The "Lectures on the Bank Act" by A. Rives-Hall, now in course of publication in the Journal of the Canadian Bankers' Association (beginning in Vol. XIII., p. 237) and the introductory address by R. D. McGibbon, K.C. (ibid. p. 230) may usefully be consulted with special reference to Quebec law. Dr. Walton's treatise on the Scope and Interpretation of the Civil Code will be found particularly valuable in regard to the extent to which English decisions are applicable to the province of Quebec.

Sec. 1.

CHAPTER III.

THE BANK ACT: SHORT TITLE AND INTERPRETATION.

Upon even a casual perusal of the Bank Act, it will be obvious that the banking legislation of the Dominion leaves untouched in many respects the great body of the law merchant. The review of that legislation contained in Chapter I. shews that the efforts of Parliament have been mainly directed to the perfecting of the banking system so far as concerns the existence of the banks as corporations with special powers and privileges, and the security afforded by them to the public. The general relation of banker and customer and the rights and liabilities arising therefrom are only incidentally affected. Nevertheless the general banking law is so far affected by the Bank Act that it seems impossible to treat the general subject of banking law in any order other than that followed by the act without such an elaborate system of cross references as would unduly tax the patience of the reader. I have therefore endeavoured to discuss different phases of banking law in connection with particular sections of the act which deal with cognate subjects, although this course will necessarily involve a treatment of the whole subject without much regard to logical sequence.

Short title.

REVISED STATUTES OF CANADA.

CHAPTER 29.

An Act respecting Banks and Banking.

SHORT TITLE.

1. This Act may be cited as the Bank Act, 53 V., c. 31, s. 1.

For a review of the chief changes in the general banking legislation of the Dominion leading up to the present act, the reader is referred to Chapter I.

Powers of Dominion and Province in regard to Banks.

By reason of its power to legislate with regard to "direct taxation within the province in order to the raising of a revenue for provincial purposes" under clause 2 of sec. 92 of the British. North America Act, 1867, a provincial legislature may impose a tax upon banks which carry on business within the province, varying in amount with their paid-up capital and with the number of their offices, whether or not their principal place of business is within the province (Bank of Toronto v. Lambe, 1887, 12 App. Cas. 575). It has been held in New Brunswick that a provincial legislature may impose a tax on the Dominion notes held by a bank in the province as part of its cash reserve under sec. 60 (Windsor v. Commercial Bank, 1882, 3 Cart. 377, 3 Russ. & Geld. 420).

As to the other questions of legislative power arising under the enactments of the Dominion Parliament in this Act, see notes to sec. 36 (Succession duty on shares and deposits), sec. 88 (Security for advances) and sec. 125 (Insolvency).

Sec. 1.

INTERPRETATION.

2. In this Act, unless the context otherwise requires,— Definitions: (a) 'bank' means any bank to which this Act applies; 'Bank.' (b) 'Minister' means the Minister of Finance and Receiver Minister.' General;

(c) 'Association' means the Canadian Bankers' Associa- ‹ 'Association, incorporated by the Act passed in the session held in tion.' the sixty-third and sixty-fourth years of Her late Majesty's reign, chapter ninety-three, intituled An Act to incorporate the Canadian Bankers' Association;

(d) 'curator' means any person appointed under the author- 'Curator.' ity of this Act by the Canadian Bankers' Association to supervise the affairs of any bank which has suspended payment in specie or Dominion notes of any of its liabilities as they accrue;

Fund.'

(e) 'Circulation Fund' means the fund heretofore estab- 'Circulation lished and continued by the authority of this Act under the name of the Bank Circulation Redemption Fund;

Sec. 2. 'Goods, wares and merchandise.'

'Warehouse receipt.'

Bill of lading.'

'Manufacturer.'

(f) 'goods, wares and merchandise' includes, in addition to the things usually understood thereby, timber, deals, boards, staves, saw-logs and other lumber, petroleum, crude oil, and all agricultural produce and other articles of

commerce;

(g) 'warehouse receipt'

(i) means any receipt given by any person for any goods, wares or merchandise in his actual visible and continued possession as bailee thereof in good faith and not as of his own property, and

(ii) includes receipts, given by any person who is the owner or keeper of a harbour, cove, pond, wharf, yard, warehouse, shed, storehouse or other place for the storage of goods, wares or merchandise, for goods, wares and merchandise delivered to him as bailee, and actually in the place or in one or more of the places owned or kept by him, whether such person is engaged in other business or not, and

(iii) includes also receipts given by any person in charge

of logs or timber in transit from timber limits or other lands to the place of destination of such logs or timber; (h) 'bill of lading' includes all receipts for goods, wares or merchandise, accompanied by an undertaking to transport the same from the place where they were received to some other place, by any mode of carriage whatever, whether by land or water, or partly by land and partly by water;

(i) 'manufacturer' includes manufacturers of logs, timber or lumber, maltsters, distillers, brewers, refiners and producers of petroleum, tanners, curers, packers, canners of meat, pork, fish, fruit or vegetables, and any person who produces by hand, art, process or mechanical means any goods, wares or merchandise;

(j) 'president' does not include an honorary president;

Sec. 2.

'President.'

2. Where by this Act any public notice is required to be Public given the notice shall, unless otherwise specified, be given by notice, how given. advertisement,

(a) in one or more newspapers published at the place where the head office of the bank is situate; and,

(b) in the Canada Gazette. 53 V., c. 31, ss. 2, 54 and 102; 63-64 V., c. 26, ss. 3 and 24; 4-5 E. VII., c. 4, s. 4.

(a) "bank."

The banks to which this act applies are specified in secs. 3, 4, 5 and 6. The act does not apply to a foreign corporation (Commercial National Bank v. Corcoran, 1884, 6 O.R. 527). By sec. 156, every person assuming or using the title "bank," "banking company," etc., without being authorized so to do by this act, or by some other act in force in that behalf, is guilty of an offence against this act.

As to what is a bank in regard to its business and powers, see Chapter XIV., infra.

A bank for the purpose of the Bills of Exchange Act means an incorporated bank or savings bank carrying on business in Canada (see sec. 2 (c) of that act, infra).

(b) "Minister."

The Minister of Finance and Receiver-General is frequently referred to in the act. He is also chairman of the Treasury Board, which exercises important functions under the act. See secs. 15 to 17, 33, 35, 67, 68 and 132. By the Act respecting the Department of Finance and the Treasury Board, the Board consists of the Minister of Finance and Receiver-General, and any five of the Ministers belonging to the King's Privy Council for Canada, to be nominated from time to time by the Governorin-Council; the Board acts as a committee of the Privy Council on all matters relating to finance, revenue and expenditure, or public accounts, which are referred to it by the Council, or to which the Board thinks it necessary to call the attention of the Council, and has power to require from any public department, board or officer, or other person or party bound by law to furnish the same to the government, any account, return, statement,

3-BANK ACT.