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B.C. Reg. 11/68
O.C. 3878/67
effective January 1, 1968
This consolidation is current to August 15, 2017.
Link to Point in Time

Bonding Act

Bonding Regulations

[includes amendments up to B.C. Reg. 221/2016, January 1, 2017]

Contents
Division 1 — Bonds under Securities Act
1.01Who must deliver bond
1.02Conditions of bond
1.03Assignment of bond
1.04Appointment of interim receiver, etc.
Division 2
2.01-2.05Repealed
Division 3
3.01-3.03Repealed
3.04-3.05Repealed
3.06Repealed
Division 4
4.01-4.03Repealed
Division 5
5.01-5.04Repealed
Division 6
6.01-6.02Spent
Division 7
7.01-7.02Repealed
Division 7.1
7.101-7.104Repealed
Division 7.2 — Bonds under Motion Picture Act
7.201Definitions
7.202Jurisdictions outside Province
7.203Director is obligee
7.204Forfeiture
7.205Who must furnish bond
Division 7.3
7.301-7.303Repealed
Division 7.4 — Bonds under the Degree Authorization Act
7.401Interpretation
7.402Who must furnish bond and amount of bond
7.403Acceptable security
Division 7.5 — Bonds under Liquefied Natural Gas Income Tax Act
7.501Interpretation
7.502Acceptable security
Division 8 — Acceptable Types of Security
8Acceptable security
Division 9 — Designated Acts
9Designated Acts
Schedule

Division 1 — Bonds under Securities Act

Who must deliver bond

1.01  A person or company required by the Superintendent of Brokers, pursuant to section 34 of the Securities Act, to deliver a bond shall deliver a bond in the form set out in the Schedule to these regulations, and

(a) in the case of an applicant for registration or person or company registered as a broker, broker-dealer or investment dealer

(i) being a person or company that is not a member of any of the following bodies — that is to say, the Investment Dealers' Association of Canada, the British Columbia Bond Dealers' Association or the Vancouver Stock Exchange — the bond shall be in the amount of $25 000;

(ii) being a person or company that is a member of one or more of those bodies, the bond shall be in such lesser amount as the superintendent may require,

(b) in the cast of an applicant for registration or person registered as a sub-broker-dealer, the bond shall be in the amount of $5 000,

(c) in the case of an applicant for registration or person registered as a salesperson, the bond shall be in the amount of $1 000, and

(d) in any other case the bond shall be in such amount not exceeding $1 000 as the superintendent may require.

[am. B.C. Reg. 145/76, s. 2.]

Conditions of bond

1.02  Every bond required to be delivered or cash or securities required to be deposited by the Superintendent of Brokers shall be subject to the following conditions:

(a) the bond or cash or securities shall be forfeit, and the sum named therein shall become due and owing by the person or company bound thereby as a debt to Her Majesty in right of the Province, when there has been filed with the Superintendent of Brokers the Attorney General's certificate that the person or company in respect of whose conduct the bond is conditioned or cash or securities deposited, or any official of such company, has, in connection with a trade in a security, been

(i) convicted of a criminal offence,

(ii) convicted of an offence against any provision of the Securities Act, or any regulation thereunder,

(iii) enjoined by the Supreme Court or a judge thereof otherwise than by an interim injunction, or

(iv) a party to civil proceedings in the courts, as a result of which final judgment has been given against such person, company or official in connection with a trade in a security where such judgment is based upon a finding of fraud;

(b) the bond or cash or securities shall be forfeit, and the sum named therein shall become due and owing by the person or company bound thereby as a debt to Her Majesty in right of the Province, when there has been filed with the Superintendent of Brokers a certificate signed by the Attorney General that proceedings in respect of the person or company in respect of whose conduct the bond is conditioned or cash or securities deposited have been taken

(i) under the Bankruptcy and Insolvency Act of Canada, or

(ii) in the case of a company, by way of winding up.

[am. B.C. Reg. 145/76, ss. 3 to 5.]

Assignment of bond

1.03  The Superintendent of Brokers may assign any bond or cash or securities forfeited under this Division or may pay over any moneys recovered thereunder to any person or company, or into the Supreme Court in trust for persons and companies who and that are or may become judgment creditors of the person or company bonded, or to any trustee, custodian, interim or official receiver or liquidator of the person or company, as the case may be; the assignment or payment over to be in accordance with and upon conditions set forth in any Special Order of the Lieutenant Governor in Council.

[am. B.C. Reg. 145/76, s. 6.]

Appointment of interim receiver, etc.

1.04  The Attorney General, whenever Her Majesty becomes a creditor of any person or company in respect of a debt arising from the provisions of this Division, may take such proceedings as the Attorney General sees fit under the Bankruptcy and Insolvency Act or the Winding-up and Restructuring Act of Canada, the Supreme Court Act or the Company Act for the appointment of an interim receiver, custodian trustee, receiver or liquidator, as the case may be.

[am. B.C. Reg. 9/96, s. 1.]

Division 2

Repealed

2.01-2.05  Repealed. [B.C. Reg. 518/2004, Sch. s. 1.]

Division 3

Repealed

3.01-3.03  Repealed. [B.C. Reg. 32/92, s. 1.]

Repealed

3.04-3.05  Repealed. [B.C. Reg. 49/2008.]

Repealed

3.06  Repealed. [B.C. Reg. 4/95.]

Division 4

Repealed

4.01-4.03  Repealed. [B.C. Reg. 165/2008.]

Division 5

Repealed

5.01-5.04  Repealed. [B.C. Reg. 295/2004, s. 2 (a).]

Division 6

Spent

6.01-6.02  Spent.

Division 7

Repealed

7.01-7.02  Repealed. [B.C. Reg. 412/2008, App. s. 1 (a).]

Division 7.1

Repealed

7.101-7.104  Repealed. [B.C. Reg. 221/2016, s. (a).]

Division 7.2 — Bonds under Motion Picture Act

Definitions

7.201  In this Division, "adult film", "adult film distributor", "copy" and "director" have the meanings given them in section 1 of the Motion Picture Act.

[en. B.C. Reg. 75/90.]

Jurisdictions outside Province

7.202  An adult film distributor licensed under the Motion Picture Act, or an agent of the adult film distributor approved by the director, who with the approval of the director wishes to affix a decal to an adult film or copy in a jurisdiction outside of the Province, shall furnish and maintain, during the term of the adult film distributor's licence, a bond or other security in the amount of $10 000 for the honest and lawful conduct of the business of an adult film distributor by the adult film distributor and the agents of the adult film distributor.

[en. B.C. Reg. 75/90; am. B.C. Reg. 107/91, s. 1.]

Director is obligee

7.203  The obligee in whose favour a bond under sections 7.202 and 7.205 shall be given and who shall hold the bond shall be the director.

[en. B.C. Reg. 75/90; am. B.C. Reg. 107/91, s. 2.]

Forfeiture

7.204  The bond or other security given under this section shall be forfeited if the adult film distributor or agent of the adult film distributor

(a) contravenes the Motion Picture Act or regulations made under it,

(b) contravenes a decision of the director made under the Motion Picture Act or regulations made under it, or

(c) is convicted of an offence under the Motion Picture Act.

[en. B.C. Reg. 75/90; am. B.C. Reg. 107/91, s. 3.]

Who must furnish bond

7.205  An adult film distributor who is required by the director, as a condition of issuing or renewing a licence, to post and maintain a bond or other security shall furnish and maintain during the term of the adult film distributor's licence a bond or other security in an amount of $10 000 for the honest and lawful conduct of the business of an adult film distributor by the adult film distributor.

[en. B.C. Reg. 107/91, s. 4.]

Division 7.3

Repealed

7.301-7.303  Repealed. [B.C. Reg. 229/95.]

Division 7.4 — Bonds under the Degree Authorization Act

Interpretation

7.401  In this Division, "Act" means the Degree Authorization Act.

[en. B.C. Reg. 404/2003, s. 1.]

Who must furnish bond and amount of bond

7.402  A person in respect of whom security is prescribed under the Act must deliver and maintain a bond in accordance with and in the amount specified by the Degree Authorization Regulation.

[en. B.C. Reg. 404/2003, s. 1.]

Acceptable security

7.403  Despite section 8 of this regulation, acceptable security for a bond for the purposes of the Act, must consist of one or more of the following types of security:

(a) short term deposits, not to exceed 3 years, issued by a savings institution and registered in the name of the minister;

(b) registered marketable bonds that are

(i) in fully registered form, issued or guaranteed by the government of Canada or the government of any province, with a maturity date of not longer than 3 years away, and

(ii) accompanied by a duly executed, irrevocable power of attorney that authorizes the minister to realize the security;

(c) treasury bill notes issued by the government of Canada or the government of any province;

(d) irrevocable letters of credit, issued by a savings institution, with a termination date beyond the required term of security and containing a promise to pay the minister a specified sum on written demand;

(e) surety bonds, issued by a person authorized under the Financial Institutions Act to carry on insurance business.

[en. B.C. Reg. 404/2003, s. 1; am. B.C. Reg. 204/2011, Sch. B, s. 5.]

Division 7.5 — Bonds under Liquefied Natural Gas Income Tax Act

Interpretation

7.501  In this Division:

"Act" means the Liquefied Natural Gas Income Tax Act;

"assets" means land and improvements or tangible personal property other than natural gas, liquefied natural gas or natural gas liquids;

"commissioner" has the same meaning as in the Act;

"lending institution" means

(a) a bank as defined in section 2 of the Bank Act (Canada),

(b) a foreign bank as defined in section 95 (1) of the Income Tax Act (Canada),

(c) a credit union as defined in section 1 (1) of the Financial Institutions Act, or

(d) an extraprovincial credit union as defined in section 1 (1) of the Financial Institutions Act.

[en. B.C. Reg. 99/2015, s. 1.]

Acceptable security

7.502  (1) Despite section 8 of this regulation, a bond for the purposes of the Act must consist of one or more of the following types of security:

(a) a type of security set out in section 8 of this regulation;

(b) a guarantee that meets the requirements set out in subsection (2).

(2) The requirements referred to in subsection (1) (b) are as follows:

(a) the guarantee is evidenced by writing signed by, or by the agent of, the guarantor;

(b) the guarantor is

(i) a company within the meaning of paragraph (a) of the definition of "company" in section 1 (1) of the Business Corporations Act,

(ii) an extraprovincial company within the meaning of section 1 (1) of the Business Corporations Act, or

(iii) a corporation as defined in section 2 (1) of the Canada Business Corporations Act;

(c) the guarantee is, in the opinion of the commissioner, adequately secured by assets in British Columbia;

(d) the guarantee includes the following terms:

(i) the guarantee is governed by and to be construed in accordance with the laws of British Columbia;

(ii) with respect to any legal proceeding arising out of or related to the guarantee, the guarantor irrevocably submits and attorns to the jurisdiction of the courts of British Columbia;

(e) the government's right to be paid under the guarantee takes priority over that of all holders of debt, other than a lending institution, secured by the same assets as the guarantee.

[en. B.C. Reg. 99/2015, s. 1.]

Division 8 — Acceptable Types of Security

Acceptable security

8  For the purposes of the Bonding Act and this regulation, a bond must consist of one or more of the following types of security:

(a) short term deposits, not to exceed 3 years, issued by a savings institution and registered in the name of the minister, the interest from which may be payable to the depositor;

(b) guaranteed investment certificates, not to exceed 3 years, issued by a savings institution and registered in the name of the minister, the interest from which may be payable to the person who takes out the certificate;

(c) registered marketable bonds that are

(i) in fully registered form, issued or guaranteed by the government of Canada or the government of any province, with a maturity date of not longer than 3 years, and

(ii) accompanied by a duly executed, irrevocable power of attorney that authorizes the minister to realize the security;

(d) treasury bill notes issued by the government of Canada or the government of any province;

(e) irrevocable letters of credit, issued by a savings institution, with a termination date beyond the required term of security and containing a promise to pay the minister a specified sum on written demand;

(f) bank drafts issued in Canadian funds;

(g) personal money orders issued in Canadian funds by a savings institution, or postal money orders issued by the Canada Post Corporation;

(h) a bond of the Insurance Corporation of British Columbia;

(i) cash, in Canadian funds, and a cash bond must provide that no interest is payable by the government unless required under the enactment, licence or permit under which the security is required or by a contract with the government;

(j) surety bonds, issued by a person authorized under the Financial Institutions Act to carry on insurance business;

(k) a certified cheque issued by a financial institution.

[en. B.C. Reg. 347/93; am. B.C. Regs. 186/95, s. (a); 204/2011, Sch. B, s. 5.]

Division 9 — Designated Acts

Designated Acts

9  The following Acts, and any regulation made under them, are designated for the purposes of section 2 of the Bonding Act:

Agricultural Land Commission Act

Agricultural Produce Grading Act

Apprenticeship Act

Carbon Tax Act

College and Institute Act

Condominium Act

Degree Authorization Act

Employment Standards Act

Ferry Corporation Act

Gas Safety Act

Heritage Conservation Act

Independent School Act

Insurance Corporation Act

Islands Trust Act

Liquefied Natural Gas Income Tax Act

Motion Picture Act

Motor Carrier Act

Motor Dealer Act

Motor Fuel Tax Act

Motor Vehicle Act

Oil and Gas Activities Act

Pesticide Control Act

Petroleum and Natural Gas Act

Petroleum Corporation Act

Private Investigators and Security Agencies Act

Private Post-Secondary Education Act

Provincial Sales Tax Act

Public Service Bonding Act

Real Estate Act

Securities Act

Sheriff Act

Social Service Tax Act

Supreme Court Act

System Act

Tobacco Tax Act

Trade Practice Act

Transport of Dangerous Goods Act

Wildlife Act

[en. B.C. Reg. 347/93; am. B.C. Regs. 186/95, s. (b); 404/2003, s. 2; 295/2004, s. 2 (b); 126/2008, s. 3; 216/2010, Sch. s. 1; 269/2010, Sch. s. 2; 91/2013, Sch. s. 2; 99/2015, s. 2.]

Schedule

[am. B.C. Regs. 145/76, s. 7; 295/2004, s. 2 (c); 412/2008, App. s. 1 (b).]

Surety Bond

(Securities Act)

KNOW ALL MEN BY THESE PRESENTS that ............................................................ [insert name and full address of surety company] having its head office in the Province of British Columbia at ....................................................... hereinafter called the "Company", is held and firmly bound unto Her Majesty the Queen in right of the Province of British Columbia, in the penal sum of ................................. to be paid to Her Majesty, her heirs, successors and assigns, for which payment well and truly to be made the Company binds itself and its successors firmly by these presents.

Sealed with the Common Seal of the Company and dated this ....... day of .................., 20....

WHEREAS ....................................................... of .......................................................... in the Province of British Columbia, (has made application for registration) or (is registered as .......................................................)(see NOTE*) [strike out what does not apply] pursuant to the provisions of the Securities Act, and has been required pursuant to section 34 of the said Act to deliver a bond by a surety company in the sum of.................... dollars for the purpose referred to in the said Act, in respect of the conduct of the said....................................................... .

AND WHEREAS by the above-written obligation the Company has, at the request of the said ....................................................... entered into a bond accordingly:

NOW, THE CONDITION of the above-written obligation, so entered into in respect of the conduct of the said.................................................................., is such that if the said obligation does not by reason of any act, matter, or thing at any time hereafter become or be forfeit under any of the provisions of the said Act, then the said obligation shall be void, but otherwise shall be and remain in full force and virtue, and shall be subject to forfeiture as provided by the said Act:

PROVIDED that if the Company at any time gives one calendar month's notice in writing to the Superintendent of Brokers for the Province of British Columbia for the time being of its intention to terminate the obligation hereby undertaken, then this obligation and all liability on the part of the Company hereunder shall cease and determine in respect only of any act, matter, or thing taking place, arising, or done subsequent to the date named in the notice of the termination of the obligation hereby undertaken, but shall remain in full force and effect in respect of all acts, matters, and things taking place, arising, or done from the date hereof to the date of such termination.

The Common Seal of the said....................................................... was hereunto affixed in the presence of

..................................................................................................................
..................................................................................................................

*NOTE—Insert the category of registration for which application is made; i.e., broker-dealer, etc.

Bond

Repealed. [B.C. Reg. 412/2008, App. s. 1 (b).]

Bond

Repealed. [B.C. Reg. 295/2004, s. 2 (c).]

[Provisions relevant to the enactment of this regulation: Bonding Act, R.S.B.C. 1996, c. 30, section 11]