Bank Act (S.C. 1991, c. 46)

Marginal note:Restriction on partnerships

• 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.

• Meaning of “general partnership”

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

Definition of “non-WTO Member authorized foreign bank”

• 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.

• Marginal note:Limitation on branches in Canada of non-WTO Member authorized foreign bank

  (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.

Marginal note:Special security

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”.

555.1 [Repealed, 1999, c. 28, s. 35]

Marginal note:Deposit acceptance

• 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.

• Marginal note:Exception

  (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.

• Marginal note:Execution of trust

  (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.

• Marginal note:Payment when authorized foreign bank has notice of trust

  (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.