Bank Act

Marginal note:Restriction on deposit taking

• 413 (1) A bank shall not accept deposits in Canada unless

  • (a) it is a member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act; or

  • (b) it has been authorized under subsection 26.03(1) of that Act to accept deposits without being a member institution, as defined in section 2 of that Act.

• (2) [Repealed, 2001, c. 9, s. 102]

• Marginal note:Deposits that fall below $150,000

  (3) A bank to which paragraph (1)(b) applies shall ensure that, on each day that is at least thirty days after the bank receives the authorization referred to in that paragraph,

  A/B ≤ 0.01

  where

  A

  is the sum of all amounts each of which is the sum of all the deposits held by the bank at the end of a day in the preceding thirty days each of which deposits is less than $150,000 and payable in Canada; and

  B

  is the sum of all amounts each of which is the sum of all deposits held by the bank at the end of a day in those preceding thirty days and payable in Canada.

• Marginal note:Exchange rate

  (4) For the purpose of subsection (3), the rate of exchange that shall be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada shall be determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act.

• Marginal note:Definition of “deposit”

  (5) For the purpose of subsection (3), “deposit” has the meaning that would be given to it by the schedule to the Canada Deposit Insurance Corporation Act for the purposes of deposit insurance if that schedule were read without reference to subsections 2(2), (5) and (6) of that schedule, but does not include prescribed deposits.

• Marginal note:Regulations

  (6) The Governor in Council may make regulations

  • (a) prescribing the deposits referred to in subsection (5); and

  • (b) prescribing terms and conditions with respect to the acceptance of those deposits.