Division 1, sections 1.01 to 1.04 BEFORE repealed by BC Reg 209/2024, effective July 15, 2024.
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 7, sections 7.01 and 7.02 BEFORE repealed by BC Reg 412/2008, effective April 1, 2010.
Division 7 - Bonds under Hearing Aid Act
[s. 21 (f) of Hearing Aid Act]
Who must deliver bond
7.01 Every applicant for registration as a hearing aid dealer and consultant under the Hearing Aid Act shall deliver, and every holder of a licence shall maintain, a bond in the amount of $2 500, in the form of bond captioned 'Bond —Hearing Aid Act' set out in the Schedule to these regulations, for the faithful, honest, and lawful conduct of his business as a hearing aid dealer and consultant.
[en. B.C. Reg. 128/72.]
Section 7.104 (e) BEFORE amended by BC Reg 204/2011, effective July 1, 2012.
(e) surety bonds, issued by a surety licensed under the Insurance Act.
Division 7.1 BEFORE repealed by BC Reg 221/2016, effective September 20, 2016.
Division 7.1 — Bonds under Independent School Act
[s. 18 (2) (e) of Independent School Act]
Definitions
7.101 In this Division:
has the meaning given it in section 1 of the Independent School Act;
"fees" means any money received by an authority for any purposes from or on behalf of a student or a person applying to become a student other than money paid for post-secondary education;
"post-secondary education" has the meaning given it in section 1 of the Private Post-Secondary Education Act.
[en. B.C. Reg. 260/93, Sch. 1.]
Amount of bond
7.102 (1) An authority that applies for or is granted a certificate of group 4 classification under the Independent School Act shall furnish and maintain one of the following bonds:
(a) up to and including the 45th day after the first day of instruction of the first year of the school's operation, a bond in the minimum amount of $100 000;
(b) after the 45th day after the first day of instruction of the first year of the school's operation, a bond in the minimum amount of the greater of
(ii) $5 000 per student based on the number of students enrolled on the 30th day after the first day of instruction;
(c) subject to subsections (2) and (3), for a school that operated in the previous school year a bond in a minimum amount equal to 75% of the total of all fees received by the authority operating the school during the 6 month period of either July 1 through December 31 or January 1 through June 30, of the previous school year — whichever period generated the most fees.
(2) On the request of an authority the minimum amount of a bond is decreased in accordance with subsection (3) if the inspector is satisfied that the fees for the current school year will decrease by 20% or more compared to the previous school year based on enrollment on September 30 of the current school year.
(3) The adjusted bond will be in the amount of 75% of 1/2 of the sum of
(a) the projected income for the current year, and
(b) half of the difference between the projected income and the previous year's income.
(4) A bond must be furnished no later than September 1 of the school year to which it applies unless it is a bond under subsection (1) (b) in which case it must be provided before the 45th day referred to in subsection (1) (b).
(5) An authority shall provide a new bond on September 1 of each school year.
(6) The bond must provide for the pro rata repayment to students of all fees when courses are not taken or completed by students as a result of
(a) the authority closing the independent school, or
(b) the inspector suspending or cancelling the certificate.
[en. B.C. Reg. 260/93, Sch. 1.]
Minimum amount of bond
7.103 Despite section 7.102 (1) to (3), the minimum amount of a bond may not be less than $100 000.
[en. B.C. Reg. 260/93, Sch. 1.]
Acceptable security
7.104 Despite section 8 of this regulation, acceptable security for a bond for the purposes of the Independent School 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. 304/2007; am. B.C. Reg. 204/2011, Sch. B, s. 5.]
Section 7.403 (e) BEFORE amended by BC Reg 204/2011, effective July 1, 2012.
(e) surety bonds, issued by a surety licensed under the Insurance Act.
Division 7.5, sections 7.501 and 7.502 BEFORE repealed by BC Reg 66/2019, effective April 1, 2019.
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;
(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.]
Section 8 (j) BEFORE amended by BC Reg 204/2011, effective July 1, 2012.
(j) surety bonds, issued by a surety licensed under the Insurance Act;
Section 9, list item "Social Service Tax Act" was repealed by BC Reg 216/2010, effective July 1, 2010.
Section 9, list item "Oil and Gas Activities Act" was added by BC Reg 269/2010, effective October 4, 2010.
Section 9, list item "Hotel Room Tax Act" was repealed by BC Reg 91/2013, effective April 1, 2013.
Section 9, list item "Provincial Sales Tax Act" was added by BC Reg 91/2013, effective April 1, 2013.
Section 9, list item "Liquefied Natural Gas Income Tax Act" was added by BC Reg 99/2015, effective January 1, 2017.
Section 9, list item "Liquefied Natural Gas Income Tax Act" was repealed by BC Reg 66/2019, effective April 1, 2019.
Section 9, list item "Oil and Gas Activities Act" was repealed by BC Reg 187/2023, effective September 1, 2023.
Section 9, list item "Energy Resource Activities Act" was added by BC Reg 187/2023, effective September 1, 2023.
Section 9, list items repealed by BC Reg 209/2024, effective July 15, 2024.
Agricultural Produce Grading Act
Apprenticeship Act
Condominium Act
Energy Resource Activities Act
Ferry Corporation Act
Gas Safety Act
Heritage Conservation Act
Motor Carrier Act
Pesticide Control Act
Petroleum and Natural Gas Act
Petroleum Corporation Act
Private Investigators and Security Agencies Act
Private Post-Secondary Education Act
Public Service Bonding Act
Real Estate Act
Securities Act
Social Service Tax Act
Supreme Court Act
System Act
Trade Practice Act
Section 9, list items "Business Practices and Consumer Protection Act" and "Private Training Act" were added by BC Reg 209/2024, effective July 15, 2024.
Schedule (part) BEFORE repealed by BC Reg 412/2008, effective April 1, 2010.
Bond
(Hearing Aid Act)
[am. B.C. Reg. 128/72.]
KNOW ALL MEN BY THESE PRESENTS that ............................................................ being a Surety licensed under the Insurance Act of British Columbia, having a registered office in the Province of British Columbia at .......................................... hereinafter called the "Surety", is held and firmly bound unto the Board of Hearing Aid Dealers and Consultants of British Columbia, of Victoria, in the said Province, hereinafter referred to as the "Obligee", in the penal sum of .................. dollars, lawful money of Canada, to be paid to said Obligee, its successors in office and assigns, for which payment, well and truly to be made, the Surety binds itself and its successors firmly by these presents.
SEALED with the Common Seal of the Surety this ............ day of .............................., 20....
WHEREAS .............................................., of ................................................ in the Province of British Columbia, hereinafter called the "Principal", has made application for a hearing aid dealer and consultant's licence pursuant to the provisions of the Hearing Aid Act, chapter 186 of the Revised Statutes of British Columbia, 1996, and amendments thereto, and is required to furnish the said Obligee security pursuant to the Bonding Act and the regulations pursuant thereto by a bond of a Surety in the sum of ........................ dollars for the faithful, honest, and lawful conduct by the Principal and the Principal's employees of the Principal's business of a hearing aid dealer and consultant:
AND WHEREAS by the above-written obligation the Surety has, at the request of the Principal, entered into a bond accordingly:
NOW, THE CONDITION of the above-written obligation is such that if the Principal and the Principal's employees shall, at all times during the term of any licence held by the Principal under the said Act, faithfully, honestly, and lawfully conduct the Principal's business of a hearing aid dealer and consultant, then this obligation shall be void, but otherwise shall be and remain in full force, virtue, and effect.
If the Surety shall at any time give one month's calendar notice in writing to the obligee and to the Principal of its intention to terminate the obligation hereby undertaken, then this obligation and all liability on its part hereunder shall cease and determine so far as concerns any act or omission on the part of the Principal or any employee of the Principal from the date hereof to the date of such termination, and any such notice shall be given by letter personally delivered or by registered letter addressed to the Principal at his last post-office address notified to the Surety, and to the said Obligee at the Law Courts, Victoria, British Columbia.
THE COMMON SEAL of the Surety was affixed hereto in the presence of
................................................................................................................
..................................................................................................................
..................................................................................................................
Schedule BEFORE repealed by BC Reg 209/2024, effective July 15, 2024.
[am. B.C. Regs. 145/76, s. 7; 295/2004, s. 2 (c); 412/2008, App., s. 1 (b).]
(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.
Repealed. [B.C. Reg. 412/2008, App., s. 1 (b).]
Repealed. [B.C. Reg. 295/2004, s. 2 (c).]