On new Clause 101.1,
Pierre A. Paquette moved, — That Bill C-37 be amended by adding after line 6 on page 58 the following new clause:“101.1 The Act is amended by adding, after section 627, the following:
PART XII.2
EQUITY IN COMMUNITY
REINVESTMENT
Purpose
627.1 The purpose of this Part is to promote
equity in community reinvestment so that
every branch of a bank to which this Part
applies, while respecting sound administrative
and financial management practices,
equitably grants credit or advances to persons
having a residence or a place of business in the
electoral district in which the branch is
located, thus correcting the conditions of
disadvantage in access to credit experienced
by persons from disadvantaged communities.
Interpretation
627.2 In this Part,
‘‘branch of a bank’’ means a branch of one of
the banks listed in Schedule I, located in an
electoral district where the monthly unemployment
rate as established by Statistics
Canada has been, on at least one occasion
during the preceding calendar year, equal to
or higher than the national average established
by Statistics Canada for the same
month;
‘‘designated person’’ means a person having a
residence or a place of business in the electoral
district in which a branch of a bank is
located;
‘‘electoral district’’ has the same meaning as
in the Canada Elections Act.
Application
627.3 The provisions of this Part apply
notwithstanding any other provision of this
Act.
Obligations
627.4 Subject to section 627.5, a branch of
a bank shall implement equity in community
reinvestment by instituting such positive policies
and practices and making such reasonable
accommodations as will ensure that designated
persons have access to credit.
627.5 The obligation to implement equity
in community reinvestment does not require a
branch of a bank to take a particular measure
to implement equity in community reinvestment
where the taking of that measure would
cause undue financial hardship to the branch.
Special Fund
627.6 (1) At the end of each financial year,
every branch of a bank shall pay into a special
fund an amount equivalent to 5% of
its income for the financial year.
(2) The amounts paid into the special fund
shall be used to promote microcredit in the
electoral district where the branch of a bank is
located, and shall be provided to every
designated person who applies for them.
(3) For the purposes of this section, ‘‘microcredit’’
means small amounts of money used
to start a microbusiness or to become self-employed.
Analysis
627.7 For the purpose of implementing
equity in community reinvestment, a branch
of a bank shall analyse its operations, systems,
rules and practices in order
(a) to determine the difference between the
aggregate of amounts deposited annually
with the branch of the bank by designated
persons and the total loans and advances
granted annually by the branch of the bank
to designated persons; and
(b) to determine the chief reasons for the
difference.
Consultation
627.8 At least once a year, a branch of a
bank shall consult with community representatives
who have requested a consultation in
writing with the branch of a bank and shall
invite them to express their opinions on the
following matters:
(a) the assistance that community representatives
could give to the branch of a bank in
implementing equity in community reinvestment;
and
(b) the development and implementation of
measures by the branch of the bank in order
to achieve equity in community reinvestment.
Report
627.9 (1) No later than March 31 in each
year, a branch of the bank shall file with the
Superintendent a report for the preceding
calendar year, prepared in the prescribed form
and manner, containing the following information:
(a) the number of deposits made with the
branch of a bank by designated persons,
broken down by ten thousand dollar increments;
(b) the number of applications for loans and
advances received by the branch of a bank
from designated persons, broken down by
ten thousand dollar increments;
(c) the number of loans made by the branch
of a bank to designated persons, broken
down by ten thousand dollar increments;
(d) the term of each loan or advance made
by the branch of a bank to designated
persons, broken down by ten thousand
dollar increments;
(e) the number of applications for loans and
advances received by the branch of a bank
from designated persons and the number of
loans and advances made by the branch of
a bank to designated persons, broken down
by
(i) in the case of a natural person, sex and
prescribed age group, and
(ii) in the case of a corporation, the
number of years the corporation has been
incorporated;
(f) the number of loans made by the branch
of a bank to designated persons that were
recalled, broken down by ten thousand
dollar increments;
(g) a copy of any by-law or policy decision
of the branch of a bank relating to the
promotion of equity in community reinvestment
by the branch of a bank;
(h) a description of the measures taken to
implement equity in community reinvestment;
(i) a description of consultations with
community representatives to implement
equity in community reinvestment;
(j) the percentage of deposits made to the
branch of a bank by designated persons as
compared with the total amount of deposits
made to the branch of a bank; and
(k) any other prescribed information.
(2) The report required by subsection (1)
shall make no reference to names or addresses
of designated persons.
(3) Where the amount of a loan or advance
applied for in respect of which subsection (1)
applies is less than five thousand dollars, the
branch of a bank may omit the particulars in
respect thereof required by subsection (1)
from the report required by subsection (1).
627.10 Upon receiving the report required
by section 627.9, the Superintendent shall
cause a copy to be sent to the Minister
forthwith.
627.11 (1) The Superintendent may, by
order, direct a branch of a bank to provide the
Superintendent with the information required
by section 627.9.
(2) Any branch of a bank to which a
direction has been issued under subsection (1)
shall provide the information specified in the
order within the time specified in the order.
627.12 (1) Within six months of receiving
the report referred to in section 627.9, the
Superintendent shall conduct an evaluation, in
accordance with the criteria established under
section 627.15, to determine whether the
branch of a bank is making reasonable efforts
to implement equity in community reinvestment.
(2) No later than September 30 in every
year, the Superintendent shall submit a detailed
activity report to the Minister concerning
the evaluation made by the Superintendent
under subsection (1).
(3) The report shall be based on an analysis
of the information and documents obtained
under section 627.9 and the comments received
under subsection (4) and shall be
prepared so as to allow the name and address
of each branch of a bank to be known.
(4) Before submitting the report to the
Minister, the Superintendent shall give each
branch of a bank that so requests an opportunity
to make comments, orally or in writing, to
the Superintendent.
(5) As part of the duties referred to in
subsection (1), the Superintendent or a person
acting under the Superintendent’s direction
(a) has a right of access to any records and
policy documents of a branch of a bank; and
(b) may require the directors, officers and
the auditor of a branch of a bank to provide
information and explanations, to the extent
that they are reasonably able to do so, in
respect of the information required to be
filed with the Superintendent by the branch
of a bank under section 627.9.
627.13 The Minister shall cause the report
referred to in section 627.12 to be laid before
each House of Parliament within the first five
sitting days on which that House is sitting after
the report is received by the Minister.
627.14 Within five days after the report has
been laid before each House of Parliament
under section 627.13, the Minister
(a) shall cause a copy of the pages of the
report that concern a branch of a bank to be
sent to the branch of a bank; and
(b) shall make the report available on
request to members of the public for
consultation and shall provide a copy or a
part of a copy of the report on payment of a
fee, not to exceed the costs of furnishing the
copy.
627.15 (1) For the purposes of section
627.12, the Superintendent shall, after consultation
with the community representatives
that, in the Superintendent’s opinion, have relevant knowledge, establish criteria to assist
the Superintendent in determining whether a
branch of a bank is making reasonable efforts
to implement equity in community reinvestment.
(2) The Superintendent may also consult
any other person or organization that, in the
Superintendent’s opinion, has relevant knowledge.
Offences and Punishments
627.16 (1) Every person who contravenes
section 627.9 or an order made under section
627.11 is guilty of an offence and liable on
summary conviction to a fine not exceeding
five thousand dollars.
(2) Every person who contravenes section
627.8 is guilty of an offence and liable on
summary conviction to a fine not exceeding
fifty thousand dollars.
(3) Any proceedings in respect of an offence
under subsection (1) or (2) may be instituted
at any time within one year of the time the
subject-matter of the proceedings arose.
(4) Where an offence under subsection (1)
is committed or continued on more than one
day, it shall be deemed to be a separate offence
for each day on which the offence is committed
or continued.
627.17 A person who contravenes section
627.4 or 627.7 does not commit an offence and
accordingly the Criminal Code does not apply.
Powers, Duties and Functions of the
Minister
627.18 The Minister
(a) shall institute information programs in
every branch of a bank to ensure that the
provisions of this Part are understood;
(b) shall undertake or sponsor research
related to the purpose of this Part;
(c) shall promote, by any means that the
Minister considers appropriate, the purpose
of this Part;
(d) shall develop and conduct programs to
recognize a branch of a bank for outstanding
achievement in implementing equity in
community employment; and
(e) shall establish the terms and conditions
for the application of section 627.6, which
provides for the payment of amounts into a
special fund to promote microcredit.”