Budget Implementation Act, 2021, No. 1 (S.C. 2021, c. 23)
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Assented to 2021-06-29
PART 3Amendments to the Excise Act, 2001 (continued)
2002, c. 22Excise Act, 2001 (continued)
121 (1) Paragraph 1(a) of Schedule 1 to the Act is replaced by the following:
(a) $0.72725; or
(2) Subsection (1) is deemed to have come into force on April 20, 2021.
122 (1) Paragraph 2(a) of Schedule 1 to the Act is replaced by the following:
(a) $0.14545; or
(2) Subsection (1) is deemed to have come into force on April 20, 2021.
123 (1) Paragraph 3(a) of Schedule 1 to the Act is replaced by the following:
(a) $9.09062; or
(2) Subsection (1) is deemed to have come into force on April 20, 2021.
124 (1) Paragraph 4(a) of Schedule 1 to the Act is replaced by the following:
(a) $31.65673; or
(2) Subsection (1) is deemed to have come into force on April 20, 2021.
125 (1) Subparagraph (a)(i) of Schedule 2 to the Act is replaced by the following:
(i) $0.11379, or
(2) Subsection (1) is deemed to have come into force on April 20, 2021.
PART 4Various Measures
DIVISION 1Stability and Efficiency of the Financial Sector
R.S., c. C-3Canada Deposit Insurance Corporation Act
126 (1) Section 39.15 of the Canada Deposit Insurance Corporation Act is amended by adding the following after subsection (1):
Marginal note:Stay of proceedings — before conversion
(1.1) If an order is made under paragraph 39.13(1)(d), no person may terminate or amend any agreement with the federal member institution that is in relation to any of that institution’s shares or liabilities that are prescribed by the regulations made under subsection 39.2(10), claim an accelerated payment or forfeiture of the term under such an agreement or demand payment of any amount under such an agreement, by reason only of a monetary default by that institution in the performance of obligations under the agreement when that default occurs after the order was made but before a conversion under subsection 39.2(2.3) in respect of that institution.
(2) Paragraph 39.15(2)(a) of the Act is replaced by the following:
(a) has the effect of providing for or permitting anything that, in substance, is contrary to paragraph (1)(e), subsection (1.1) or paragraph 39.13(3)(b); or
(3) Subsection 39.15(7.12) of the Act is replaced by the following:
Marginal note:Exception
(7.12) Subsection (7.1) does not apply in respect of an eligible financial contract between the federal member institution and
(a) Her Majesty in right of Canada;
(b) the government of a foreign country;
(c) a central bank; or
(d) a clearing house, unless the Corporation has given the undertaking referred to in subsection (3.3) in respect of the institution.
(4) Section 39.15 of the Act is amended by adding the following after subsection (7.3):
Marginal note:Application of this section
(7.4) A federal member institution that is part of a class prescribed by the by-laws must ensure in accordance with the by-laws that this section — or provisions that have substantially the same effect as this section — applies to any eligible financial contract to which the institution is a party and that is part of a class prescribed by the by-laws.
Marginal note:By-laws
(7.5) The Board may make by-laws respecting the manner in which a federal member institution referred to in subsection (7.4) is to ensure that this section — or provisions that have substantially the same effect as this section — applies to an eligible financial contract referred to in that subsection.
Marginal note:Different treatment
(7.6) The by-laws made under subsection (7.5) may distinguish among classes of federal member institutions and classes of eligible financial contracts.
(5) Paragraph (a) of the definition clearing house in subsection 39.15(9) of the Act is replaced by the following:
(a) a clearing house, as defined in section 2 of the Payment Clearing and Settlement Act, that provides clearing, settlement or payment message exchange services for a clearing and settlement system designated under section 4 of that Act; or
127 (1) Paragraph 39.22(1)(a) of the Act is replaced by the following:
(a) the day that is 12 months after the day on which the order is made under subsection 39.13(1); or
(2) Subsection 39.22(3) of the Act is replaced by the following:
Marginal note:Extension
(3) The Governor in Council may, by order made on the recommendation of the Minister, grant one or more extensions of the period set out in subsection (1) but the last extension must expire not later than the day that is 18 months after the day on which the order is made under subsection 39.13(1).
128 Subsection 39.23(2) of the Act is replaced by the following:
Marginal note:Persons entitled to compensation
(2) Only a prescribed person who is, as a result of the application of the regulations, in a worse financial position than they would have been had the federal member institution been liquidated under the Winding-up and Restructuring Act is entitled to be paid compensation.
129 Section 39.24 of the English version of the Act is replaced by the following:
Marginal note:Determination and decision conclusive
39.24 Except as otherwise provided in this Act, a determination or decision made by the Corporation under section 39.23 or by an assessor appointed under section 39.26 is for all purposes final and conclusive and shall not be questioned or reviewed in any court.
130 Section 39.26 of the Act is replaced by the following:
Marginal note:Appointment of assessor
39.26 (1) In the circumstances prescribed by the regulations, the Governor in Council shall, by order, appoint as assessor a judge who is in receipt of a salary under the Judges Act to review a determination made by the Corporation under subsection 39.23(1).
Marginal note:Review
(2) In reviewing the Corporation’s determination, the assessor shall decide whether the Corporation made its determination based on an erroneous finding of fact that it made in a perverse or capricious manner or without regard for the material before it or on an unreasonable estimate.
Marginal note:Confirmation of determination
(3) If the assessor decides that the Corporation did not make its determination based on such a finding of fact or on such an estimate, the assessor shall confirm the Corporation’s determination.
Marginal note:Determination of amount
(4) If the assessor decides that the Corporation made its determination based on such a finding of fact or on such an estimate, the assessor shall determine, in accordance with the regulations and the by-laws, the amount of compensation, if any, to be paid to the prescribed person and substitute the assessor’s determination for the Corporation’s determination.
131 Subsection 39.28(2) of the Act is replaced by the following:
Marginal note:By-laws
(2) The Corporation may make by-laws respecting compensation for the purposes of sections 39.23 and 39.26.
132 Section 6.1 of the schedule to the Act is repealed.
1996, c. 6, Sch.Payment Clearing and Settlement Act
133 The definitions clearing and settlement system and clearing house in section 2 of the Payment Clearing and Settlement Act are replaced by the following:
- clearing and settlement system
clearing and settlement system means a system or arrangement for the clearing or settlement of payment obligations or for the exchange of payment messages for the purpose of clearing or settlement of payment obligations that meets the following conditions:
(a) there are at least three participants, at least one of which is a Canadian participant and at least one of which has its head office in a jurisdiction other than the jurisdiction where the head office of the clearing house is located;
(b) the clearing or settlement is wholly or partly in Canadian dollars; and
(c) except in the case in which the payment obligations arise from derivatives contracts, the settlement is ultimately effected through adjustments to the account or accounts of one or more of the participants at the Bank.
For greater certainty, it includes a system or arrangement for the clearing or settlement of securities transactions, derivatives contracts, foreign exchange transactions or other transactions if the system or arrangement also clears or settles payment obligations arising from those transactions or exchanges payment messages for the purpose of clearing or settlement of such obligations. (système de compensation et de règlement)
- clearing house
clearing house means a corporation, association, partnership, agency or other entity that provides clearing, settlement or payment message exchange services for a clearing and settlement system. It includes a securities and derivatives clearing house, as defined in subsection 13.1(3), but does not include a stock exchange or the Bank. (chambre de compensation)
134 Section 11.28 of the Act is replaced by the following:
Marginal note:Appointment of assessor
11.28 (1) In the circumstances prescribed by the regulations, the Governor in Council shall, by order, appoint as assessor a judge of a superior court to review a determination made by the Bank under subsection 11.26(1).
Marginal note:Review
(2) In reviewing the Bank’s determination, the assessor shall decide whether the Bank made its determination based on an erroneous finding of fact that it made in a perverse or capricious manner or without regard for the material before it or on an unreasonable estimate.
Marginal note:Confirmation of determination
(3) If the assessor decides that the Bank did not make its determination based on such a finding of fact or on such an estimate, the assessor shall confirm the Bank’s determination.
Marginal note:Determination of amount
(4) If the assessor decides that the Bank made its determination based on such a finding of fact or on such an estimate, the assessor shall determine, in accordance with the regulations, the amount of compensation, if any, to be paid to the prescribed person or entity and substitute the assessor’s determination for the Bank’s determination.
135 Section 11.3 of the Act is replaced by the following:
Marginal note:Determination and decision final
11.3 A determination or decision made by an assessor appointed under section 11.28 or, subject to that section, by the Bank under section 11.26 is for all purposes final.
136 (1) Subsection 14(1) of the Act is replaced by the following:
Marginal note:Information requests — systems or arrangements
14 (1) If the Governor of the Bank has reasonable grounds to believe that a system or arrangement exists for the clearing or settlement of payment obligations or for the exchange of payment messages for the purpose of clearing or settlement of payment obligations but requires further information in order to determine whether the system or arrangement is a clearing and settlement system, the Governor may, with the agreement of the Minister, request a person who is a party to the system or arrangement to provide the Bank with such information and documents regarding the system or arrangement as the Governor may require to make the determination.
(2) The portion of subsection 14(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Risk information
(3) Every clearing house shall provide the Bank with any information and documents that the Governor of the Bank may require to enable them to determine whether the clearing and settlement system poses a systemic risk or payments system risk, including
137 Subsection 18(3) of the Act is replaced by the following:
Marginal note:Disclosure permitted
(3) Nothing in subsection (1) prevents the Bank from disclosing any information regarding a clearing and settlement system that the Bank has designated under subsection 4(1) to any government authority or regulatory body charged with the regulation of systems or arrangements for the clearing or settlement of payment obligations or for the exchange of payment messages for the purpose of clearing or settlement of payment obligations, for purposes related to that regulation, if the Bank is satisfied that the information will be treated as confidential by the authority or body to which it is disclosed.
2018, c. 12Budget Implementation Act, 2018, No. 1
138 (1) Section 212 of the Budget Implementation Act, 2018, No. 1 is amended by adding, after the subsection 6(5) that it enacts, the following:
Marginal note:Error or omission
(6) An error or omission that results in a failure to meet a requirement of this schedule does not prevent a deposit from being considered a separate deposit under subsection (1), (2) or (3) if
(a) the trustee is aware of the error or omission and has made their best efforts to correct it; or
(b) the trustee is not aware of the error or omission but has exercised due diligence to be in compliance with the requirements of this schedule.
(2) Section 212 of the Act is amended by adding, after the section 6 that it enacts, the following:
Marginal note:Deposit considered separate
6.1 (1) A deposit that is not considered to be a separate deposit under section 6 is considered to be a separate deposit under that section if the trustee of the deposit meets the requirements of this schedule on the determination date or within 90 days after the determination date.
Marginal note:Definition of determination date
(2) In subsection (1), determination date has the same meaning as in subsection 1(1) of the Canada Deposit Insurance Corporation Co-owned and Trust Deposit Disclosure By-law.
Coming into Force
Marginal note:Order in council
139 (1) Sections 129 to 131 come into force on a day to be fixed by order of the Governor in Council.
Marginal note:2018, c. 12 — second anniversary
(2) Section 132 comes into force on the second anniversary of the day on which section 212 of the Budget Implementation Act, 2018, No. 1 comes into force.
- Date modified: