- (i) if the deposit is made in person with an employee at one of the institution’s branches or points of service, within the prescribed period or, if there is no prescribed period, no later than four business days after the day of the deposit, or
- (ii) if the deposit is made in any other manner, within the prescribed period or, if there is no prescribed period, no later than five business days after the day of the deposit; and
- (i) if the deposit is made in person with an employee at one of the institution’s branches or points of service, within the prescribed period or, if there is no prescribed period, no later than seven business days after the day of the deposit, or
- (ii) if the deposit is made in any other manner, within the prescribed period or, if there is no prescribed period, no later than eight business days after the day of the deposit.
Marginal note: First amount available
627.22 An institution shall make the prescribed amount of funds deposited or, if there is no prescribed amount, the first $100 of all funds deposited by a cheque or other instrument into a retail deposit account available for withdrawal
- (a) immediately, if the deposit is made in person with an employee at one of the institution’s branches or points of service; or
- (b) on the business day following the day of the deposit, if the deposit is made in any other manner.
Marginal note: Non-application
627.23 Section 627.21 does not apply in respect of a deposit that is made by an eligible enterprise if the institution has reasonable grounds to believe that there is a material increased credit risk, having regard to the following factors, among others:
- (a) an escalating overdraft balance that is not being reduced by deposits received;
- (b) a negative change in the credit score or other behaviour scores that may impact the enterprise’s credit risk;
- (c) an unexplained change in the history of cheques or other instruments deposited into the account;
- (d) a high number of cheques or other instruments deposited that are returned as dishonoured items from other institutions, which may impact the available balance in the account;
- (e) notice of bankruptcy or of creditor action against the enterprise; and
- (f) any prescribed factor.
Marginal note: Non-application
- 627.24 (1) Sections 627.21 and 627.22 do not apply
- (a) if the institution has reasonable grounds to believe that the deposit is being made for illegal or fraudulent purposes in relation to the depositor’s account;
- (b) if the account has been open for fewer than 90 days;
- (c) if the cheque or other instrument has been endorsed more than once;
- (d) if the cheque or other instrument is deposited at least six months after the date of the cheque or other instrument; or
- (e) in any prescribed circumstances.
- (a) a written statement that indicates that it will not be making the funds available; and
- (b) the information referred to in paragraphs 627.65(a) to (c).
Cashing Government Cheques or Other Instruments
Marginal note: Cashing
- 627.25 (1) A member bank shall, at any branch in Canada at which it, through natural persons, opens retail deposit accounts and disburses cash to customers, cash a cheque or other instrument on the request of a natural person made there in person if
- (a) the cheque or other instrument is drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada or in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament, or is any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund;
- (b) the person presents to the member bank
- (i) the documents referred to in subparagraph 627.17(1)(a)(i),
- (ii) one piece of identification that is issued by the Government of Canada or the government of a province and that bears the person’s signature and photograph, or
- (iii) any document from a reliable source that indicates the person’s name and date of birth, if the person’s identity is also confirmed by a customer in good standing with the member bank or by a natural person of good standing in the community where the branch is located;
- (a) if there is evidence that the cheque or other instrument has been altered in any way or is counterfeit;
- (b) if the member bank has reasonable grounds to believe that there has been illegal or fraudulent activity in relation to the cheque or other instrument; or
- (c) in any prescribed circumstances.
- (a) a written statement that indicates that it will not be cashing the cheque or other instrument; and
- (b) the information referred to in paragraphs 627.65(a) to (c).
Marginal note: No charges
- 627.26 (1) An institution shall not impose a charge
- (a) for cashing a cheque or other instrument drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada, in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament or in any authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), in respect of its business in Canada;
- (b) for cashing any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund; or
- (c) in respect of any cheque or other instrument that is
- (i) drawn in favour of the Receiver General, the Government of Canada or any department of it or any public officer acting in the capacity of a public officer, and
- (ii) tendered for deposit to the credit of the Receiver General.
- (a) compensation for services performed by the institution for the Government of Canada; or
- (b) interest to be paid on any or all deposits of the Government of Canada with the institution.
Documents
Marginal note: General
- 627.27 (1) For greater certainty, any documents required to be presented by a natural person under any of sections 627.17 to 627.26 and subsection (2) shall be
- (a) original, valid and not substantially defaced; and
- (b) in the case of a piece of identification issued by the government of a province, usable for identification purposes under the law of the province.
Credit
Marginal note: Prepayment
- 627.28 (1) An institution shall not make a loan to a natural person that is repayable in Canada, the terms of which prohibit prepayment of the money advanced or any instalment on the money advanced before its due date.
- Marginal note: Non-application (2) Subsection (1) does not apply in respect of a loan that
- (a) is secured by a mortgage on real property; or
- (b) is made for business purposes and has a principal amount of more than the prescribed amount or, if there is no prescribed amount, $100,000.
- (a) in the case of a loan for a fixed amount, other than a loan that is secured by a mortgage on real property,
- (i) to prepay the outstanding balance under the agreement, at any time, without incurring any charge or penalty for making the prepayment, or
- (ii) to prepay a part of the outstanding balance
- (A) on the date of any scheduled payment, if payments are scheduled once a month or more often, or
- (B) at any time but only once a month, in any other case; and
Marginal note: No minimum credit balance without express consent
627.29 An institution shall not make a loan or advance in Canada to a natural person subject to the condition that the person maintain a minimum credit balance with the institution without first obtaining the person’s express consent to do so.
Marginal note: Default charges
627.3 If a natural person fails to make a payment when it becomes due under a credit agreement that the person entered into other than for business purposes or fails to comply with any other obligation in the agreement an institution may impose, in addition to interest, other charges for the sole purpose of recovering the costs reasonably incurred
- (a) for legal services retained to collect or attempt to collect the payment;
- (b) in realizing on any security interest taken under the credit agreement or in protecting such a security interest, including the cost of legal services retained for that purpose;
- (c) in processing a cheque or other instrument that the person used to make a payment under the loan but that was dishonoured; or
- (d) for any prescribed purpose.
Marginal note: Renewal of mortgages
627.31 If a natural person enters into a credit agreement other than for business purposes with an institution for a loan that is secured by a mortgage on real property and that is to be renewed on a specified day,
- (a) the institution shall not, during any prescribed period, make a change to the agreement that increases the cost of borrowing; and
- (b) the person’s rights under the agreement continue, and the renewal does not take effect, until the prescribed day.
Marginal note: No increase or provision without express consent
- 627.32 (1) Subject to any regulations, an institution shall not
- (a) increase the credit limit on a line of credit that is extended — or a credit card account that is opened — in Canada for a natural person other than for business purposes without first obtaining the person’s express consent to do so; or
- (b) provide cheques that are issued on a credit card account that is opened in Canada for a natural person other than for business purposes without first obtaining the person’s express consent to do so.
