Fourth

Session, 45th General Assembly

Elizabeth II, 2007

BILL 17

AN ACT RESPECTING TRUST

AND LOAN CORPORATIONS

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

DIANNE WHALEN

Minister

of Government Services

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would repeal the Trust and Loan Corporations Licensing Act as

a trust and loan corporation carrying on business in the province would no

longer require provincial licensure. A

corporation would rather be required to be licensed under the federal Trust and Loan Companies Act, to hold

insurance through the Canada Deposit Insurance Corporation and to be registered

in the provincial registry of companies.

Further, the Bill contains various consequential

amendments, including an amendment to the Corporations

Act regarding registration of trust and loan corporations in the Registry

of Companies, and would repeal the current Trust

and Loan Corporations Act and regulations .

A BILL

AN ACT RESPECTING TRUST AND LOAN

CORPORATIONS

Analysis

Short title

Definitions

Licensure

Offence

Consequential Amdt.

Repeal

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

Short title

1. This

Act may be cited as the Trust and Loan

Corporations Act .

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;

(c) "corporation" means a trust

corporation or a loan corporation incorporated under the laws of a province of Canada or the

Parliament of Canada and carrying on business in the province;

(d) "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, or a credit union incorporated or continued under the Credit Union Act; and

(e) "trust corporation" means a corporation

incorporated or operated 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 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.

Licensure

3. A

corporation shall not carry on business in the province unless it

(

a) holds a valid and existing licence under the Trust and Loan Companies Act ( Canada ) ;

(

b) hold valid insurance of its deposits through

the Canada Deposit Insurance Corporation; and

(

c) is registered in the registry of companies

under

section 383 of the Corporations

Act.

Offence

(1) A

corporation carrying on business within the province contrary to this Act is

guilty of an offence and liable on

summary conviction to a fine of $2000.

(2) The conviction of a corporation under this

section does not operate as a bar to further prosecution for the continued

neglect or failure on its part to comply with this Act.

Consequential

Amdt.

5. (1) Paragraph 3(1)(

f) of the Collections Act is amended by deleting

the phrase "or the Trust and Loan Companies

Licensing Act " and substituting the phrase "or which meets the

requirements of

section 3 of the Trust

and Loan Corporations Act ".

(2) Section 98 of the Corporations Act is amended by deleting the phrase "licensed

under the Trust and Loan Companies Licensing

Act " and substituting the phrase "which meets the requirements of

section 3 of the Trust and Loan Corporations

Act ".

(3) Section 148 of the Corporations Act is amended by deleting the phrase "licensed

under the Trust and Loan Companies Licensing

Act " and substituting the phrase "which meets the requirements of

section 3 of the Trust and Loan Corporations

Act ".

(4) Section 383 of the Corporations Act is amended by renumbering it as subsection 383(1)

and by adding immediately after that subsection the

following:

(2) In addition to the requirements of subsection

(1), the registrar shall maintain in the registry of companies the name of

every trust and loan corporation which is registered under the Trust and Loan Corporations Act ( Canada ) and

which is carrying on business in the province.

(5) Subsection 466(1) of the Corporations Act is amended by deleting the phrase "licensed

under the Trust and Loan Companies Licensing

Act " and substituting the phrase "which meets the requirements of

section 3 of the Trust and Loan Corporations

Act ".

(6) Paragraphs 496(

a) and (

b) of the Corporations Act are amended by deleting

the phrase "as defined in the Trust

and Loan Companies Licensing Act " and substituting the phrase

"which meets the requirements of

section

3 of the Trust and Loan Corporations

Act ".

(7) Paragraph 2( dd ) of

the Financial Corporations Capital Tax

Act is amended by deleting the phrase "licensed under the Trust and Loan Companies Licensing Act "

and substituting the phrase "which meets the requirements of

section 3 of

the Trust and Loan Corporations Act ".

(8) Subparagraph 15(c)(

i) of the Pension Benefits Act, 1997 is

repealed and the following substituted:

(

i) a trust

corporation as defined in the Trust and

Loan Corporations Act ,

(9) Paragraph 2(

f) of the Prepaid Funeral Services Act is amended by deleting the phrase

"licensed under the Trust and Loan

Corporations Licensing Act" and substituting the phrase "as

defined in the Trust and Loan

Corporations Act" .

(10) Subsection 12(3) of the Regional Service Boards Act is amended by deleting the phrase

"licensed under the Trust and Loan Companies

Licensing Act " and substituting the phrase "which meets the

requirements of

section 3 of the Trust

and Loan Corporations Act ".

(11) Subparagraph 2(1)(p)(ii) of the Securities Act is repealed and the

following substituted:

(ii) a loan company or trust company which meets

the requirements of

section 3 of the Trust

and Loan Corporations Act,

(12) Subparagraph 2(1)(ii)(ii) of the Securities Act is amended by deleting

the phrase "licensed under the Trust

and Loan Companies Licensing Act " and substituting the phrase

"which meets the requirements of

section 3 of the Trust and Loan Corporations Act ".

(13) Subparagraph 2(1)( qq )(

v) of the Securities Act is amended by

deleting the phrase "licensed under the Trust and Loan Companies Licensing Act " and substituting the

phrase "which meets the requirements of

section 3 of the Trust and Loan Corporations Act ".

(14) Paragraph 35(

a) of the Securities Act is amended by deleting the phrase "licensed

under the Trust and Loan Companies Licensing

Act " and substituting the phrase "which meets the requirements of

section 3 of the Trust and Loan Corporations

Act ".

(15) Subparagraph 36(1)(c)(ii) of the Securities Act is amended by deleting

the phrase "licensed under the Trust

and Loan Companies Licensing Act " and substituting the phrase

"which meets the requirements of

section 3 of the Trust and Loan Corporations Act ".

(16) Paragraph 10(2)(

b) of the Venture Capital Act is repealed and the following substituted:

(

b) a trust or loan corporation as defined in the Trust and Loan Corporations Act;

Repeal

(1) The Trust

and Loan Corporations Licensing Act is repealed.

(2) The Trust

and Loan Corporations Regulations , Consolidated Newfoundland and Labrador Regulation 792/96, are

repealed.

Commencement

7. This Act shall come into force on July 1, 2007 .

Earl G. Tucker, Queen's Printer