Bill 112 (Legislature 15, Session 2)

L15 S2 1553

Alberta — Bills

v No. 112 2nd 'Session, 15th Legislature, Alberta 13 Elizabeth II BILL 112 A Bill to amend The Trustee Act and The Trust Companies Act, 1960 HON. MR. MANNING Printed by L. S. WALL, Printer to the Queen's Most ExcelJent Majesty, Edmonton, Alberta, 1965

Explanatory Note I. This Bill amends

chapter 346 of the Revised Statutes. The Trust Companies Act, 1960 is also amended by clause 5 of this Bill as a consequence of the amendment in clause 2 (

b) regarding capital requirements of approved corporations. 2. (

a) The present subsection (3) of

section 3 reads:

(3) Subject to subsection (10), trustees may (

a) deposit trust funds with an approved ,corporation, and (

b) invest in (

i) terminable debentures or debenture stock of an approved corporation, or (it), guaranteed investment certificates of a trust company that is registered under The Trust Companies Act and that is an approved corporatio,n, if the deposit or investment is in other respects reasonable and proper, and the debentures and guaranteed investment certifi cates are registered and transferable only on the books of the corporation or trust company in their name as trustees for the particular estate for which they are held. This is a revision of subsection (3) primarily to include the new clause (

c) which will authorize trustees to invest in investment contracts if the issuer is an "approved corporation" and registered under The Investment Contracts Act. (

b) The present subsections (5) and (8) combined but with two significant changes in the new clause (b). It now sets out two ways of meeting financial requirements for an approved cor poration, viz., a modification of the present one and the new alternative of a minimum of $1,000,000.00 unimpaired capital if the corporation has been in business In Alberta for three years. The modification in the present requirement is that the reserve fund is to be derived solely from earnings.

BILL No. 112 of 1965

An Act to amend The Trustee Act and The Trust C'Ompanies Act, 1960 (Assented to , 1965) HER MAJE.STY:' by and with the advice and consent of the LegIslatIve Assembly of the Province of Alberta, enacts as follows: 1. The Trustee Act is hereby amended.

Section 3 is amended (

a) by striking out subsection (3) and by substituting the f'Ollowing:

(3) Trustees may (

a) deposit trust funds with an approved corpor ation, (

b) invest in (

i) terminable debentures or debenture stock of an approved corporation, and (ii) guaranteed investment certificates of an approved corporation registered as a trust company under The Trust Companies Act, 1960, if, in the case of debentures or guaranteed in vestment certificates, they are registered and transferable only 'On the books of the corpor ation in their name as trustees f'Or the particu lar estate for which they are held, and (

c) investment contracts within the meaning of The Investment Contracts Act issued by an approved corporation that is registered as an issuer under that Act, if the dep'Osit or investment is in 'Other respects reasonable and proper. (

h) by striking out subsection (5) and by substituting the following:

(5) In this section, an approved corporation means a corporation approved by the Lieutenant Governor in Council, but n'O such approval shall be given unless it is shown to the satisfaction of the Lieutenant Governor in Council that

Section 3, subsections (5) and (8) presently read:

(5) Any corporation (

a) that has power to lend money upon mortgages or real estate, (

b) that has a capitalized, fixed, paid-up and permanent stock not liable to be withdrawn and amounting to at least five hundred thousand dollars, (

c) that has a reserve fund amounting to not less than twenty-five percent of its paid-up capital, and (

d) whose stock has a market value or established value that is not less than seven per cent in excess of the par value thereof,

(8) No deposits or investments shall be made under the authority of this Act with or in the debentures or debenture stock or guaranteed investment certificates of any society .or company that has not obtained the order of the Lieutenant Governor in Council approving of deposits with or investments in the debentures or debenture stock or guaranteed investment certificates thereof. (c) Subsections (9) and (10) presently read:

(9) Notwithstanding subsection (8), approval sbaIl not be granted to any society or company that does not appear to the satisfaction of the Lieutenant Governor in Council to have kept strictly within its legal powers in relation to borrowing and investment.

(10) The Lieutenant Governor in Council, if he deems it expedient, may at any time revoke any order in council previously made approving of deposits with or investments in the debentures or debenture stock or guaranteed investment certificates of any so-ciety or corporation, and such revocation does not affect the propriety of deposits or investments made before the revocation. The content of subsection (8) will now be in subsection (5). The new subsection (8) is the present subs'ection (9) revised. 'The new subsection (9) is the present subsection (10) revised.

The new sub section (10) is a saving clause resp'ecting the existing approved corporations and gives them five years in which to build up a 25% reserve fund derived solely from earnings if that is not presently the case. Only after that period can the approval be revoked on that ground. 3. New. Requirements for financial information by corporations other than registered trust companies and investment contract issuers. 2

(

a) the corporation is empowered to lend money upon. the security of real estate , (

b) the corporation either (

i) has both a. subscrib~d and paid-up per manent capItal of WhICh at least five hun dred thousand dollars is unimpaired and a reserv~ fund derived solely from earnings amountIng to at least twenty-five per cent of its paid-up capital, or (ii) ha~ a subsc:r:ibed and paid-up permanent capItal of WhICh at least one million dollars is unimpaired and has been carrying on business in Alberta continuously for at least three years immediately prior to the application for approval, and (

c) the corporation's. permanent capital stock has a market value or established value that is not less than seven per cent in excess of the par value thereof. (

c) by striking out subsections (8) to (10) and by substituting the following:

(8) Notwithstanding subsection (5), approval shall not be granted to any corporation that does not appear to the satisfaction of the Lieutenant Governor in Council to have kept strictly within its legal powers in relation to borrowing and investment.

(9) The Lieutenant Governor in Council may revoke the approval of any corporation under this secti'On but the revocation does not affect the propriety 'Of deposits or investments made before the revocation.

(10) With respect to a -corporation which was an approved corporation under this

section on the first day of April, 1965, no revocation of that approval may be made before the first day of May, 1970 'On the ground only that the corporation cannot comply with subclause (

i) of clause (

b) of subsection (5) because the required reserve fund is not derived solely from earnings. 3. The following

section is added after

section 3: 3a. A corporation approved under

section 3 that is not registered under The Trust Companies Act, 1960 or The Investment Contt'acts Act shall, within two months of the close of each of its fiscal years and at such other times as the Attorney General may direct, file with the Attorney General (a)· a certified copy of its balance sheet as of the close 2

Section 10, subsection (1) presently reads: 10.

(1) Where a trustee dies or refuses to act or becomes incapable or unfit to act in the trusts or powers reposed in him, it is lawful for the person or persons, if any, empowered to appoint new trustees by the deed, will or other instrument creating the trust, or, if there is no such person able and willing to act, then for (a.) the surviving or continuing trustee or trustees ,for the time being, (

b) the executor or executors or the administrator or administrators of the last surviving and continuing trustee, or (

c) the last retiring trustee, to appoint in writing any other person to ,be a trustee in place of the trustee dying or refusing to act or becoming incapa'ble or unfit to act as aforesaid. This corrects an omission in the 1955 revision of the statutes and returns the subsection to its original wording. Trust deeds some times provide that certain persons are to appoint the trustees and the amendment here is to make clear that the trustees referred to in clauses (a), (

b) and (

c) can appoint a substitute trustee where under the trust deed there is "no such person" empowered to appoint trustees. S.

Section 120, subsection (4) presently reads:

(4) Where a provincial company is an approved corporation for trustee investments under The Trustee Act it may invest (

a) any of its paid-up cap!tal in excess of tile paid-up capital required for an approved corporation, and (

b) any moneys in excess of the reserve fund required for an approved corporation, in such investments as the board of directors of the company may determine. This clause amends

chapter 110 of the Statutes of Alberta, 1960. The amendment is complementary to the amendments to

section 3 of The Trustee Act: clause 2(

b) of this Bill. 6. Commencement of Act. 3

of the fiscal year and the auditor's report thereon, and (

b) any other information pertaining to its financial position or affairs as the Attorney General may require.

Section 10, subsection (1) is amended (

a) by striking out the words ", if any,", (

h) by striking out the words "no such person able and willing" and by substituting the words cOno such person or no such person able and willing". 5. The Trust Companies Act, 1960 is amended by striking out subsection (4) of

section 120 and by substi tuting the following:

(4) Where a provincial company is an approved cor poration under

section 3 of The Trustee Act, it may invest (

a) any of its paid-up capital in excess of the mini mum unimpaired capital required for the com pany by subclause (

i) or (ii), as the case may be, of clause (

b) of subsection (5) of

section 3 of that Act, and (

b) any moneys in excess of the reserve fund required for the company under

section 3 of that Act, in such investments as the board of directors of the company may determine. 6. This Act comes into force on the day upon which it is assented to. 3

No. 112 SECOND SESSION FIFTEENTH LEGISLATURE 13 ELIZABET'H II 1965 BILL

An Act to amend The Trustee Act and The Trust Companies Act, 1960 Received and read the First time ......................................... . Second time ............ . Third time. HON. MR. MANNING Title: 1965 (15th, 2nd) Bill 112,

An Act to amend The Trustee Act and The Trust Companies Act, 1960

Document details

Collection	Alberta — Bills
Citation	L15 S2 1553
Type	bill
Volume / chapter	L15 S2 1553
Language	en
Format	json
Source	PROVINCIAL
Identifier	afd500b1ddfd84e626de1c3fbecbe9b9a52b7055

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