Bill C-3: An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011

First Session, Forty-first Parliament, 60 Elizabeth II, 2011 STATUTES OF CANADA 2011CHAPTER 15 An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011 ASSENTED TO 26th JUNE, 2011 BILL C-3 RECOMMENDATION His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011”. SUMMARY Part 1 of this enactment implements income tax measures and related measures proposed in the 2011 budget, and income tax measures referred to in that budget that were previously announced. In particular, it (a) amends the Income Tax Act and related legislation to allow beneficiaries of Registered Disability Savings Plans who have shortened life expectancies to withdraw more of their plan savings by permitting annual withdrawals without triggering the 10-year repayment rule, subject to specified limits and certain conditions; and (b) amends the Income Tax Act to ensure that individuals have the legal authority in all circumstances to appeal a determination concerning their eligibility for the disability tax credit. Part 2 amends the Excise Tax Act to introduce a 100% rebate of the goods and services tax and the harmonized sales tax paid by the Royal Canadian Legion on acquisitions of Remembrance Day poppies and wreaths. Part 2 also amends the Excise Act, 2001 and the Excise Tax Act to allow the sharing of information obtained under these statutes with countries or jurisdictions with which Canada has entered into a tax information exchange agreement. Part 3 amends the Old Age Security Act to allow an amount to be added to the amount of benefits payable to certain low-income beneficiaries. Part 4 authorizes payments to be made out of the Consolidated Revenue Fund for various purposes. Part 5 amends the Auditor General Act to repeal a provision that provides for mandatory retirement. Part 6 amends the Canada Student Financial Assistance Act to change the rules concerning interest paid by part-time students. Part 7 enacts the Protection of Residential Mortgage or Hypothecary Insurance Act, which is designed to support the efficient functioning of the housing finance market and the stability of the financial system in Canada by authorizing the Minister of Finance to provide protection in respect of certain mortgage or hypothecary insurance contracts. It also makes consequential amendments to the National Housing Act and the Office of the Superintendent of Financial Institutions Act and repeals Part 9 of the Budget Implementation Act, 2006. Part 8 amends the Federal-Provincial Fiscal Arrangements Act to authorize additional payments to certain provinces in respect of major transfers. Part 9 amends the Insurance Companies Act to prohibit a federal mutual company from distributing its property or other benefits to policyholders and shareholders, until the Minister of Finance has approved a conversion proposal made in accordance with the regulations. Part 10 amends the Assessment of Financial Institutions Regulations, 2001 to modify the assessment of financial institutions and validates amounts assessed after May 31, 2001. Part 11 amends the Financial Administration Act to permit departments to enter into agreements respecting the provision of internal support services. It also authorizes the transfer of money when a power, duty or function or the control or supervision of a portion of the federal public administration, is transferred under section 2 or 3 of the Public Service Rearrangement and Transfer of Duties Act. Part 12 amends the Canada Shipping Act, 2001 to allow the Governor in Council to make regulations exempting vessels, and authorizing the Minister of Transport to temporarily exempt vessels, from the registration requirements in Part 2 of that Act. This Part also amends the Act to allow for the registration of a group of vessels as a fleet in the small vessel register, under a single certificate of registry and single official number. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca TABLE OF PROVISIONS AN ACT TO IMPLEMENT CERTAIN PROVISIONS OF THE 2011 BUDGET AS UPDATED ON JUNE 6, 2011 SHORT TITLE 1.       Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act PART 1 AMENDMENTS TO THE INCOME TAX ACT, A RELATED ACT AND A RELATED REGULATION 2–3.       Income Tax Act 4–6.       Canada Disability Savings Act 7–8.       Canada Disability Savings Regulations PART 2 MEASURES RELATING TO EXCISE DUTIES AND SALES AND EXCISE TAXES 9.       Excise Act, 2001 10–12.       Excise Tax Act PART 3 OLD AGE SECURITY ACT 13–14.       Amendments PART 4 PAYMENTS 15.       Genome Canada 16.       Canadian Youth Business Foundation PART 5 AUDITOR GENERAL ACT 17.       Amendment PART 6 CANADA STUDENT FINANCIAL ASSISTANCE ACT 18.       Amendments to the Act 19.       Coming into Force PART 7 MORTGAGE OR HYPOTHECARY INSURANCE 20.       Enactment of Protection of Residential Mortgage or Hypothecary Insurance Act AN ACT TO AUTHORIZE, IN CERTAIN CIRCUMSTANCES, THE MAKING OF PAYMENTS OR THE PURCHASE OF REPLACEMENT INSURANCE BY HER MAJESTY IN RESPECT OF CERTAIN TYPES OF MORTGAGE OR HYPOTHECARY INSURANCE PROVIDED BY AN INSURANCE COMPANY IN RESPECT OF WHICH A WINDING-UP ORDER IS MADE AND TO TERMINATE CERTAIN AGREEMENTS RELATING TO MORTGAGE OR HYPOTHECARY INSURANCE SHORT TITLE 1.       Protection of Residential Mortgage or Hypothecary Insurance Act INTERPRETATION 2.       Definitions PURPOSES 3.       Purposes APPROVED MORTGAGE INSURERS 4.       Designation 5.       Suspension of designation 6.       Cancellation of designation 7.       Company never designated 8.       Adequacy of capital 9.       Fees for risk exposure 10.       Designation of qualified mortgage lenders 11.       Insurance restricted 12.       Subsidiaries 13.       Conditions and undertakings — business with affiliates, etc. 14.       Prohibited policies — affiliates, etc. 15.       Obligation to retain information, books and records MORTGAGE OR HYPOTHECARY INSURANCE PROTECTION 16.       Minister’s obligations 17.       Minister’s discretion 18.       Ineligible mortgage loan 19.       Pre-existing contracts 20.       Subrogation 21.       Subrogation — subsection 16(2) 22.       Calculation of amount — event has occurred 23.       Replacement insurance 24.       Satisfaction of future claims 25.       Affiliates, etc. 26.       Time of payment — subsection 16(2) PROTECTED LOAN LIMIT 27.       Limit 28.       Allocation of limit EXAMINATION AND REPORTING 29.       Examination 30.       Notice to Minister 31.       Court order to comply 32.       Notice to Minister — section 27 SANCTIONS 33.       Offence 34.       False or misleading information 35.       Punishment 36.       Liability of officers, directors, etc. 37.       Limitation period or prescription 38.       Appeal with leave 39.       Recovery and application of fines LEGAL PROCEEDINGS 40.       No liability REGULATIONS 41.       Regulations 42.       Ministerial regulations TERMINATION OF AGREEMENTS 43.       Definition of “agreement” 44.       Agreements are terminated 45.       No liability 46.       No compensation 47.       Obligation to send statement 48.       Ownership 21.       Consequential Amendment — Budget Implementation Act, 2006 22–24.       Consequential Amendments — National Housing Act 25.       Consequential Amendment — Office of the Superintendent of Financial Institutions Act 26.       Coming into Force PART 8 FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT 27–29.       Amendments PART 9 INSURANCE COMPANIES ACT 30–31.       Amendments PART 10 ASSESSMENT OF FINANCIAL INSTITUTIONS REGULATIONS, 2001 32.       Amendment to the Regulations 33.       Validation PART 11 FINANCIAL ADMINISTRATION ACT 34–35.       Amendments to the Act 36.       Coming into Force PART 12 CANADA SHIPPING ACT, 2001 37–44.       Amendments to the Act 45.       Consequential Amendment to the Coasting Trade Act 60 ELIZABETH II —————— CHAPTER 15 An Act to implement certain provisions of the 2011 budget as updated on June 6, 2011 [Assented to 26th June, 2011] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act. PART 1 AMENDMENTS TO THE INCOME TAX ACT, A RELATED ACT AND A RELATED REGULATION R.S., c. 1 (5th Supp.) Income Tax Act 2. (1) The definition “specified year” in subsection 146.4(1) of the Income Tax Act is replaced by the following: “specified year”« année déterminée » “specified year” for a disability savings plan of a beneficiary means the particular calendar year in which a medical doctor licensed to practise under the laws of a province (or of the place where the beneficiary resides) certifies in writing that the beneficiary’s state of health is such that, in the professional opinion of the medical doctor, the beneficiary is not likely to survive more than five years and (a) if the plan is a specified disability savings plan, each subsequent calendar year, but does not include any calendar year prior to the calendar year in which the certification is provided to the issuer of the plan; or (b) in any other case, each of the five calendar years following the particular calendar year, but does not include any calendar year prior to the calendar year in which the certification is provided to the issuer of the plan. (2) Section 146.4 of the Act is amended by adding the following after subsection (1): Specified disability savings plan (1.1) If, in respect of a beneficiary under a registered disability savings plan, a medical doctor licensed to practise under the laws of a province (or of the place where the beneficiary resides) certifies in writing that the beneficiary’s state of health is such that, in the professional opinion of the medical doctor, the beneficiary is not likely to survive more than five years, the holder of the plan elects in prescribed form and provides the election and the medical certification in respect of the beneficiary to the issuer of the plan, and the issuer notifies the specified Minister of the election in a manner and format acceptable to the specified Minister, then the plan becomes a specified disability savings plan at the time the notification is received by the specified Minister. Ceasing to be a specified disability savings plan (1.2) A plan ceases to be a specified disability savings plan at the earliest of the following times: (a) the time that the specified Minister receives a notification, in a manner and format acceptable to the specified Minister, from the issuer of the plan that the holder elects that the plan is to cease to be a specified disability savings plan; (b) the time that is immediately before the earliest time in a calendar year when the total disability assistance payments, other than non-taxable portions, made from the plan in the year and while it was a specified disability savings plan exceeds $10,000 (or, in the case of a plan to which paragraph (f) applies, such greater amount as is required to satisfy the condition in that paragraph); (c) the time that is immediately before the time that (i) a contribution is made to the plan, or (ii) an amount described in paragraph (a) or (b) of the definition “contribution” in subsection (1) is paid into the plan; (d) the time that is immediately before the time that (i) the plan is terminated, or (ii) the plan ceases to be a registered disability savings plan as a result of the application of paragraph (10)(a); (e) if lifetime disability assistance payments have not begun to be paid before the end of the particular calendar year following the year in which the plan last became a specified disability savings plan, the time immediately following the end of that particular calendar year; and (f) if in a calendar year the plan is a plan to which paragraph (4)(n) applies and the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year is less than the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the calendar year (or such lesser amount as is supported by the property of the plan), the time immediately following the end of that calendar year. Waiting period (1.3) If at any time, a plan has ceased to be a specified disability savings plan because of subsection (1.2), then the holder of the plan may not make an election under subsection (1.1) until 24 months after that time. Waiver (1.4) The Minister may waive the application of subsections (1.2) or (1.3) if it is just and equitable to do so. (3) Subsections (1) and (2) apply to the 2011 and subsequent taxation years, except that (a) no election may be made under subsection 146.4(1.1) of the Act, as enacted by subsection (2), before this Act receives royal assent; and (b) for a specified disability savings plan in respect of which the required medical certification is obtained before 2012, paragraph 146.4(1.2)(b) of the Act, as enacted by subsection (2), is, for 2012, to be read as follows: (b) the time that is immediately before the earliest time in a calendar year when the total disability assistance payments, other than non-taxable portions, made from the plan and while it was a specified disability savings plan exceeds $20,000 (or, in the case of a plan to which paragraph (f) applies, such greater amount as is required to satisfy the condition in that paragraph); 3. (1) Section 152 of the Act is amended by adding the following after subsection (1): Determination of disability tax credit eligibility (1.01) The Minister shall, if an individual requests by prescribed form, determine with all due dispatch whether an amount is deductible, or would if this Act were read without reference to paragraph 118.3(1)(c) be deductible, under section 118.3 in computing the individual’s tax payable under this Part for a taxation year and send a notice of the determination to the individual. (2) The portion of subsection 152(1.2) of the Act before paragraph (b) is replaced by the following: Provisions applicable (1.2) Paragraphs 56(1)(l) and 60(o), this Division and Division J, as they relate to an assessment or a reassessment and to assessing or reassessing tax, apply, with any modifications that the circumstances require, to a determination or redetermination under subsection (1.01) and to a determination or redetermination of an amount under this Division or an amount deemed under section 122.61 to be an overpayment on account of a taxpayer’s liability under this Part, except that (a) subsections (1) and (2) do not apply to determinations made under subsections (1.01), (1.1) and (1.11); (3) Subject to subsection (4), subsections (1) and (2) apply to taxation years that end after 2009 in respect of forms filed with the Minister of National Revenue after the day on which this Act is assented to (referred to as the “application day” in this section). (4) If an individual, on or before the application day, has filed for a taxation year that ends after 2007 and before 2012 the certificate described in paragraph 118.3(1)(a.2) or (a.3) of the Act and, for that year, the Minister of National Revenue has issued a notice that no tax is payable, then (a) in respect of the individual, the reference in subsection (3) to “2009” is to be read as a reference to “2007”; (b) the Minister is deemed to have issued a notice of determination to the individual on the later of the application day or the actual day the notice is issued; and (c) subparagraph 165(1)(a)(ii) of the Act shall in respect of the determination be read as follows: (ii) the day that is 180 days after the day that the Minister is deemed to have issued a notice of determination; and 2007, c. 35, s. 136 Canada Disability Savings Act 2010, c. 25, s. 166 4. Paragraph 2(2)(b) of the Canada Disability Savings Act is replaced by the following: (b) the expressions “contribution”, “designated provincial program”, “DTC-eligible individual”, “holder”, “issuer”, “registered disability savings plan”, “specified year” and “specified disability savings plan” have the same meanings as in section 146.4 of that Act; and 2010, c. 25, s. 167(1) 5. The portion of subsection 6(2.2) of the Act before paragraph (a) is replaced by the following: Allocation of contribution (2.2) The Minister may allocate a contribution made to the beneficiary’s registered disability savings plan in a year after 2010, in parts — to the year in which it is actually made and to each of the previous 10 years that is after 2007 and in which the plan was not a specified disability savings plan (other than a year in which the plan became a specified disability savings plan) — in the following order: 6. Section 8 of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) the plan is not a specified disability savings plan, in the case of a Canada Disability Savings Grant, at the time the contribution to the plan is made and, in the case of a Canada Disability Savings Bond, immediately before the payment is made. SOR/2008-186 Canada Disability Savings Regulations 7. The definition “assistance holdback amount” in section 1 of the Canada Disability Savings Regulations is replaced by the following: “assistance holdback amount” means, at a particular time, (a) in the case of an RDSP that is, at the particular time, a specified disability savings plan, nil; and (b) in any other case, the total amount of bonds and grants paid into an RDSP within the 10-year period before the particular time, less any amount of bond or grant paid in that 10-year period that has been repaid to the Minister. (montant de retenue) 8. Section 5 of the Regulations is amended by adding the following after subsection (2): (3) Despite subsections (1) and (2), if the beneficiary of an RDSP that is a specified disability savings plan dies or ceases to be a DTC-eligible individual, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, any portion of an amount paid into the RDSP as a grant or bond within the 10-year period preceding the time of the death or cessation that remains in the RDSP at that time. PART 2 MEASURES RELATING TO EXCISE DUTIES AND SALES AND EXCISE TAXES 2002, c. 22 Excise Act, 2001 2007, c. 18, s. 67(4) 9. The definition “listed international agreement” in section 2 of the Excise Act, 2001 is replaced by the following: “listed international agreement”« accord international désigné » “listed international agreement” means (a) the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol, or other international instrument, as ratified by Canada; or (b) a comprehensive tax information exchange agreement that Canada has entered into and that has effect, in respect of another country or jurisdiction. R.S., c. E-15 Excise Tax Act 2007, c. 18, s. 64 10. The definition “listed international agreement” in subsection 2(1) of the Excise Tax Act is replaced by the following: “listed international agreement”« accord international désigné » “listed international agreement” means (a) the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol, or other international instrument, as ratified by Canada, or (b) a comprehensive tax information exchange agreement that Canada has entered into and that has effect, in respect of another country or jurisdiction; 2007, c. 18, s. 2(6) 11. The definition “listed international agreement” in subsection 123(1) of the Act is replaced by the following: “listed international agreement”« accord international désigné » “listed international agreement” means (a) the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol, or other international instrument, as ratified by Canada, or (b) a comprehensive tax information exchange agreement that Canada has entered into and that has effect, in respect of another country or jurisdiction; 12. (1) The Act is amended by adding the following after section 259.1: Definitions 259.2 (1) The following definitions apply in this section. “claim period”« période de demande » “claim period” has the same meaning as in subsection 259(1). “Legion entity”« entité de la Légion » “Legion entity” means the Dominion Command or any provincial command or branch of the Royal Canadian Legion. Rebate for poppies and wreaths (2) If a Legion entity acquires, imports or brings into a participating province property that is a poppy or wreath, the Minister shall, subject to subsection (3), pay a rebate to the Legion entity equal to the amount of tax that becomes payable, or is paid without having become payable, by the Legion entity during a claim period of the Legion entity in respect of the acquisition, importation or bringing in. Application for rebate (3) A rebate shall not be paid under subsection (2) in respect of tax that becomes payable, or is paid without having become payable, by a Legion entity during a claim period of the Legion entity unless the Legion entity files an application for the rebate within four years after the last day of the claim period. Limitation (4) A Legion entity must not make more than one application for rebates under this section for any claim period of the Legion entity. (2) Subsection (1) applies in respect of tax that becomes payable, or is paid without having become payable, after 2009. (3) If, in the absence of this subsection, an application for a rebate under subsection 259.2(2) of the Act, as enacted by subsection (1), in respect of tax would have to be filed by a Legion entity before the day that is four years after the day on which this Act receives royal assent in order for the rebate to be paid to the Legion entity, the reference in subsection 259.2(3) of the Act, as enacted by subsection (1), to “last day of the claim period” is to be read as a reference to “day on which the Act enacting this section receives royal assent”. PART 3 R.S., c. O-9 OLD AGE SECURITY ACT 13. The Old Age Security Act is amended by adding the following after section 12: Additional amount — paragraph 12(1)(a) 12.1 (1) The amount that may be added to the amount of the supplement that may be paid under section 12 to a pensioner referred to in paragraph 12(1)(a) for any month in a payment quarter beginning after June 30, 2011 is the amount determined by the formula A × B – C/4 where A      is $50; B      is the pensioner’s special qualifying factor for the month; and C      is (a) in the case of a pensioner who has no spouse or common-law partner, 1/12 of the pensioner’s income for the base calendar year in excess of $2,000 rounded, if it is not a multiple of four dollars, to the next lower multiple of four dollars, and (b) in the case of a pensioner who, on the day immediately before the current payment period, had a spouse or common-law partner to whom no benefit may be paid for any month in the current payment period, 1/24 of the aggregate of the income of the pensioner and his or her spouse or common-law partner for the base calendar year in excess of $4,000 rounded, if it is not a multiple of four dollars, to the next lower multiple of four dollars. Additional amount — paragraph 12(1)(b) (2) The amount that may be added to the amount of the supplement that may be paid under section 12 to a pensioner referred to in paragraph 12(1)(b) for any month in a payment quarter beginning after June 30, 2011 is the amount determined by the formula A × B – C/4 where A      is (a) in the case of a pensioner referred to in subparagraph 12(1)(b)(i), $50, and (b) in the case of a pensioner referred to in subparagraph 12(1)(b)(ii), $35; B      is the pensioner’s special qualifying factor for the month; and C      is 1/24 of the aggregate of the income of the pensioner and his or her spouse or common-law partner for the base calendar year in excess of $4,000 rounded, if it is not a multiple of four dollars, to the next lower multiple of four dollars. Indexation (3) For the purpose of calculating the amount payable under subsection (1) or (2) for any month in a payment quarter beginning after September 30, 2011, the amount to be determined for A in that subsection is the amount obtained by multiplying (a) the amount determined for A for any month in the three-month period immediately before that payment quarter by (b) the ratio that the Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Consumer Price Index for the second adjustment quarter that relates to that payment quarter. No decrease (4) Despite subsection (3), the amount determined for A for any month in a payment quarter shall not be less than the amount determined for A for any month in the three-month period immediately before that payment quarter. Effect of reduction in Consumer Price Index (5) If, in relation to any payment quarter, the Consumer Price Index for the first adjustment quarter is lower than the Consumer Price Index for the second adjustment quarter, (a) no adjustment to the amount determined for A shall be made under subsection (3) in respect of that payment quarter; and (b) no adjustment to the amount determined for A shall be made under subsection (3) in respect of any subsequent payment quarter until, in relation to a subsequent payment quarter, the Consumer Price Index for the first adjustment quarter that relates to that subsequent payment quarter is higher than the Consumer Price Index for the second adjustment quarter that relates to the payment quarter referred to in paragraph (a), in which case the second adjustment quarter that relates to the payment quarter referred to in that paragraph is deemed to be the second adjustment quarter that relates to that subsequent payment quarter. 14. The Act is amended by adding the following after section 22: Additional amount — subsection 22(2) 22.1 (1) The amount that may be added to the amount of the supplement that may be paid to a pensioner referred to in subsection 22(2) for any month in a payment quarter beginning after June 30, 2011 is the amount determined by the formula A × B – C/4 where A      is $35; B      is the pensioner’s special qualifying factor for the month; and C      is 1/24 of the aggregate of the income of the pensioner and his or her spouse or common-law partner for the base calendar year in excess of $4,000 rounded, if it is not a multiple of four dollars, to the next lower multiple of four dollars. Additional amount — subsection 22(3) (2) The amount that may be added to the amount of the allowance that may be paid to a spouse or common-law partner referred to in subsection 22(3) for any month in a payment quarter beginning after June 30, 2011 is the amount determined by the formula A × B – C/4 where A      is $35; B      is the special qualifying factor for the spouse or common-law partner for the month; and C      is 1/24 of the aggregate of the income of the pensioner and his or her spouse or common-law partner for the base calendar year in excess of $4,000 rounded, if it is not a multiple of four dollars, to the next lower multiple of four dollars. Additional amount — subsection 22(4) (3) The amount that may be added to the amount of the allowance that may be paid to a survivor referred to in subsection 22(4) for any month in a payment quarter beginning after June 30, 2011 is the amount determined by the formula A × B – C/4 where A      is $50; B      is the survivor’s special qualifying factor for the month; and C      is 1/12 of the survivor’s income for the base calendar year in excess of $2,000 rounded, if it is not a multiple of four dollars, to the next lower multiple of four dollars. Indexation (4) For the purpose of calculating the amount payable under any of subsections (1) to (3) for any month in a payment quarter beginning after September 30, 2011, the amount to be determined for A in that subsection is the amount obtained by multiplying (a) the amount determined for A for any month in the three-month period immediately before that payment quarter by (b) the ratio that the Consumer Price Index for the first adjustment quarter that relates to that payment quarter bears to the Consumer Price Index for the second adjustment quarter that relates to that payment quarter. No decrease (5) Despite subsection (4), the amount determined for A for any month in a payment quarter shall not be less than the amount determined for A for any month in the three-month period immediately before that payment quarter. Effect of reduction in Consumer Price Index (6) If, in relation to any payment quarter, the Consumer Price Index for the first adjustment quarter is lower than the Consumer Price Index for the second adjustment quarter, (a) no adjustment to the amount determined for A shall be made under subsection (4) in respect of that payment quarter; and (b) no adjustment to the amount determined for A shall be made under subsection (4) in respect of any subsequent payment quarter until, in relation to a subsequent payment quarter, the Consumer Price Index for the first adjustment quarter that relates to that subsequent payment quarter is higher than the Consumer Price Index for the second adjustment quarter that relates to the payment quarter referred to in paragraph (a), in which case the second adjustment quarter that relates to the payment quarter referred to in that paragraph is deemed to be the second adjustment quarter that relates to that subsequent payment quarter. PART 4 PAYMENTS Genome Canada Maximum payment of $65,000,000 15. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, a sum of not more than $65,000,000 to Genome Canada for its use. Canadian Youth Business Foundation Maximum payment of $20,000,000 16. There may be paid out of the Consolidated Revenue Fund for the fiscal years 2011-12 and 2012-13, on the requisition of the Minister of Industry, a sum of not more than $20,000,000 to the Canadian Youth Business Foundation for its use. PART 5 R.S., c. A-17 AUDITOR GENERAL ACT 2006, c. 9, s. 110(1) 17. Subsection 3(2) of the Auditor General Act is repealed. PART 6 1994, c. 28 CANADA STUDENT FINANCIAL ASSISTANCE ACT Amendments to the Act 2008, c. 28, par. 110(b) 18. (1) Subsection 7(1) of the Canada Student Financial Assistance Act is replaced by the following: Interest-free period 7. (1) Subject to the regulations, no interest is payable by a borrower on a student loan prescribed by regulations made under paragraph 15(1)(j) in respect of any period of studies during which the borrower is a full-time or part-time student, or in respect of any subsequent period ending on (a) in the case of a student loan that is made to a full-time student, the last day of the month in which the borrower ceases to be a full-time student; and (b) in the case of a student loan that is made to a part-time student, the last day of the month in which the borrower ceases to be a student, whether a part-time or full-time student. (2) Subsection 7(2) of the French version of the Act is replaced by the following: Frais (2) Aucuns frais afférents aux prêts d’études ne peuvent être imposés à l’emprunteur pour la période d’études ou toute période ultérieure visées au paragraphe (1). Coming into Force Order in council 19. Section 18 comes into force on a day to be fixed by order of the Governor in Council. PART 7 MORTGAGE OR HYPOTHECARY INSURANCE Enactment of Protection of Residential Mortgage or Hypothecary Insurance Act Enactment 20. The Protection of Residential Mortgage or Hypothecary Insurance Act is enacted as follows: An Act to authorize, in certain circumstances, the making of payments or the purchase of replacement insurance by Her Majesty in respect of certain types of mortgage or hypothecary insurance provided by an insurance company in respect of which a winding-up order is made and to terminate certain agreements relating to mortgage or hypothecary insurance SHORT TITLE Short title 1. This Act may be cited as the Protection of Residential Mortgage or Hypothecary Insurance Act. INTERPRETATION Definitions 2. The following definitions apply in this Act. “approved mortgage insurer”« assureur hypothécaire agréé » “approved mortgage insurer” means a mortgage insurer that is designated under section 4. “company”« société » “company” means the Canada Guaranty Mortgage Insurance Company, the Genworth Financial Mortgage Insurance Company Canada, the PMI Mortgage Insurance Company Canada or any successor to any of those companies. “court”« tribunal » “court” means (a) in Ontario, the Superior Court of Justice; (b) in Quebec, the Superior Court of the province; (c) in Nova Scotia and British Columbia, the Supreme Court of the province; (d) in New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of Queen’s Bench for the province; (e) in Prince Edward Island and Newfoundland and Labrador, the trial division of the Supreme Court of the province; and (f) in Yukon and the Northwest Territories, the Supreme Court of the territory, and in Nunavut, the Nunavut Court of Justice. “eligible mortgage loan”« prêt hypothécaire admissible » “eligible mortgage loan” means a mortgage or hypothecary loan that meets the criteria established by regulations made under subsection 42(1). “Her Majesty”« Sa Majesté » “Her Majesty” means Her Majesty in right of Canada. “liquidator”« liquidateur » “liquidator” means a liquidator appointed under the Winding-up and Restructuring Act or a similar official appointed under any other Act of Parliament relating to insolvency or bankruptcy. “Minister”« ministre » “Minister” means the Minister of Finance. “mortgage insurer”« assureur hypothécaire » “mortgage insurer” means a corporation referred to in subsection 13(1) of the Insurance Companies Act and that is approved by the Superintendent to sell mortgage or hypothecary insurance in Canada. “policy”« police » “policy” means any written contract of insurance in respect of an eligible mortgage loan, whether contained in one or more documents, entered into by an approved mortgage insurer and a qualified mortgage lender that has been designated as such by the approved mortgage insurer. “prescribed”Version anglaise seulement “prescribed” means prescribed by regulations made under section 41. “qualified mortgage lender”« prêteur hypothécaire qualifié » “qualified mortgage lender” means a mortgage or hypothecary lender that has been designated under section 10. “Superintend- ent”« surintendant » “Superintendent” means the Superintendent of Financial Institutions appointed under the Office of the Superintendent of Financial Institutions Act. “winding-up order”« ordonnance de mise en liquidation » “winding-up order” means a winding-up order made under the Winding-up and Restructuring Act or a similar order made under any other Act of Parliament relating to insolvency or bankruptcy. PURPOSES Purposes 3. The purposes of this Act are (a) to authorize the Minister to provide protection in respect of certain mortgage or hypothecary insurance contracts in order to support the efficient functioning of the housing finance market and the stability of the financial system in Canada; and (b) to mitigate the risks arising from the provision of that protection. APPROVED MORTGAGE INSURERS Designation 4. (1) At the written request of a mortgage insurer, the Minister may, after consulting with the Superintendent, designate the mortgage insurer as an approved mortgage insurer for the purposes of this Act. Term of designation (2) The designation or its renewal are in effect for any period that the Minister specifies. Suspension of designation 5. (1) After consulting with the Superintend-ent, the Minister may, by notice sent to an approved mortgage insurer, suspend the approved mortgage insurer’s designation if the Minister is of the opinion that the approved mortgage insurer has failed to comply with any provision of this Act or the regulations. Effective date and length (2) The notice must set out the effective date and the length of the suspension. Prohibition (3) An approved mortgage insurer that has had its designation suspended must not insure any new mortgage or hypothecary loans until the suspension expires or is cancelled by the Minister. Obligations during suspension (4) For as long as the designation of an approved mortgage insurer is suspended, the approved mortgage insurer remains subject to the provisions of this Act and the regulations and must meet any conditions imposed by the Minister and satisfy any undertakings required by him or her. Cancellation of suspension (5) The Minister may cancel a suspension if he or she considers it appropriate to do so. Cancellation of designation 6. (1) After consulting with the Superintend-ent, the Minister may, by notice sent to an approved mortgage insurer, cancel the approved mortgage insurer’s designation if (a) the Minister is of the opinion that the approved mortgage insurer has failed to comply with any provision of this Act or the regulations; (b) a winding-up order is made in respect of the approved mortgage insurer; (c) the approved mortgage insurer ceases to be a mortgage insurer; or (d) the approved mortgage insurer requests in writing that its designation be cancelled. Effective date of cancellation (2) The notice must set out the effective date of the cancellation. Publication (3) As soon as feasible after sending the notice, the Minister must cause the name of the approved mortgage insurer whose designation is cancelled and the effective date of the cancellation to be published in the Canada Gazette. Obligations after cancellation (4) After the designation of a corporation as an approved mortgage insurer is cancelled and for as long as the Minister has any actual or potential obligations under section 16 in respect of the policies the corporation issued or the contracts of insurance it entered into that could be deemed to be policies under section 19, the corporation remains subject to sections 8 and 15 and the regulations related to those sections, as if it were still an approved mortgage insurer, and it must meet any conditions imposed by the Minister and satisfy any undertakings required by him or her. Company never designated 7. (1) For the period referred to in subsection (2), a company that has never been designated as an approved mortgage insurer is subject to sections 8 and 15 and the regulations related to those sections, as if it were an approved mortgage insurer, and must meet any conditions imposed by the Minister and satisfy any undertakings required by him or her. Period (2) The period is the length of time that the Minister has any actual or potential obligations under section 16 in respect of the contracts of insurance the company entered into that could be deemed to be policies under section 19. Adequacy of capital 8. (1) In order to mitigate the risks to Her Majesty that arise from the provision of mortgage or hypothecary insurance protection under this Act, an approved mortgage insurer must, in relation to its business and in addition to the capital it is required to maintain under the Insurance Companies Act, maintain adequate capital. Adequacy determined by Minister (2) The adequate level of capital is to be determined by the Minister after considering the advice of the Superintendent. Fees for risk exposure 9. An approved mortgage insurer must, in accordance with the regulations, pay fees to the Receiver General to compensate Her Majesty for Her exposure to the risks arising from the provision of the mortgage or hypothecary insurance protection under this Act. Designation of qualified mortgage lenders 10. (1) An approved mortgage insurer may designate as a qualified mortgage lender for the purposes of this Act any mortgage or hypothe-cary lender that meets prescribed criteria. Term of designation (2) The designation or its renewal are in effect for any period that the approved mortgage insurer specifies. Cancellation of designation (3) The approved mortgage insurer may, by notice sent to a qualified mortgage lender that it has designated as such, cancel the qualified mortgage lender’s designation. Effective date of cancellation (4) The notice must set out the effective date of the cancellation. Insurance restricted 11. (1) Except as permitted by the regulations, an approved mortgage insurer must not insure any risk unless the risk is in respect of an eligible mortgage loan made by a qualified mortgage lender that has been designated as such by the approved mortgage insurer. Reinsurance restricted (2) Except as permitted by the regulations, an approved mortgage insurer must not cause itself to be reinsured against any risk that it has undertaken under its policies or reinsure any risk that another insurer has undertaken under that insurer’s contracts of insurance. Subsidiaries 12. (1) An approved mortgage insurer must obtain the Minister’s approval before establishing or acquiring a subsidiary as defined in subsection 2(1) of the Insurance Companies Act. Conditions and undertakings (2) An approved mortgage insurer must meet any conditions imposed by the Minister and satisfy any undertakings required by him or her in respect of its business activities with any of its subsidiaries. Conditions and undertakings — business with affiliates, etc. 13. (1) The Minister may impose conditions on and require undertakings from an approved mortgage insurer in respect of its business activities with a person or entity that is (a) an affiliate, as defined in subsection 2(1) of the Insurance Companies Act, of the approved mortgage insurer; (b) a related party, within the meaning of section 518 of that Act, of the approved mortgage insurer; or (c) in a prescribed relationship with the approved mortgage insurer. Conditions and undertakings — increased risks (2) The Minister may also impose conditions on and require undertakings from an approved mortgage insurer if the Minister is of the opinion that the activities of a person or entity referred to in subsection (1) could materially increase the risks to Her Majesty that arise from the provision of mortgage or hypothecary insurance protection under this Act. Obligation of approved mortgage insurer (3) An approved mortgage insurer must meet any conditions imposed on it and satisfy any undertakings required from it under subsection (1) or (2). Prohibited policies — affiliates, etc. 14. Except as permitted by the regulations, an approved mortgage insurer must not be a party to a policy under which the beneficiary is a person or entity referred to in subsection 13(1). Obligation to retain information, books and records 15. (1) An approved mortgage insurer must keep and retain books and records and retain information in respect of its business that are relevant for the purposes of this Act or that are prescribed. Obligation to provide information or copies (2) At the request of the Minister or the Superintendent, an approved mortgage insurer must, without delay, provide the requester with any information or copies of any books or records that the approved mortgage insurer is required to retain. Disclosure of information (3) The Minister and the Superintendent may disclose to each other any information or copies of any books or records received under subsection (2) and may also disclose them to the Governor of the Bank of Canada, the Chairperson of the Canada Deposit Insurance Corporation and the Commissioner of the Financial Consumer Agency of Canada. Disclosure of conditions and undertakings (4) The Minister may disclose to the Superintendent any conditions imposed by the Minister and any undertakings required by him or her under this Act. Public information (5) An approved mortgage insurer must make available to the public prescribed books, records and information. MORTGAGE OR HYPOTHECARY INSURANCE PROTECTION Minister’s obligations 16. (1) Subsections (2) to (4) apply if (a) a winding-up order is made in respect of a corporation that had, before the making of the order, issued a policy to a qualified mortgage lender in respect of an eligible mortgage loan; (b) the policyholder or a beneficiary under the policy has made a claim to the liquidator that is related to the policy; and (c) the liquidator has allowed the claim and determined that it will not be paid in whole. Event has occurred (2) If an event that is insured against under the policy has occurred before the conditions set out in subsection (1) are met, the Minister must make a payment out of the Consolidated Revenue Fund to the beneficiary under the policy in an amount equal to the amount calculated in accordance with section 22. Event has not occurred (3) If an event that is insured against under the policy has not occurred before the conditions set out in subsection (1) are met, the Minister must elect to either (a) make a payment out of the Consolidated Revenue Fund to an approved mortgage insurer or the Canada Mortgage and Housing Corporation, with the payee’s consent, in an amount sufficient to allow the payee to enter into, with the policyholder, a contract of insurance that replaces the policy in accord-ance with subsection 23(1), or (b) satisfy, as required by subsection 24(1), future claims arising from the occurrence, if any, of such an event. Other election (4) If the Minister makes an election under paragraph (3)(a), no further election is to be made, but the making of an election under paragraph (3)(b) does not preclude the making of an election under paragraph (3)(a). Minister’s discretion 17. (1) Subsections (2) and (3) apply if a winding-up order is made in respect of a corporation that had, before the making of the order, issued a policy to a qualified mortgage lender in respect of an eligible mortgage loan. Event has occurred (2) If an event that is insured against under the policy has occurred before the condition set out in subsection (1) is met, the Minister may make a payment referred to in subsection 16(2). Event has not occurred (3) If an event that is insured against under the policy has not occurred before the condition set out in subsection (1) is met, the Minister may make a payment referred to in paragraph 16(3)(a) or satisfy future claims referred to in paragraph 16(3)(b). Ineligible mortgage loan 18. A contract of insurance entered into by an approved mortgage insurer and a qualified mortgage lender — that has been designated as such by the approved mortgage insurer — in respect of a mortgage or hypothecary loan that is not an eligible mortgage loan is deemed, for the purposes of sections 16, 17 and 20 to 25 to be a policy in respect of an eligible mortgage loan if the Minister is satisfied that the approved mortgage insurer and the qualified mortgage lender believed the loan to be an eligible mortgage loan and that the ineligibility of the loan was not due to negligence or bad faith by either of them. Pre-existing contracts 19. If a winding-up order is made in respect of a company, a contract of insurance that the company entered into before the coming into force of this Act is deemed, for the purposes of sections 16, 17 and 20 to 25 to be a policy issued to a qualified mortgage lender in respect of an eligible mortgage loan if Her Majesty would have been bound to make a payment in respect of the contract of insurance had section 44 not come into force. Subrogation 20. If the Minister is obligated, or decides under section 17, to make a payment referred to in subsection 16(2) or paragraph 16(3)(a) or satisfy future claims in accordance with paragraph 16(3)(b) in respect of a policy, Her Majesty is subrogated to all the rights the corporation had under the policy immediately before the making of the winding-up order. Subrogation — subsection 16(2) 21. (1) If the Minister is obligated, or decides under section 17, to make a payment referred to in subsection 16(2) in respect of a policy, Her Majesty is subrograted, once the payment is made, to (a) the rights that the policyholder or the beneficiary under the policy has to make a claim related to the policy; (b) a right to any proceeds payable in respect of the policy as a result of the making of the winding-up order; and (c) the lender’s rights under the loan covered by the policy. Subrogation — subsection 16(3) (2) If the Minister is obligated, or decides under section 17, to make a payment referred to in paragraph 16(3)(a) or satisfy future claims in accordance with paragraph 16(3)(b) in respect of a policy, Her Majesty is subrogated to (a) the rights that the policyholder has to make a claim related to the policy; and (b) a right to any proceeds paid or payable in respect of the policy as a result of the making of the winding-up order. Subrogation — subsection 24(1) (3) If the Minister makes a payment under subsection 24(1) in respect of a policy, Her Majesty is subrogated to the lender’s rights under the loan covered by the policy. Calculation of amount — event has occurred 22. The amount for the purpose of subsection 16(2) is the amount determined by the formula A – B – C where A      is the total of the amounts payable to the beneficiary under the policy immediately before the winding-up order is made; B      is the amount of any proceeds the beneficiary has received in respect of the policy since the making of the winding-up order; and C      is 10% of the original principal amount of the first eligible mortgage loan in respect of which the premium for the insurance was paid. Replacement insurance 23. (1) The insurance referred to in paragraph 16(3)(a) must be sufficient to cover the amount of benefits determined by the formula A – B where A      is the amount of benefits payable under the replaced policy; and B      is 10% of the original principal amount of the first eligible mortgage loan in respect of which the premium for the original insurance was paid. No liability — replaced policy (2) If the Minister makes a payment referred to in paragraph 16(3)(a), the Minister is not liable to make any other payment under this Act in respect of the replaced policy. Protection for replacement insurance contracts (3) If the payment is made to an approved mortgage insurer, the contract of insurance entered into as a result of the payment is a policy for the purposes of this Act. Regulations — replacement policy payments (4) Despite the formulas set out in section 22 and subsections 23(1) and 24(1), the Governor in Council may make regulations prescribing the manner of calculating the amount of any payment referred to in subsection 16(2), paragraph 16(3)(a) or subsection 24(1) in respect of the policy referred to in subsection (3). Satisfaction of future claims 24. (1) If the Minister is obligated, or decides under section 17, to satisfy future claims in accordance with paragraph 16(3)(b) and a claim is subsequently made to the Minister by reason of the occurrence of an event that was insured against under the policy, the Minister must make a payment out of the Consolidated Revenue Fund to the beneficiary under the policy in an amount equal to the amount determined by the formula A – B where A      is the total of the amounts that would have been payable to the beneficiary under the policy; and B      is 10% of the original principal amount of the first eligible mortgage loan in respect of which the premium for the insurance was paid. Conditions (2) The Minister is not obligated to pay the amount determined in accordance with the formula unless he or she is satisfied that the beneficiary would have been entitled to a payment under the policy and that the policyholder has discharged its obligations under the policy and the obligations it would have had under the policy had the winding-up order not been made. Affiliates, etc. 25. A payment referred to in subsection 16(2), paragraph 16(3)(a) or subsection 24(1) must not be made in respect of a policy if the corporation in respect of which the winding-up order was made was, immediately before that order was made, a party to the policy in contravention of section 14. Time of payment — subsection 16(2) 26. (1) A payment required to be made under subsection 16(2) must be made before the expiry of two years or of any other prescribed period beginning on the day on which the conditions referred to in paragraphs 16(1)(a) to (c) have been met. Time of payment — subsection 24(1) (2) A payment required to be made under subsection 24(1) must be made before the expiry of two years or of any other prescribed period beginning on the day on which the Minister is satisfied that the conditions referred to in subsection 24(2) have been met. PROTECTED LOAN LIMIT Limit 27. The aggregate outstanding principal amount of the following loans must not at any time exceed $300,000,000,000 or any other amount that is authorized for the purposes of this section under an appropriation Act: (a) all mortgage or hypothecary loans that are insured by corporations that are or were approved mortgage insurers; and (b) all mortgage or hypothecary loans that are insured under contracts of insurance that could be deemed to be policies under section 19 and that are entered into by companies that have never been designated as approved mortgage insurers. Allocation of limit 28. (1) The Minister may, by notice in writing, at any time allocate any portion of the amount applicable under section 27 to any approved mortgage insurer in order to support the efficient functioning of the housing finance market and the stability of the financial system in Canada and to mitigate the risks to Her Majesty that arise from the provision of mortgage or hypothecary insurance protection under this Act. Prohibition (2) An approved mortgage insurer to whom an amount is allocated must not insure any new mortgage or hypothecary loans if doing so would cause the outstanding principal amount of all mortgage or hypothecary loans that are insured by it to exceed that allocated amount. EXAMINATION AND REPORTING Examination 29. The Superintendent must, from time to time, make or cause to be made any examination and inquiry into the business and affairs of a corporation that the Superintendent considers to be necessary or expedient to determine whether the corporation is complying with sections 5 to 8, 10 to 15 and 28 and the regulations related to those sections and may, after the conclusion of each examination and inquiry, report on it to the Minister. Notice to Minister 30. (1) If a corporation is not, or is not likely to remain, in compliance with any of sections 5 to 8, 10 to 15 and 28 or the regulations related to those sections, the Superintendent must notify the Minister. Notice to management and board of directors (2) If a corporation is not, or is not likely to remain, in compliance with any of sections 5 to 8, 10 to 15 and 28 or the regulations related to those sections, the Superintendent must notify the management or board of directors of the corporation. Court order to comply 31. If a corporation is not in compliance with a provision of this Act or the regulations, the Minister may apply to a court for an order directing the corporation to comply with the provision. On such an application the court may make the order and any other order that it thinks fit. Notice to Minister — section 27 32. The Superintendent must, from time to time but at least once in each calendar year, notify the Minister of the aggregate outstanding principal amount referred to in section 27. SANCTIONS Offence 33. Every corporation that, without reasonable cause, contravenes any provision of this Act or the regulations is guilty of an offence. False or misleading information 34. Every person who knowingly provides false or misleading information in relation to any matter relating to a provision of this Act or the regulations is guilty of an offence. Punishment 35. (1) Every person who is guilty of an offence under this Act is liable to (a) on conviction on indictment, a fine of not more than $5,000,000; or (b) on summary conviction, a fine of not more than $500,000. Order to comply (2) If a corporation has been convicted of an offence under this Act, the court may, in addition to any punishment it may otherwise impose, order it to comply with the provisions of this Act and the regulations. Additional fine (3) If a corporation has been convicted of an offence under this Act, the court may, if it is satisfied that as a result of the commission of the offence the corporation acquired any monetary benefits, order the corporation to pay, despite the maximum amount of any fine that may otherwise be imposed under this Act, an additional fine in an amount equal to three times the court’s estimation of the amount of those monetary benefits. Liability of officers, directors, etc. 36. If a corporation commits an offence under this Act, any of its officers, directors, agents or mandataries who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable, whether or not the corporation has been prosecuted or convicted, to (a) on conviction on indictment, a fine of not more than $1,000,000 or imprisonment for a term of not more than five years, or both; or (b) on summary conviction, a fine of not more than $100,000 or imprisonment for a term of not more than one year, or both. Limitation period or prescription 37. (1) Proceedings by way of summary conviction in respect of an offence under this Act may be commenced at any time within, but not later than, two years after the day on which the subject matter of the proceedings became known to the Minister. Certificate of Minister (2) A document appearing to have been issued by the Minister certifying the day on which the subject matter of any proceedings became known to the Minister is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and is, in the absence of evidence to the contrary, proof of the matter asserted in it. Appeal with leave 38. An appeal lies to the court of appeal of a province from any order made under this Act by a court of that province, only with leave of the court of appeal in accordance with the rules applicable to that court. Recovery and application of fines 39. All fines payable under this Act are recoverable and enforceable, with costs, at the suit of Her Majesty, instituted by the Attorney General of Canada, and, when recovered, belong to Her Majesty. LEGAL PROCEEDINGS No liability 40. No action lies against Her Majesty, the Minister, the Superintendent or any employee or agent of Her Majesty for anything done or omitted to be done in good faith in the exercise or performance of any powers, duties or functions that under this Act are intended or authorized to be exercised or performed. REGULATIONS Regulations 41. The Governor in Council may make regulations for carrying out the purposes and provisions of this Act, including regulations (a) imposing conditions on an approved mortgage insurer in order to mitigate the risks to Her Majesty that arise from the provision of mortgage or hypothecary insurance protection under this Act; (b) respecting the payment of fees under section 9, including the amount of those fees or the manner of calculating them; (c) respecting the designation, by approved mortgage insurers, of mortgage or hypothe-cary lenders as qualified mortgage lenders; (d) prescribing the exceptions to each of the requirements under section 11; (e) prescribing the exceptions to each of the prohibitions under section 14; (f) prescribing, for the purposes of subsection 15(1), the manner in which books and records are to be kept and retained and the manner in which information is to be retained; (g) prescribing, for the purposes of subsection 15(5), the manner in which the books, records and information are to be made available to the public; and (h) prescribing anything that is required or authorized by this Act to be prescribed. Ministerial regulations 42. (1) The Minister may, after consulting with the Governor of the Bank of Canada and the Superintendent, make regulations establishing criteria that a mortgage or hypothecary loan must meet in order for it to be an eligible mortgage loan. Ministerial regulations — agreements and undertakings (2) The Minister may make regulations specifying, for the purposes of paragraph 43(k), agreements entered into by Her Majesty and a company in respect of mortgage or hypothecary insurance, and undertakings given by a company under an agreement as defined in section 43. Coming into force (3) A regulation made under this section comes into force on the day on which it is published in the Canada Gazette or on any later day that is specified in the regulation unless the regulation provides otherwise and it gives effect to a budgetary or other public announcement, in which case the regulation must not come into force before the day on which the announcement was made. TERMINATION OF AGREEMENTS Definition of “agreement” 43. In sections 44 to 48, “agreement” means (a) the agreement entered into by Her Majesty and The Mortgage Insurance Company of Canada that was made on January 1, 1991 and subsequently assigned to GE Capital Mortgage Insurance Company (Canada); (b) the Management Agreement entered into by Her Majesty, The Mortgage Insurance Company of Canada, Royal Bank Investment Management Inc., and Royal Trust Corporation of Canada that was made on November 1, 1991; (c) the agreement entered into by Her Majesty and AIG United Guaranty Mortgage Insurance Company Canada that was made on November 21, 2006; (d) the Custody and Security Agreement entered into by Her Majesty, AIG United Guaranty Mortgage Insurance Company Canada and RBC Dexia Investor Services Trust that was made on November 21, 2006; (e) the Management Agreement entered into by Her Majesty, AIG United Guaranty Mortgage Insurance Company Canada and RBC Dominion Securities Inc. that was made on November 21, 2006; (f) the agreement entered into by Her Maj-esty and PMI Mortgage Insurance Company Canada that was made on July 12, 2007; (g) the Custody and Security Agreement entered into by Her Majesty, PMI Mortgage Insurance Company Canada and Citibank Canada that was made on July 12, 2007; (h) the Management Agreement entered into by Her Majesty, PMI Mortgage Insurance Company Canada and TD Asset Management Inc. that was made on July 12, 2007; (i) the Management Agreement entered into by Her Majesty, Canada Guaranty Mortgage Insurance Company and Phillips, Hager & North Investment Management Ltd. that was made on May 5, 2010; (j) any reinsurance agreement to which Her Majesty and a company or a predecessor to a company are parties; (k) any agreement or undertaking specified in regulations made under subsection 42(2); or (l) any amendment to an agreement referred to in any of paragraphs (a) to (k). Agreements are terminated 44. The agreements are terminated and all obligations and liabilities arising out of the agreements and all rights acquired under them are extinguished. No liability 45. No action or other proceeding, including any action or proceeding in restitution, or for damages of any kind, that is based on or is in relation to any agreement, lies or may be instituted by anyone against Her Majesty or any minister or any employee or agent of Her Majesty, or any person engaged to provide advice or services to Her Majesty in relation to any agreement, for anything done or omitted to be done or for anything purported to have been done or omitted to be done, in the exercise or performance of their powers, duties and functions. No compensation 46. No one is entitled to any compensation from Her Majesty in connection with the coming into force of section 44. Obligation to send statement 47. (1) Within 30 days after the day on which this Act comes into force or any longer period that the Minister allows, each company must send to the Minister a written statement indicating, as of the time immediately before this Act comes into force, the following amounts: (a) the amount of cash on deposit in any custodial account, trust account, guarantee fund or similar account or fund established under an agreement in respect of the company; and (b) the current market value of all securities held in those accounts or funds. Audit of statement (2) The Minister may cause the statement to be audited. Ownership 48. For greater certainty, the cash on deposit in, and the securities held in, any custodial account, trust account, guarantee fund or similar account or fund established under an agreement in respect of a company belong to the company on the coming into force of this Act. Consequential Amendments 2006, c. 4 Budget Implementation Act, 2006 2006, c. 4, s. 198; 2008, c. 28, s. 148 21. Part 9 of the Budget Implementation Act, 2006 is repealed. R.S., c. N-11 National Housing Act 22. Section 5 of the National Housing Act is amended by adding the following after subsection (5): Regulations (6) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations respecting the designation of approved lenders, including regulations establishing criteria that a person must meet in order to be so designated. 23. The Act is amended by adding the following after section 8: Regulations — Minister of Finance 8.1 (1) The Minister of Finance may, after consulting the Governor of the Bank of Canada and the Superintendent of Financial Institutions appointed under the Office of the Superintendent of Financial Institutions Act, make regulations respecting classes of housing loans and criteria to be met by loans in each of those classes in order for the Corporation to be able to provide insurance against risks relating to those loans. Coming into force (2) A regulation made under this section comes into force on the day on which it is published in the Canada Gazette or on any later day that is specified in the regulation unless the regulation provides otherwise and it gives effect to a budgetary or other public announcement, in which case the regulation must not come into force before the day on which the announcement was made. Fees for risk exposure 8.2 The Minister of Finance may fix a fee to be paid by the Corporation to the Receiver General to compensate Her Majesty for Her exposure to the risks covered by Her agent the Corporation arising from the insurance relating to housing loans. That Minister shall notify the Corporation in writing of the fee. 24. The Act is amended by adding the following after section 21: Obligation to retain information, books and records 21.1 (1) The Corporation shall keep and retain books and records and retain information in respect of its business that are relevant for the purposes of this Part or that are prescribed. Obligation to provide information or copies (2) At the request of the Minister of Finance, the Corporation shall, without delay, provide that Minister with any information or copies of any books or records that it is required to retain. Power to disclose (3) The Minister of Finance may disclose to the Superintendent of Financial Institutions appointed under the Office of the Superintendent of Financial Institutions Act, the Governor of the Bank of Canada, the Chairperson of the Canada Deposit Insurance Corporation and the Commissioner of the Financial Consumer Agency of Canada any information or copies of any books or records received under subsection (2). Public information (4) The Corporation shall make available to the public prescribed books, records and information that are relevant for the purposes of this Part. Regulations (5) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations prescribing the manner in which books and records are to be kept and retained, the manner in which information is to be retained and the manner in which books, records and information are to be made available to the public. R.S., c. 18 (3rd Supp.), Part 1 Office of the Superintendent of Financial Institutions Act 1997, c. 15, s. 339 25. Subsection 23(1) of the Office of the Superintendent of Financial Institutions Act is replaced by the following: Superintendent to ascertain expenses 23. (1) The Superintendent shall, before December 31 in each year, ascertain the total amount of expenses incurred during the immediately preceding fiscal year for or in connection with the administration of the Bank Act, the Cooperative Credit Associations Act, the Green Shield Canada Act, the Insurance Companies Act, the Protection of Residential Mortgage or Hypothecary Insurance Act and the Trust and Loan Companies Act. Coming into Force Order in council 26. This Part comes into force on a day to be fixed by order of the Governor in Council. PART 8 R.S., c. F-8; 1995, c. 17, s. 45(1) FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT 27. Section 3.12 of the Federal-Provincial Fiscal Arrangements Act is renumbered as subsection 3.12(1) and is amended by adding the following: Additional fiscal equalization payment — 2011-2012 fiscal year (2) An additional fiscal equalization payment may be paid for the fiscal year beginning on April 1, 2011 equal to, (a) for Quebec, $368,932,000; (b) for Nova Scotia, $157,591,000; (c) for New Brunswick, $149,776,000; and (d) for Manitoba, $275,808,000. 28. The Act is amended by adding the following after section 3.97: PART I.01 OTHER PAYMENTS Payments — Ontario and Prince Edward Island 3.98 (1) There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, the following sums for the fiscal year beginning April 1, 2011: (a) to Ontario, $150,365,000; and (b) to Prince Edward Island, $1,089,000. Recovery (2) If the Minister has made a payment to a province under subsection (1), he or she shall reduce, by an amount equal to 1/10 of that payment, the fiscal equalization payments to that province for each of the fiscal years in the period beginning on April 1, 2012 and ending on March 31, 2022. If, for one of those fiscal years, it is not possible to reduce the fiscal equalization payment by that entire amount, he or she may recover the amount remaining as a debt due to Her Majesty in right of Canada out of any sum of money that may be due or payable by Her Majesty in right of Canada to that province under this Act for that fiscal year. R.S., c. 11 (3rd Supp.), s. 5(6)(F); 2005, c. 7, s. 2(6) 29. Subsection 6(6) of the Act is replaced by the following: Exception (6) Despite subsection (4), for the purposes of determining the amount under subsection (1) for a fiscal year, the payment under section 3.12 and the additional cash payment under section 24.703 are not included in the province’s non-natural resource revenue for the preceding fiscal year. PART 9 1991, c. 47 INSURANCE COMPANIES ACT 1999, c. 1, s. 4 30. The portion of section 236.1 of the Insurance Companies Act before the definition “conversion proposal” is replaced by the following: Definitions 236.1 The following definitions apply in sections 237 to 237.2. 31. The Act is amended by adding the following after section 237.1: Distribution prohibited 237.2 (1) A mutual company shall not take any action or series of actions directed toward the distribution of all or part of its property to its policyholders or shareholders or the provision of any other benefit to its policyholders or shareholders, other than as provided in subsections 237(1) to (1.2), until a conversion proposal has been approved by the Minister under subsection 237(1). Exception (2) Nothing in subsection (1) prevents (a) the directors of the company from declaring a dividend on shares or a policy dividend, bonus or other benefit payable to policyholders in the ordinary course of business; or (b) the company from paying or otherwise satisfying a dividend, bonus or other benefit referred to in paragraph (a). Non-application (3) This section does not apply to a company that is insolvent within the meaning of the Winding-up and Restructuring Act. PART 10 SOR/2001-177 ASSESSMENT OF FINANCIAL INSTITUTIONS REGULATIONS, 2001 Amendment to the Regulations 32. Paragraph 2(e) of the Assessment of Financial Institutions Regulations, 2001 is replaced by the following: (e) the aggregate of (i) the total amount of net premiums received in Canada during the immediately preceding calendar year by each company, society and provincial company to which the Insurance Companies Act applies, (ii) an amount equal to 25 per cent of net premiums received outside Canada during the immediately preceding calendar year by each company, society and provincial company to which the Insurance Companies Act applies, and (iii) in the case of a life company or a society, an amount equal to 25 per cent of net premiums received outside Canada during the immediately preceding calendar year by each of its subsidiaries that is engaged in the business of insurance outside Canada; and Validation 33. Every amount assessed under subsection 23(3) of the Office of the Superintendent of Financial Institutions Act, after May 31, 2001, against a life company or a society is valid to the same extent as it would have been were it assessed after the coming into force of section 32. PART 11 R.S., c. F-11 FINANCIAL ADMINISTRATION ACT Amendments to the Act 34. The Financial Administration Act is amended by adding the following after section 29.1: Internal support services 29.2 (1) A department may provide internal support services to and receive internal support services from one or more other departments, and the provision of those services may be through collaboration among departments. Written agreement (2) Any department providing internal support services to another department must enter into an agreement in writing with that department respecting those services. Exception (3) Subsection (1) does not authorize a department to provide internal support services if, under an Act of Parliament, order of the Governor in Council or direction of Treasury Board, (a) those services may only be provided by another department or body; (b) departments must obtain those services from another department or body; or (c) it is precluded from doing so. Definition of “internal support services” (4) In this section, “internal support services” means administrative activities that support (a) human resources management services; (b) financial management services; (c) information management services; (d) information technology services; (e) communications services; (f) real property services; (g) materiel services; (h) acquisition services; or (i) any other administrative service that is designated by order of the Governor in Council. 35. The Act is amended by adding the following after section 31: Credits transferred 31.1 If an order is made under section 2 of the Public Service Rearrangement and Transfer of Duties Act, all of the unexpended money authorized by an Act of Parliament to be paid and applied for the purposes of any power, duty or function or control or supervision of a portion of the federal public administration that is transferred as a result of the operation of sections 2 and 3 of that Act is deemed to have been appropriated for the purposes of the power, duty, function, control or supervision to the department in, or portion of, the federal public administration to which it has been transferred. Coming into Force June 1, 2011 36. Section 35 is deemed to have come into force on June 1, 2011. PART 12 2001, ch. 26 CANADA SHIPPING ACT, 2001 Amendments to the Act 37. The definitions “authorized represent-ative” and “Canadian vessel” in section 2 of the Canada Shipping Act, 2001 are replaced by the following: “authorized representative”« représentant autorisé » “authorized representative” means (a) in respect of a Canadian vessel, the person referred to in subsection 14(1); (b) in respect of a fleet registered under Part 2, the person referred to in subsection 75.03(5); and (c) in respect of a foreign vessel, the master. “Canadian vessel”« bâtiment canadien » “Canadian vessel” means a vessel that is registered or listed under Part 2 (Registration, Listing and Recording) or that is exempted under the regulations from the registration requirement in subsection 46(1). 38. Subsection 43(2) of the Act is replaced by the following: Records (2) The Register is to contain records of the information and documents specified by the Chief Registrar in respect of a Canadian vessel or a fleet that is registered under this Part, including its description, its official number, the name and address of its owner and, in the case of a vessel that is not registered in the small vessel register, details of all mortgages registered in respect of it. 39. (1) The portion of subsection 46(1) of the Act before paragraph (a) is replaced by the following: Mandatory registration of vessels 46. (1) Unless it is exempted under the regulations, a vessel must be registered under this Part if it (2) Subsection 46(2) of the Act is replaced by the following: Owner’s obligation (2) Every owner of a vessel that is required by subsection (1) to be registered under this Part shall ensure that it is so registered. 40. Section 47 of the Act is amended by adding the following after paragraph (a): (a.1) a vessel that is exempted under the regulations from the registration requirement in subsection 46(1) and that is wholly owned by qualified persons; 41. Subsection 58(2) of the French version of the Act is replaced by the following: Avis des modifications (2) Si un bâtiment canadien est modifié au point de n’être plus conforme à la description qui en est faite au certificat d’immatriculation ou aux détails qui y sont indiqués, le représentant autorisé en avise le registraire en chef au plus tard trente jours après la modification et lui fournit les renseignements et documents utiles. 42. Section 76 of the Act and the heading before it are replaced by the following: Fleets Application for fleet 75.01 (1) An applicant may, instead of applying to have vessels individually registered in the small vessel register, apply to register a group of two or more vessels as a fleet in that register. Form and manner (2) The application must be made in the form and manner, include the information and be accompanied by the documents specified by the Chief Registrar. Further evidence (3) In addition to the specified information and documents, the Chief Registrar may require an applicant to provide evidence, including declarations, that the Chief Registrar considers necessary to establish that the group of vessels may be registered as a fleet. Registration — fleet 75.02 (1) The Chief Registrar may register a group of two or more vessels as a fleet if he or she is satisfied that (a) all of the vessels are owned by the same owner; (b) each vessel meets the requirements for registration in the small vessel register; and (c) each vessel meets any other requirement — including with respect to a vessel’s dimensions, usage or propulsion — that the Chief Registrar may establish for the vessels of a fleet. Small vessel register (2) A fleet that is accepted for registration must be registered in the small vessel register. Certificate of registry 75.03 (1) The Chief Registrar must issue a certificate of registry in respect of a fleet that he or she registers, and the certificate is valid for the period that he or she specifies. Information (2) A certificate of registry in respect of a fleet must contain the information specified by the Chief Registrar, including (a) a description of the fleet; (b) the fleet’s official number; and (c) the name and address of the owner and the authorized representative of the fleet. Description — number of vessels (3) In the fleet’s description, the Chief Registrar must specify either the number of vessels that are to be part of the fleet or the minimum and maximum numbers of vessels that can be part of it. Official number (4) The fleet’s official number is also the official number of each vessel of that fleet. Authorized representative of fleet (5) The authorized representative of a fleet is the authorized representative, as determined under section 14, of the vessels of that fleet. More than one owner (6) If subsection 14(3) applies to the vessels of a fleet, the owners must appoint, under that subsection, one of themselves to be the authorized representative of all of the fleet’s vessels. Acts or omissions of authorized representative binding (7) The owner of a fleet is bound by the acts or omissions of the authorized representative of the fleet with respect to all matters assigned by this Act to that representative. Addition or removal of vessels 75.04 Subject to subsection 75.1(2), an owner of a fleet may, after the fleet is registered, add a vessel to the fleet or remove a vessel from it. However, any vessel that is to be added must (a) be owned by the same owner as all of the other vessels of the fleet; (b) satisfy the conditions set out in paragraphs 75.02(1)(b) and (c); and (c) fit within the description or particulars set out in the fleet’s certificate of registry. Vessels registered 75.05 (1) Subject to subsection (2), a vessel that is or becomes part of a fleet is considered to be registered under this Part and, for greater certainty, is a Canadian vessel. No longer registered (2) Unless it becomes part of another fleet, such a vessel ceases to be registered under this Part if (a) there is a change in its ownership; or (b) it is altered to the extent that it no longer fits within the description or particulars set out in the fleet’s certificate of registry. Cancellation of individual registration 75.06 The Chief Registrar may cancel the registration of a Canadian vessel if the vessel becomes part of a fleet. Non-application of provisions 75.07 The following provisions do not apply in respect of a fleet or a vessel of a fleet: (a) subsections 57(2) and (3); (b) section 58; (c) section 60; (d) section 62; (e) subsections 63(1) and (2); (f) section 73. For greater certainty 75.08 (1) For greater certainty, the following provisions apply in respect of a fleet or a vessel of a fleet: (a) section 56; (b) subsections 57(1) and (4); (c) subsections 63(3) and (4). Section 59 (2) Section 59 applies in respect of a fleet, except that the reference to “section 58” is to be read as a reference to “section 75.1”. Marking — validity of fleet’s certificate of registry 75.09 (1) A fleet’s certificate of registry is not valid unless each of the fleet’s vessels has been marked in accordance with subsection 57(1). Maintenance of markings (2) The authorized representative of a fleet shall ensure that each of the fleet’s vessels is kept marked. Notification of changes — name and address 75.1 (1) The authorized representative of a fleet shall notify the Chief Registrar within 30 days after there has been a change in the owner’s or authorized representative’s name or address. Notification of changes — number of vessels (2) If the number of vessels in a fleet changes to the extent that the fleet no longer corresponds with its description set out on the certificate of registry, its authorized representative shall, within 30 days after the change in number, notify the Chief Registrar and provide him or her with the relevant information and documents. Notification of changes — owner (3) If for any reason a fleet does not have an authorized representative, its owner shall (a) notify the Chief Registrar of that fact as soon as possible in the circumstances; and (b) notify the Chief Registrar within 30 days after any event referred to in subsection (1) or (2) occurs. Suspension and cancellation 75.11 (1) Subject to the regulations, the Chief Registrar may suspend or cancel the registration of a fleet if (a) any one of the fleet’s vessels is not marked in accordance with subsection 57(1); (b) the fleet’s certificate of registry has expired; (c) the fleet does not have an authorized representative; or (d) section 75.1 has not been complied with. Cancellation — fleet (2) Subject to the regulations, the Chief Registrar must cancel the registration of a fleet if it no longer qualifies for registration under this Part. Evidence (3) The Chief Registrar must cancel the registration of a fleet if a person who acquires the fleet does not, within the prescribed period, provide evidence that satisfies the Chief Registrar that the fleet still qualifies for registration under this Part. Reinstatement 75.12 The Chief Registrar may reinstate the registration of a fleet if, in his or her opinion, the registration of the fleet should not have been cancelled. Delivery of certificate 75.13 A person who is in possession of a fleet’s certificate of registry shall deliver it to the person who is entitled to operate the fleet. Change of ownership 75.14 If the ownership of a fleet changes and the fleet still qualifies to be registered under this Part, (a) the owner must provide the Chief Registrar with the evidence, including declarations, that the Chief Registrar considers necessary to establish that the fleet still qualifies to be so registered; and (b) the Chief Registrar must amend the Register and the certificate of registry to reflect the change. Entries Copies of entries 76. A person may examine or obtain copies of any entries in the Register with respect to a vessel or fleet. 43. (1) Paragraph 77(a) of the Act is replaced by the following: (a) respecting the registration of vessels and fleets and the listing and recording of vessels; (2) Paragraph 77(c) of the Act is replaced by the following: (c) respecting the suspension and cancellation of the registration of a Canadian vessel or a fleet, and the suspension and cancellation of the listing of a Canadian vessel; (3) Subsection 77(f) of the Act is replaced by the following: (f) respecting the form and manner of notifying the Chief Registrar under sections 58 and 75.1; (4) Section 77 of the Act is amended by striking out “and” at the end of paragraph (h) and by adding the following after that paragraph: (h.1) respecting the exemption of vessels or classes of vessels from the registration requirement in subsection 46(1); (h.2) authorizing the Minister to exempt, by order, vessels or classes of vessels from the registration requirement in subsection 46(1) for the period specified in the regulations and on any terms and conditions that he or she considers appropriate, if he or she is of the opinion that the exemption is not likely to adversely affect marine safety, and authorizing the Minister to amend or revoke an exemption; (h.3) respecting an authorization under paragraph (h.2); and 44. Subsection 79(1) of the Act is amended by striking out “or” at the end of paragraph (l) and by adding the following after that paragraph: (l.1) subsection 75.09(2) (maintenance of markings); (l.2) subsection 75.1(1) (notification of changes — name and address); (l.3) subsection 75.1(2) (notification of changes — number of vessels); (l.4) subsection 75.1(3) (notification of changes — owner); (l.5) section 75.13 (delivery of certificate); or 1992, c. 31 Consequential Amendment to the Coasting Trade Act 2001, c. 26, s. 289 45. The definition “Canadian ship” in subsection 2(1) of the Coasting Trade Act is replaced by the following: “Canadian ship”« navire canadien » “Canadian ship” means a Canadian vessel, as defined in section 2 of the Canada Shipping Act, 2001, in respect of which all duties and taxes imposed under the Customs Tariff and the Excise Tax Act have been paid; Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada