Extension of divestiture period for control or holding a substantial investment by a foreign bank or entity associated with a foreign bank obtained as a result of realization of a security interest or a loan default

Information Requirements

The applicant is generally expected to provide:

1. where the request for the proposed extension is for a specified period:

   1. business rationale for requesting the extension and the plan for divestiture,

   2. details relating to the acquisition of control of, or the holding of a substantial investment in, the entity, including the date of the acquisition, a list of the entity’s majority shareholders, a description of the debt restructuring, if applicable, and

   3. a description of the current and proposed business activities, and the most recent financial statements of the entity;

2. where the application is for a further extension period, the reasons the plan for divestiture did not occur and a revised plan for divestiture; and

3. where the proposed extension is for an indeterminate period, refer to the information requirements set out in the documents A No. 7.0 to 7.3 and 7.5, which can be found in this series of Instruction Guides.

Administrative Guidance

This guidance note is applicable to a foreign bank or entity associated with a foreign bank to which Part XII of the Bank Act applies, pursuant to section 508, and that has a financial establishment in Canada.

An extension may be subject to terms and conditions that the Minister considers necessary.