Atb Financial Act

Province of Alberta

ATB FINANCIAL ACT

Revised Statutes of Alberta 2000 Chapter A-45.2

Current as of December 9, 2020

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Note

All persons making use of this consolidation are reminded that it has no legislative sanction, that amendments have been embodied for convenience of reference only. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law.

Regulations

The following is a list of the regulations made under the Alberta Treasury Branches Act that are filed as Alberta Regulations under the Regulations Act.

Alta. Reg. Amendments

ATB Financial Act ATB Financial ...... 187/97 ...... 54/98, 234/99, 7/2000, 164/2002, 109/2003, 110/2004, 221/2004, 169/2006, 111/2007, 59/2008, 215/2008, 63/2009, 239/2009;155/2020, 240/2020

ATB FINANCIAL ACT

Chapter A-45.2

Table of Contents

1 Definitions

Corporate Structure and Governance 2 ATB Financial 3 Appointment of board 4 Composition of board 5 Ceasing to hold office 6 Chief Executive Officer 6.1 Remuneration of Chief Executive Officer 7 Employees 8 Board bylaws 9 Audit committee

Business Powers, Duties and Limitations 10 Operation of branches 11 Business purpose 11.1 Business objectives 12 Restricted and prohibited business 13 Deposits 14 Government guarantee 14.1 Prescribed charges and grants 15 Investment standards 16 Review procedures 17 Investment in real estate 18 Restricted and prohibited loans and investments 19 Shareholdings 20 Capital requirement 21 Restrictions on certain transactions 22 Accounting principles and auditing standards 23 Annual statements

RSA 2000 Section 1 ATB FINANCIAL ACT Chapter A-45.2

Responsibility and Liability of Directors 24 Duty of care 25 Personal liability of director 26 Purported relief ineffective 27 Deemed consent 28 Indemnification 29 Protection from liability

Administration 29.1 Superintendent of Financial Institutions 29.2 Objects of Superintendent 29.3 Powers and duties of Superintendent 29.4 Confidentiality of banking information

General 30 Setting aside transaction 31 Grants 32 Property at branches 33 Minister’s order to comply 34 Regulations 35 Review of Act by Legislative Assembly

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Definitions 1 In this Act,

(a) “board” means the board of directors appointed under section 3;

(a.1) “branch” means a branch established under section 10, whether the branch carries on business with the public directly or serves as an administrative or head office;

(a.2) “branch facility” means real property that is used or intended to be used in connection with or incidental to the operations of ATB Financial;

(b) “Chief Executive Officer” means the Chief Executive Officer appointed under section 6;

(c) “depositor” means a person who has entered into a contract with ATB Financial providing for the making of deposits in a branch;

2 RSA 2000 Section 1 ATB FINANCIAL ACT Chapter A-45.2

(d) “director”, when used with respect to ATB Financial, means a person appointed to the board under section 3;

(e) “entity” includes a body corporate, trust, partnership, fund or other unincorporated association or organization, but does not include an individual;

(f) “Minister” means the Minister determined under section 16 of the Government Organization Act as the Minister responsible for this Act;

(g) “officer”, when used with respect to ATB Financial, means the Chief Executive Officer and any other person the board has appointed as an officer of ATB Financial under section 3(4);

(g.1) “personal information” means personal information as defined in the Freedom of Information and Protection of Privacy Act or the Personal Information Protection Act, or both, as applicable;

(g.2) “prescribed” means prescribed or otherwise provided for by the regulations;

(h) “professional advisor” means

(i) an auditor,

(ii) a lawyer, accountant, appraiser, architect or engineer, or

(iii) any other person whose profession or occupation would tend to lend credibility to a statement made or opinion given by that person;

(i) “relative” means a person who is related by blood, marriage or adoption or by virtue of an adult interdependent relationship;

(j) “spouse” means the spouse of a married person but does not include a spouse who is living separate and apart from the person if the person and spouse have separated pursuant to a written separation agreement or if their support obligations and family property have been dealt with by a court order;

(j.1) “Superintendent” means the Superintendent of Financial Institutions appointed under section 29.1.

(k), (l) repealed 2020 c33 s1. RSA 2000 cA-37 s1;2002 cA-4.5 s18;2003 c19 s2; 2006 c23 s13;2014 c8 s17;2017 c22 s6;2020 c33 s1

RSA 2000 Section 2 ATB FINANCIAL ACT Chapter A-45.2

Corporate Structure and Governance

ATB Financial 2(1) The corporation known as Alberta Treasury Branches is continued as a corporation under the name ATB Financial.

(1.1) ATB Financial consists of the board of directors appointed under section 3.

(2) For the purpose of carrying on its business, ATB Financial has the capacity and, subject to this Act and the regulations, the rights, powers and privileges of a natural person.

(3) ATB Financial is for all purposes an agent of the Crown in right of Alberta, and may exercise its powers under this Act only as an agent of the Crown in right of Alberta.

(4) An action or other legal proceeding in respect of a right or obligation acquired or incurred by ATB Financial on behalf of the Crown in right of Alberta, whether in the name of ATB Financial or in the name of the Crown in right of Alberta, may be brought or taken by or against ATB Financial in the name of ATB Financial in any court that would have jurisdiction if ATB Financial were not an agent of the Crown in right of Alberta. RSA 2000 cA-37 s2;2017 c22 s6

Appointment of board 3(1) The Lieutenant Governor in Council may appoint a board of directors and a chair of the board.

(2) The board shall manage the business and affairs of ATB Financial.

(3) The board may delegate to any director, to a committee of directors or to any officer or employee of ATB Financial any of the board’s powers and duties under this Act except

(a) the power to make a recommendation under section 6,

(b) the power to make bylaws under section 8, and

(4) The board may designate the offices of ATB Financial, other than the office of Chief Executive Officer, and appoint persons to those offices and specify their duties. RSA 2000 cA-37 s3;2003 c19 s3;2017 c22 s6

Composition of board 4(1) In this section, “significant borrower” means

4 RSA 2000 Section 4 ATB FINANCIAL ACT Chapter A-45.2

(a) an entity that has outstanding indebtedness for money borrowed from a branch in an aggregate principal amount that exceeds a prescribed amount, and

(b) an individual who has outstanding indebtedness for money borrowed from a branch, other than a loan secured by a mortgage on the principal residence of that individual, in an aggregate principal amount that exceeds a prescribed amount.

(2) The following individuals are not eligible to become or remain a director:

(a) an individual who is less than 18 years of age;

(b) an individual who

(i) is a represented adult as defined in the Adult Guardianship and Trusteeship Act or is the subject of a certificate of incapacity that is in effect under the Public Trustee Act,

(ii) is a formal patient as defined in the Mental Health Act, or

(iii) has been found to be a person of unsound mind by a court elsewhere than in Alberta;

(d) an individual who, within the immediately preceding 5 years,

(i) has been convicted of an indictable offence, or

(ii) has contravened this Act, the regulations or the bylaws or has been convicted of an offence under the Bank Act (Canada) or the Loan and Trust Corporations Act, the Credit Union Act, the Insurance Act or the Securities Act, or an equivalent statute of another province or territory or Canada;

(e) a Member of the Legislative Assembly of Alberta;

(f) an individual who is otherwise ineligible under the regulations.

(3) At least 50% of the directors must be unaffiliated directors.

RSA 2000 Section 5 ATB FINANCIAL ACT Chapter A-45.2

(4) Subsection (3) does not apply where the required percentage of unaffiliated directors is not met due to a vacancy caused by an unaffiliated director’s ceasing to be a director.

(5) An individual is not eligible to be an unaffiliated director if that individual

(a) is an officer or employee of ATB Financial or of any of its subsidiaries, or has been such an officer or employee within 2 years of the date on which the individual would become or became a director,

(b) is a significant borrower or is a director, officer or employee of a significant borrower,

(i) 10% or more of the issued and outstanding voting shares of a significant borrower that is a corporation, or

(ii) a 10% or greater interest in a significant borrower that is an entity other than a corporation,

(d) is a spouse or adult interdependent partner of an individual referred to in clause (a), (b) or (c),

(e) is a relative, other than a spouse or adult interdependent partner, of an individual referred to in clause (a), (b) or (c) who has the same residence as the individual, or

(f) is otherwise ineligible under the regulations.

(6) An act of the board, a committee, a director or an officer of ATB Financial is valid notwithstanding

(a) an irregularity in the election or appointment, or

(b) a defect in the qualifications

of a director or officer. RSA 2000 cA-37 s4;2002 cA-4.5 s18;2008 cA-4.2 s119; 2017 c22 s6

Ceasing to hold office 5(1) A director ceases to hold office when

(a) the director resigns,

(b) the director becomes ineligible under section 4(2), or

6 RSA 2000 Section 6 ATB FINANCIAL ACT Chapter A-45.2

(2) A resignation of a director becomes effective at the time a written resignation is sent to the Minister or at the time specified in the resignation, whichever is later. 1997 cA-37.9 s5

Chief Executive Officer 6 The Lieutenant Governor in Council may, on the recommendation of the board, appoint a person to be the Chief Executive Officer of ATB Financial. RSA 2000 cA-37 s6;2017 c22 s6

Remuneration of Chief Executive Officer 6.1 The board may, in accordance with any applicable regulations under the Alberta Public Agencies Governance Act, set the remuneration payable to the Chief Executive Officer. 2009 cA-31.5 s28

Employees 7 ATB Financial may engage employees for the purpose of carrying on the business of ATB Financial and may determine their conditions of service. RSA 2000 cA-37 s7;2017 c22 s6

Board bylaws 8(1) Subject to this Act and the regulations, the board may make bylaws governing

(a) the management of the business and affairs of ATB Financial, and

(b) the calling and conduct of board meetings and the conduct of the business of the board generally.

(2) The Regulations Act does not apply to bylaws made under this section. RSA 2000 cA-37 s8;2017 c22 s6

Audit committee 9(1) The directors shall appoint from their number an audit committee, which shall meet at least twice each year to review annual financial statements and auditors’ reports and to ensure that appropriate internal audit and financial control policies are in place.

(2) At least 2/3 of the directors on the audit committee must be unaffiliated directors within the meaning of section 4(5).

RSA 2000 Section 10 ATB FINANCIAL ACT Chapter A-45.2

(3) A director who is an employee of ATB Financial is disqualified from being on the audit committee.

(4) The Auditor General is entitled to attend and be heard at all meetings of the audit committee, and the Auditor General, a member of the audit committee or a director may call a meeting of the audit committee at any time. RSA 2000 cA-37 s9;2017 c22 s6

Business Powers, Duties and Limitations

Operation of branches 10 ATB Financial may establish and operate branches at any location within Alberta. RSA 2000 cA-37 s10;2017 c22 s6

Business purpose 11(1) Subject to this Act and the regulations, ATB Financial shall not engage in or carry on any business other than business generally appertaining to the business of providing financial services.

(2) Notwithstanding subsection (1), ATB Financial may

(a) carry on business as a custodian of property,

(b) act as a trustee for a trust in respect of a prescribed class of transaction,

(d) with the prior written consent of the Minister, operate post offices within the meaning of the Canada Post Corporation Act (Canada) in any of its branches specified in the consent. RSA 2000 cA-37 s11;2008 c4 s1;2017 c22 s6

Business objectives 11.1 In carrying on its business, ATB Financial shall

(a) manage its business in a commercial and cost-effective manner,

(b) seek to earn risk-adjusted rates of return that are similar to or better than the returns of comparable financial institutions in both the short term and the long term, and

(c) avoid an undue risk of loss by prudently managing its business, which includes establishing and implementing relevant plans, policies, standards and procedures. 2019 c15 s10

8 RSA 2000 Section 12 ATB FINANCIAL ACT Chapter A-45.2

Restricted and prohibited business 12(1) ATB Financial shall not

(a) carry on business as a receiver, liquidator or sequestrator,

(b) carry on the business of offering its services to the public as or accepting or executing the office of

(i) executor or administrator or trustee, or

(ii) guardian or trustee of a minor’s estate or of the estate of a mentally incompetent person,

(d) guarantee on behalf of any person the payment or repayment of any sum of money unless the sum of money is a fixed sum of money, with or without interest, and the person on whose behalf the guarantee is given has an unqualified obligation to reimburse ATB Financial for the full amount of the payment or repayment to be guaranteed,

(e) carry on business as an insurer, insurance agent or adjuster within the meaning of the Insurance Act,

(f) carry on business as an information management corporation,

(g) carry on the business of providing real property brokerage services, or

(h) carry on any other activity that is prescribed for the purposes of this section.

(2) Notwithstanding subsection (1), ATB Financial may hold a restricted insurance agent’s certificate of authority under the Insurance Act and, if ATB Financial holds such a certificate, it may act as an insurance agent only to the extent authorized by the certificate. RSA 2000 cA-37 s12;RSA 2000 cI-3 s852;2003 c19 s4; 2017 c22 s6

Deposits 13(1) ATB Financial may engage in the deposit taking business.

(2) Neither ATB Financial, the Chief Executive Officer or another officer nor an employee of ATB Financial is bound to see to the execution of any trust, whether express, implied or constructive, to

RSA 2000 Section 14 ATB FINANCIAL ACT Chapter A-45.2

which any deposit in a branch may be subject other than a trust to which ATB Financial is a party.

(3) The receipt of the depositor in whose name a deposit stands in the books of a branch is a sufficient discharge to ATB Financial, the Chief Executive Officer and other officers and the employees of ATB Financial for any payment made in respect of the deposit, notwithstanding any trust to which it may then be subject and whether ATB Financial or the Chief Executive Officer or other officer or employee has or has not had notice of the trust.

(4) Neither ATB Financial, the Chief Executive Officer or another officer nor an employee of ATB Financial is bound to see to the application of the money paid on a receipt referred to in subsection (3). RSA 2000 cA-37 s13;2017 c22 s6

Government guarantee 14(1) The repayment by ATB Financial of money deposited under this Act, and interest payable on that money, is guaranteed by the Crown in right of Alberta.

(2) ATB Financial shall pay to the Minister a fee in respect of the guarantee under subsection (1) in the amount and at the times and in the manner set out in the regulations. RSA 2000 cA-37 s14;2017 c22 s6

Prescribed charges and grants 14.1(1) ATB Financial shall pay to the Minister, in respect of such matters as are prescribed for charges under section 34(1)(j.1), charges in the amounts, at the times and in the manner so prescribed.

(2) The Minister may make grants to ATB Financial, in respect of such matters as are prescribed for grants under section 34(1)(j.1), in the amounts, at the times and in the manner so prescribed. 2008 c4 s1;2017 c22 s6

Investment standards 15(1) ATB Financial shall adhere to prudent loan and investment standards in making loan and investment decisions and in managing its total loans and investments.

(2) For the purposes of this Act, prudent loan and investment standards are those that, in the overall context of a loan and investment portfolio, a reasonable and prudent person would apply in making loan and investment decisions on behalf of another person with whom there exists a fiduciary relationship to make

10 RSA 2000 Section 16 ATB FINANCIAL ACT Chapter A-45.2

those decisions without undue risk of loss or impairment and with a reasonable expectation of fair return or appreciation.

(3) The fact that ATB Financial is in compliance with the other provisions of this Act and the regulations relating to loans and investments does not of itself mean that ATB Financial is in compliance with subsection (1). RSA 2000 cA-37 s15;2017 c22 s6

Review procedures 16 The board shall establish policies and procedures to ensure that ATB Financial complies with section 15 and shall review those policies and procedures at least once a year. RSA 2000 cA-37 s16;2017 c22 s6

Investment in real estate 17 Neither ATB Financial nor its prescribed subsidiaries shall

(a) purchase or otherwise acquire an interest in real property, or

(b) make an improvement to any real property in which ATB Financial or any of its prescribed subsidiaries has an interest,

if the aggregate value of all interests of ATB Financial and its prescribed subsidiaries in real property exceeds, or if the acquisition of the interest or the making of the improvement would cause that aggregate value to exceed, a prescribed amount. RSA 2000 cA-37 s17;2017 c22 s6

Restricted and prohibited loans and investments 18(1) ATB Financial shall not

(a) make a loan to or an investment in

(i) a person, or

(ii) 2 or more persons who are, to the knowledge of ATB Financial, connected persons

in an amount exceeding the prescribed amount, or

(b) make a loan to or an investment in a person, or make a loan or investment in a manner or amount, that is contrary to the regulations.

(2) Subsection (1) does not apply so as to prohibit or restrict

(a) investments in securities issued or guaranteed by the Government of Canada or any province or territory,

RSA 2000 Section 19 ATB FINANCIAL ACT Chapter A-45.2

(b) investments in mortgages that are

(i) insured under the National Housing Act (Canada) or through an agency of the Government of Canada or a province or territory, or

(ii) insured by a policy of mortgage insurance issued by an insurer that

(A) is a company or foreign company as defined in the Insurance Companies Act (Canada) that is approved to carry on business or to insure risks in Canada by order under that Act, or

(B) is registered or licensed under the Insurance Act or any similar legislation of another province or territory,

Shareholdings 19(1) Subject to this section and except as otherwise provided in the regulations, ATB Financial shall not beneficially own shares to which are attached more than 10% of the voting rights attached to all of the issued and outstanding voting shares of a corporation.

(2) For the purposes of this section, shares beneficially owned by a subsidiary of ATB Financial are deemed to be beneficially owned by ATB Financial, except as otherwise provided in the regulations.

(3) ATB Financial may, through realization of a security interest or by means of a loan workout procedure, beneficially own shares to which are attached more than 10% of the voting rights attached to all of the issued and outstanding voting shares of a corporation, but ATB Financial shall dispose of the excess shares within 5 years after acquiring the excess shares.

(4) Subject to subsection (6) and to any prescribed conditions, ATB Financial may beneficially own shares to which are attached more than 10% of the voting rights attached to all of the issued and outstanding voting shares of any of the following corporations:

(a) a loan or trust corporation incorporated and regulated by or under an Act of a province or territory,

(b) a corporation that is a securities dealer,

12 RSA 2000 Section 20 ATB FINANCIAL ACT Chapter A-45.2

(c.1) a corporation that is an insurance agent, within the meaning of the Insurance Act, limited to the class of life insurance under that Act,

(d) a real property brokerage corporation or real property corporation,

(e) a factoring corporation,

(f) a mutual fund distribution corporation,

(g) an asset management corporation,

(h) an investment counselling corporation,

(i) a portfolio management corporation,

(j) an information management corporation,

(k) a service corporation that does not hold shares of a corporation referred to in any of clauses (a) to (j), or

(l) a prescribed corporation.

(5) Repealed 2003 c19 s5.

(6) ATB Financial may not beneficially own shares in a corporation referred to in subsection (4) to which are attached more than 10% of the voting rights attached to all of the issued and outstanding voting shares of the corporation if that corporation beneficially owns shares in another corporation, that is not a corporation referred to in subsection (4), to which are attached more than 10% of the voting rights attached to all of the issued and outstanding voting shares of that other corporation. RSA 2000 cA-37 s19;2003 c19 s5;2017 c22 s6

Capital requirement 20 ATB Financial shall maintain capital in accordance with guidelines authorized by regulations made under section 34(1)(h.2), and the Minister shall make such guidelines. RSA 2000 cA-37 s20;2008 c4 s1;2017 c22 s6

Restrictions on certain transactions 21 ATB Financial shall not enter into a business transaction with

(a) a director who is not an officer or employee of ATB Financial,

RSA 2000 Section 22 ATB FINANCIAL ACT Chapter A-45.2

(b) the spouse or adult interdependent partner of a director referred to in clause (a),

(c) a relative, other than the spouse or adult interdependent partner, of a director referred to in clause (a) who has the same residence as the director, or

(d) an entity in which a director referred to in clause (a) has a significant interest

at rates or under terms that are more favourable than the rates or terms that are offered generally to customers of ATB Financial in the ordinary course of business of ATB Financial. RSA 2000 cA-37 s21;2002 cA-4.5 s18;2017 c22 s6

Accounting principles and auditing standards 22 Subject to this Act and the regulations,

(a) in the preparation of the financial statements related to the operations of the ATB Financial, Canadian generally accepted accounting principles, which are the accounting standards set out in the CPA Canada Handbook, as published by the Chartered Professional Accountants of Canada from time to time, shall be applied, and

(b) in examining the financial statements related to the operations of ATB Financial for the purposes of the Auditor General’s report, and with respect to the report itself, the Auditor General shall apply generally accepted auditing standards, including the auditing recommendations contained in the Handbook, as amended. RSA 2000 cA-37 s22;2014 cC-10.2 s170;2017 c22 s6

Annual statements 23 ATB Financial shall, within 90 days after the end of a fiscal year, prepare and submit to the Minister financial statements for ATB Financial showing the financial position, results of operations and changes in financial position during that fiscal year and containing any other information required by the regulations, and those statements shall be included in the public accounts. RSA 2000 cA-37 s23;2017 c22 s6

Responsibility and Liability of Directors

Duty of care 24(1) Every director and officer, in exercising powers and in discharging duties,

(a) shall act honestly and in good faith,

14 RSA 2000 Section 25 ATB FINANCIAL ACT Chapter A-45.2

(b) shall act with a view to the best interests of ATB Financial, which shall include ensuring that ATB Financial meets its business objectives under section 11.1, and

(c) shall exercise the care, diligence and skill that a reasonable and prudent person would exercise under comparable circumstances.

(2) In considering whether a particular transaction or course of action is in the best interests of ATB Financial, a director or officer shall have due regard to the interests of the Crown in right of Alberta and the depositors of ATB Financial. RSA 2000 cA-37 s24;2017 c22 s6;2019 c15 s10

Personal liability of director 25(1) Directors who vote for or consent to a resolution authorizing an investment, loan, guarantee or other transaction that

(a) is contrary to the regulations under section 34(1)(b), and

(b) involves any payment or distribution of property by a branch

are jointly and severally liable to restore to ATB Financial any amounts so paid and the value of any property so distributed and not otherwise recovered by it.

(2) A director who has satisfied a judgment rendered under this section is entitled to contribution from the other directors who voted for or consented to the act on which the judgment was founded.

(3) A director is not liable under subsection (1) or (2) if the director proves that the director did not know and could not reasonably have known that the investment, loan, guarantee or other transaction was contrary to the regulations under section 34(1)(b).

(4) A director who relies in good faith on

(a) financial statements represented to the director by an officer or in a written report of the Auditor General as fairly reflecting the financial condition of ATB Financial, or

(b) an opinion or report of a professional advisor

is not liable under this section or section 24.

RSA 2000 Section 26 ATB FINANCIAL ACT Chapter A-45.2

(5) No action may be commenced under this section more than 5 years after the happening of the event that gave rise to the cause of action. RSA 2000 cA-37 s25;2017 c22 s6;2020 c33 s1

Purported relief ineffective 26 No provision in a contract, bylaw or resolution relieves a director or officer of the duty to act in accordance with this Act, the regulations and the bylaws or relieves the director or officer of liability for a breach of them. 1997 cA-37.9 s26

Deemed consent 27(1) A director who is present at a meeting of directors or a committee of directors is deemed to have consented to any resolution passed or action taken at the meeting unless

(a) the director requests that the director’s abstention or dissent be, or the director’s abstention or dissent is, entered in the minutes of the meeting,

(b) the director gives the director’s written dissent to the secretary of the meeting before the meeting is adjourned,

(c) the director sends the director’s written dissent or delivers it to the chair immediately after the meeting is adjourned, or

(d) the director otherwise proves that the director did not consent to the resolution or action.

(2) A director who votes for or consents to a resolution or action is not entitled to dissent under subsection (1). 1997 cA-37.9 s27

Indemnification 28(1) Except in respect of an action by or on behalf of ATB Financial or the corporation to procure a judgment in its favour, ATB Financial may, by resolution of the board, indemnify

(a) a present or former director or officer of ATB Financial,

(b) a person who acts or acted at the request of ATB Financial as a director or officer of a corporation of which ATB Financial is or was a shareholder or creditor, and

against costs, charges and expenses, including any amount paid to settle an action or satisfy a judgment, reasonably incurred by that

16 RSA 2000 Section 28 ATB FINANCIAL ACT Chapter A-45.2

person with respect to a civil, criminal or administrative action or proceeding to which that person is made a party by reason of holding such a position if that person acted honestly, in good faith and with a view to the best interests of ATB Financial, and in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, that person had reasonable grounds for believing that the conduct was lawful.

(2) ATB Financial may, by resolution of the board and with the approval of the Court of Queen’s Bench, indemnify a person referred to in subsection (1) in respect of an action by or on behalf of ATB Financial or the corporation to procure a judgment in its favour to which that person is made a party by reason of that person’s holding such a position, against all costs, charges and expenses reasonably incurred by that person in connection with the action if that person fulfils the conditions set out in subsection (1).

(3) Notwithstanding anything in this section, a person referred to in subsection (1) is entitled to indemnity from ATB Financial in respect of all costs, charges and expenses reasonably incurred by that person with respect to the defence of any civil, criminal or administrative action or proceeding to which that person is made a party by reason of holding such a position if that person

(a) was substantially successful on the merits in the defence of the action or proceeding, and

(b) fulfils the conditions set out in subsection (1).

(4) ATB Financial may purchase and maintain insurance for the benefit of any person referred to in subsection (1) against any liability incurred by that person

(a) in the capacity of a director or officer of ATB Financial, except when the liability relates to that person’s failure to act honestly and in good faith with a view to the best interests of ATB Financial, or

(b) in the capacity of a director or officer of another corporation if that person acts or acted in that capacity at the request of ATB Financial, except when the liability relates to that person’s failure to act honestly and in good faith with a view to the best interests of ATB Financial.

(5) ATB Financial or a person referred to in subsection (1) may apply to the Court of Queen’s Bench for an order approving an indemnity under this section, and the Court may so order and make any further order it considers appropriate.

RSA 2000 Section 29 ATB FINANCIAL ACT Chapter A-45.2

(6) An applicant under subsection (5) shall give the Minister notice of the application, and the Minister is entitled to appear and be heard.

(7) On an application under subsection (5) the Court may order notice to be given to any interested person, and that person is entitled to appear and be heard in person or by counsel. RSA 2000 cA-37 s28;2017 c22 s6

Protection from liability 29 A director who resigns from the board because of a disagreement with an act or omission of the board or of an officer or an employee of ATB Financial and knows or believes that as a result of the action or omission

(a) a director or an officer or employee of ATB Financial is or will be in contravention of this Act or the Criminal Code (Canada), or

(b) there has been or will be a change in the circumstances of ATB Financial that might materially and adversely affect the financial position of ATB Financial

and in good faith submits to the Minister a statement of reasons for the resignation shall not be liable in any civil action arising out of the statement. RSA 2000 cA-37 s29;2017 c22 s6

Administration Superintendent of Financial Institutions 29.1(1) The Minister may appoint a Superintendent of Financial Institutions.

(2) The Superintendent may delegate any power, duty or function conferred or imposed on the Superintendent by this Act or the regulations to any person and may authorize the person to further delegate the power, duty or function. 2020 c33 s1

Objects of Superintendent 29.2(1) The objects of the Superintendent in respect of ATB Financial and its subsidiaries are as follows:

(a) to promote the adoption by the officers, the board and the management of policies and procedures designed to control and manage risk;

(b) to regulate ATB Financial and its subsidiaries in accordance with this Act;

18 RSA 2000 Section 29.3 ATB FINANCIAL ACT Chapter A-45.2

(2) The Superintendent shall, in pursuing the objects set out in subsection (1), consider the following where appropriate:

(a) the rights and interests of the depositors and creditors of ATB Financial and its subsidiaries;

(b) the interests of the Province, having due regard to

(i) the need to allow ATB Financial and its subsidiaries to compete effectively and to pursue the business objectives set out in section 11.1, and

(ii) the obligation of the board under section 3(2) to manage the business and affairs of ATB Financial;

(c) in the case of a subsidiary of ATB Financial, any oversight of the subsidiary conducted by other regulatory organizations. 2020 c33 s1

Powers and duties of Superintendent 29.3(1) The powers and duties of the Superintendent in respect of ATB Financial and its subsidiaries include the following:

(a) the Superintendent may, in writing, issue direction in the form of supervisory bulletins that the Superintendent considers appropriate in connection with any matter pertaining to the objects set out in section 29.2(1) to the officers, the board and the management of ATB Financial and its subsidiaries;

(b) the Superintendent may make any examination and inquiry into the business and affairs of ATB Financial and its subsidiaries that the Superintendent considers necessary or expedient to determine whether ATB Financial or one or more of its subsidiaries is operating in a safe and sound manner and is

(i) complying or has complied with this Act, the regulations, the Minister’s guidelines, the Superintendent’s supervisory bulletins and directions and any other legislation that applies to ATB Financial or its subsidiaries,

(ii) maintaining a sound financial condition, and

(iii) following or has followed sound business and financial practices;

RSA 2000 Section 29.3 ATB FINANCIAL ACT Chapter A-45.2

(c) the Superintendent may request information with respect to ATB Financial or one or more of its subsidiaries, including personal information, and the requested information shall be provided by ATB Financial and its subsidiaries at the times and in the form that the Superintendent requires;

(d) where there are reasonable grounds to believe that ATB Financial or one or more of its subsidiaries is not

(i) complying or has not complied with this Act, the regulations or the Minister’s guidelines,

(ii) maintaining a sound financial condition, or

(iii) following or has not followed sound business and financial practices,

the Superintendent shall promptly advise ATB Financial, its officers, the board and the Minister, and may require ATB Financial, its officers, the board or the management or the subsidiary, its officers, its board or its management to take corrective measures in accordance with subsection (2);

(e) any additional powers and duties prescribed.

(2) The Superintendent may issue a temporary direction to ATB Financial, one or more of its subsidiaries or a person in accordance with this section if a delay would be prejudicial to the public interest and

(a) subsection (1)(d) applies, or

(b) in the opinion of the Superintendent, ATB Financial, one or more of its subsidiaries or a person with respect to ATB Financial or one or more of its subsidiaries is about to commit an act or pursue a course of conduct that is an unsafe or unsound business practice.

(3) A temporary direction referred to in subsection (2) may direct ATB Financial, one or more of its subsidiaries or a person to do one or more of the following:

(a) cease or refrain from committing an act or pursuing a course of conduct; (b) perform such acts as the Superintendent considers appropriate to remedy the situation. (4) Subject to subsection (5), no temporary direction shall be made under this section unless ATB Financial and the subsidiaries or

20 RSA 2000 Section 29.4 ATB FINANCIAL ACT Chapter A-45.2

persons, if any, to be subject to the temporary direction are provided with a reasonable opportunity to make representations in respect of the matter. (5) If, in the opinion of the Superintendent, the length of time required for representations to be made under subsection (4) might be prejudicial to the public interest, the Superintendent may make a temporary direction referred to in subsection (2) that must specify the time for compliance and shall have effect for an initial period of 15 days from the date on which the temporary direction is made. (6) A temporary direction under subsection (5) continues to have effect after the expiration of the period of 15 days referred to in that subsection, and for a maximum period of 90 days in total, if no representations are made to the Superintendent within that period or if representations have been made and the Superintendent notifies ATB Financial and the subsidiaries or persons, if any, that the Superintendent is not satisfied that there are sufficient grounds for revoking the direction. (7) If no temporary direction is issued under subsection (5), and (a) no representations are made to the Superintendent under subsection (4), or (b) representations have been made and the Superintendent is not satisfied that an act, course of conduct or matter of concern under subsection (2) is resolved, the Superintendent may make a temporary direction referred to in subsection (2) that must specify the time for compliance and shall have effect for a maximum period of 90 days from the date on which the temporary direction is made. 2020 c33 s1

Confidentiality of banking information 29.4(1) Subject to this Act, where, in the course of administering or enforcing sections 29.2, 29.3 and any related regulations, the Superintendent collects or produces documents or information, including personal information, the Superintendent shall not, except as provided in this section,

(a) disclose the documents or information, or

(b) permit a person to access or inspect the documents or information.

(2) Subject to subsection (3), the Superintendent may in any manner disclose or allow a person to access or inspect documents or information referred to in subsection (1), if the Superintendent

RSA 2000 Section 29.4 ATB FINANCIAL ACT Chapter A-45.2

considers the disclosure, access or inspection to be required for one or more of the following purposes: (a) for the proper administration or enforcement of this Act and any other legislation that applies, (i) to persons acting under the Superintendent’s direction or authority in the administration or enforcement of this Act and the regulations, or (ii) to a government, including the government of any province or territory or of Canada, or to an agency of any government in accordance with this Act and any other legislation that applies; (b) for the purpose of enabling the auditor of ATB Financial or any of its branches or subsidiaries to fulfil the auditor’s functions, to that auditor; (c) for the purpose of complying with a subpoena, warrant or order issued or made by a court, person or body having jurisdiction in Alberta to compel the production of information or with a rule of court binding in Alberta that relates to the production of information, to that court, person or body; (d) for law enforcement purposes, to a law enforcement authority; (e) for a prescribed purpose, to a person or entity prescribed for that purpose. (3) For the purposes of subsection (2)(a)(ii), when the Superintendent authorizes a disclosure to a person or allows a person to access or inspect documents or information, the Superintendent shall prepare a written record and acknowledgement concerning the disclosure, access or inspection of the documents or information and provide it to that person.

(4) Subject to subsection (5), a person to whom documents or information is disclosed, or who is authorized to access or inspect documents or information in accordance with subsection (2)(a), (b) or (d), shall comply with subsection (1) in respect of the information or document.

(5) Subsection (4) does not apply to a disclosure, access or inspection made by the person referred to in that subsection

(a) for a purpose referred to in subsection (2), or

(b) to a person acting under that person’s direction or authority.

22 RSA 2000 Section 30 ATB FINANCIAL ACT Chapter A-45.2

(6) Where, for the purpose of the administration of this Act and the regulations, the Minister or the Superintendent

(a) receives documents or information from, or

(b) is authorized to access or inspect documents or information by

a government, including the government of any province or territory or of Canada, or an agency of any government, the Minister or the Superintendent shall not disclose the documents or information other than with the written consent of that government or agency.

(7) Duties that apply to a person under this section apply to a person acting under the direction or authority of that person or to a person who receives or has access to a document or information as the result of any relationship with that person.

(8) This section prevails to the extent of any inconsistency or conflict with the Freedom of Information and Protection of Privacy Act.

(9) This section does not apply in respect of documents that have been or information that has been in existence for 50 years or more. 2020 c33 s1

General

Setting aside transaction 30(1) Where an investment, loan, guarantee or other transaction that is contrary to the regulations under section 34(1)(b) takes place, ATB Financial or the Minister may apply to the Court of Queen’s Bench for an order

(a) setting aside the investment, loan, guarantee or other transaction and directing that the related party account to ATB Financial for any profit or gain realized, and

(b) that each person who participated in or facilitated the investment, loan, guarantee or other transaction pay to ATB Financial on a joint and several basis

(i) the damages suffered,

(ii) the face value of the investment, loan, guarantee or other transaction, or

(iii) the amount expended by ATB Financial in the investment, loan, guarantee or other transaction

RSA 2000 Section 31 ATB FINANCIAL ACT Chapter A-45.2

and on the application, the Court may so order or make any other order it thinks fit, including an order for compensation for the loss or damage suffered by ATB Financial and punitive or exemplary damages from the related party.

(2) A person who is not a director is not liable under subsection (1)(b) unless the person knew or should reasonably have known that the investment, loan, guarantee or other transaction took place contrary to the regulations under section 34(1)(b). RSA 2000 cA-37 s30;2017 c22 s6;2020 c33 s1

Grants 31 ATB Financial shall in each year pay to any municipality within which any branch facility is situated, a grant not exceeding the amount that would be recoverable by the municipality if that facility were subject to the business tax or the property and local improvement taxes, or both, of the municipality for that year. RSA 2000 cA-37 s31;2017 c22 s6

Property at branches 32(1) A document that purports to bind or otherwise affect, or potentially bind or otherwise affect, a person’s interest in property or a deposit account that is in the possession of ATB Financial

(a) does not bind or affect property that is located at a particular branch facility unless the document is served on that facility, and

(b) does not bind a deposit account in respect of which a branch facility is the branch of account unless the document is served on that facility.

(2) A notice given to ATB Financial with respect to a customer of ATB Financial, other than a document referred to in subsection (1), constitutes notice to ATB Financial and fixes ATB Financial with knowledge of the contents of the notice only if the notice is given to and received at the branch facility that is the branch of account of the customer with respect to the matter to which the notice relates. RSA 2000 cA-37 s32;2017 c22 s6

Minister’s order to comply 33 Where, in the Minister’s opinion, ATB Financial or any other person is committing any act or pursuing any course of conduct that is in contravention of this Act or the regulations, or might reasonably be expected, if continued, to result in a state of affairs that would be in contravention of this Act or the regulations, the Minister may, by order in writing, order ATB Financial or the other person

24 RSA 2000 Section 34 ATB FINANCIAL ACT Chapter A-45.2

(a) to cease doing any act or pursuing any course of conduct specified in the notice, or

(b) to perform acts specified in the notice that, in the Minister’s opinion, are necessary to remedy the situation. RSA 2000 cA-37 s33;2017 c22 s6

Regulations 34(1) The Lieutenant Governor in Council may make regulations

(a) repealed 2008 c4 s1;

(b) governing, prohibiting and restricting the making of investments and loans, the giving of guarantees and the entering into other transactions between ATB Financial and persons who are related parties within the meaning of the regulations;

(d) respecting the circumstances under which and the conditions on which ATB Financial may retain investments or loans

(i) that are in place on the effective date of provisions of this Act or the regulations that would prohibit, limit or restrict those investments or loans, and

(ii) that would contravene those provisions if the investments or loans were made after the effective date of the provisions;

(e) respecting terms and conditions for the establishment and operation of subsidiaries by ATB Financial;

(f) governing relations between ATB Financial and insurers and insurance agents within the meaning of the Insurance Act;

(g) establishing additional eligibility criteria for directors and unaffiliated directors;

(h) respecting additional information that must be included in the financial statements referred to in section 23;

(h.1) respecting the treatment of unclaimed balances held by ATB Financial;

(h.2) authorizing the Minister to make guidelines, or to approve guidelines with or without adaptation, on

RSA 2000 Section 34 ATB FINANCIAL ACT Chapter A-45.2

(i) any matter falling within any other clause of this subsection, or

(ii) compliance by ATB Financial with legislation to which it is subject,

and specifying the effect of those guidelines and of contravention of them;

(i) prescribing anything that is required or permitted by this Act to be prescribed;

(j) respecting fees for the purposes of section 14(2);

(j.1) respecting charges and grants for the purposes of section 14.1;

(j.2) prescribing for the purpose of section 29.2(1)(c) or further clarifying the objects of the Superintendent;

(j.3) prescribing for the purpose of section 29.3(1)(e) or further clarifying the powers and duties of the Superintendent;

(j.4) respecting a temporary direction referred to in section 29.3(2), (3) and (4);

(j.5) prescribing purposes and persons or entities referred to in section 29.4(2)(e);

(j.6) respecting a written record and acknowledgement referred to in section 29.4(3);

(k) defining terms for the purposes of the Act and the regulations;

(k.1) without limiting any of the powers that the Minister has flowing from the application of section 2(3), authorizing the Minister, for purposes related to the administration of this Act or the regulations,

(i) to require ATB Financial to report to the Minister such information, at such times and in such form as the Minister directs it in writing,

(ii) to conduct such examination or inquiry into the business or affairs of ATB Financial as the Minister considers necessary or expedient to determine whether it

(A) is complying or has complied with this Act or the regulations,

26 RSA 2000 Section 35 ATB FINANCIAL ACT Chapter A-45.2

(B) is in a sound financial condition, or

(iii) to require ATB Financial to implement any measure that the Minister considers necessary or expedient to the maintaining or improving of its financial safety and soundness;

(l) generally for the purposes of this Act.

(2) Guidelines referred to in subsection (1) are exempt from the Regulations Act, but the Minister shall ensure that they are published in such a form as the Minister considers likely to make them available, generally, to persons likely to be affected by them. RSA 2000 cA-37 s34;RSA 2000 cI-3 s852;2003 c19 s6; 2008 c4 s1;2017 c22 s6;2020 c33 s1

Review of Act by Legislative Assembly 35 At least once in every 5-year period following October 8, 1997, the Minister shall ensure that a member of the Executive Council introduces into the Legislative Assembly a motion that would have the effect of facilitating a debate in the Assembly on the question of whether this Act should be repealed. 1997 cA-37.9 s35

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