Business Development Bank of Canada Act (S.C. 1995, c. 28)

Conflict of Interest

Marginal note:Definitions

31 In section 33,

applicant

applicant means a person who applies to the Bank for assistance in the form of a loan, investment, guarantee, purchase or lease; (demandeur)

interested person

interested person means

• (a) the spouse, common-law partner within the meaning of section 2 of the Bank Act, child, brother, sister or parent of a director,

• (b) the spouse, or the common-law partner within the meaning of section 2 of the Bank Act, of a child, brother, sister or parent of a director, or

• (c) the parent, sister or brother of the spouse, or of the common-law partner within the meaning of section 2 of the Bank Act, of a director. (personne intéressée)

Marginal note:Restriction

32 The Bank shall not grant a loan, investment or guarantee to a director or officer of the Bank.

Marginal note:Disclosure

• 33 (1) An applicant must disclose in writing to the Bank whether the applicant is an interested person or, if the applicant is a firm or corporation, whether a partner of the firm or a shareholder, director or officer of the corporation is an interested person or a director or officer of the Bank.

• Marginal note:Submission of application to Board for approval

  (2) If the applicant discloses that the applicant is an interested person, or that a partner, shareholder, director or officer is an interested person or a director or an officer of the Bank, the application must be submitted to the Board for approval before the Bank enters into an agreement to provide the assistance.

• Marginal note:Director must not be at meeting or vote

  (3) A director must not be present at a meeting of the Board when the Board is considering an application, or vote on a resolution relating to it, if the applicant is

  • (a) a person related to the director as described in paragraph (a), (b) or (c) of the definition interested person in section 31; or

  • (b) a firm or corporation of which the director, or a person referred to in paragraph (a), is a partner, shareholder, director or officer.

• Marginal note:Annual report

  (4) The amount of each agreement referred to in this section and the name of the person, firm or corporation with whom the agreement is entered into must be included in the annual report that the Bank is required to submit under subsection 150(1) of the Financial Administration Act.

Miscellaneous Provisions

Marginal note:Financial year

34 Notwithstanding section 121 of the Financial Administration Act, the financial year of the Bank is the period of twelve months beginning on April 1 and ending on the next March 31, unless the Governor in Council directs otherwise.

Marginal note:Exemption from taxes

35 The Bank is exempt from taxes imposed by the Income Tax Act.

Marginal note:Ten-year review

• 36 (1) Five years after this Act comes into force, and every ten years afterward, the Designated Minister must have a review of the provisions and operation of this Act undertaken in consultation with the Minister of Finance.

• Marginal note:Report to Parliament

  (2) Within one year after the review is undertaken, the Designated Minister must submit to Parliament a report on the review.

• Marginal note:Review of report

  (3) The report must be reviewed by any committee of the Senate or of the House of Commons, or any joint committee, that may be designated or established for the purpose of reviewing the report.

Marginal note:Privileged information

• 37 (1) Subject to subsection (2), all information obtained by the Bank or by a subsidiary in relation to its customers is privileged and a director, officer, employee or agent or mandatary of, or adviser or consultant to, the Bank or a subsidiary must not knowingly communicate, disclose or make available the information, or permit it to be communicated, disclosed or made available.

• Marginal note:Authorized disclosure

  (2) Privileged information may be communicated, disclosed or made available

  • (a) for the purpose of the administration or enforcement of this Act and legal proceedings related to it;

  • (b) for the purpose of prosecuting an offence under this Act or any other Act of Parliament;

  • (c) to the Minister of National Revenue solely for the purpose of administering or enforcing the Income Tax Act or the Excise Tax Act; or

  • (d) with the written consent of the person to whom the information relates.

Marginal note:Use of Bank’s names or initials

38 Except with the consent in writing of the Bank, a person must not in any prospectus or advertisement, or for any other business purpose, use the name of the Bank or any of the following names or initials: “Federal Business Development Bank”, “Banque fédérale de développement”, “Industrial Development Bank”, “Banque d’expansion industrielle”, “B.D. Canada”, “B.D.C.”, “B.D.B.C.”, “B.F.D.” or “F.B.D.B.”.

Marginal note:Offence

39 A person who contravenes section 37 or 38 is guilty of an offence and liable on summary conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding six months, or to both.

Marginal note:Regulations

40 The Governor in Council may make regulations

• (a) defining hybrid capital instrument; and

• (b) prescribing anything that by this Act is to be prescribed.

Repeal

41 [Repeal]

Transitional Provisions

Marginal note:Continuation of Federal Business Development Bank

• 42 (1) The Bank continues for all purposes the existence of the Federal Business Development Bank established by the Federal Business Development Bank Act.

• Marginal note:Rights preserved

  (2) Without limiting the generality of subsection (1),

  • (a) the property of the Federal Business Development Bank continues to be the property of the Bank;

  • (b) the Bank continues to be liable for the obligations of the Federal Business Development Bank;

  • (c) an existing cause of action, claim or liability to prosecution relating to the Federal Business Development Bank is unaffected;

  • (d) a civil, criminal or administrative action or proceeding pending by or against the Federal Business Development Bank may be continued to be prosecuted by or against the Bank; and

  • (e) a conviction against, or ruling, order or judgment in favour of or against, the Federal Business Development Bank may be enforced by or against the Bank.

Marginal note:Capital vests in Bank

• 43 (1) The capital paid in by Canada with respect to the Federal Business Development Bank as of the coming into force of this Act is vested in the Bank as its paid-in capital and is converted into common shares of the Bank on the basis of one fully paid common share for each $100 of paid-in capital.

• Definition of capital

  (2) The capital vested in the Bank by subsection (1) includes

  • (a) amounts referred to in paragraph 28(1)(a) of the Federal Business Development Bank Act;

  • (b) amounts paid in under subsection 28(1) of that Act; and

  • (c) amounts paid in as capital by Parliamentary appropriation.

Consequential Amendments

44 to 55 [Amendments]