; or

(b) refer any person to that financial institution or body corporate.

(2) The Governor in Council may make regulations respecting the disclosure of

(a) the name of the principal for whom an authorized foreign bank is acting as agent pursuant to subsection (1); and

(b) whether any commission is being earned by an authorized foreign bank when acting as agent pursuant to subsection (1).

1991, c. 46, s. 543; 1996, c. 6, s. 17; 1999, c. 28, s. 35; 2001, c. 9, s. 142.

543.1 [Repealed, 1999, c. 28, s. 35]

544. No authorized foreign bank shall act in Canada as

(a) an executor, administrator or official guardian or a guardian, tutor, curator, judicial adviser or committee of a mentally incompetent person; or

(b) a trustee for a trust.

1991, c. 46, s. 544; 1996, c. 6, s. 17; 1999, c. 28, s. 35.

545. (1) An authorized foreign bank shall, in respect of its business in Canada, ensure that, on each day that is at least thirty days after the date of the order under subsection 534(1) made in respect of it,

A/B ≤ 0.01

where

A is the sum of all amounts each of which is the sum of all the deposits held by the authorized foreign bank at the end of a day in the preceding thirty days each of which deposits is less than $150,000 and payable in Canada; and

B is the sum of all amounts each of which is the sum of all deposits held by the authorized foreign bank at the end of a day in those preceding thirty days and payable in Canada.

(2) For the purpose of subsection (1), the rate of exchange that shall be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada shall be determined in accordance with any regulations that may be made.

(3) For the purpose of subsection (1), “deposit” has the meaning that would be given to it by the schedule to the Canada Deposit Insurance Corporation Act for the purposes of deposit insurance if that schedule were read without reference to subsections 2(2), (5) and (6) of that schedule, but does not include prescribed deposits.

(4) Before an authorized foreign bank opens a deposit account in Canada, the bank shall, in the prescribed manner, give the person requesting the opening of the account

(a) a notice in writing that the deposit will not be insured by the Canada Deposit Insurance Corporation; and

(b) any other information that may be prescribed.

(5) An authorized foreign bank shall, in accordance with any regulations that may be made,

(a) post notices in its branches in Canada to inform the public that deposits with the authorized foreign bank are not insured by the Canada Deposit Insurance Corporation; and

(b) include in its advertisements notices to inform the public that deposits with the authorized foreign bank are not insured by the Canada Deposit Insurance Corporation.

(6) The Governor in Council may make regulations

(a) respecting the determination of rates of exchange referred to in subsection (2);

(a.1) prescribing the deposits referred to in subsection (3) and the terms and conditions with respect to the acceptance of those deposits;

(b) prescribing the manner in which notices referred to in subsection (4) are to be given and the additional information to be contained in the notices; and

(c) respecting notices referred to in subsection (5).

1991, c. 46, s. 545; 1996, c. 6, s. 17; 1999, c. 28, s. 35.

546. (1) Subject to the regulations, an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.

(2) In this section, “deposit” has the meaning assigned to that term by subsection 545(3).

(3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, an authorized foreign bank referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.

1991, c. 46, s. 546; 1996, c. 6, s. 18; 1999, c. 28, s. 35; 2001, c. 9, s. 143.

547. (1) Subject to the regulations, no authorized foreign bank shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the authorized foreign bank.

(2) Subsection (1) only applies in respect of premises or any portion of premises on which both the authorized foreign bank and the member institution carry on business with the public and to which the public has access.

(3) Subject to the regulations, no authorized foreign bank shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the authorized foreign bank, unless the authorized foreign bank clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution.

(4) The Governor in Council may make regulations

(a) respecting the circumstances in which, and the conditions under which, an authorized foreign bank may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and

(b) respecting the circumstances in which, and the conditions under which, an authorized foreign bank may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3).

1991, c. 46, s. 547; 1996, c. 6, s. 19(E); 1999, c. 28, s. 35; 2001, c. 9, s. 144.

548. An authorized foreign bank shall not deal in Canada in securities to the extent prohibited or restricted by any regulations that the Governor in Council may make for the purposes of this section.

1991, c. 46, s. 548; 1999, c. 28, s. 35.

549. (1) An authorized foreign bank shall not undertake in Canada the business of insurance except to the extent permitted by this Act or the regulations.

(2) An authorized foreign bank shall not act in Canada as agent for any person in the placing of insurance and shall not lease or provide space in any branch in Canada of the authorized foreign bank to any person engaged in the placing of insurance.

(3) The Governor in Council may make regulations respecting the matters referred to in subsection (1) and regulations respecting relations between authorized foreign banks and

(a) entities that undertake the business of insurance; or

(b) insurance agents or insurance brokers.

(4) Nothing in this section precludes an authorized foreign bank from

(a) requiring insurance to be placed by a borrower for the security of the authorized foreign bank; or

(b) obtaining group insurance for its employees.

(5) For the purposes of this section, the business of insurance includes the issuance of an annuity where the liability on the insurance is contingent on the death of a person.

1991, c. 46, s. 549; 1999, c. 28, s. 35.

550. An authorized foreign bank shall not engage in Canada in any personal property leasing activity in which a financial leasing entity as defined in subsection 464(1) is not permitted to engage.

1991, c. 46, s. 550; 1999, c. 28, s. 35; 2001, c. 9, s. 145.

551. (1) An authorized foreign bank shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance a loan for that purpose, if the amount of the loan, together with the amount outstanding of any mortgage having an equal or prior claim against the property, would exceed 75 per cent of the value of the property at the time of the loan.

(2) Subsection (1) does not apply in respect of

(a) a loan made or guaranteed under the National Housing Act or any other Act of Parliament by or under which a different limit on the value of property on the security of which the authorized foreign bank may make a loan is established;

(b) a loan if repayment of the amount of the loan that exceeds the maximum amount set out in subsection (1) is guaranteed or insured by a government agency or a private insurer approved by the Superintendent;

(c) the acquisition by the authorized foreign bank from an entity of securities issued or guaranteed by the entity that are secured on any residential property, whether in favour of a trustee or otherwise, or the making of a loan by the authorized foreign bank to the entity against the issue of those securities; or

(d) a loan secured by a mortgage where

(i) the mortgage is taken back by the authorized foreign bank on a property disposed of by it, including where the disposition is by way of a realization of a security interest, and

(ii) the mortgage secures payment of an amount payable to the authorized foreign bank for the property.

1991, c. 46, s. 551; 1999, c. 28, s. 35.

552. [Repealed, 2001, c. 9, s. 146]

553. An authorized foreign bank shall not, in respect of its business in Canada, grant to a person the right to appoint a receiver or a receiver and manager of the property or of the business of the authorized foreign bank.

1991, c. 46, s. 553; 1999, c. 28, s. 35.

553.1 (1) Except with the approval of the Superintendent, an authorized foreign bank may not, in respect of its business in Canada, be a general partner in a limited partnership or a partner in a general partnership.

(2) For the purposes of subsection (1), “general partnership” means any partnership other than a limited partnership.

1999, c. 28, s. 35; 2001, c. 9, s. 147.

554. (1) In this section, “non-WTO Member authorized foreign bank” means an authorized foreign bank that is not controlled by a WTO Member resident.

(2) No non-WTO Member authorized foreign bank shall have any branch in Canada, other than its principal office and one branch, without the approval of the Minister.

1991, c. 46, s. 554; 1999, c. 28, s. 35.

555. Sections 425 to 436, as they exist from time to time, apply, with any modifications that the circumstances require, in respect of the carrying on of business in Canada by an authorized foreign bank as if a reference to “bank” in any of those provisions were a reference to “authorized foreign bank”.

1991, c. 46, s. 555; 1999, c. 28, s. 35.

555.1 [Repealed, 1999, c. 28, s. 35]