Bank Act

Marginal note:Effects of continuance

• 38 (1) Where a body corporate is continued as a bank under this Part,

  • (a) the property of the body corporate continues to be the property of the bank;

  • (b) the bank continues to be liable for the obligations of the body corporate;

  • (c) an existing cause of action or claim by or against the body corporate or any liability of the body corporate to prosecution is unaffected;

  • (d) a civil, criminal or administrative action or proceeding pending by or against the body corporate may continue to be prosecuted by or against the bank;

  • (e) a conviction against, or any ruling, order or judgment in favour of or against the body corporate may be enforced by or against the bank;

  • (f) a person who, on the day the body corporate becomes a bank, was the holder of a security issued by the body corporate is not deprived of any right or privilege available to the person at that time in respect of the security or relieved of any liability in respect thereof, but any such right or privilege may be exercised only in accordance with this Act; and

  • (g) the by-laws of the body corporate, except those that are in conflict with this Act, continue as the by-laws of the bank.

• Marginal note:Membership shares

  (2) In addition, if the body corporate is continued as a federal credit union,

  • (a) in the case of a body corporate with common shares,

    • (i) its common shares are deemed to be membership shares to which are attached the rights, privileges and restrictions set out in this Act,

    • (ii) the holders of those common shares are deemed to be the members of the federal credit union, and

    • (iii) any agreement made before continuance under which the holders of any common shares of the body corporate have agreed to vote those shares in a manner provided in the agreement is of no effect; and

  • (b) in the case of a body corporate that has members,

    • (i) the membership shares, however designated, of the body corporate are deemed to be membership shares of the federal credit union to which are attached the rights, privileges and restrictions set out in this Act,

    • (ii) the members of the body corporate are deemed to be the members of the federal credit union, and

    • (iii) any agreement made before continuance under which the members of the body corporate have agreed to vote in a manner provided in the agreement is of no effect.