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1991, c. 30
Public Sector Compensation Act
279. Schedule I to the Public Sector Compensation Act is amended by striking out the following under the heading “OTHER PORTIONS OF THE PUBLIC SERVICE”:
Office of the Umpire
Bureau du juge-arbitre
Pension Appeals Board
Commission d’appel des pensions
280. Schedule I to the Act is amended by adding the following in alphabetical order under the heading “OTHER PORTIONS OF THE PUBLIC SERVICE”:
Social Security Tribunal
Tribunal de la sécurité sociale
Coming into Force
April 1, 2013
281. (1) Sections 225 and 227 to 229, subsection 230(1), sections 231, 232, 235 and 236, subsection 237(1) and sections 240 to 244, 246 to 249 and 279 come into force on April 1, 2013.
April 1, 2014
(2) Sections 271 and 276 come into force on April 1, 2014.
May 1, 2014
(3) Subsections 272(1) and (3) come into force on May 1, 2014.
Division 7
Consolidation of Privacy Codes
2005, c. 34
Department of Human Resources and Skills Development Act
282. (1) The definition “programme” in subsection 30(1) of the French version of the Department of Human Resources and Skills Development Act is replaced by the following:
« programme »
program
« programme » Sauf au paragraphe (2), s’entend de tout programme dont la mise en oeuvre ou l’exécution relèvent du ministre ou de la Commission; y sont assimilées les lois, politiques ou activités dont la mise en oeuvre ou l’exécution relèvent de l’un ou de l’autre.
(2) Subsection 30(2) of the French version of the Act is replaced by the following:
Précision
(2) Pour l’application de la présente partie, toute mention du ministre vaut mention du ministre du Travail pour ce qui est des programmes, des lois, des politiques ou des activités dont la mise en oeuvre ou l’exécution relèvent de lui.
(3) Subsection 30(3) of the Act is repealed.
283. Sections 32 and 33 of the Act are replaced by the following:
Protection of information
32. Information is privileged and shall not be made available unless
(a) it is authorized under subsection 28.2(5) or by this Part, or by an agreement under section 105 or paragraph 107(1)(a) of the Canada Pension Plan or paragraph 40(1)(a) of the Old Age Security Act; or
(b) it may be made available under any of paragraphs 33.1(a) to (c) of the Old Age Security Act.
Availability of information — individuals and representatives
33. (1) In addition to an individual’s right of access under section 12 of the Privacy Act, and subject to the exemptions and exclusions provided in that Act, information may be made available to the individual or their representative on their request in writing to the Minister.
Availability of information — individuals, representatives and members of Parliament
(2) On the conditions that the Minister considers advisable, and subject to the exemptions and exclusions provided in the Privacy Act, if the information is relevant to the making of an application or the receipt of a benefit or other assistance by the individual under a program, to a division of unadjusted pensionable earnings or an assignment of a retirement pension that affects the individual or to any other matter that affects the individual under a program, it may be made available to
(a) the individual;
(b) the individual’s representative; or
(c) a member of Parliament who is inquiring on behalf of the individual.
284. Section 35 of the Act is replaced by the following:
Availability of information — federal institutions
35. (1) Information may be made available to a minister or a public officer of a prescribed federal institution for the administration or enforcement of a prescribed federal or provincial law or activity if the Minister considers it advisable and the information is made available subject to conditions that are agreed on by the Minister and the federal institution.
Secondary release of information
(2) Information obtained under subsection (1) shall not be made available to any other person or body unless the Minister considers it advisable, the information is made available for the same purpose and it is subject to conditions that are agreed on by the Minister and the federal institution.
285. Subsection 36(1) of the Act is replaced by the following:
Availability of information — provincial authorities
36. (1) Information may be made available to the government of a province, or to a public body created under the law of a province, for the administration or enforcement of a federal law or activity or of a provincial law or prescribed provincial activity, if the Minister considers it advisable and the information is made available subject to conditions that are agreed on by the Minister and the government or body.
286. The Act is amended by adding the following after section 36:
Information relative to Social Insurance Numbers
36.1 Despite any other Act or law, the minister or other authority charged with the administration or enforcement of an Act under which Social Insurance Numbers may be assigned and the Minister may exchange the information contained in any applications for such numbers and the numbers so assigned, and may make available any of that information or those numbers in any manner that may be authorized by that Act.
Availability of information — certain persons or bodies
36.2 (1) If the Minister considers it advisable, information may, for the purpose of the administration or enforcement of a federal law or activity or of a provincial law or prescribed provincial activity, be made available to any person or body — other than one to whom it could be made available under subsection 28.2(5) or any of sections 34 to 36.1 — on the conditions set out in an agreement between the Minister and the person or body.
Secondary release of information
(2) Information obtained under subsection (1) shall not be made available to any other person or body unless the Minister considers it advisable, the information is made available for the same purpose and it is subject to conditions that are agreed on by the Minister and the person or body that obtained the information.
287. Subsection 37(1) of the Act is replaced by the following:
Public interest
37. (1) Despite sections 33 to 36.2, information may be made available if the Minister is of the opinion that the public interest in disclosure clearly outweighs any invasion of privacy that could result from the disclosure or that disclosure would clearly benefit the individual to whom the information relates.
288. The portion of section 38 of the Act before paragraph (a) is replaced by the following:
Research or statistical purposes
38. Information may be made available for research or statistical purposes to any person or body, including a person or body referred to in section 35, 36 or 36.2 of this Act or in section 105 of the Canada Pension Plan, if
289. Paragraph 39(1)(c) of the Act is replaced by the following:
(c) the results of the policy analysis, research or evaluation will be made available only in accordance with the provisions of this Part, section 105 of the Canada Pension Plan, and any agreements under which the information was obtained;
290. Subsection 42(1) of the Act is replaced by the following:
Offence
42. (1) Every person or body commits an offence if they knowingly make available information that is privileged under this Part, or knowingly use or allow such information to be used, otherwise than in accordance with this Part or subsection 28.2(5) or (6), or a condition or agreement referred to
(a) in subsection 33(2) or any of sections 35, 36, 36.2 and 38 of this Act;
(b) in section 104.1 or 105 of the Canada Pension Plan; or
(c) in section 39 of the Old Age Security Act.
291. Section 43 of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:
(b) federal institutions, for the purposes of subsection 35(1), to which the information referred to in that subsection may be made available, and the federal or provincial laws or activities for whose administration or enforcement the information may be made available; and
(c) provincial activities, for the purposes of subsections 36(1) and 36.2(1), in respect of which the information referred to in those subsections may be made available.
R.S., c. C-8
Canada Pension Plan
1997, c. 40, s. 88
292. The heading before section 104 of the Canada Pension Plan is replaced by the following:
Availability of Information
1997, c. 40, s. 88
293. (1) The portion of subsection 104(1) of the Act before the definition “administration” is replaced by the following:
Definitions
104. (1) The following definitions apply in this section and sections 104.1 and 105.
2005, c. 35, s. 45
(2) Subsection 104(3) of the Act is repealed.
1997, c. 40, s. 88; 2000, c. 34, par. 94(b)(F); 2005, c. 35, ss. 46 to 48, 49(F), 50 to 52 and subpar. 66(a)(iii), c. 38, subpar. 138(c)(vi) and (vii); 2007, c. 11, s. 11
294. Sections 104.01 to 104.11 of the Act are replaced by the following:
Availability of information within federal institutions
104.1 (1) Despite any other Act or law, any information obtained by a public officer of the Canada Revenue Agency, the Department of Finance, the Department of Public Works and Government Services or the Department of Citizenship and Immigration for the purpose of the administration of this Act may be made available to a public officer of the Department of Human Resources and Skills Development, the Canada Revenue Agency, the Department of Finance, the Department of Public Works and Government Services, the Department of Citizenship and Immigration or the Office of the Superintendent of Financial Institutions for the purpose of the administration of this Act.
Secondary release of information
(2) Information obtained under this section shall not be made available to any other person or body unless the information is made available only for the same purpose and on any conditions that the Minister may specify.
Agreements with Provinces
295. The Act is amended by adding the following after section 105:
Oaths, Affidavits, Declarations and Affirmations
R.S., c. O-9
Old Age Security Act
2010, c. 22, s. 3
296. Paragraph 5(3)(b) of the Old Age Security Act is replaced by the following:
(b) that exceeds 90 days and is to be served in a prison, as defined in subsection 2(1) of the Prisons and Reformatories Act, if the government of the province in which the prison is located has entered into an agreement under section 41 of the Department of Human Resources and Skills Development Act.
2010, c. 22, s. 7(3)
297. Subparagraph 19(6)(f)(ii) of the Act is replaced by the following:
(ii) that exceeds 90 days and is to be served in a prison, as defined in subsection 2(1) of the Prisons and Reformatories Act, if the government of the province in which the prison is located has entered into an agreement under section 41 of the Department of Human Resources and Skills Development Act.
2010, c. 22, s. 8(1)
298. Subparagraph 21(9)(d)(ii) of the Act is replaced by the following:
(ii) that exceeds 90 days and is to be served in a prison, as defined in subsection 2(1) of the Prisons and Reformatories Act, if the government of the province in which the prison is located has entered into an agreement under section 41 of the Department of Human Resources and Skills Development Act.
1997, c. 40, s. 102; 2000, c. 12, par. 207(1)(l), c. 34, par. 94(h)(F); 2001, c. 27, s. 267; 2003, c. 22, s. 178; 2005, c. 35, ss. 55 to 58, 59(F), 60 to 62 and par. 66(e), c. 38, par. 138(o), c. 49, s. 7; 2007, c. 11, s. 25; 2010, c. 22, s. 11
299. The heading before section 33 and sections 33 to 33.13 of the Act are replaced by the following:
Availability of Information
Definitions
33. (1) The following definitions apply in this section and sections 33.1 and 39.
“administration”
« mise en oeuvre »
“administration” includes the development, operation, evaluation and enforcement of policies and programs.
“federal institution”
« institution fédérale »
“federal institution” means a department or any other body referred to in Schedule I, I.1, II or III to the Financial Administration Act.
“public officer”
« fonctionnaire public »
“public officer” means an officer or employee of a federal institution, or a prescribed individual or a member of a prescribed class of individuals.
Interpretation
(2) The definition of a word or expression in subsection (1) does not affect its interpretation in any other provision of this Act.
Information obtained under other Acts
33.1 Despite any other Act or law,
(a) the Minister of National Revenue or any person that he or she designates may make available to the Minister, or to a public officer of the Department of Human Resources and Skills Development that is designated by the Minister, a report providing information that is available to the Minister of National Revenue, if the information is necessary for the administration of this Act;
(b) the Minister of Citizenship and Immigration and officers and employees of the Department of Citizenship and Immigration may make available to the Minister, or to a public officer of the Department of Human Resources and Skills Development, any information that was obtained in the administration of the Citizenship Act or the Immigration and Refugee Protection Act, if the information is necessary for the administration of this Act; and
(c) the Commissioner of Corrections or staff members of the Correctional Service of Canada may make available to the Minister or a public officer of the Department of Human Resources and Skills Development any personal information that was obtained in the administration of the Corrections and Conditional Release Act, if the information is necessary for the administration of this Act.
Consequential Amendments
R.S., c. A-1
Access to Information Act
2005, c. 35, s. 43
300. Schedule II to the Access to Information Act is amended by striking out the reference to
Canada Pension Plan
Régime de pensions du Canada
and the corresponding reference to “subsection 104.01(1)”.
2005, c. 35, s. 44
301. Schedule II to the Act is amended by striking out the reference to
Old Age Security Act
Loi sur la sécurité de la vieillesse
and the corresponding reference to “subsection 33.01(1)”.
R.S., c. 1 (5th Supp.)
Income Tax Act
302. Subparagraph 241(4)(e)(viii) of the Income Tax Act is replaced by the following:
(viii) paragraph 33.1(a) of the Old Age Security Act,
Coming into Force
Order in council
303. Sections 282 to 302 come into force on a day or days to be fixed by order of the Governor in Council.
Division 8
Social Insurance Number Cards
2005, c. 34
Department of Human Resources and Skills Development Act
304. The Department of Human Resources and Skills Development Act is amended by adding the following after section 28:
Social Insurance Number
Registration
28.1 (1) Any person who is employed in insurable employment as defined in the Employment Insurance Act or who is a self-employed person in respect of whom Part VII.1 of that Act applies must be registered with the Commission.
Register
(2) The Commission shall maintain a register containing the names of the persons referred to in subsection (1) and any other information that it determines is necessary to accurately identify them.
Social Insurance Number
(3) The Commission shall assign to each person registered with it a number that is suitable for use as a file number or account number or for data processing purposes, and that number is the person’s Social Insurance Number for any purpose for which a Social Insurance Number is required.
Social Insurance Number card
(4) The Commission may issue to each person registered with it a card containing the person’s name and Social Insurance Number.
Social Insurance Register
28.2 (1) The Commission may maintain a Social Insurance Register containing
(a) the names of persons registered in the registry referred to in section 28.1;
(b) the names of persons to whom a Social Insurance Number has been assigned under the Canada Pension Plan; and
(c) the names of persons for whom an application has been made to the Commission for a Social Insurance Number.
Additional information
(2) The Social Insurance Register may, subject to any regulations that the Governor in Council may make in that regard, contain any other information in addition to the names and Social Insurance Numbers of persons that is necessary to accurately identify all persons who are registered.
Issuing number and card
(3) When a Social Insurance Number is assigned to a person by the Commission in the course of maintaining the registers mentioned in this section and section 28.1, the Commission may issue a Social Insurance Number card to that person and that number is the person’s Social Insurance Number for all purposes for which a Social Insurance Number is required.
Regulations
(4) The Commission may, with the approval of the Governor in Council, make regulations respecting
(a) the registration of persons under this section and section 28.1, including applications for that registration;
(b) the assignment and use of Social Insurance Numbers;
(c) the issuance, custody, production and use of Social Insurance Number cards;
(d) periods of validity, and the extension of those periods, of Social Insurance Numbers and Social Insurance Number cards; and
(e) the replacement of Social Insurance Number cards that have been lost, destroyed or defaced.
Availability of information — social insurance registers
(5) The Commission may make available any information contained in the registers maintained under this section and section 28.1 that the Commission considers necessary for the accurate identification of persons and for the effective use by those persons of Social Insurance Numbers to any persons that the Commission thinks appropriate to accomplish that purpose.
Secondary release of information
(6) Information obtained under subsection (5) shall not be made available to a person or body unless the Commission considers it advisable, the information is made available for the same purpose and it is subject to conditions agreed on by the Commission and the person who obtained the information.
Agreements still in force
(7) Subsection (6) does not apply to information made available in accordance with an agreement entered into by the Commission before the coming into force of this section.
New Social Insurance Number
(8) A person who has been assigned a Social Insurance Number may subsequently be assigned a new Social Insurance Number, in accordance with and subject to any regulations that the Commission may make, if
(a) the number first assigned has been assigned to another person;
(b) wrongful use by another person of the number first assigned has created a situation in which the person to whom the number was first assigned is or may be caused embarrassment or hardship; or
(c) there are other special or unusual circumstances that would make the issuance of a new number desirable.
Voiding
(9) When a new Social Insurance Number is assigned to a person, any number previously assigned to that person becomes void.
More than one number assigned
(10) If a person has inadvertently been assigned more than one Social Insurance Number, the Commission shall determine which number is the official number and shall void the others.
Change of name
28.3 When the name of a person to whom a Social Insurance Number has been assigned changes because of marriage or otherwise, the person shall inform the Commission of their new name within 60 days after the day on which the change of name becomes effective, unless they have already so informed another authority empowered to receive that information.
Prohibitions
28.4 (1) No person
(a) shall, knowing that they already have a Social Insurance Number, make an application to be again assigned a Social Insurance Number, whether the person gives information that is the same as or different from that contained in their previous application on which the Social Insurance Number had been assigned;
(b) shall, with intent to defraud or deceive any person, present, loan or use a Social Insurance Number or Social Insurance Number card;
(c) shall, without the authority of the Commission, manufacture a Social Insurance Number card or a substantially similar card, or duplicate a Social Insurance Number card, except by making a paper photocopy for record purposes only; or
(d) shall, without the authority of the Commission, sell a Social Insurance Number, a Social Insurance Number card or a substantially similar card.
Offence and punishment
(2) Every person who contravenes subsection (1) is guilty of an offence and liable on summary conviction to a fine of not more than $1,000 or to imprisonment for a term of not more than one year, or to both.
R.S., c. C-8
Canada Pension Plan
305. Subsections 98(4) to (6) of the Canada Pension Plan are replaced by the following:
Assignment of Number
(4) The Minister shall, on application by an individual to whom a Social Insurance Number has not earlier been assigned, cause a Social Insurance Number to be assigned to the individual and a Social Insurance Number Card may be issued to the individual.
Employer to maintain record of Social Insurance Number
(5) Every employer who employs an employee in pensionable employment shall, in the case of an employee to whom subsection (2) applies, within 30 days after the day on which the employee reaches 18 years of age or becomes employed in pensionable employment, whichever is the later, require the employee to inform the employer of their Social Insurance Number, and the employer shall maintain a record of the Social Insurance Number of each employee.
Employee to provide Social Insurance Number
(6) Every employee who is required under subsection (5) to inform the employer of their Social Insurance Number shall do so within 30 days after the day on which they are required to do so by the employer.
306. Subsection 99(2) of the Act is replaced by the following:
Change of name
(2) When the name of an individual to whom a Social Insurance Number has been assigned changes, by reason of marriage or otherwise, the individual shall inform the Minister of their new name, unless they have already so informed another authority empowered to receive that information,
(a) if the individual is employed in pensionable employment, within 60 days after the day on which the change of name becomes effective; or
(b) if the individual is not employed in pensionable employment but later becomes so employed, or is required to make a contribution under this Act in respect of their self-employed earnings, within 60 days after the day on which the individual becomes so employed or after the first day on or before which they are required under section 33 to pay any amount as or on account of the contribution required to be made by them in respect of those earnings, as the case may be.
1996, c. 23
Employment Insurance Act
307. Subsection 77(1) of the Employment Insurance Act is amended by adding the following after paragraph (d):
(d.1) the costs of administering sections 28.1 and 28.2 of the Department of Human Resources and Skills Development Act;
308. Sections 138 to 141 of the Act are replaced by the following:
Obligation
138. Every person employed in insurable employment, and every self-employed person in respect of whom Part VII.1 applies, must have a Social Insurance Number that has been assigned to that person under an Act of Parliament.
Change of name
139. When the name of a person to whom a Social Insurance Number has been assigned changes because of marriage or otherwise, the person shall inform the Commission of their new name within 60 days after the day on which the change of name becomes effective, unless they have already so informed another authority empowered to receive that information.
Regulations
140. For the purposes of sections 138 and 139, the Commission may, with the approval of the Governor in Council, make regulations respecting
(a) applications for a Social Insurance Number;
(b) the assignment and use of Social Insurance Numbers;
(c) requirements that must be met by persons who have been assigned Social Insurance Numbers; and
(d) requirements that must be met by employers.
Consequential Amendments
R.S., c. C-24
Canadian Wheat Board Act
1998, c. 17, s. 28(E)
309. Subsections 67(3) and (4) of the Canadian Wheat Board Act are replaced by the following:
Assignment of Number
(3) The Corporation shall, on application by a producer, other than a corporation, to whom a Social Insurance Number has not earlier been assigned, cause a Social Insurance Number to be assigned to that producer.
Change of name
(4) When, at any time, the name of a producer to whom a Social Insurance Number has been assigned changes, by reason of marriage or otherwise, that producer shall inform the Corporation within 60 days after the day on which the change of name becomes effective, unless the producer has already so informed another authority empowered to receive that information.
1991, c. 22
Farm Income Protection Act
310. Subsections 10(2) and (3) of the Farm Income Protection Act are replaced by the following:
Assignment of number
(2) The Minister shall, on application by a producer to whom a Social Insurance Number has not been assigned, cause a Social Insurance Number to be assigned to the producer.
Change of name
(3) When, at any time, the name of a producer participating directly or indirectly as part of a corporation or other entity in a program under an agreement and to whom a Social Insurance Number has been assigned changes, by reason of marriage or otherwise, that producer shall inform the Minister of their new name within 60 days after the day on which the change of name becomes effective, unless the producer has already so informed another authority empowered to receive that information.
2001, c. 27
Immigration and Refugee Protection Act
311. Section 90 of the Immigration and Refugee Protection Act and the heading before it are replaced by the following:
Social Insurance Numbers
Minister directs special numbers to be issued
90. The Minister may direct the Canada Employment Insurance Commission to assign to persons, other than Canadian citizens or permanent residents, Social Insurance Numbers identifying those persons as persons who may be required under this Act to obtain authorization to work in Canada.
2005, c. 47, s. 1
Wage Earner Protection Program Act
2005, c. 47, s. 140(2)
312. Section 27 of the Wage Earner Protection Program Act is replaced by the following:
Information must be made available to Minister
27. Personal information relating to an applicant that is collected or obtained by the Canada Employment Insurance Commission must, if requested by the Minister, be made available to the Minister to determine the applicant’s eligibility to receive a payment under this Act.
Coordinating Amendment
2011, c. 25, Part 2
313. Section 309 of this Act is repealed if the day on which this Act receives royal assent is after August 1, 2012.
Coming into Force
Order in council
314. Sections 304 to 312 come into force on a day or days to be fixed by order of the Governor in Council.
Division 9
Amendments Relating to the Parks Canada Agency
1998, c. 31
Parks Canada Agency Act
315. The Parks Canada Agency Act is amended by adding the following after section 6:
Other Acts and regulations
6.1 (1) If considerations of geography make it impractical for the body or minister responsible for administering and enforcing an Act listed in Part 3 of the schedule — or any regulation made under that Act — or any regulation listed in Part 4 of the schedule to do so in a part of Canada, the Agency may enter into an agreement with that body or minister under which the Agency may assist that body or minister in the administration and enforcement of the Act or regulation in that part of Canada.
Park wardens
(2) For the purposes of an agreement entered into under subsection (1), persons designated as park wardens under section 18 of the Canada National Parks Act may, with the Chief Executive Officer’s approval,
(a) be designated under the Acts listed in Part 3 of the schedule to exercise powers set out in the designation in relation to the administration and enforcement of those Acts and any regulations made under them; and
(b) be designated under the Acts under which the regulations listed in Part 4 of the schedule are made to exercise powers set out in the designation in relation to the administration and enforcement of those regulations.
Meaning of “part of Canada”
(3) In this section, “part of Canada” means a part of Canada that is outside national parks, national historic sites, national marine conservation areas and other protected heritage areas.
316. Section 7 of the Act is renumbered as subsection 7(1) and is amended by adding the following:
Additions to or deletions from schedule
(2) For the purposes of section 6.1, the Governor in Council may, by order, add to or delete from the schedule any Act of Parliament or regulation made under an Act of Parliament, or part of such an Act or regulation, that relates to the environment.
317. The portion of subsection 21(3) of the Act before paragraph (a) is replaced by the following:
Payments out of New Parks and Historic Sites Account
(3) Despite any other Act of Parliament, amounts may be paid out of the New Parks and Historic Sites Account for the following purposes:
2002, c. 18, s. 39.
318. Section 31 of the Act is replaced by the following:
Report — heritage areas and programs
31. At least every five years, the Chief Executive Officer shall provide the Minister with a report, to be tabled in each House of Parliament, on the state of national parks, national historic sites, national marine conservation areas and other protected heritage areas and heritage protection programs, and on the Agency’s performance in carrying out its responsibilities under section 6.
319. Subsection 32(2) of the Act is replaced by the following:
Review of management plans by Minister
(2) The Minister shall review the management plan for each national historic site or other protected heritage area at least every 10 years and shall cause any amendments to the plan to be tabled in each House of Parliament.
320. Sections 33 and 34 of the Act are repealed.
321. Section 36 of the Act and the heading before it are repealed.
322. The schedule to the Act is amended by replacing the references after the heading “SCHEDULE” with the following:
(Sections 6, 6.1 and 7)
323. The schedule to the Act is amended by adding the following after Part 2:
PART 3
ACTS
PART 4
REGULATIONS
2000, c. 32
Canada National Parks Act
324. Subsection 11(2) of the Canada National Parks Act is replaced by the following:
Review of management plans by Minister
(2) The Minister shall review the management plan for each park at least every 10 years and shall cause any amendments to the plan to be tabled in each House of Parliament.
2002, c. 18
Canada National Marine Conservation Areas Act
325. Subsection 9(2) of the Canada National Marine Conservation Areas Act is replaced by the following:
Review of management plans by Minister
(2) The Minister shall review the management plan for each marine conservation area at least every 10 years and shall cause any amendments to the plan to be tabled in each House of Parliament.
Division 10
Financial Institutions
1991, c. 45
Trust and Loan Companies Act
326. Section 164 of the Trust and Loan Companies Act is amended by adding the following after paragraph (f):
(f.1) a person who is an officer, director, employee or agent of — or any other person nominated by or acting on behalf of — an eligible agent within the meaning of section 374.1;
1994, c. 47, s. 205
327. Section 374.1 of the Act is replaced by the following:
Definitions
374.1 The following definitions apply in this Part.
“agent”
« mandataire »
“agent” means
(a) in relation to Her Majesty in right of Canada or of a province, any agent of Her Majesty in either of those rights, and includes a municipal or public body empowered to perform a function of government in Canada or any entity empowered to perform a function or duty on behalf of Her Majesty in either of those rights, but does not include
(i) an official or entity performing a function or duty in connection with the administration or management of the estate or property of a natural person,
(ii) an official or entity performing a function or duty in connection with the administration, management or investment of a fund established to provide compensation, hospitalization, medical care, annuities, pensions or similar benefits to natural persons, or moneys derived from such a fund, or
(iii) the trustee of any trust for the administration of a fund to which Her Majesty in either of those rights contributes and of which an official or entity that is an agent of Her Majesty in either of those rights is a trustee; and
(b) in relation to the government of a foreign country or any political subdivision thereof, a person empowered to perform a function or duty on behalf of the government of the foreign country or political subdivision, other than a function or duty in connection with the administration or management of the estate or property of a natural person.
“eligible agent”
« mandataire admissible »
“eligible agent” means an agent or agency of Her Majesty in right of Canada or of a province or an agent or agency of a government of a foreign country or any political subdivision of a foreign country
(a) whose mandate is publicly available;
(b) that controls the assets of an investment fund in a manner intended to maximize long-term risk-adjusted returns and that fund is
(i) one to which, as the case may be, Her Majesty in right of Canada or of a province or the government of a foreign country or political subdivision contributes, or
(ii) established to provide compensation, hospitalization, medical care, annuities, pensions or similar benefits to natural persons; and
(c) whose decisions with respect to the assets of the fund referred to in paragraph (b) are not influenced in any significant way by, as the case may be, Her Majesty in right of Canada or of the province or the government of the foreign country or the political subdivision.
Associates
374.2 (1) For the purpose of determining ownership of a company by an eligible agent, where two persons, at least one of whom is an eligible agent, are associated with each other, those persons are deemed to be a single eligible agent who beneficially owns the aggregate number of shares of the company beneficially owned by them.
Associates
(2) For the purposes of subsection (1), a person is associated with another person if
(a) each person is an agent or agency of Her Majesty in right of Canada;
(b) each person is an agent or agency of Her Majesty in right of the same province;
(c) each person is an agent or agency of a government of the same foreign country or a political subdivision of the same foreign country;
(d) one person is Her Majesty in right of Canada and the other person is an agent or agency of Her Majesty in that right;
(e) one person is Her Majesty in right of a province and the other person is an agent or agency of Her Majesty in right of that province; or
(f) one person is a government of a foreign country or any political subdivision of a foreign country and the other person is its agent or agency.
328. Section 396 of the Act is amended by adding the following after subsection (2):
Exception
(3) Despite subsection (1), a company may, with the Minister’s approval, record in its securities register the issue of any share of the company to an eligible agent.
Ministerial approval
(4) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 388(1)(a) to (g).
329. Section 399 of the Act is amended by adding the following after subsection (4):
Exception — eligible agent
(5) Subsection (2) does not apply in respect of the exercise of voting rights attached to any share referred to in subsection 396(3).
1991, c. 46
Bank Act
330. Section 160 of the Bank Act is amended by adding the following after paragraph (f):
(f.1) a person who is an officer, director, employee or agent of — or any other person nominated by or acting on behalf of — an eligible agent within the meaning of subsection 370(1);
331. Subsection 370(1) of the Act is amended by adding the following in alphabetical order:
“eligible agent”
« mandataire admissible »
“eligible agent” means an agent or agency of Her Majesty in right of Canada or of a province or an agent or agency of a government of a foreign country or any political subdivision of a foreign country
(a) whose mandate is publicly available;
(b) that controls the assets of an investment fund in a manner intended to maximize long-term risk-adjusted returns and that fund is
(i) one to which, as the case may be, Her Majesty in right of Canada or of a province or the government of a foreign country or political subdivision contributes, or
(ii) established to provide compensation, hospitalization, medical care, annuities, pensions or similar benefits to natural persons; and
(c) whose decisions with respect to the assets of the fund referred to in paragraph (b) are not influenced in any significant way by, as the case may be, Her Majesty in right of Canada or of the province or the government of the foreign country or the political subdivision.
332. The Act is amended by adding the following after section 371:
Associates
371.1 (1) Despite section 371, for the purpose of determining ownership of a bank by an eligible agent, where two persons, at least one of whom is an eligible agent, are associated with each other, those persons are deemed to be a single eligible agent who beneficially owns the aggregate number of shares of the bank beneficially owned by them.
Associates
(2) For the purposes of subsection (1), a person is associated with another person if
(a) each person is an agent or agency of Her Majesty in right of Canada;
(b) each person is an agent or agency of Her Majesty in right of the same province;
(c) each person is an agent or agency of a government of the same foreign country or a political subdivision of the same foreign country;
(d) one person is Her Majesty in right of Canada and the other person is an agent or agency of Her Majesty in that right;
(e) one person is Her Majesty in right of a province and the other person is an agent or agency of Her Majesty in right of that province; or
(f) one person is a government of a foreign country or any political subdivision of a foreign country and the other person is its agent or agency.
333. Section 401.2 of the Act is amended by adding the following after subsection (2):
Exception
(3) Despite subsection (1), a bank may, with the Minister’s approval, record in its securities register the issue of any share of the bank to an eligible agent.
Ministerial approval
(4) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 396(1)(a) to (h).
334. Section 401.3 of the Act is amended by adding the following after subsection (2):
Exception — eligible agent
(3) Subsection (1) does not apply in respect of the exercise of voting rights attached to any share referred to in subsection 401.2(3).
335. Section 750 of the Act is amended by adding the following after paragraph (f):
(f.1) a person who is an officer, director, employee or agent of — or any other person nominated by or acting on behalf of — an eligible agent within the meaning of subsection 370(1);
2001, c. 9, s. 183
336. Section 873 of the Act is replaced by the following:
Sections 370 to 371.1 apply
873. Sections 370 to 371.1 apply in respect of bank holding companies, except that references to “bank” in sections 371 and 371.1 are to be read as references to “bank holding company”.
337. Section 913 of the Act is amended by adding the following after subsection (2):
Exception
(3) Despite subsection (1), a bank holding company may, with the Minister’s approval, record in its securities register the issue of any share of the bank holding company to an eligible agent.
Ministerial approval
(4) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 906(1)(a) to (g).
338. Section 914 of the Act is amended by adding the following after subsection (2):
Exception — eligible agent
(3) Subsection (1) does not apply in respect of the exercise of voting rights attached to any share referred to in subsection 913(3).
1991, c. 47
Insurance Companies Act
339. Subsection 168(1) of the Insurance Companies Act is amended by adding the following after paragraph (f):
(f.1) a person who is an officer, director, employee or agent of — or any other person nominated by or acting on behalf of — an eligible agent within the meaning of section 406.1;
1994, c. 47, s. 122
340. Section 406.1 of the Act is replaced by the following:
Definitions
406.1 The following definitions apply in this Part.
“agent”
« mandataire »
“agent” means
(a) in relation to Her Majesty in right of Canada or of a province, any agent of Her Majesty in either of those rights, and includes a municipal or public body empowered to perform a function of government in Canada or any entity empowered to perform a function or duty on behalf of Her Majesty in either of those rights but does not include
(i) an official or entity performing a function or duty in connection with the administration or management of the estate or property of a natural person,
(ii) an official or entity performing a function or duty in connection with the administration, management or investment of a fund established to provide compensation, hospitalization, medical care, annuities, pensions or similar benefits to natural persons, or moneys derived from such a fund, or
(iii) the trustee of any trust for the administration of a fund to which Her Majesty in either of those rights contributes and of which an official or entity that is an agent of Her Majesty in either of those rights is a trustee; and
(b) in relation to the government of a foreign country or any political subdivision thereof, a person empowered to perform a function or duty on behalf of the government of the foreign country or political subdivision, other than a function or duty in connection with the administration or management of the estate or property of a natural person.
“eligible agent”
« mandataire admissible »
“eligible agent” means an agent or agency of Her Majesty in right of Canada or of a province or an agent or agency of a government of a foreign country or any political subdivision of a foreign country
(a) whose mandate is publicly available;
(b) that controls the assets of an investment fund in a manner intended to maximize long-term risk-adjusted returns and that fund is
(i) one to which, as the case may be, Her Majesty in right of Canada or of a province or the government of a foreign country or political subdivision contributes, or
(ii) established to provide compensation, hospitalization, medical care, annuities, pensions or similar benefits to natural persons; and
(c) whose decisions with respect to the assets of the fund referred to in paragraph (b) are not influenced in any significant way by, as the case may be, Her Majesty in right of Canada or of the province or the government of the foreign country or the political subdivision.
Associates
406.2 (1) For the purpose of determining ownership of a company by an eligible agent, where two persons, at least one of whom is an eligible agent, are associated with each other, those persons are deemed to be a single eligible agent who beneficially owns the aggregate number of shares of the company beneficially owned by them.
Associates
(2) For the purposes of subsection (1), a person is associated with another person if
(a) each person is an agent or agency of Her Majesty in right of Canada;
(b) each person is an agent or agency of Her Majesty in right of the same province;
(c) each person is an agent or agency of a government of the same foreign country or a political subdivision of the same foreign country;
(d) one person is Her Majesty in right of Canada and the other person is an agent or agency of Her Majesty in that right;
(e) one person is Her Majesty in right of a province and the other person is an agent or agency of Her Majesty in right of that province; or
(f) one person is a government of a foreign country or any political subdivision of a foreign country and the other person is its agent or agency.
341. Section 428 of the Act is amended by adding the following after subsection (2):
Exception
(3) Despite subsection (1), a company may, with the Minister’s approval, record in its securities register the issue of any share of the company to an eligible agent.
Ministerial approval
(4) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 420(1)(a) to (h).
342. Section 430 of the Act is amended by adding the following after subsection (4):
Exception — eligible agent
(5) Subsection (2) does not apply in respect of the exercise of voting rights attached to any share referred to in subsection 428(3).
2001, c. 9, s. 415(1)
343. Subsection 432(1) of the English ver- sion of the Act is replaced by the following:
Disposition of shareholdings
432. (1) If, with respect to any company, a person contravenes subsection 407(1), (4), (9), (11) or (15) or section 407.03, 407.1 or 407.2 or fails to comply with an undertaking referred to in subsection 416(2) or with any term or condition imposed under section 421, the Minister may, if the Minister considers it in the public interest to do so, by order, direct that person and any person controlled by that person to dispose of any number of shares of the company beneficially owned by any of those persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by that person that is specified in the order.
344. Section 797 of the Act is amended by adding the following after paragraph (f):
(f.1) a person who is an officer, director, employee or agent of — or any other person nominated by or acting on behalf of — an eligible agent within the meaning of section 406.1;
2001, c. 9, s. 465
345. Section 926 of the Act is replaced by the following:
Sections 406.1 and 406.2 apply
926. Sections 406.1 and 406.2 apply in respect of insurance holding companies, except that references to “company” in that section 406.2 are to be read as references to “insurance holding company”.
346. Section 954 of the Act is amended by adding the following after subsection (2):
Exception
(3) Despite subsection (1), an insurance holding company may, with the Minister’s approval, record in its securities register the issue of any share of the insurance holding company to an eligible agent.
Ministerial approval
(4) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 947(1)(a) to (g).
347. Section 955 of the Act is renumbered as subsection 955(1) and is amended by adding the following:
Exception — eligible agent
(2) Subsection (1) does not apply in respect of the exercise of voting rights attached to any share referred to in subsection 954(3).
Coordinating Amendments
2010, c. 12
348. (1) In this section, “other Act” means the Jobs and Economic Growth Act.
(2) On the first day on which both subsection 401.3(3) of the Bank Act, as enacted by section 2072 of the other Act, and subsection 401.3(3) of the Bank Act, as enacted by section 334 of this Act, are in force, subsection 401.3(3) of the Bank Act, as enacted by section 334 of this Act, is renumbered as subsection 401.3(4) and is repositioned accordingly if required.
2012, c. 5
349. (1) In this section, “other Act” means the Financial System Review Act.
(2) If section 157 of the other Act comes into force before section 347 of this Act, then
(a) that section 347 is deemed never to have come into force and is repealed; and
(b) section 955 of the Insurance Companies Act is amended by adding the following after subsection (2):
Exception — eligible agent
(3) Subsection (1) does not apply in respect of the exercise of voting rights attached to any share referred to in subsection 954(3).
(3) If section 347 of this Act comes into force before section 157 of the other Act, then that section 157 is replaced by the following:
157. Section 955 is amended by adding the following after subsection (2):
Exception
(3) Subsection (1) does not apply to a foreign institution that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the shares referred to in subsection (1) are beneficially owned by the foreign institution or by an entity controlled by the foreign institution.
(4) If section 157 of the other Act comes into force on the same day as section 347 of this Act, then that section 157 is deemed to have come into force before that section 347 and subsection (2) applies as a consequence.
Division 11
Canada Mortgage and Housing Corporation
R.S., c. N-11
National Housing Act
R.S., c. 25 (4th Supp.), s. 1(3)
350. The definition “regulation” in section 2 of the National Housing Act is repealed.
1999, c. 27, s. 3
351. Section 7 of the Act is replaced by the following:
Definitions
7. The following definitions apply in this Part.
“Chairperson of the Canada Deposit Insurance Corporation”
« président de la Société d’assurance-dépôts du Canada »
“Chairperson of the Canada Deposit Insurance Corporation” means the Chairperson of the Canada Deposit Insurance Corporation appointed under section 6 of the Canada Deposit Insurance Corporation Act.
“Commissioner of the Financial Consumer Agency of Canada”
« commissaire de l’Agence de la consommation en matière financière du Canada »
“Commissioner of the Financial Consumer Agency of Canada” means the Commissioner of the Financial Consumer Agency of Canada appointed under section 4 of the Financial Consumer Agency of Canada Act.
“Governor of the Bank of Canada”
« gouverneur de la Banque du Canada »
“Governor of the Bank of Canada” means the Governor of the Bank of Canada appointed under section 6 of the Bank of Canada Act.
“housing loan”
« prêt à l’habitation »
“housing loan” means a loan that
(a) relates to a housing project;
(b) is secured at least in part by security on or affecting a housing project or by an agreement relating to the use, occupancy or disposal of a housing project;
(c) is made for the purpose of acquiring a financial interest in a person who, directly or indirectly, owns, leases or operates a housing project; or
(d) is made for the purpose of refinancing a debt that the Corporation is of the opinion relates to a housing project or to a financial interest referred to in paragraph (c).
“Superintend- ent”
« surintendant »
“Superintendent” means the Superintendent of Financial Institutions appointed under section 5 of the Office of the Superintendent of Financial Institutions Act.
Objects
7.1 The Corporation has the following objects in carrying on any activities under this Part or Part I.1:
(a) to promote the efficient functioning and competitiveness of the housing finance market;
(b) to promote and contribute to the stability of the financial system, including the housing market; and
(c) to have due regard to the Corporation’s exposure to loss.
1999, c. 27, s. 3
352. Section 14 of the Act is replaced by the following:
Guarantee
14. (1) The Corporation may — with the Minister of Finance’s approval and on any terms or conditions that are specified by him or her — guarantee payment of any or all of the principal or interest, or both, in respect of securities issued on the basis of housing loans. The terms and conditions may, among others, relate to the amount and price of the guarantee, the characteristics of the securities to be guaranteed and the manner in which the securities are to be issued.
Regulations — Governor in Council
(2) The Governor in Council may, on the Minister of Finance’s recommendation, make regulations respecting the characteristics of those who may issue or sell the securities.
Regulations — Minister of Finance
(3) The Minister of Finance may make regulations respecting the characteristics of the housing loans.
Compensation
(4) The Minister of Finance may fix a fee to be paid by the Corporation to the Receiver General to compensate Her Majesty for Her exposure to the risks arising from a guarantee referred to in subsection (1). That Minister shall notify the Corporation in writing of the fee.
353. The Act is amended by adding the following after section 14:
Prohibition
14.1 It is prohibited for the Corporation to guarantee payment of any or all of the principal or interest, or both, in respect of a covered bond as defined in section 21.5.
1999, c. 27, s. 3
354. Section 15 of the Act is replaced by the following:
Maximum total
15. (1) Despite anything in this Act other than subsection (2), the total of the outstanding guaranteed amounts of principal for all issues of securities in respect of which guarantees that have been given under section 14 are in force may not exceed the total amount provided for in section 11.
Maximum total — other Acts
(2) The total of the outstanding guaranteed amounts of principal may not exceed the amount authorized by Parliament under an appropriation Act or other Act of Parliament.
355. The portion of section 19 of the Act before paragraph (a) is replaced by the following:
Terms and conditions
19. Subject to any regulations made under this Part, the Corporation may
356. The Act is amended by adding the following after section 21.4:
PART I.1
COVERED BONDS
Definitions
Definitions
21.5 The following definitions apply in this Part.
“affiliate”
« groupe »
“affiliate” means an affiliate as defined in section 2 of the Bank Act.
“covered bond”
« obligation sécurisée »
“covered bond” means, except in paragraph 21.53(b), a debt obligation in relation to which the principal and interest owing are guaranteed to be paid from the loans or other assets held by a guarantor entity.
“covered bond collateral”
« garantie d’obligations sécurisées »
“covered bond collateral” means the loans or other assets that secure the payment of principal, interest and any other amounts owing in relation to the covered bonds that are issued under a registered program.
“derivatives agreement”
« contrat dérivé »
“derivatives agreement” means a financial agreement whose obligations are derived from, referenced to, or based on, one or more underlying reference items.
“guarantor entity”
« societé garante »
“guarantor entity” means an entity that is created and organized for the principal purpose of holding loans or other assets as the covered bond collateral for a registered program with the intention of legally isolating those loans or other assets from the registered issuer.
“registered issuer”
« émetteur inscrit »
“registered issuer” means an institution that is registered in the registry under section 21.53.
“registered program”
« programme inscrit »
“registered program” means a program that is registered in the registry under section 21.55.
“registry”
« registre »
“registry” means the registry established under section 21.51.
Establishment of Legal Framework
Registry
21.51 (1) The Corporation must establish and maintain a registry containing
(a) the names and business addresses of registered issuers;
(b) a list of registered programs and information relating to those programs, including the name of each essential service provider to the guarantor entity;
(c) a list of registered issuers whose right to issue covered bonds is suspended under subsection 21.62(1) and the reasons for the suspension;
(d) any other information that, in the Corporation’s opinion, is necessary; and
(e) any prescribed information.
Accessible to public
(2) The Corporation must make the registry accessible to the public through the Internet and by any other means that it considers appropriate.
Application for registration of issuers
21.52 (1) Any of the following institutions may apply for registration as a registered issuer:
(a) a federal financial institution as defined in section 2 of the Bank Act; and
(b) a cooperative credit society that is incorporated and regulated by or under an Act of the legislature of a province.
Requirements
(2) The applicant must provide the Corporation, in the time, manner and form required by the Corporation, with the required fees and any information that, in the Corporation’s opinion, is required for the purposes of the registration.
Registration of issuers
21.53 The Corporation may register an institution in the registry if
(a) in the Corporation’s opinion, all of the requirements under this Part have been met; and
(b) the institution gives an undertaking to not issue any debt obligation that is commonly known as a covered bond except under a registered program.
Application for registration of program
21.54 (1) A registered issuer may apply for registration of a program under which covered bonds are to be issued.
Requirements
(2) The registered issuer must provide the Corporation, in the time, manner and form required by the Corporation, with the required fees and the information referred to in subsection (3).
Contents of program
(3) An application must contain a complete description of the program, including the following information:
(a) the name of the entity that will act as the guarantor entity and the type of entity;
(b) a description of the loans or other assets to be held as the covered bond collateral and their value;
(c) the minimum and maximum ratio required under the program of the value of the covered bonds to be issued to the value of the loans or other assets to be held as covered bond collateral;
(d) a description of the contractual relationships between the registered issuer and the entity that will act as the guarantor entity;
(e) the names of all essential service provid-ers to the entity that will act as the guarantor entity, a description of the services to be provided and, if a registered issuer or one of its affiliates is acting as a service provider, the circumstances in which it must be replaced;
(f) the names of any parties to a derivatives agreement with the entity that will act as the guarantor entity; and
(g) any other information that, in the Corporation’s opinion, is required.
Registration of programs
21.55 The Corporation may register the program in the registry if, in the Corporation’s opinion, all of the requirements under this Part have been met.
Application — issuer or program
21.56 (1) The Corporation must notify the applicant in writing of its decision with respect to the application to register the applicant or the program.
Withdrawal of application
(2) An applicant may withdraw the application for registration by so notifying the Corporation in writing at any time before the day on which the applicant receives notice of the Corporation’s decision.
Deregistration of program
21.57 (1) The Corporation may deregister a registered program on the request of the registered issuer only if there are no covered bonds outstanding under the program.
Deregistration of issuer
(2) The Corporation may deregister a registered issuer on the request of the issuer only if the issuer has no registered programs.
Conditions and restrictions
21.58 The Corporation may, at any time, establish conditions or restrictions applicable to registered issuers and registered programs.
Fees
21.59 (1) The Corporation may establish fees for registration applications under subsection 21.52(1) and subsection 21.54(1) as well as other fees to be paid by registered issuers.
Limitation
(2) The fees must be established, in accord-ance with any regulations, to be commensurate with the costs incurred by the Corporation in exercising its powers and performing its duties and functions under this Part.
Eligible assets
21.6 (1) Only the following assets may be held as covered bond collateral:
(a) loans made on the security of residential property that is located in Canada and consists of not more than four residential units; or
(b) any prescribed assets.
Substitute assets
(2) Despite subsection (1), covered bond collateral may include securities that are issued by the Government of Canada and any prescribed assets.
Maximum ratio
(3) Unless regulations have been made under paragraph 21.66(g), the value of the assets described in subsection (2) must not exceed 10 per cent of the total value of the loans or other assets held as covered bond collateral.
Exceptions
(4) Despite subsections (1) and (2), the following loans must not be held as covered bond collateral:
(a) a loan made on the security of residential property if the loan is insured by the Corporation;
(b) a loan made on the security of residential property if the loan is insured by the Canada Guaranty Mortgage Insurance Company, the Genworth Financial Mortgage Insurance Company Canada, the PMI Mortgage Insurance Company Canada or any successor to any of those companies; and
(c) a loan made on the security of residential property if the amount of the loan, together with the amount then outstanding of any mortgage or hypothecary loan having an equal or prior claim against the property, exceeds 80 per cent of the value of the property at the time of the loan.
Confidentiality
21.61 (1) Subject to any other provision of this Part or Part I, any information that is collected by the Corporation under this Part is confidential and must be treated accordingly.
Use of information
(2) Information that is collected by the Corporation under this Part must be used by the Corporation only for the purpose for which it is collected.
Suspension
21.62 (1) The Corporation may suspend the right of a registered issuer to issue further covered bonds under a registered program.
Notice
(2) In the case where the Corporation decides to suspend that right, it must provide the registered issuer with a written notice of and the reasons for the intended suspension, no later than 30 days before the day on which the suspension is to take effect.
Copies to regulator
(3) The Corporation must provide a copy of the notice and reasons to,
(a) in the case of a federal financial institution as defined in section 2 of the Bank Act, the Superintendent of Financial Institutions appointed under subsection 5(1) of the Office of the Superintendent of Financial Institutions Act; and
(b) in the case of a cooperative credit society incorporated and regulated by or under an Act of the legislature of a province, the body that regulates that society.
Revoking suspension
(4) The Corporation may revoke a suspension and, in that case, must provide the registered issuer with written notice of the revocation of the suspension.
Bankruptcy and Insolvency Protection
Covered bonds
21.63 Nothing in any law of Canada or a province relating to bankruptcy or insolvency, or any order of a court made in relation to a reorganization, arrangement or receivership involving bankruptcy or insolvency, prevents or prohibits the following actions from being taken in accordance with the provisions of contracts relating to covered bonds that are issued under a registered program:
(a) the making of any payments, including a payment to a registered issuer;
(b) the netting or setting off or compensation of obligations;
(c) any dealing with covered bond collateral, including
(i) the sale or foreclosure or, in Quebec, the surrender of covered bond collateral, and
(ii) the setting off or compensation of covered bond collateral or the application of the proceeds or value of covered bond collateral; and
(d) the termination of those contracts.
Transfer not voidable and not subject to remedies
21.64 Despite anything in any law of Canada or a province relating to bankruptcy or insolvency, or any order of a court made in relation to a reorganization, arrangement or receivership involving bankruptcy or insolvency, the transfer of loans or other assets to a guarantor entity — to be held as covered bond collateral — by a registered issuer, any of its affiliates or any prescribed entity
(a) is effective against every person;
(b) is not voidable or, in Quebec, annullable;
(c) is not subject to any other remedies available to creditors of the registered issuer; and
(d) does not constitute a fraudulent conveyance, unjust preference or other reviewable transaction.
Non-application
21.65 Sections 21.63 and 21.64 do not apply to contracts relating to covered bonds that are issued under a registered program, nor to the transfer of loans or other assets to a guarantor entity to be held as covered bond collateral for those covered bonds, if those covered bonds are issued by a registered issuer during the period in which its right to issue covered bonds has been suspended under section 21.62.
Regulations
Regulations
21.66 The Minister of Finance may make regulations for carrying out the purposes and provisions of this Part, including regulations
(a) excluding, from the definition “covered bond”, certain debt obligations;
(b) excluding, from the definition “covered bond collateral”, certain payments from the guarantor entity to the registered issuer;
(c) establishing requirements that an institution, or a program under which covered bonds are to be issued, must meet to be registered in the registry;
(d) respecting applications made under section 21.52 or 21.54;
(e) respecting cost recovery for the purposes of section 21.59;
(f) establishing additional requirements with respect to the loans referred to in paragraph 21.6(1)(a);
(g) respecting the circumstances in which guarantor entities may hold the assets described in subsection 21.6(2) and, according to each circumstance, the maximum ratio of the value of those assets relative to the total value of the loans or other assets being held as covered bond collateral; and
(h) prescribing anything that is to be prescribed under this Part.
2011, c. 15
Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act
357. Section 23 of the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act is amended by replacing the subsection 8.1(1) that it enacts with the following:
Regulations — Minister of Finance
8.1 (1) The Minister of Finance may, after consulting the Governor of the Bank of Canada and the Superintendent, make regulations respecting classes of housing loans and the criteria to be met by loans in each of those classes in order for the Corporation to be able to provide insurance against risks relating to those loans.
358. Section 24 of the Act is amended by replacing the section 21.1 that it enacts with the following:
Obligation to retain information, books and records
21.1 (1) The Corporation shall keep and retain books and records, and retain information, in respect of its activities under this Part and Part I.1, including any books, records or information that are prescribed by regulation.
Obligation to provide information or copies
(2) At the request of the Minister of Finance, the Corporation shall, without delay, provide that Minister with any information or copies of any books or records that it is required to retain.
Power to disclose
(3) The Minister of Finance may disclose to the Superintendent, the Governor of the Bank of Canada, the Chairperson of the Canada Deposit Insurance Corporation and the Commissioner of the Financial Consumer Agency of Canada any information or copies of any books or records received under subsection (2).
Public information
(4) The Corporation shall make available to the public the books, records and information that are prescribed by regulation.
Regulations
(5) The Governor in Council may, on the Minister of Finance’s recommendation, make regulations respecting the manner in which books and records are to be kept and retained, the manner in which information is to be retained and the manner in which books, records and information are to be made available to the public.
Examination or inquiry
21.2 (1) The Superintendent, from time to time but at least once in each calendar year, shall make or cause to be made any examination or inquiry that the Superintendent considers to be necessary or expedient to determine whether the Corporation is carrying on any or all of its activities under this Part and Part I.1 in a safe and sound manner, including whether it is carrying on those activities with due regard to its exposure to loss.
Access to records
(2) For the purposes of the examination or inquiry, the Superintendent or a person acting under his or her direction
(a) has a right of access to any books or records that are held by or on behalf of the Corporation in respect of its activities; and
(b) may require the Corporation’s directors, officers and auditors to provide information and explanations to the Superintendent, to the extent that they are reasonably able to do so, in respect of the Corporation’s activities.
Report to Corporation and Ministers
(3) The Superintendent shall report the results of the examination or inquiry, including any recommendations, to
(a) the Corporation’s board of directors; and
(b) the Minister and the Minister of Finance.
Proposal in corporate plan
(4) The Corporation’s corporate plan that is required under section 122 of the Financial Administration Act must contain a proposal indicating how the Corporation will address the recommendations.
Obligation to provide information or copies
(5) At the request of the Superintendent, the Corporation shall, without delay, provide him or her with any information or copies of any books or records that it is required to retain in respect of its activities under this Part and Part I.1.
Confidentiality
(6) Subject to any other provision of this Act, all information in respect of the Corporation’s activities under this Part and Part I.1, including regarding a person dealing with the Corporation, that is obtained by the Superintendent or a person acting under his or her direction is confidential and shall be treated accordingly.
Power to disclose
(7) The Superintendent may disclose any information or copies of any books or records that are received under this Part or Part I.1 to
(a) the Minister and the Minister of Finance;
(b) the Governor of the Bank of Canada;
(c) the Chairperson of the Canada Deposit Insurance Corporation; and
(d) the Commissioner of the Financial Consumer Agency of Canada.
Superintendent to ascertain expenses
21.3 (1) The Superintendent shall, before December 31 in each year, ascertain the total amount of expenses incurred during the preceding fiscal year in connection with the administration of section 21.2.
Obligation to pay
(2) The Corporation shall pay the amount within 30 days after the day on which the Superintendent notifies it in writing of the amount.
Fiscal year
(3) For the purpose of subsection (1), the fiscal year is the period beginning on April 1 in one year and ending on March 31 in the next year.
Regulations
21.4 The Governor in Council may, on the Minister of Finance’s recommendation, make regulations respecting the Corporation’s activities under this Part, including regulations
(a) respecting the conditions and limitations to which those activities are subject;
(b) respecting the terms and conditions on which and manner in which the Corporation may exercise its powers under this Part; and
(c) prescribing anything that is to be prescribed by this Part.
Coming into force
359. Despite section 26 of the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act, sections 22 to 24 of that Act come into force on the day on which this Act receives royal assent.
R.S., c. C-7
Canada Mortgage and Housing Corporation Act
1999, c. 27, s. 25(1); 2006, c. 9, par. 233(a)(E)
360. Subsection 6(1) of the Canada Mortgage and Housing Corporation Act is replaced by the following:
Board of Directors
6. (1) The Board of Directors shall consist of
(a) the Chairperson;
(b) the President;
(c) the Minister’s Deputy Minister;
(d) the Deputy Minister of Finance; and
(e) eight other directors.
Exception
(1.1) Subsections (4) to (6) do not apply to the directors referred to in paragraphs (1)(c) and (d).
Alternate director
(1.2) A director referred to in paragraph (1)(c) or (d) may designate an alternate to attend in the director’s absence at any meeting of the Board of Directors.
1991, c. 45
Trust and Loan Companies Act
361. The Trust and Loan Companies Act is amended by adding the following after section 415:
Prohibition
415.1 (1) It is prohibited for a company to issue a debt obligation in relation to which the amounts of principal and interest owing are guaranteed to be paid from loans or other assets held by an entity that is created and organized for the principal purpose of holding those loans or other assets and with the intention of legally isolating those loans or other assets from the company, unless
(a) the debt obligation is a covered bond as defined in section 21.5 of the National Housing Act;
(b) the company is a registered issuer as defined in section 21.5 of that Act other than one whose right to issue covered bonds has been suspended; and
(c) the debt obligation is issued under a registered program as defined in section 21.5 of that Act.
Exception
(2) The Governor in Council may make regulations exempting any type of debt obligation from the application of subsection (1).
1991, c. 46
Bank Act
362. The Bank Act is amended by adding the following after section 415:
Prohibition
415.1 (1) It is prohibited for a bank to issue a debt obligation in relation to which the amounts of principal and interest owing are guaranteed to be paid from loans or other assets held by an entity that is created and organized for the principal purpose of holding those loans or other assets and with the intention of legally isolating those loans or other assets from the bank, unless
(a) the debt obligation is a covered bond as defined in section 21.5 of the National Housing Act;
(b) the bank is a registered issuer as defined in section 21.5 of that Act other than one whose right to issue covered bonds has been suspended; and
(c) the debt obligation is issued under a registered program as defined in section 21.5 of that Act.
Exception
(2) The Governor in Council may make regulations exempting any type of debt obligation from the application of subsection (1).
1991, c. 47
Insurance Companies Act
363. The Insurance Companies Act is amended by adding the following after section 468:
Prohibition
468.1 (1) It is prohibited for a company to issue a debt obligation in relation to which the amounts of principal and interest owing are guaranteed to be paid from loans or other assets held by an entity that is created and organized for the principal purpose of holding those loans or other assets and with the intention of legally isolating those loans or other assets from the company, unless
(a) the debt obligation is a covered bond as defined in section 21.5 of the National Housing Act;
(b) the company is a registered issuer as defined in section 21.5 of that Act other than one whose right to issue covered bonds has been suspended; and
(c) the debt obligation is issued under a registered program as defined in section 21.5 of that Act.
Exception
(2) The Governor in Council may make regulations exempting any type of debt obligation from the application of subsection (1).