Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)

• 181 (1) The portion of subsection 39.18(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Termination

  • 39.18 (1) Subject to subsection (2), sections 39.14 and 39.15 cease to apply in respect of a federal member institution

• (2) The portion of subsection 39.18(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Exceptions

    (2) If a notice referred to in paragraph (1)(a) has been published but an order described in paragraph (1)(b) has not been made,

• (3) Paragraph 39.18(2)(b) of the Act is replaced by the following:

  • (b) subsections 39.15(7.1) to (7.3) continue to apply.

1996, c. 6, Sch.Consequential Amendments to the Payment Clearing and Settlement Act

182 Paragraph 8(3.1)(a) of the Payment Clearing and Settlement Act is replaced by the following:

183 Subsection 13(1.2) of the Act is replaced by the following:

184 Subsection 13.1(1.1) of the Act is replaced by the following:

DIVISION 5R.S., c. B-2Bank of Canada Act

Amendment to the Act

185 Paragraph 18(h) of the Bank of Canada Act is replaced by the following:

R.S., c. C-3Related Amendments to the Canada Deposit Insurance Corporation Act

• 186 (1) The portion of subsection 39.15(6) of the Canada Deposit Insurance Corporation Act before paragraph (a) is replaced by the following:

  • Marginal note:Security agreements, assignments and transfers

    (6) Paragraphs (1)(b) to (e) and subsection (2) do not apply in respect of a remedy under, or a stipulation of, a security agreement creating a security interest in assets of a federal member institution or an agreement assigning or transferring the institution’s right, title or interest in any real property or immovable situated in Canada, including any mortgage or hypothec on that real property or immovable, if

• (2) Paragraph 39.15(6)(a) of the English version of the Act is replaced by the following:

  • (a) an obligation secured by the agreement is to the Bank of Canada or the Corporation; or

• (3) The portion of paragraph 39.15(6)(b) of the English version of the Act before subparagraph (i) is replaced by the following:

  • (b) the Superintendent, on the application of the federal member institution, exempted the agreement from the application of those paragraphs and that subsection before the making of an order under subsection 39.13(1) and the Corporation does not undertake

• (4) Subparagraphs 39.15(6)(b)(i) and (ii) of the Act are replaced by the following:

  • (i) to ensure that the obligations secured by the security interest or the assignment or transfer will be assumed by a bridge institution or a third party, or

  • (ii) to provide the federal member institution with the financial assistance that it needs to discharge the obligations secured by the security interest or the assignment or transfer as they become due.

Coordinating Amendment

Marginal note:2014, c. 39, s. 266

187 On the first day on which both section 266 of the Economic Action Plan 2014 Act, No. 2 and section 185 of this Act are in force, paragraph 18(h) of the Bank of Canada Act is replaced by the following:

DIVISION 61996, c. 6, Sch.Payment Clearing and Settlement Act

188 The definition participant in section 2 of the Payment Clearing and Settlement Act is replaced by the following:

• 189 (1) Subsection 6(1) of the Act is replaced by the following:

  Marginal note:Directive to clearing house

  • 6 (1) The Governor of the Bank may issue a directive in writing to a clearing house of a designated clearing and settlement system that requires the clearing house, within any period that may be specified in the directive, to take  — and to have the participants take — any corrective measures that the Governor considers necessary, if the Governor is of the opinion that systemic risk or payments system risk could be inadequately controlled because of

    • (a) the design or operation of the clearing and settlement system;

    • (b) the ownership or control of the clearing and settlement system;

    • (c) aspects of organizational structure or corporate governance of the clearing house that are related to risk management;

    • (d) the management or operation of the clearing house; or

    • (e) actual or anticipated acts or omissions of the clearing house or of a participant.

• (2) The portion of subsection 6(2) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Directive to participants

  (2) The Governor of the Bank may issue a directive in writing to a participant that requires the participant, within any period that may be specified in the directive, to take any corrective measures that the Governor considers necessary if the Governor has formed an opinion referred to in subsection (1) that systemic risk or payments system risk could be inadequately controlled and

• (3) Paragraph 6(2)(c) of the Act is replaced by the following:

  • (c) in the opinion of the Governor,

    • (i) the risk could be inadequately controlled because of an actual or anticipated act or omission by a participant, and

    • (ii) the actual or anticipated act or omission is not subject to the by-laws, agreements, rules, procedures, guides or other documentation governing the designated clearing and settlement system.

• (4) Section 6 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Factors to be taken into account

    (2.1) In determining the corrective measures that are necessary, the Governor of the Bank shall take into account the nature, severity and imminence of the risk and any other risk-related factors that the Governor considers appropriate.