980. Every person who, without reasonable cause, contravenes any provision of this Act or the regulations is guilty of an offence.

2001, c. 9, s. 183.

981. Every director, officer or employee of a bank or an authorized foreign bank who wilfully gives or concurs in giving to any creditor of the bank or authorized foreign bank any fraudulent, undue or unfair preference over other creditors, by giving security to the creditor, by changing the nature of the creditor’s claim or otherwise, is guilty of an offence.

2001, c. 9, s. 183.

982. Every person who, without reasonable cause, refuses or fails to comply with a requirement made under paragraph 643(2)(b) or 957(2)(b) is guilty of an offence.

2001, c. 9, s. 183.

983. (1) Except to the extent permitted by the regulations, every person who uses the name of a bank or of a bank holding company in a prospectus, offering memorandum, takeover bid circular, advertisement for a transaction related to securities or in any other document in connection with a transaction related to securities is guilty of an offence.

(2) Subject to the regulations and subsections (4) to (6.1) and (10) to (12), every entity that acquires, adopts or retains a name that, in any language, includes the word “bank”, “banker” or “banking”, either alone or in combination with other words, or any word or words of import equivalent thereto, and every person who, in any language, uses the word “bank”, “banker” or “banking”, either alone or in combination with other words, or any word or words of import equivalent thereto, to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence.

(3) Subject to the regulations and subsections (7) to (9.1), every entity that acquires, adopts or retains, in any language, the name of a bank holding company and every person who, in any language, uses the name of a bank holding company to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence.

(4) No person commits an offence who uses the word “bank”, “banker” or “banking”

(a) in relation to a business that is not engaged in financial activities, unless the business is carried out by a prescribed entity;

(b) in a description of the corporate relationship of an entity controlled by a bank to that bank;

(b.1) with the approval of the Minister and subject to terms and conditions that the Minister may impose, in a description of the corporate relationship of an entity in which a bank has a substantial investment to that bank;

(b.2) in a description of the corporate relationship of an entity controlled by a bank holding company to that bank holding company;

(b.3) with the approval of the Minister and subject to terms and conditions that the Minister may impose, in a description of the corporate relationship of an entity in which a bank holding company has a substantial investment to that bank holding company;

(c) in an advertisement in Canada by or on behalf of a foreign bank in respect of its facilities outside Canada;

(d) in the identification of representative offices of a foreign bank in Canada;

(e) in relation to the business in Canada of an authorized foreign bank;

(f) in a description made in accordance with the regulations of the corporate relationship of a bank or a bank holding company with a foreign bank or an entity associated with a foreign bank within the meaning of section 507 that controls the bank or bank holding company;

(g) in a description made in accordance with the regulations of the corporate relationship of a prescribed Canadian entity with a foreign bank or an entity associated with a foreign bank within the meaning of section 507;

(h) in a description made in accordance with the regulations of the corporate relationship of a prescribed entity associated with a foreign bank within the meaning of section 507 with the foreign bank or with another prescribed entity;

(i) in the identification of a body corporate that was a non-bank affiliate of a foreign bank within the meaning of subsection 303(1) of the Bank Act, being chapter B-1 of the Revised Statutes of Canada, 1985, at any time before June 1, 1981;

(j) in the identification of a Canadian financial institution that

(i) was controlled by a bank that was a subsidiary of a foreign bank before June 15, 1997 but that has ceased to be so controlled,

(ii) is controlled by a foreign bank that, before June 15, 1997, controlled the subsidiary, and

(iii) used, before June 15, 1997, the word “bank”, “banker” or “banking” to identify itself; or

(k) in the identification of a bank holding company.

(5) No subsidiary of a bank commits an offence by reason only that it uses the name of the bank of which it is a subsidiary in its corporate name or a name under which it carries on business or by reason only that it uses any identifying mark, logogram or insignia of that bank in carrying on its business.

(5.1) No entity in which a bank has a substantial investment commits an offence by reason only that it uses the name of the bank in its corporate name or a name under which it carries on business or by reason only that it uses any identifying mark, logogram or insignia of that bank in carrying on its business if it does so with the approval of the Minister and subject to terms and conditions that the Minister may impose.

(6) No financial institution that was controlled by a bank on June 25, 1999 and that had a name that included the word “bank”, “banker” or “banking” on that day commits an offence by reason only that it uses that word in its name or in a name under which it carries on business if the financial institution is a subsidiary of a bank holding company that controls the bank.

(6.1) No financial institution in which a bank had a substantial investment on June 25, 1999 and that had a name that included the word “bank”, “banker” or “banking” on that day commits an offence by reason only that it uses that word in its name or in a name under which it carries on business if the financial institution is an entity in which the bank or a bank holding company that controls the bank has a substantial investment and the financial institution uses that word with the approval of the Minister and subject to terms and conditions that the Minister may impose.

(7) No subsidiary of a bank holding company commits an offence by reason only that it uses the name of the bank holding company in the subsidiary’s corporate name or in a name under which it carries on business, so long as, if the subsidiary is not a bank or a subsidiary of the bank, it does not use the word “bank”, “banker” or “banking” in its corporate name or in a name under which it carries on business.

(7.1) No entity in which a bank holding company has a substantial investment commits an offence by reason only that it uses the name of the bank holding company in its corporate name or in a name under which it carries on business, so long as

(a) it uses that name with the approval of the Minister and subject to terms and conditions that the Minister may impose; and

(b) if the entity is not any of the following, it does not use the word “bank”, “banker” or “banking” in its corporate name or in a name under which it carries on business:

(i) a bank,

(ii) a subsidiary of a bank, and

(iii) an entity that has received an approval under subsection (5.1).

(8) No subsidiary of a bank holding company commits an offence by reason only that it uses any identifying mark, logogram or insignia of the bank holding company in carrying on the subsidiary’s business, so long as, if the subsidiary is not a bank or a subsidiary of the bank, it does not use any identifying mark, logogram or insignia that includes the word “bank”, “banker” or “banking”.

(8.1) No entity in which a bank holding company has a substantial investment commits an offence by reason only that it uses any identifying mark, logogram or insignia of the bank holding company in carrying on its business, so long as

(a) it does so with the approval of the Minister and subject to terms and conditions that the Minister may impose; and

(b) if the entity is not any of the following, it does not use any identifying mark, logogram or insignia that includes the word “bank”, “banker” or “banking”:

(i) a bank,

(ii) a subsidiary of a bank, and

(iii) an entity that has received an approval under subsection (5.1).

(9) No subsidiary of a bank holding company commits an offence by reason only that it uses the name of the bank holding company in a description of its corporate relationship to the bank holding company.

(9.1) No entity in which a bank holding company has a substantial investment commits an offence by reason only that it uses the name of the bank holding company in a description of its corporate relationship to the bank holding company if it does so with the approval of the Minister and subject to terms and conditions that the Minister may impose.

(10) No Canadian entity that is an entity associated with a foreign bank within the meaning of section 507 commits an offence by reason only that it uses the name of the foreign bank or any identifying mark, logogram or insignia of the foreign bank or the name of a prescribed entity associated with a foreign bank within the meaning of section 507 or any identifying mark, logogram or insignia of any such entity, so long as it does not use, in any language, the word “bank”, “banker” or “banking” and so long as

(a) it does so with the approval of the Minister and subject to terms and conditions that the Minister may impose; or

(b) it does so in prescribed circumstances and in accordance with prescribed terms and conditions.

(10.1) No Canadian entity in which a foreign bank or an entity associated with a foreign bank within the meaning of section 507 has a substantial investment commits an offence by reason only that it uses the name of the foreign bank or any identifying mark, logogram or insignia of the foreign bank or the name of a prescribed entity associated with a foreign bank within the meaning of section 507 or any identifying mark, logogram or insignia of that prescribed entity, so long as it does not use, in any language, the word “bank”, “banker” or “banking” and so long as

(a) it does so with the approval of the Minister and subject to terms and conditions that the Minister may impose; or

(b) it does so in prescribed circumstances and in accordance with prescribed terms and conditions.

(11) Subject to subsection (12), no foreign bank that carries on a business or activity referred to in section 514, 522.05, 522.18 or 522.19 and no entity incorporated or formed by or under the laws of a country other than Canada that carries on a business or activity referred to in any of those provisions and that is an entity associated with a foreign bank within the meaning of section 507 commits an offence by reason only that it uses

(a) its name or any of its identifying marks, logograms or insignia, or

(b) the name of an entity associated with a foreign bank within the meaning of section 507 or any identifying mark, logogram or insignia of that entity,

so long as it does not use, in any language, the word “bank”, “banker” or “banking”.

(12) A foreign bank, or an entity associated with a foreign bank, that is referred to in subsection (11) may use the word “bank”, “banker” or “banking” in prescribed circumstances if it does so in accordance with prescribed terms and conditions.

(13) For the purposes of this section, the following are deemed to be a use of the word “bank”, “banker” or “banking”:

(a) any statement that a business, other than a bank that is a subsidiary of a foreign bank or the business in Canada of an authorized foreign bank, is connected, associated or affiliated with a bank or a foreign bank; and

(b) the use of any identifying mark, logogram, insignia or name of a bank or a foreign bank or a name substantially similar to any such name.

(14) For the purposes of this section, the use of the name of a bank holding company is deemed to include the use of any identifying mark, logogram, insignia or name of the bank holding company or a name substantially similar to any such name.

(15) For the purposes of this section, the identifying mark, logogram or insignia of an entity is deemed to include the logo, initials or acronym of that entity.

(16) The Governor in Council may make regulations for the purposes of subsections (1) to (3) or paragraph (4)(a), (f), (g) or (h).

2001, c. 9, s. 183.

984. (1) Every person is guilty of an offence who wilfully makes a false statement

(a) in a warehouse receipt or bill of lading given to a bank or authorized foreign bank under the authority of this Act; or

(b) in a document giving or purporting to give security on property to a bank under section 426 or 427 or to an authorized foreign bank under either of those sections as incorporated by section 555.

(2) Every person is guilty of an offence who, having possession or control of property mentioned in or covered by a warehouse receipt, bill of lading or any security given to a bank under section 426 or 427 or to an authorized foreign bank under either of those sections as incorporated by section 555, and having knowledge of the receipt, bill of lading or security, without the consent of the bank or authorized foreign bank in writing before the loan, advance, debt or liability secured by it has been fully paid

(a) wilfully alienates or parts with any of the property; or

(b) wilfully withholds from the bank or authorized foreign bank possession of any of the property if demand for its possession is made by the bank or authorized foreign bank after failure to pay the loan, advance, debt or liability.

(3) If a debt or liability to a bank or authorized foreign bank is secured by a warehouse receipt or bill of lading or security on property given to a bank under section 426 or 427 or to an authorized foreign bank under either of those sections as incorporated by section 555 and is not paid, the bank or authorized foreign bank is guilty of an offence if it sells the property covered by the warehouse receipt, bill of lading or security under the power of sale conferred on it by this Act without complying with the provisions of this Act applicable to the exercise of the power of sale.

(4) Every bank or authorized foreign bank that acquires or holds a warehouse receipt or bill of lading or a document signed and delivered to it giving or purporting to give to the bank security on property under section 426 or 427, or to give the authorized foreign bank security or property under either of those sections as incorporated by section 555, to secure the payment of any debt, liability, loan or advance, is guilty of an offence unless

(a) the debt, liability, loan or advance is contracted or made at the time of the acquisition by the bank or authorized foreign bank of the warehouse receipt, bill of lading or document;

(b) the debt, liability, loan or advance was contracted or made on the written promise or agreement that the warehouse receipt, bill of lading or security would be given to the bank or authorized foreign bank; or

(c) the acquisition or holding by the bank or authorized foreign bank of the warehouse receipt, bill of lading or security is otherwise authorized by an Act of Parliament.

(5) For the purposes of this section, the expressions “warehouse receipt” and “bill of lading” have the meaning assigned to those expressions by section 425.

2001, c. 9, s. 183.

985. (1) Every person who is guilty of an offence under any of sections 980 to 984 is

(a) in the case of a natural person, liable

(i) on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than twelve months, or to both, or

(ii) on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both; and

(b) in the case of an entity, liable

(i) on summary conviction, to a fine of not more than $500,000, or

(ii) on conviction on indictment, to a fine of not more than $5,000,000.

(2) If a person has been convicted of an offence under this Act, the court may, in addition to any punishment it may otherwise impose, order the person to comply with the provisions of this Act or the regulations in respect of which the person was convicted.

(3) If a person has been convicted of an offence under this Act, the court may, if it is satisfied that as a result of the commission of the offence the convicted person acquired any monetary benefits or that monetary benefits accrued to the convicted person or their spouse, common-law partner or other dependant, order the convicted person to pay, despite the maximum amount of any fine that may otherwise be imposed under this Act, an additional fine in an amount equal to three times the court’s estimation of the amount of those monetary benefits.

2001, c. 9, s. 183; 2005, c. 54, s. 136.

986. If an entity commits an offence under this Act, any officer, director, agent or principal officer of the entity who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable on summary conviction or on conviction on indictment to the punishment provided under paragraph 985(1)(a) for the offence, whether or not the entity has been prosecuted or convicted.

2001, c. 9, s. 183.

987. (1) Proceedings by way of summary conviction in respect of an offence under a provision of this Act may be commenced at any time within, but not later than, two years after the day on which the subject-matter of the proceedings became known, in the case of an offence under a consumer provision, to the Commissioner and, in any other case, to the Superintendent.

(2) A document appearing to have been issued by the Superintendent or the Commissioner, as the case may be, certifying the day on which the subject-matter of any proceedings became known to the Superintendent or the Commissioner is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and is, in the absence of evidence to the contrary, proof of the matter asserted in it.

2001, c. 9, s. 183.

988. Unless otherwise expressly provided in this Act, a contravention of any provision of this Act or the regulations does not invalidate any contract entered into in contravention of the provision.

2001, c. 9, s. 183.

989. (1) If a bank or a bank holding company or any director, officer, employee or agent of one does not comply with any provision of this Act or the regulations other than a consumer provision, or of the incorporating instrument or any by-law of the bank or bank holding company, the Superintendent, any complainant or any creditor of the bank or bank holding company may, in addition to any other right that that person has, apply to a court for an order directing the bank, bank holding company, director, officer, employee or agent to comply with — or restraining the bank, bank holding company, director, officer, employee or agent from acting in breach of — the provision and, on the application, the court may so order and make any further order it thinks fit.

(2) If an authorized foreign bank or any of its directors, officers, employees or agents does not comply with any provision of this Act or the regulations other than a consumer provision, or of an order made under subsection 524(1), 528(1) or 534(1) in respect of the authorized foreign bank, the Superintendent, any complainant or any creditor of the authorized foreign bank may, in addition to any other right that that person has, apply to a court for an order directing the authorized foreign bank, director, officer, employee or agent to comply with — or restraining the authorized foreign bank, director, officer, employee or agent from acting in breach of — the provision and, on the application, the court may so order and make any further order it thinks fit.

(3) If a bank or an authorized foreign bank or any director, officer, employee or agent of one does not comply with any applicable consumer provision, the Commissioner or any complainant may, in addition to any other right that that person has, apply to a court for an order directing the bank, authorized foreign bank, director, officer, employee or agent to comply with — or restraining the bank, authorized foreign bank, director, officer, employee or agent from acting in breach of — the consumer provision and, on the application, the court may so order and make any further order it thinks fit.

2001, c. 9, s. 183.

990. (1) An appeal lies to the court of appeal of a province from any final order made by a court of that province under this Act.

(2) An appeal lies to the court of appeal of a province from any order, other than a final order made by a court of that province, only with leave of the court of appeal in accordance with the rules applicable to that court.

2001, c. 9, s. 183; 2005, c. 54, s. 137.

991. All fines payable under this Act are recoverable and enforceable, with costs, at the suit of Her Majesty in right of Canada, instituted by the Attorney General of Canada, and, when recovered, belong to Her Majesty in right of Canada.

2001, c. 9, s. 183.

1991, c. 46, Sch. I; 2005, c. 54, s. 139; Canada Gazette Part I, Volume 140, page 1760.

1991, c. 46, Sch. II; 2005, c. 54, s. 139; Canada Gazette Part I, Volume 140, page 1760.

* An FBB whose order is subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act, is referred to as a “lending” branch.

1999, c. 28, s. 75; 2005, c. 54, s. 139; Canada Gazette Part I, Volume 140, page 1760.