Budget Implementation Act, 2009 (S.C. 2009, c. 2)
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Assented to 2009-03-12
PART 5STABILITY AND EFFICIENCY OF THE FINANCIAL SYSTEM
Consequential Amendments
R.S., c. A-1Access to Information Act
255. Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to
Canada Deposit Insurance Corporation Act
Loi sur la Société d’assurance-dépôts du Canada
and a corresponding reference to “subsection 45.3(1)”.
R.S., c. C-21; 2001, c. 9, s. 218Canadian Payments Act
256. Subsection 4(1) of the Canadian Payments Act is amended by striking out “and” at the end of paragraph (c) and by adding the following after that paragraph:
(c.1) every cooperative credit association, loan company or trust company that is designated as a bridge institution under the Canada Deposit Insurance Corporation Act; and
R.S., c. F-11Financial Administration Act
257. (1) Section 85 of the Financial Administration Act is amended by adding the following after subsection (2):
Marginal note:Exemption for federal member institution
(2.1) Divisions I to IV do not apply to a member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, any shares of which are held by the Canada Deposit Insurance Corporation as the result of the granting of an exemption referred to in section 10.01 of that Act.
(2) Section 85 of the Act is amended by adding the following after subsection (3):
Marginal note:Exemption — bridge institution
(4) Sections 88 and 89.2 to 104 and Divisions II to IV do not apply to
(a) a bridge institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act; or
(b) the Canada Deposit Insurance Corporation, as a parent Crown corporation in respect of a wholly-owned subsidiary that is a bridge institution.
R.S., c. W-11; 1996, c. 6, s. 134Winding-up and Restructuring Act
258. Section 3 of the Winding-up and Restructuring Act is amended by striking out “or” at the end of paragraph (i), by adding “or” at the end of paragraph (j) and by adding the following after paragraph (j):
(k) if, in the case of a company that is a federal member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act, in respect of which the Canada Deposit Insurance Corporation has been appointed as receiver, a transfer of part of the business of the federal member institution to a bridge institution has been substantially completed.
Coming into Force
Marginal note:Order in council
259. (1) The provisions of this Division, except for sections 235 and 254 and subsection 257(1), come into force on a day or days to be fixed by order of the Governor in Council.
Marginal note:Retroactivity
(2) Section 254 is deemed to have come into force on January 27, 2009.
Division 3R.S., c. E-20; 2001, c. 33, s. 2(F)Export Development Act
Marginal note:1993, c. 26, s. 4(1)
260. (1) Subsection 10(1) of the Export Development Act is replaced by the following:
Marginal note:Purposes
10. (1) The Corporation is established for the purposes of supporting and developing, directly or indirectly,
(a) domestic trade and Canadian capacity to engage in that trade and to respond to domestic business opportunities; and
(b) Canada’s export trade and Canadian capacity to engage in that trade and to respond to international business opportunities.
Marginal note:Complementary to commercial products and services
(1.01) The Corporation shall carry out its purposes, with respect to domestic trade and domestic business, in a manner that complements the products and services available from commercial financial institutions and commercial insurance providers.
Marginal note:2001, c. 33, s. 8
(2) Paragraph 10(3)(b) of the Act is replaced by the following:
(b) $45,000,000,000.
261. Subsection 11(1) of the Act is replaced by the following:
Marginal note:Authorized capital
11. (1) The authorized capital of the Corporation is $3,000,000,000 divided into 30 million shares of the par value of $100 each.
Marginal note:1993, c. 26, s. 8
262. (1) The portion of subsection 24(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Limit of liability
24. (1) Subject to subsection (2), in respect of transactions entered into under section 23, the total of the following shall at no time exceed $20,000,000,000:
Marginal note:1993, c. 26, s. 8
(2) The portion of subsection 24(1) of the English version of the Act after paragraph (c) is repealed.
Marginal note:Repeal
263. (1) Paragraph 10(1)(a) and subsection 10(1.01) of the Act, as enacted by subsection 260(1), are repealed two years after the day on which they come into force.
Marginal note:Extension
(2) The Governor in Council may, by order, extend the period referred to in subsection (1).
Marginal note:Arrangement entered into before repeal
(3) The repeal of paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), has no effect on any arrangement Export Development Canada entered into in order to carry out its purpose referred to in that paragraph. Despite the repeal, Export Development Canada may take any steps and do anything that it considers necessary or desirable to implement the arrangement or that it considers related to the arrangement.
Marginal note:Application suspended
(4) Subsections 5(2) and 6(2) and (3) of the Export Development Canada Exercise of Certain Powers Regulations do not apply for the period beginning on the day on which paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), comes into force and ending on the day on which that paragraph is repealed.
Marginal note:Transactions entered into before repeal
(5) Despite subsection (4), subsections 5(2) and 6(2) and (3) of the Export Development Canada Exercise of Certain Powers Regulations do not apply to a new transaction that Export Development Canada enters into during the period that paragraph 10(1)(a) of the Act, as enacted by subsection 260(1), is in force, even after that paragraph is repealed. Despite the repeal, Export Development Canada may take any steps and do anything that it considers necessary or desirable to implement the transaction or that it considers related to the transaction.
Division 41995, c. 28Business Development Bank of Canada Act
264. Subsection 23(1) of the Business Development Bank of Canada Act is replaced by the following:
Marginal note:Authorized capital
23. (1) The authorized capital of the Bank consists of an unlimited number of common shares with a par value of $100 each and an unlimited number of preferred shares without par value, but the paid-in capital of the Bank, together with any contributed surplus relating to it and any proceeds referred to in paragraph 30(2)(d) that have been prescribed as equity, must not at any time exceed $3,000,000,000.
Division 51998, c. 36Canada Small Business Financing Act
Amendments to the Act
265. (1) Subsection 4(2) of the Canada Small Business Financing Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:
(b) in the case of a loan made before April 1, 2009, the outstanding loan amount in relation to the borrower does not exceed $250,000 or any prescribed lesser amount; and
(c) in the case of a loan made after March 31, 2009, the outstanding loan amount in relation to the borrower does not exceed $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner.
(2) Subsection 4(3) of the Act is replaced by the following:
Marginal note:Meaning of outstanding loan amount
(3) The outstanding loan amount referred to in paragraph (2)(b) or (c) is the aggregate of the amount of the proposed loan and the principal amount outstanding, in respect of the borrower and all borrowers that are related to that borrower within the meaning of the regulations, of all loans made under this Act and guaranteed business improvement loans made under the Small Business Loans Act.
266. Subsection 6(2) of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:
(c) 10%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it before April 1, 2009 that exceeds $500,000, and
(d) 12%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it after March 31, 2009 that exceeds $500,000.
267. Subsection 7(1) of the Act is replaced by the following:
Marginal note:Maximum loan size
7. (1) The Minister is not liable to make any payment to a lender, in respect of any loss sustained by it as a result of a loan made to a borrower, if the borrower has disclosed to the lender the outstanding amount of the loan or the lender has actual knowledge of that amount and if the outstanding loan amount in relation to the borrower is more than
(a) in the case of a loan made before April 1, 2009, $250,000 or any prescribed lesser amount; and
(b) in the case of a loan made after March 31, 2009, $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner.
Coming into Force
Marginal note:Coming into force
268. This Division comes into force on April 1, 2009 or, if it is later, on the day on which this Act receives royal assent.
Division 6Legislation Governing Financial Institutions
1991, c. 46Bank Act
269. Paragraph 409(2)(d) of the French version of the Bank Act is replaced by the following:
d) l’émission de cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, l’exploitation d’un système de telles cartes.
270. The Act is amended by adding the following after section 418:
Marginal note:Restriction on charges to borrowers
418.1 (1) Subject to any regulations made under subsection (2), a bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the bank of the insurance or guarantee.
Marginal note:Regulations
(2) The Governor in Council may make regulations
(a) respecting the determination of the actual cost to a bank for the purposes of subsection (1);
(b) respecting the circumstances in which a bank is exempt from the application of subsection (1);
(c) respecting, in relation to insurance or a guarantee against default on a loan made by a bank in Canada on the security of residential property,
(i) the arrangements into which the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not enter, and
(ii) the payments or benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not accept from an insurer or the insurer’s affiliates; and
(d) respecting any other matters necessary to carry out the purposes of subsection (1).
Marginal note:Regulations — disclosure
(3) The Governor in Council may make regulations respecting the disclosure by a bank of information relating to insurance or a guarantee against default on a loan made by the bank in Canada on the security of residential property, including regulations respecting
(a) the information that must be disclosed, including information relating to
(i) the person who benefits from the insurance or guarantee,
(ii) the arrangements between
(A) the bank or any affiliates that it controls, or the representatives or the employees of each, and
(B) the insurer or the insurer’s affiliates, and
(iii) the payments and benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, accept from an insurer or the insurer’s affiliates;
(b) the time, place and manner in which and the persons to whom information is to be disclosed; and
(c) the circumstances under which a bank is not required to disclose information.
271. The Act is amended by adding the following after section 458.2:
Marginal note:Regulations — activities
458.3 The Governor in Council may make regulations respecting any matters involving a bank’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including
(a) what a bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 409 and any ancillary, related or incidental activities or services; and
(b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.
Marginal note:1999, c. 28, s. 35(1)
272. Paragraph 538(2)(d) of the French version of the Act is replaced by the following:
d) l’émission de cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, l’exploitation d’un système de telles cartes.
273. The Act is amended by adding the following after section 551:
Marginal note:Restriction on charges to borrowers
552. (1) Subject to any regulations made under subsection (2), an authorized foreign bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the authorized foreign bank of the insurance or guarantee.
Marginal note:Regulations
(2) The Governor in Council may make regulations
(a) respecting the determination of the actual cost to an authorized foreign bank for the purposes of subsection (1);
(b) respecting the circumstances in which an authorized foreign bank is exempt from the application of subsection (1);
(c) respecting, in relation to insurance or a guarantee against default on a loan made by an authorized foreign bank in Canada on the security of residential property,
(i) the arrangements into which the authorized foreign bank, its representatives and its employees may or may not enter, and
(ii) the payments or benefits that the authorized foreign bank, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and
(d) respecting any other matters necessary to carry out the purposes of subsection (1).
Marginal note:Regulations — disclosure
(3) The Governor in Council may make regulations respecting the disclosure by an authorized foreign bank of information relating to insurance or a guarantee against default on a loan made by the authorized foreign bank in Canada on the security of residential property, including regulations respecting
(a) the information that must be disclosed, including information relating to
(i) the person who benefits from the insurance or guarantee,
(ii) the arrangements between the authorized foreign bank, its representatives or its employees and the insurer or the insurer’s affiliates, and
(iii) the payments and benefits that the authorized foreign bank, its representatives and its employees accept from an insurer or the insurer’s affiliates;
(b) the time, place and manner in which and the persons to whom information is to be disclosed; and
(c) the circumstances under which an authorized foreign bank is not required to disclose information.
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