Short title

        1. This Act may be cited as the Trust and Loan Corporations Licensing Act.

1974 No120 s1; 1996 cR-10.1 s74

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Definitions

        2. In this Act

             (a)  "bank" means a bank listed in Schedule I or II of the Bank Act (Canada );

             (b)  "bank mortgage subsidiary" means a wholly-owned subsidiary of a bank that receives deposits that are guaranteed by the bank whose investments in mortgages equal at least 85% of its deposits;

          (b.1)  "corporation" means a trust corporation or a loan corporation incorporated under the laws of a province of Canada or the Parliament of Canada;

          (b.2)  "loan corporation" means a corporation, association or society incorporated or operated for the purpose of borrowing money from the public by receiving deposits and lending or investing that money, but does not include a bank, a bank mortgage subsidiary, an insurance corporation, a trust corporation incorporated under the laws of Canada, or a credit union incorporated or continued under the Credit Union Act, or an issuer registered under the Investment Contracts Act;

             (c)  "minister" means the minister appointed under the Executive Council Act to administer this Act;

             (d)  "superintendent" means

                      (i)  the Superintendent of Insurance of the province, or

                     (ii)  where an agreement is made under subsection 12(2), the Superintendent of Insurance of Canada; and

             (e)  "trust corporation" means a corporation incorporated or operated under the laws of a province of Canada for the purpose of offering its services to the public to act as a trustee, bailee, agent, executor, administrator, receiver, liquidator, assignee, guardian of a minor's estate, or committee of a mentally disabled person's estate, and, in addition to one or more of the preceding purposes, for the purpose of receiving deposits from the public and of lending or investing those deposits.

1974 No120 s2; 1981 c4 Sch C; 1984 c41 Sch C; 1989 c19 Sch B; 1996 cR-10.1 s74; 1998 c6 s26; 2006 c40 s21

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Licence

        3. (1) A corporation shall not carry on business in the province unless it holds a valid and existing licence issued under this Act.

             A licence remains in effect, subject to the filing of annual reports and payment of an annual fee as prescribed by the minister, until it is suspended, revoked or cancelled under this Act.

             (3)  The minister may cancel a licence issued under this Act or may issue a licence for a period the minister considers appropriate.

1974 No120 s3; 1996 c35 s59

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Application for licence

        4. An application for a licence shall be made to the minister upon the prescribed form and shall be delivered to the superintendent accompanied by

             (a)  the prescribed fee;

             (b)  a statement showing the condition and affairs of the corporation as of the end of its immediately preceding financial year or as of another day that the superintendent may require; and

             (c)  other information or material that may be required by the superintendent.

1974 No120 s4; 1996 c35 s60

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Licence not to be granted

        5. A licence shall not be granted to a corporation where the unimpaired paid-up capital and surplus of the corporation is less than $1,000,000.

1974 No120 s5

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Ministerial discretion

        6. (1) Upon the report of the superintendent the minister may

             (a)  grant a licence where in the minister's opinion the applicant is suitable to be licensed and the proposed licensing is not objectionable; or

             (b)  refuse to grant a licence where, after an investigation that the minister considers expedient, in his or her opinion the applicant is not suitable to be licensed or the proposed licensing is objectionable.

             (2)  Where a corporation makes an application to the minister for a licence and the application is refused by the minister, the corporation may appeal to the Lieutenant-Governor in Council against the decision of the minister and, after an investigation or hearing where the Lieutenant-Governor in Council considers one necessary, the Lieutenant-Governor in Council shall decide the appeal and that decision is final.

1974 No120 s6; 1996 c35 s61

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Terms and conditions

        7. (1) A licence granted under section 6 shall be granted subject to those terms, conditions and restrictions that the minister may prescribe in respect of the licence and different terms, conditions and restrictions may be prescribed in respect of the different kinds of licences and in respect of different licences of the same kind.

             (2)  By written notice to the licensee the minister may add to, alter or remove a term, condition or restriction prescribed in respect of a licence.

1974 No120 s7; 1996 c35 s62

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Suspension or cancellation

        8. (1) The minister may suspend or cancel a licence where the minister is satisfied that the licensee

             (a)  has failed to comply with a term, condition or restriction prescribed in respect of the licence; or

             (b)  has insufficient assets to justify its continuing in business or to provide proper security to persons from whom it takes deposits or borrows money in the conduct of its business.

             (2)  The minister may reinstate a licence suspended under subsection (1) where the reason for the suspension has been rectified to his or her satisfaction.

1974 No120 s8

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Further information

        9. The superintendent may require further information or material to be submitted, within a time specified by the superintendent, by an applicant for a licence or by a licensee and may require verification by affidavit or otherwise of information or material so submitted or previously submitted.

1974 No120 s9; 1996 c35 s63

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Annual statement

      10. (1) A corporation licensed under this Act shall prepare annually and deliver to the superintendent within 60 days of the end of the corporation's financial year a statement of the condition and affairs of the corporation showing the assets and liabilities of the corporation as at the end of the financial year and its revenue and expenditure during the financial year together with the other information that the superintendent may require.

             (2)  The statement required under subsection (1) shall be in the form that the superintendent prescribes and shall be verified by affidavit or otherwise as the superintendent requires.

1974 No120 s10

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Insurance required

      11. (1) A corporation shall not accept deposits, within the meaning of the Canada Deposit Insurance Corporation Act (Canada ), unless it is insured under a policy of deposit insurance issued by the Canada Deposit Insurance Corporation.

             (2)  Within 48 hours of receiving notice of cancellation or suspension of its policy of deposit insurance, a corporation carrying on business within the province shall give notice by registered mail to the minister of the cancellation or suspension.

             (3)  The minister upon receiving notice of suspension or cancellation of a policy of deposit insurance under subsection (2) may appoint, with the approval of the Lieutenant-Governor in Council, an inspector or auditor to examine and audit the books of the corporation receiving notice of suspension or cancellation of its policy of deposit insurance, and that corporation and its officers shall give the inspector or auditor reasonable facilities for inspecting those books.

             (4)  A certificate issued by an insurer certifying a policy of deposit insurance shall require the insurer to give 60 days notice of suspension or cancellation of that policy holder.

1974 No120 s11

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Superintendent

      12. (1) The Superintendent of Insurance of the province shall administer the operation of this Act.

             (2)  The minister, with the approval of the Lieutenant-Governor in Council, may enter into agreements with the Government of Canada under which, upon the terms or conditions contained in them, the Superintendent of Insurance of Canada may perform the duties imposed on the superintendent by this Act.

1974 No120 s12; 1979 c51 s32

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Rep. by 1996 cR-10.1 s74

      13. [Rep. by 1996 cR-10.1 s74]

1996 cR-10.1 s74

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Rep. by 1996 cR-10.1 s74

      14. [Rep. by 1996 cR-10.1 s74]

1996 cR-10.1 s74

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Rep. by 1996 cR-10.1 s74

      15. [Rep. by 1996 cR-10.1 s74]

1996 cR-10.1 s74

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Offence

      16. A corporation carrying on business within the province that

             (a)  accepts deposits contrary to subsection 11(1); or

             (b)  contravenes another provision of this Act or the regulations

is guilty of an offence and liable on summary conviction to a fine of $2,000.

1974 No120 s16

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Continuing offence

      17. The conviction of a corporation under section 15 or 16 does not operate as a bar to further prosecution for the continued neglect or failure on its part to comply with this Act.

1974 No120 s17

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Regulations

      18. The Lieutenant-Governor in Council may make regulations

             (a)  [Rep. by 1996 cR-10.1 s74]

             (b)  [Rep. by 1996 cR-10.1 s74]

             (c)  prescribing the books, accounts and records to be kept and maintained by corporations licensed under the Act;

             (d)  providing for the holding of inquiries into the operation of this Act and into a charge or complaint that a corporation has contravened this Act or the regulations or into a matter arising in the administration of this Act, and providing that the person holding an inquiry shall have the powers that are or may be conferred upon a commissioner under the Public Inquiries Act; and

             (e)  generally, to give effect to the purpose of this Act.

1974 No120 s18; 1996 cR-10.1 s74

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Fees and forms

   18.1 The minister may set fees required by the Act to be paid and may approve forms for the purpose of this Act.

1996 cR-10.1 s74

©Earl G. Tucker, Queen's Printer