Walter Edwin Lear Canada.

Banks and banking in Canada: chaps. 29-33, R.S.C., followed by annotations ... online

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facture.

4. Any such security, as mentioned in the foregoing provi-
sions of this section, may be given by the owner of said goods,
wares and merchandise, stock or products.

5. The security may be taken in the form set forth in
schedule C to this Act, or to the like effect.

6. The bank shall, by virtue of such security, acquire the
same rights and powers in respect to the goods, wares and
merchandise, stock or products covered thereby, as if it had
acquired the same by virtue of a warehouse receipt. 53 V.,
c. 31, s. 74; 63-64 V., a 26, s. 17-



As to goods
manufac-
tured from
articles
pledged.



Prior claim
of bank over
unpaid
vendor.



Proviso.



Sale of goods
on non-pay-
ment of debt.



Proviso.



Notice.



89# If goods, wares and merchandise are manufactured or
produced from the goods, wares and merchandise, or any of
them, included in or covered by any warehouse receipt, or
included in or covered by any security given under the last
preceding section, while so covered, the bank holding such
warehouse receipt or security shall hold or continue to hold
such goods, wares and merdiandise, during the process and
after the completion of such manufacture or production, with
the same right and title, and for the same purposes and upon
the same conditions, as it held or could have held the original
goods, wares and merchandise.

2. All advances made on the security of any bill of lading
or warehouse receipt, or of any security given under the last
preceding section, shall give to the bank making the advances
a claim for the repayment of the advances on the goods, wares
and merchandise therein mentioned, or into which they ha^^a
been converted, prior to and by preference over the claim of
any unpaid vendor: Provided that such preference shall not
be given over the claim of any unpaid vendor who had a lien
upon the goods, wares and merchandise at the time of the
acquisition by the bank of such warehouse receipt, bill of lading,
or security, unless the same was acquired without knowledge on
the part of the bank of such lien.

3. In the event of the non-payment at maturity of any debt
or liability secured by a warehouse receipt or bill of lading, or
secured by any security given under the last preceding section,
the bank may sell the goods, wares and merchandise mentioned
therein, or so much thereof as will suffice to pay such debt or
liability with interest and expenses, returning the surplus, if
any, to the person from whom the warehouse receipt, bill of
lading, or security, or the goods, wares and merchandise men-
tioned therein, as the case may be, were acquired: Provided
that such power of sale shall be exercised subject to the following
provisions, namely: —

(a) No sale, without the consent in writing of the owner of
any timber, boards, deals, staves, saw-logs or other lumber,

356 shall



RS., 1906.



Digitized by



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Banks. Chap. 29. 31

Bhall be made under this Act until notice of the time and
place of such sale has been given by a registered letter,
mailed in the post office, post paid, to the last known
addrew of the pledger thereof, at least thirty days prior to
the sale thereof;

(h) No goods, wares and merchandise, other than timber. Idem,
boards, deals, staves, saw-logs or other lumber, shall be sold
by the bank under this Act without the consent of the
owner,' until notice of the time and place of sale has been
given by a registered letter, mailed in the post office, post
paid, to the last known address of the pledger thereof, at
least ten days prior to the sale thereof;

(c) Every sale, under such power of sale, without the con- Sale by
sent of the owner, shall be made by public auction, after a^c^io^-
notice thereof by advertisement, in at least two newspapers
published in or nearest to the place where the sale is to be
made, stating the time and place thereof; and, if the sale
is in the province of Quebec, then at least one of such news-
papers shall be a newspaper published in the English lan-
guagtB, and one other such newspaper shall be a newspaper
published in the French language. 53 V., c. 33, ss. 76, 77
and 78; 63-64 V., c. 26, s. 19.

90. The bank shall not acquire or hold any warehouse re- Conditions
oeipt or bill of lading, or any such security as aforesaid, to }^^^ ^^^»ch
secure the payment of any bill, note, debt, or liability, unless take

such bill, note, debt or liability is negotiated or contracted, — security.

(a) at the time of the acquisition thereof by the bank ; or,

(b) upon the written promise or agreement that such ware-
house receipt or bill of lading or security would be given
to the bank :

Provided that such bill, note, debt, or liability may be renewed, Provlao.

or the time for the payment thereof extended, without affecting

any such security.
2. The bank may, —

(a) on shipment of any goods, wares and merchandise for Exchanging
which it holds a warehouse receipt, or any such security ^^ ware|iou8e
as aforesaid, surrender such receipt or security and receive bill of lading
a bill of lading in exchange therefor ; or, ^rsa^^

(h) on the receipt^of any goods, wares and merchandise for
which it holds a bill of lading, or any such security as
aforesaid, surrender such bill of lading or security, store
the goods, wares and merchandise, and take a warehouse
receipt therefor, or ship the goods, wares and merchandise,
or part of them, and take another bill of lading therefor.
53 v., c. 31, s. 75 ; 63-64 V., c. 26, s. 18.

91. The bank may stipulate for, take, reserve or exact any interest at
rate of interest or discount, not exceeding seven per centum per ^^^^1°*^™
annum, and mgy receive and take in advance, any such rate, charged.

357 but

E»S., lOOG

Digitized by VrrOOQlC



Chap.. 29.



Banks.



Any rate
mny be
allowed.

Percentage
chargeable
for collec-
tion.



Agency
charges.



Deposits may
be received
from persons
unable to
contract.



Payments
by consent.



Deposit
limited.



but no higher rate of interest shall be recoverable by the bank.
63 v., c. 31, 8. 80.

92. The bank may allow any rate of interest whatever upon
money deposited with it. 63 V., c. 31, s. 80.

93. \Mien any note, bill, or other negotiable security or
paper, payable at any of the bank's places or seats of business,
branches, agencies or offices of discount and deposit in Canada,
is discounted at any other of the bank's places or seats of busi-
ness, branches, agencies or offices of discount and deposit, the
bank may, in order to defray the expenses attending the collec-
tion thereof, receive or retain, in addition to the discount there-
on, a percentage calculated upon the amount of such note, bill,
or other negotiable security or paper, not exceeding, if tile note,
bill, or other negotiable security or paper is to run, —

(a) for less than thirty days, one-eighth of one per centum ;

(b) for thirty days or over but less than sixty days, one-
fourth of one per centmn ;

(c) for sixty days or over but less than ninety days, three-
eighths of one per centum ; and,

(d) for ninety days or over, one-half of one per centum.
63 v., c. 31, 8. 82.

94. The bank may, in discounting any note, bill or other
negotiable security or paper, bona fide payable at any place in
Canada, other than that at which it is discounted, and other
than one of its own places or seats of business, branches, agen-
cies or offices of discount and depDsit in Canada, receive and
retain, in addition to the discount thereon, a sum not exceeding
one-half of one per centimi on the amount thereof, to defray the
expenses of agency and charges in collecting the same. 63 V.,
c. 31, s. 83.

95« The bank may, subject to the provisions of this section,
without the authority, aid, assistance or intervention of any
other person or official being required, —

(a) receive deposits from any person whomsoever, whatever
his age, status or condition in life, and whether such per-
son is qualified by law to enter into ordinary contracts or
not; and,

(b) from time to time repay any or all of the principal
thereof, and pay the whole or any part of the interest there-
on to such person, unless before such repayment the money
so deposited in lie bank is lawfully claimed as the pro-
perty of some other person.

2. In the case of any such lawful claim the money so de-
posited may be paid to the depositor with the consent of the
claimant, or to the claimant with the consent of the depositor.

3. If the person making any such deposit could not, under
the law of the province where the deposit is made, deposit and

358 withdraw



K.S., 1906.



Digitized by



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Banks. Chap. 29. 33

withdraw money in and from a bank without this section, the
total amount to be received from such person on deposit shall
not, at any time, exceed the sum of five hundred dollars. 53 V., $500.
c. 31, s. 84.

96« The bank shall not be bound to see to the execution Bank not
of any trust, whether expressed, implied or constructive, to ^"J^usts in^
which any deposit made under the authority of this Act is deposits,
subject.

2. Except only in the case of a lawful claim, by some other
person before repayment, the receipt of the person in whose Receipt of
name any such deposit stands, or, if it stands in the names of ?^nt^^^^^
two persons, the receipt of one, or, if it stands in the names of positora
more than two persons, the receipt of a majority of such per- "'^cient
sons, shall, notwithstanding any trust to which such deposit Or of a

is then subject, and whether or not the bank sought to be charged majority,
with such trust, and with^which the deposit has been made, had
notice thereof, be a sufficient discharge to all concerned for
the payment of any money payable in respect of such deposit.

3. The bank shall not be bound to see to the application of Application,
the money paid upon such receipt 53 V., c. 31, s. 84.

97. If a person dies, having a deposit with the bank not If depositor
exceeding the sum of five hundred dollars, the production to no^exceed-
the bank and deposit with it of, — in« $500, how

(a) any authenticated copy of the probate of the will of the P""^^®^-
deceased depositor, or of letters of administration of his
estate, or of letters of verification of heirship, or of the act

of curatorship or tutorship, granted by any court in Canada
having power to grant the same, or by any court or
authority in England, Wales, Ireland, or any British
colony, or of any testament, testamentary or testament
dative expede in Scotland; or,

(b) an authentic notarial copy of the will of the deceased
depositor, if such will is in notarial form, according to the
law of the province of Quebec ; or,

(c) if the deceased depositor died out of His Majesty's
dominions, any authenticated copy of the probate of his
will, or letters of administration of his property, or other
document of like import, granted by any court or authority
having the requisite power in such matters;

shall be sufficient justification and authority to the directors
for paying such deposit, in pursuance of and in conformity
to such probate, letters of administration, or other document as
aforesaid. 63-64 V., c. 26, s. 20.

DOMINION GOVERNMENT CHEQUES.

98. The bank shall not charge any discount or commission To be paid
for the cashing of any official cheque of the Government of *t pap.
Canada or of any department thereof, whether drawn on the

'669 bank

^ ^...S.,J906^

Digitized by '



ai



Chap. 29.



Banks,



bank cashing the cheque or on any other bank. 53 V., c. 31,
8. 103.



TUB PUSCHASB OF TRS ABBETQ OF A BAITSL

^ITa^T to ®®* '^^y hemk may sell the whole or any portion of its
another assets to any other bank which may purchase sudi assets ; and
the selling and purchasing banks may, for such purposes, enter
into an agreement of sale and purchase, which agreement shall
contain all the terms and conditions connected widi the sale and
purchase of such assets. 63-64 V., c. 26, s. 33.



bank.



Consider-
ation.



100. The consideration for any such sale and purchase
may be as agreed upon between the selling and purchasing
banks.

2. If the consideration, or any portion thereof, is shares
of the capital stock of the purchasing bank, the agreement shall
provide for the amount of the shares of the purchasing bank
to be paid to the selling bank.

3. Until such shares so paid to the selling bank have been
sold by such bank, or have been distributed among and accepted
by the shareholders of such bank, they shall not be considered
issued shares of the purchasing bank for the purposes of its
note circulation. 63-64 V., c. 26, s. 34.

101« The agreement of sale and purchase shall be sub-
mitted to the shareholders of the selling bank, either at the
annual general meeting of such bank or at a special general
meeting thereof called for the purpose.

2. A copy of the agreement shall be mailed, postpaid, to
each shareholder of such bank to his last known address, at
least four weeks previously to the date of the meeting at which
the agreement is to be submitted, together with a notice of
the time and place of the holding of such meeting. 63-64 V.,
c. 26, s. 35.

Agreement 102. If at such meeting the agreement is approved by
cuted If^hey ^'^solution carried by the votes of shareholders, present in person
approve. or represented by proxy, representing not less than two-thirds
of the amount of the subscribed capital stock of the bank, the
agreement may be executed under the seals of the banks, parties
thereto, and application may be made to the Governor in Coun-
cil, through the Minister, for approval thereof.
Approval of 2. Until the agreement is approved by the Governor in
Governor in Council it shall not be of any force or effect. 63-64 V., c. 26,
s. 36.



If in shares
of capital
stock.



Not con-
sidered
issued until
sold or dis-
tributed.



Agreement
of sale to be
submitted to
selling share-
holders at
meeting.

Copy to each
shareholder
by mail.



Approval of 103* If the agreement provides for the payment of the

o^^purc^haSng consideration for such sale and purchase, in whole or in part,

bank. in shares of the capital stock of the purchasing bank, and for

such purpose it is necessary to increase the capital stock of such

360 bank

R.S., 1906. ,

Digitized by VriOOQlC



Banks. Chap. 29. 36

bank, the agreement shall not be executed on behalf of the
purchasing bank, unless nor until it is approved by the share-
holders thereof at the annual general meeting, or at a special
general meeting of such shareholders. 63-64 V., c. 26, s. 37.

104. The Governor in Council may, on the application for Neceasay in-
his approval of the agreement^ approve of the increase of the ^oS^may be
capital stock of the purchasing bank, which is necessary to pro- approved,
vide for the payment of the shares of such bank to the selling
bank, as provided in the said agreement 63-64 V., a 26, s. 38.

106. The provisions of this Act "with regard to, — Ordinary

(a) the increase of the capital stock of the bank by by-law f,J?^cr^ge
of the shareholders approved by the Treasury Board ; and, not to apply.

(b) the allotment and sale of such increased stock ;

shall not apply to any increase of stock made or provided for
under the authority of the last two preceding sections. 63-64
v., c. 26, 8. 38.

106« The approval of the Governor in Council shall not be Conditions
given to the agreement^ unless, — ^v^or in

(a) the approval thereof is reconmiended by the Treasury Council may
Board; ^-„t.

(b) the application for approval thereof is made, by or on
behalf of the bank executing it, within three months from
the date of execution of the agreement; and,

(c) it appears to the satisfaction of the Governor in Council
that aQ the requirements of this Act in connection with
the approval of the agreement by the shareholders of the
selling and purchasing banks have been complied with,
and that notice of the intention of the banks to apply to
the Governor in Council for the approval of the agree-
ment has been published for at least four weeks in the
Canada Oazette, and in one or more newspapers published
in places where the chief offices or places of business of
the banks are situate. ,

2. Such banks shall afford all information that the Minister infonaa-
requires. tion.

3. Nothing herein contained shall be construed to prevent Approval
the Governor in Council or the Treasury Board from refusing J^us^
to approve of the agreement or to recommend its approval.

63-64 v., c. 26, s. 39.

101. The agreement shall not be approved of unless it Further
appears that,— conditions.

(a) proper provisions have been made for the payment of the
liabilities of the selling bank ;

(b) the agreement provides for the assumption and payment
by the purchasing bank of the notes of the selling bank
issued and intended for circulation, outstanding and in
circulation; and^

861 (c)

R.S., 1906.

Digitized by V^riOOQlC



30 Chap. 29. Banks.

(c) the amounts of the notes of both the purchasing and

selling banks, issued for circulation, outstanding and in

circulation, as shown by the then last monthly returns of

the banks, do not together exceed the then paid-up capital

of the purchasing bank; or, if the amount of such notes

does exceed such paid-up capital, an amoimt in cash, equal

to the excess of such notes over such paid-up capital, has

been deposited by the purchasing bank with the Minister.

Deposit. g. The amount so deposited as aforesaid shall be held by the

Minister as security for the redemption of the said excess of

notes; and, when such excess, or any portion thereof, has been

redeemed and cancelled, the amount so deposited, or an amount

equal to the amount of excess so redeemed and cancelled, shall,

from time to time, be repaid by the Minister to the purchasing

bank, but without interest^ on the application of such bank, and

on the production of such evidence as the Minister may require

to show that the notes in regard to which such repayment is

asked have been redeemed and cancelled. 63-64 V., c 27, s. 1.

Notes of 108« The notes of the selling bank so assumed and to be

t^ bw»me paid by the purchasing bank shal^ on the approval of the agree-
notes of ment, be deemed to be, for all intents and purposes, notes of the
bani. ^°* purchasing bank issued for circulation; and the purchasing
bank shall be liable in the same manner and to the same extent
as if it had issued them for circulation.
Circulation 2. The amount at the credit of the selling bank in the Circu-
Fund. lation Fund shall, on the approval of the agreement, be trans-

ferred to the credit of the purchasing bank.
Notes to be 3. The notes of the selling bank shall not be re-issued, but
called m. shall be called in, redeemed and cancelled as quickly as
possible. 63-64 V., c. 26, s. 41.

Evidence of 109* The approval by the Qovemor in Council of the agree-
Ck>vernor in ^^^^ shall be evidenced by a certitied copy of the order in
Council. council approving thereof.

^n'^il*'^ 2. Such certified copy shall be conclusive evidence of the

elusive. approval of the agreement therein referred to, and of the regu-

larity of all proceedings in connection therewith. 63-64 V.,
c 26, s. 42.

On approval 110. On the agreement being approved of by the Gbvemor
?n Coundf '^ ^^ Council, the assets therein referred to as sold and purchased
the assets shall, in accordance with and subject to the terras thereof, and
^^*^' without any further conveyance, become vested in the pur^

chasing bank.
Further 2. The Selling bank shall, from time to time, subject to the

terms of the agreement, execute such formal and separate con-
veyances, assignments and assurances, for registration purposes
or otherwise, as are reasonably required to confirm or evidence
the vesting in the purchasing bank of the full title or ownership

362 of

K,S., 1906.

Digitized by VrrOOQlC



Banks. Chap. 29. 37

of tlie assets referred to in the agreement. 63-64 V., c 26,
B. 43.

11].« As soon as the agreement is approved of by the SeUinR bank
Governor in Council, the selling bank shall cease to issue or n^^tmd bf
re-issue notes for circulation, and shall cease to transact any wound up.
business, except such as is necessary to enable it to carry out
the agreement, to realize upon any assets not included in the
agreement, to pay and discharge its liabilities, and generally to
wind up its business ; and the charter or Act of incorporation
of such bank, and any Acts in amendment thereof then in force,
shall continue in force only for the purposes in this section
specified. 63-64 V., c. 26, s. 44.

BETUBITS.

112« Monthly returns shall be made by the bank to the Monthly.
Minister in the form set forth in schedule D to this Act.

2. Such returns shall be made up and sent in within the first Within first
fifteen days of each, month, ^nd shall exhibit the condition of ^^'
the bank on the last juridical day of the month last preceding. .

3. Such returns shall be signed by tlie chief accountant and How'^siKned.
by the president, or vice-president, or the director then acting

as president, and by the manager, cashier or other principal
officer of the bank at its chief place of business. 53 V., c. 31,
fl. 85.

113« The Minister may also call for special returns from Special
any bank, whenever, in his judgment, they are necessary to '^«*^"^^'
afford a full and complete knowledge of its condition.

2. Such special returns shall be made and signed in the How made,
manner and by the persons specified in the last preceding
section.

3. Such special returns shall be made and sent in within Within 30
thirly days from the date of the demand therefor by the Min- deSuidL™
ister: Provided that the Minister may extend the time for
sending in such special returns for such further period, not
exceeding thirty days, as he thinks expedient 53 V., c. 31,

8. 86.

114. Tlie bank shall, within twenty days after the close Annual
of each calendar year, transmit or deliver to the Minister a
return, —

(a) of all dividends which have remained unpaid for more
than five years ; and,

(b) of all amounts or balances in respect of which no trans-
actions have taken place, or upon which no interest has
been paid, during the five years prior to the date of such
return:

Provided that, in the case of moneys deposited for a fixed
period, the said term of five years shall be reckoned from the
date of the termination of such fixed period.

363 2.



Digitized by V§l5©gf^-



88



Chap. 29.



Batiks.



What return
shall show.



Further

annual

return.



Particulars.



How annual

returns

8i);nied.



Anniial list.



To Parlia-
ment.



2. The return mentioned in the last preceding subsection
shall set forth, —

(a) the name of each shareholder or creditor to whom such
dividends, amoimts or balances are, according to the books
of the bank, payable ;

(b) the last known address of each such shareholder or
creditor ;

(c) the amount due to each such shareholder or creditor;

(d) the agency of the bank at which the last transaction
took place ;

(e) the date of such last transaction ; and,

(f) if such shareholder or creditor is known to the bank
to be dead, the names and addresses of his legal representa-
tives, so far as known to the bank.

3. The bank shall likewise, within twenty days after the
close of each calendar year, transmit or deliver to the 3Iinister
a return of all drafts or bills of exchange, issued by the bank
to any person, and remaining unpaid for more than five years
prior to the date of such return, setting forth so far as known, —

(a) the names of the persons to whom, or at whose request
such drafts or bills of exchange were issued ;

(b) the addresses of such persons;

(c) the names of the payees of -such drafts or bills of ex-
change ;

(d) the amounts and dates of such drafts or bills of ex-
change ;

(e) the names of the places where such drafts or bills of
exchange were payable ; and,

(f) the agencies of the bank respectively from which such
drafts or bills of exchange were issued.

4. The rietums required by the foregoing provisions of this
section shall be signed by the chief accountant, and by the
president or vice-president or the director then acting as presi-
dent, and by the manager, cashier or other principal officer
of the bank, at its chief place of business.

5. The bank shall also, within twenty days after the close
of each calendar year, transmit or deliver to the Minister a


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Online LibraryWalter Edwin Lear CanadaBanks and banking in Canada: chaps. 29-33, R.S.C., followed by annotations ... → online text (page 5 of 13)