556. (1) Subject to this Part, an authorized foreign bank may, without the intervention of any other person,

(a) accept a deposit from any person whether or not the person is qualified by law to enter into contracts; and

(b) pay all or part of the principal of the deposit and all or part of the interest on it to or to the order of that person.

(2) Paragraph (1)(b) does not apply if, before payment, the money deposited in the authorized foreign bank pursuant to paragraph (1)(a) is claimed by some other person

(a) in any action or proceeding to which the authorized foreign bank is a party and in respect of which service of a writ or other process originating that action or proceeding has been made on the authorized foreign bank, or

(b) in any other action or proceeding pursuant to which an injunction or order made by the court requiring the authorized foreign bank not to make payment of that money or make payment of it to some person other than the depositor has been served on the authorized foreign bank,

and, if a claim is made, the deposited money may be paid to the depositor with the consent of the claimant, or to the claimant with the consent of the depositor.

(3) An authorized foreign bank is not, in respect of its business in Canada, bound to see to the execution of any trust to which a deposit made under the authority of this Act is subject.

(4) Subsection (3) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the authorized foreign bank has notice of the trust if it acts on the order of or under the authority of the holder or holders of the account into which the deposit is made.

1991, c. 46, s. 556; 1999, c. 28, s. 35; 2001, c. 9, s. 148.

557. (1) Where

(a) a deposit has been made in Canada that is payable in Canada in Canadian currency and in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor during a period of ten years

(i) from the day on which the fixed period terminated, in the case of a deposit made for a fixed period, and

(ii) 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, in the case of any other deposit, or

(b) a cheque, draft or bill of exchange (including any of those instruments drawn by one branch of an authorized foreign bank on another of its branches but not including one issued in payment of a dividend on the capital of an authorized foreign bank) payable in Canada in Canadian currency has been issued, certified or accepted by an authorized foreign bank in Canada and no payment has been made in respect of it for a period of ten years after the date of issue, certification, acceptance or maturity, whichever is later,

the authorized foreign bank shall pay to the Bank of Canada not later than December 31 in each year an amount equal to the principal amount of the deposit or instrument, plus interest, if any, calculated in accordance with the terms of the deposit or instrument, and payment accordingly discharges the authorized foreign bank from all liability in respect of the deposit or instrument.

(2) An authorized foreign bank shall, on making a payment pursuant to subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with all the particulars of the deposit or instrument listed in subsection 602(3) or 603(2), as the case may be, current as of the day the payment is made.

(3) Subject to section 22 of the Bank of Canada Act, where payment has been made to the Bank of Canada under subsection (1) in respect of any deposit or instrument, and if payment is demanded or the instrument is presented at the Bank of Canada by the person who, but for that section, would be entitled to receive payment of the deposit or instrument, the Bank of Canada is liable to pay, at its agency in the province in which the deposit or instrument was payable, an amount equal to the amount so paid to it together with interest, if interest was payable under the terms of the deposit or instrument,

(a) for a period not exceeding ten years from the day on which the payment was received by the Bank of Canada until the date of payment to the claimant; and

(b) at any rate and computed in any manner that the Minister determines.

(4) The liability of the Bank of Canada under subsection (3) may be enforced by action against the Bank of Canada in the court in the province in which the deposit or instrument was payable.

1991, c. 46, s. 557; 1999, c. 28, s. 35.

558. (1) An authorized foreign bank shall mail to each person

(a) to whom a deposit referred to in paragraph 557(1)(a) is payable, or

(b) to whom or at whose request an instrument referred to in paragraph 557(1)(b) was issued, certified or accepted,

at the person’s recorded address, in so far as is known to the authorized foreign bank, a notice stating that the deposit or instrument remains unpaid.

(2) The notice shall be given during the month of January next following the end of the first two-year period, and also during the month of January next following the end of the first five-year period,

(a) after the fixed period has terminated, in the case of a deposit made for a fixed period;

(b) in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor, in the case of any other deposit; and

(c) in respect of which the instrument has remained unpaid, in the case of a cheque, draft or bill of exchange.

1991, c. 46, ss. 558, 580; 1996, c. 6, s. 20; 1999, c. 28, s. 35.

559. An authorized foreign bank shall not, directly or indirectly, charge or receive any sum for the keeping of an account unless the charge is made by express agreement between the authorized foreign bank and a customer or by order of a court.

1991, c. 46, s. 559; 1997, c. 15, s. 90; 1999, c. 28, s. 35.

560. (1) An authorized foreign bank shall not open or maintain an interest-bearing deposit account in Canada in the name of any natural person unless it discloses, in accordance with the regulations, to the person who requests the opening of the account, the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.

(2) Subsection (1) does not apply in respect of an interest-bearing deposit account that is opened with a deposit in excess of $150,000 or any greater amount that is prescribed.

1991, c. 46, s. 560; 1999, c. 28, s. 35; 2001, c. 9, s. 150.

561. No person shall authorize the publication, issue or appearance of any advertisement in Canada that indicates the rate of interest offered by an authorized foreign bank on an interest-bearing deposit or a debt obligation unless the advertisement discloses, in accordance with the regulations, how the amount of interest is to be calculated.

1991, c. 46, s. 561; 1999, c. 28, s. 35.

562. The Governor in Council may make regulations respecting

(a) the manner in which and the time at which disclosure is to be made by an authorized foreign bank of

(i) interest rates applicable to debts of the authorized foreign bank and deposits with it, and

(ii) the manner in which the amount of interest paid is to be calculated; and

(b) any other matters or things that may be necessary to carry out the requirements of sections 560 and 561.

1991, c. 46, s. 562; 1999, c. 28, s. 35.

563. For the purposes of sections 564 to 566, “personal deposit account” means a deposit account in the name of one or more natural persons that is kept by that person or those persons for a purpose other than that of carrying on business.

1991, c. 46, s. 563; 1999, c. 28, s. 35.

564. (1) Subject to subsections (2) to (4), an authorized foreign bank shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, it provides in writing to the individual who requests the opening of the account

(a) a copy of the account agreement;

(b) information about all charges applicable to the account;

(c) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the account;

(d) information about the authorized foreign bank’s procedures relating to complaints about the application of any charge applicable to the account; and

(e) any other information that may be prescribed.

(2) If a deposit account is not a personal deposit account and the amount of a charge applicable to the account cannot be established at or before the time the account is opened, the authorized foreign bank shall, as soon as is practicable after the amount is established, provide the customer in whose name the account is kept with a notice in writing of the amount of the charge.

(3) If an authorized foreign bank has a deposit account in the name of a customer and the customer by telephone requests the opening of another deposit account in the name of the customer and the authorized foreign bank has not complied with subsection (1) in respect of the opening of that other account, the authorized foreign bank shall not open the account unless it provides the customer orally with any information prescribed at or before the time the account is opened.

(4) If an authorized foreign bank opens an account under subsection (3), it shall, not later than seven business days after the account is opened, provide to the customer in writing the agreement and information referred to in subsection (1).

(5) A customer may, within 14 business days after a deposit account is opened under subsection (3), close the account without charge and in such case is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open.

(6) For the purposes of subsection (4), the Governor in Council may make regulations prescribing circumstances in which, and the time when, the agreement and information will be deemed to have been provided to the customer.

1991, c. 46, s. 564; 1999, c. 28, s. 35; 2001, c. 9, s. 151.

565. An authorized foreign bank shall disclose, in the prescribed manner and at the prescribed time, to its customers and to the public, the charges applicable to deposit accounts with the authorized foreign bank and the usual amount, if any, charged by it for services normally provided to its customers and to the public.

1991, c. 46, s. 565; 1997, c. 15, s. 91; 1999, c. 28, s. 35.

566. (1) An authorized foreign bank shall not increase any charge applicable to a personal deposit account with the authorized foreign bank or introduce any new charge applicable to a personal deposit account with the authorized foreign bank unless it discloses the charge in the prescribed manner and at the prescribed time to the customer in whose name the account is kept.

(2) An authorized foreign bank shall not increase any charge for any service that is prescribed in relation to a deposit account, other than a personal deposit account, with the authorized foreign bank, or introduce any new charge for any of those services unless the authorized foreign bank discloses the charge in the prescribed manner and at the prescribed time to the customer in whose name the account is kept.

1991, c. 46, s. 566; 1997, c. 15, s. 92; 1999, c. 28, s. 35.

567. For the purposes of this section and sections 567.1 to 574, “cost of borrowing” in respect of a loan made by an authorized foreign bank means

(a) the interest or discount applicable to the loan;

(b) any amount charged in connection with the loan that is payable by the borrower to the authorized foreign bank; and

(c) any charge prescribed to be included in the cost of borrowing.

For those purposes, however, “cost of borrowing” does not include any charge prescribed to be excluded from the cost of borrowing.

1991, c. 46, s. 567; 1997, c. 15, s. 93; 1999, c. 28, s. 35; 2001, c. 9, s. 153.

567.1 (1) Where an authorized foreign bank makes a loan in respect of which the disclosure requirements of section 568 apply, and the loan is not secured by a mortgage on real property and is required to be repaid either on a fixed future date or by instalments, the authorized foreign bank shall, if there is a prepayment of the loan, rebate to the borrower a portion of the charges included in the cost of borrowing in respect of the loan.

(2) The charges to be rebated do not include the interest or discount applicable to the loan.

(3) The Governor in Council may make regulations governing the rebate of charges under subsection (1). The rebate shall be made in accordance with those regulations.

1999, c. 28, s. 35.

568. (1) An authorized foreign bank shall not make a loan to a natural person that is repayable in Canada unless the cost of borrowing, as calculated and expressed in accordance with section 569, and other prescribed information have, in the prescribed manner and at the prescribed time, been disclosed by the authorized foreign bank to the borrower.

(2) Subsection (1) does not apply in respect of a loan that is of a prescribed class of loans.

1991, c. 46, s. 568; 1999, c. 28, s. 35.

569. The cost of borrowing shall be calculated, in the prescribed manner, on the basis that all obligations of the borrower are duly fulfilled and shall be expressed as a rate per annum and, in prescribed circumstances, as an amount in dollars and cents.

1991, c. 46, s. 569; 1999, c. 28, s. 35.

570. (1) Where an authorized foreign bank makes a loan in respect of which the disclosure requirements of section 568 are applicable and the loan is required to be repaid either on a fixed future date or by instalments, the authorized foreign bank shall disclose to the borrower, in accordance with the regulations,

(a) whether the borrower has the right to repay the amount borrowed before the maturity of the loan and, if applicable,

(i) any terms and conditions relating to that right, including the particulars of the circumstances in which the borrower may exercise that right, and

(ii) whether, in the event that the borrower exercises the right, any portion of the cost of borrowing is to be rebated, the manner in which the rebate is to be calculated or, if a charge or penalty will be imposed on the borrower, the manner in which the charge or penalty is to be calculated;

(b) in the event that an amount borrowed is not repaid at maturity or, if applicable, an instalment is not paid on the day the instalment is due to be paid, particulars of the charges or penalties to be paid by the borrower because of the failure to repay or pay in accordance with the contract governing the loan;

(c) at the time and in the manner that may be prescribed, any changes respecting the cost of borrowing or the loan agreement that may be prescribed;

(d) particulars of any other rights and obligations of the borrower; and

(e) any other prescribed information, at the time and in the form and manner that may be prescribed.

(1.1) An authorized foreign bank shall, in accordance with the regulations, at the time and in the manner that may be prescribed, provide prescribed information in any application form or related document that it prepares for the issuance of credit, payment or charge cards and provide prescribed information to any person applying to it for a credit, payment or charge card.

(2) Where an authorized foreign bank issues or has issued a credit, payment or charge card to a natural person, the authorized foreign bank shall, in addition to disclosing the costs of borrowing in respect of any loan obtained through the use of the card, disclose to the person, in accordance with the regulations,

(a) the charges or penalties described in paragraph (1)(b);

(b) particulars of the person’s rights and obligations;

(c) the charges for which the person becomes responsible by accepting or using the card;

(d) at the time and in the manner that may be prescribed, the changes respecting the cost of borrowing or the loan agreement that may be prescribed; and

(e) any other prescribed information, at the time and in the form and manner that may be prescribed.

(3) Where an authorized foreign bank enters into or has entered into an arrangement, including a line of credit, for the making of a loan in respect of which the disclosure requirements of section 568 apply and the loan is not a loan in respect of which subsection (1) or (2) applies, the authorized foreign bank shall, in addition to disclosing the costs of borrowing, disclose to the person to whom the loan is made, in accordance with the regulations,

(a) the charges or penalties described in paragraph (1)(b);

(b) particulars of the person’s rights and obligations;

(c) the charges for which the person is responsible under the arrangement;

(d) at the time and in the manner that may be prescribed, the changes respecting the cost of borrowing under the arrangement that may be prescribed; and

(e) any other prescribed information, at the time and in the form and manner that may be prescribed.

1991, c. 46, s. 570; 1999, c. 28, s. 35.

570.1 Where an authorized foreign bank makes a loan in respect of which the disclosure requirements of section 568 apply and the loan is secured by a mortgage on real property, the authorized foreign bank shall disclose to the borrower, at the time and in the manner that may be prescribed, the information that may be prescribed respecting the renewal of the loan.

1999, c. 28, s. 35.

571. No person shall authorize the publication, issue or appearance of any advertisement in Canada relating to arrangements referred to in subsection 570(3), loans, credit cards, payment cards or charge cards, offered to natural persons by an authorized foreign bank, and purporting to disclose prescribed information about the cost of borrowing or about any other matter unless the advertisement contains any information that may be required by the regulations, in the form and manner that may be prescribed.

1991, c. 46, s. 571; 1999, c. 28, s. 35.

572. The Governor in Council may make regulations

(a) respecting the manner in which, and the time at which, an authorized foreign bank shall disclose to a borrower

(i) the cost of borrowing,

(ii) any rebate of the cost of borrowing, and

(iii) any other information relating to a loan, arrangement, credit card, payment card or charge card referred to in section 570;

(b) respecting the contents of any statement disclosing the cost of borrowing and other information required to be disclosed by an authorized foreign bank to a borrower;

(c) respecting the manner of calculating the cost of borrowing;

(d) respecting the circumstances under which the cost of borrowing is to be expressed as an amount in dollars and cents;

(e) specifying any class of loans that are not to be subject to section 567.1, subsection 568(1) or 570(1) or (3) or section 570.1 or 571 or the regulations or any specified provisions of the regulations;

(f) respecting the manner in which and the time at which any rights, obligations, charges or penalties referred to in sections 567.1 to 571 are to be disclosed;

(g) prohibiting the imposition of any charge or penalty referred to in section 570 or providing that the charge or penalty, if imposed, will not exceed a prescribed amount;

(h) respecting the nature or amount of any charge or penalty referred to in paragraph 570(1)(b), (2)(a) or (3)(a) and the costs of the authorized foreign bank that may be included or excluded in the determination of the charge or penalty;

(i) respecting the method of calculating the amount of rebate of the cost of borrowing, or the portion of the cost of borrowing referred to in subparagraph 570(1)(a)(ii);

(j) respecting advertisements made by an authorized foreign bank regarding arrangements referred to in subsection 570(3), loans, credit cards, payment cards or charge cards;

(k) respecting the renewal of loans; and

(l) respecting any other matters or things that are necessary to carry out the purposes of sections 567.1 to 571.

1991, c. 46, s. 572; 1999, c. 28, s. 35.

573. (1) An authorized foreign bank shall

(a) establish procedures for dealing with complaints made by persons having requested or received products or services from the authorized foreign bank;

(b) designate one of its officers or employees in Canada to be responsible for implementing those procedures; and

(c) designate one or more of its officers or employees in Canada to receive and deal with those complaints.

(2) An authorized foreign bank shall file with the Commissioner a copy of its procedures established under paragraph (1)(a).

1991, c. 46, s. 573; 1999, c. 28, s. 35; 2001, c. 9, s. 155.

573.1 An authorized foreign bank shall be a member of any body corporate that is designated under subsection 455.1(1).

2001, c. 9, s. 156.

574. (1) An authorized foreign bank shall, in the prescribed manner, provide a person requesting or receiving a product or service from it with prescribed information on how to contact the Agency if the person has a complaint about an arrangement referred to in subsection 570(3), a payment, credit or charge card, the disclosure of or manner of calculating the cost of borrowing in respect of a loan, or about any other obligation of the authorized foreign bank under a consumer provision.

(2) The Commissioner shall prepare a report, to be included in the report referred to in section 34 of the Financial Consumer Agency of Canada Act, respecting

(a) procedures for dealing with complaints established by authorized foreign banks pursuant to paragraph 573(1)(a); and

(b) the number and nature of complaints that have been brought to the attention of the Agency by persons who have requested or received a product or service from an authorized foreign bank.

1991, c. 46, s. 574; 1999, c. 28, s. 35; 2001, c. 9, s. 157.

575. (1) An authorized foreign bank shall not make a loan to a natural person that is repayable in Canada, the terms of which prohibit prepayment of the money advanced or any instalment on the money advanced before its due date.

(2) Except by express agreement between the authorized foreign bank and the borrower, the making in Canada of a loan or advance by an authorized foreign bank to a borrower shall not be subject to a condition that the borrower maintain a minimum credit balance with the authorized foreign bank.

(3) Subsection (1) does not apply in respect of a loan

(a) that is secured by a mortgage on real property; or

(b) that is made for business purposes and the principal amount of which is more than $100,000 or any other amount that may be prescribed.

(4) An authorized foreign bank shall not make a charge

(a) for cashing a cheque or other instrument drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada, or in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament or in any authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), in respect of its business in Canada;

(b) for cashing any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund; or

(c) in respect of any cheque or other instrument that is

(i) drawn in favour of the Receiver General, the Government of Canada or any department of the Government of Canada or any public officer acting in the capacity of a public officer, and

(ii) tendered for deposit to the credit of the Receiver General.

(5) Nothing in subsection (4) precludes any arrangement between the Government of Canada and an authorized foreign bank concerning

(a) compensation for services performed by the authorized foreign bank for the Government of Canada; or

(b) interest to be paid on any or all deposits of the Government of Canada with the authorized foreign bank.

1991, c. 46, s. 575; 1999, c. 28, s. 35; 2001, c. 34, s. 6(F).

576. The Governor in Council may make regulations

(a) requiring an authorized foreign bank to establish procedures regarding the collection, retention, use and disclosure of information about its customers or any class of its customers;

(b) requiring an authorized foreign bank to establish procedures for dealing with complaints made by a customer about the collection, retention, use or disclosure of information about the customer;

(c) respecting the disclosure by an authorized foreign bank of information relating to the procedures referred to in paragraphs (a) and (b);

(d) requiring an authorized foreign bank to designate officers and employees in Canada of the authorized foreign bank who are responsible for

(i) implementing the procedures referred to in paragraph (b), and

(ii) receiving and dealing with complaints made by a customer of the authorized foreign bank about the collection, retention, use or disclosure of information about the customer;

(e) requiring an authorized foreign bank to report information relating to

(i) complaints made by its customers about the collection, retention, use or disclosure of information, and

(ii) the actions taken by the authorized foreign bank to deal with the complaints; and

(f) defining “information”, “collection” and “retention” for the purposes of paragraphs (a) to (e) and the regulations made under those paragraphs.

1991, c. 46, s. 576; 1999, c. 28, s. 35.

576.1 (1) An authorized foreign bank shall not impose undue pressure on, or coerce, a person to obtain a product or service from a particular person, including the authorized foreign bank and any of its affiliates, as a condition for obtaining another product or service from the authorized foreign bank.

(2) For greater certainty, an authorized foreign bank may offer a product or service to a person on more favourable terms or conditions than the authorized foreign bank would otherwise offer, where the more favourable terms and conditions are offered on the condition that the person obtain another product or service from any particular person.

(3) For greater certainty, an affiliate of an authorized foreign bank may offer a product or service to a person on more favourable terms or conditions than the affiliate would otherwise offer, where the more favourable terms and conditions are offered on the condition that the person obtain another product or service from the authorized foreign bank.

(4) An authorized foreign bank may require that a product or service obtained by a borrower from a particular person as security for a loan from the authorized foreign bank meet with the authorized foreign bank’s approval. The approval shall not be unreasonably withheld.

(4.1) An authorized foreign bank shall disclose the prohibition on coercive tied selling set out in subsection (1) in a statement in plain language that is clear and concise, displayed and available to customers and the public at all of its branches and at all prescribed points of service in Canada.

(4.2) The Governor in Council may make regulations for the purposes of subsection (4.1) defining “point of service” and prescribing points of service.

(5) The Governor in Council may make regulations

(a) specifying types of conduct or transactions that shall be considered undue pressure or coercion for the purpose of subsection (1); and

(b) specifying types of conduct or transactions that shall be considered not to be undue pressure or coercion for the purpose of subsection (1).

1999, c. 28, s. 35; 2001, c. 9, s. 158.

576.2 The Governor in Council may, subject to any other provisions of this Act relating to the disclosure of information, make regulations respecting the disclosure of information by authorized foreign banks or any prescribed class of authorized foreign banks, including regulations respecting

(a) the information that must be disclosed, including information relating to

(i) any product or service or prescribed class of products or services offered by them,

(ii) any of their policies, procedures or practices relating to the offer by them of any product or service or prescribed class of products or services,

(iii) anything they are required to do or to refrain from doing under a consumer provision, and

(iv) any other matter that may affect their dealings with customers or the public;

(b) the manner, place and time in which and the persons to whom information is to be disclosed; and

(c) the content and form of any advertisement by authorized foreign banks or any prescribed class of authorized foreign banks relating to any matter referred to in paragraph (a).

2001, c. 9, s. 159.

577. (1) Where the transmission of a debt owing by an authorized foreign bank by reason of a deposit, of property held by an authorized foreign bank as security or for safe-keeping or of rights with respect to a safety deposit box and property deposited in it takes place because of the death of a person, the delivery to the authorized foreign bank of the following is sufficient justification and authority for giving effect to the transmission in accordance with the claim:

(a) an affidavit or declaration in writing in form satisfactory to the authorized foreign bank signed by or on behalf of a person claiming by virtue of the transmission stating the nature and effect of the transmission; and

(b) one of the following, namely,

(i) if the claim is based on a will or other testamentary instrument or on a grant of probate of a will or testamentary instrument or on such a grant and letters testamentary or other document of like import or on a grant of letters of administration or other document of like import, purporting to be issued by any court or authority in Canada or elsewhere, an authenticated copy or certificate of the document under the seal of the court or authority without proof of the authenticity of the seal or other proof, or

(ii) if the claim is based on a notarial will, an authenticated copy of the notarial will.

(2) Nothing in subsection (1) shall be construed to prevent an authorized foreign bank from refusing to give effect to a transmission until there has been delivered to the authorized foreign bank any documentary or other evidence of or in connection with the transmission that it may consider necessary.

1991, c. 46, s. 577; 1999, c. 28, s. 35.

578. (1) For the purposes of this Act, the branch of account with respect to a deposit account is

(a) the branch the address or name of which appears on the specimen signature card or other signing authority signed by a depositor with respect to the deposit account or that is designated by agreement between the authorized foreign bank and the depositor at the time of opening of the deposit account; or

(b) if no branch has been identified or agreed on as provided in paragraph (a), the branch that is designated as the branch of account with respect to the deposit account by the authorized foreign bank by notice in writing to the depositor.

(2) The amount of any debt owing by an authorized foreign bank by reason of a deposit in a deposit account in the authorized foreign bank is payable to the person entitled to the amount only at the branch of account and the person is not entitled to demand payment or to be paid at any other branch of the authorized foreign bank.

(3) Notwithstanding subsection (2), an authorized foreign bank may permit either occasionally or as a regular practice, the person to whom it is indebted by reason of a deposit in a deposit account in the authorized foreign bank to withdraw money owing by reason of the deposit at a branch of the authorized foreign bank other than the branch of account or to draw cheques or other orders for the payment of the money at a branch other than the branch of account.

(4) The indebtedness of an authorized foreign bank by reason of a deposit in a deposit account in the authorized foreign bank is deemed for all purposes to be situated at the place where the branch of account is situated.

(5) Subsection (2) does not apply where the business in Canada of the authorized foreign bank is being wound up under the Winding-up and Restructuring Act.

1991, c. 46, s. 578; 1999, c. 28, s. 35.

579. (1) Subject to subsections (3) and (4), the following documents are binding on property belonging to a person and in the possession of an authorized foreign bank, or on money owing to a person by reason of a deposit account in an authorized foreign bank, only if the document or a notice of it is served at the branch of the authorized foreign bank that has possession of the property or that is the branch of account in respect of the deposit account, as the case may be:

(a) a writ or process originating a legal proceeding or issued in or pursuant to a legal proceeding;

(b) an order or injunction made by a court;

(c) an instrument purporting to assign, perfect or otherwise dispose of an interest in the property or the deposit account; or

(d) an enforcement notice in respect of a support order or support provision.

(2) Any notification sent to an authorized foreign bank with respect to a customer of the authorized foreign bank, other than a document referred to in subsection (1) or (3), constitutes notice to the authorized foreign bank and fixes the authorized foreign bank with knowledge of its contents only if sent to and received at the branch of the authorized foreign bank that is the branch of account of an account held in the name of that customer.

(2.1) Despite subsections (1) and (2), a notice, demand, order or other document issued with respect to a customer of an authorized foreign bank constitutes notice to the authorized foreign bank and fixes the authorized foreign bank with knowledge of its contents and, where applicable, is binding on property belonging to the customer and in the possession of the authorized foreign bank or on money owing to the customer by reason of an account in the authorized foreign bank, if it is sent to the branch of the authorized foreign bank referred to in subsection (1) or (2), an office of the authorized foreign bank referred to in paragraph (3)(a) or any other office agreed to by the authorized foreign bank and the Minister of National Revenue and it relates to

(a) the administration of an Act of Parliament by the Minister of National Revenue; or

(b) the administration of an Act of the legislature of a province or legislation made by an aboriginal government, where the Minister or the Minister of National Revenue has entered into a tax collection agreement under an Act of Parliament with the government of the province or the aboriginal government.

(3) Subsections (1) and (2) do not apply in respect of an enforcement notice in respect of a support order or support provision if

(a) the enforcement notice, accompanied by a written statement containing the information required by the regulations, is served at an office of an authorized foreign bank designated in accordance with the regulations in respect of a province; and

(b) the order or provision can be enforced under the laws of that province.

(4) Subsection (3) does not apply in respect of an enforcement notice in respect of a support order or support provision until the second business day following the day of service referred to in that subsection.

(5) The Governor in Council may make regulations

(a) respecting the designation by an authorized foreign bank, for the purpose of subsection (3), of a place in any province for the service of enforcement notices in respect of support orders and support provisions;

(b) prescribing the manner in which an authorized foreign bank shall publicize the locations of designated offices of the authorized foreign bank; and

(c) respecting the information that must accompany enforcement notices in respect of support orders and support provisions.

(6) The following definitions apply in this section.

“designated office” means a place designated in accordance with regulations made for the purpose of subsection (3).

“enforcement notice”, in respect of a support order or support provision, means a garnishee summons or other instrument issued under the laws of a province for the enforcement of the support order or support provision.

“support order” means an order or judgment or interim order or judgment for family financial support.

“support provision” means a provision of an agreement relating to the payment of maintenance or family financial support.

1991, c. 46, s. 579; 1999, c. 28, s. 35; 2001, c. 9, s. 160; 2005, c. 19, s. 58.

580. For the purposes of sections 425 to 436, as incorporated by section 555, where an authorized foreign bank accepts a bill of exchange drawn on it and not payable on demand or pays or makes money available for the payment of such a bill of exchange, or issues a guarantee, or otherwise makes a promise to effect a payment, the authorized foreign bank is deemed to lend money or make an advance.

1991, c. 46, s. 580; 1999, c. 28, s. 35.

581. An authorized foreign bank shall establish and adhere to investment and lending policies, standards and procedures that a reasonable and prudent person would apply in respect of a portfolio of investments and loans to avoid undue risk of loss and obtain a reasonable return.

1991, c. 46, s. 581; 1999, c. 28, s. 35.

582. (1) An authorized foreign bank shall maintain on deposit in Canada with a Canadian financial institution approved by the Superintendent 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 equal

(a) 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; and

(b) in any other case, the greater of

(i) five million dollars, and

(ii) five per cent of the liabilities of the authorized foreign bank in respect of its business in Canada.

(2) The assets referred to in subsection (1) shall be kept with the Canadian financial institution pursuant to a deposit agreement entered into with the prior approval of the Superintendent.

1991, c. 46, s. 582; 1999, c. 28, s. 35; 2001, c. 9, s. 161.

583. (1) The financial year of an authorized foreign bank in respect of its business in Canada may end on any of March 31, June 30, September 30 or December 31.

(2) If the first financial year of an authorized foreign bank would end less than four months after the authorized foreign bank has obtained an order under subsection 534(1) approving the commencement and carrying on of business in Canada, the first financial year of the authorized foreign bank ends on March 31, June 30, September 30 or December 31, as the case may be, in the next calendar year.

1991, c. 46, s. 583; 1999, c. 28, s. 35.