Bonding Act

BONDING REGULATIONS

[includes amendments up to B.C. Reg. 518/2004, January 1, 2005]

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 Act¹ of Canada, or

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

[am. B.C. Reg. 145/76, ss. 3 - 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 Act¹ or the Winding-up Act² 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

Sections Repealed

2.01 to 2.05 Repealed.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

Division 3 — Bonds under the Motor Vehicle Act

Sections Repealed

3.01 to 3.03 Repealed.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

Definition

3.04 For the purpose of section 3.05, "driver training school" means a person or organization that provides to individuals a program of training or education in driving or operating motor vehicles, in expectation of compensation from those individuals, but does not include

(a) a person or organization that provides instruction for off-highway, racetrack or closed circuit driving,

(b) a person who, as an employee, provides this instruction to other employees of the same employer, or

(c) a person who, under contract to an employer, provides this instruction to employees of the employer.

[en. B.C. Reg. 4/95.]

Driver training schools

3.05 (1) Every driver training school must furnish and maintain security with the superintendent under the Bonding Act for the protection of contractual rights of its students and for the honest conduct of the driver training school and its employees in the amount of $2 000 for each driver training instructor employed at any time by the driver training school during the term of the driving school's licence.

(2) The security referred to in subsection (1) may be in any of the following forms:

(a) cash;

(b) a bond of a surety licensed under the Financial Institutions Act;

(c) a term deposit for up to 3 years registered in the name of the minister;

(d) a fully registered bond, unconditionally guaranteed by the government of Canada or one of the provincial governments, with a power of attorney stamped and signature guaranteed by a bank.

(3) The total amount of security for a driver training school under subsection (1) need not exceed $10 000.

(4) A driver training school must not allow the total amount of security under subsection (1) for the school during the term of a licence to fall below the highest amount established during that term.

[en. B.C. Reg. 4/95.]

Section Repealed

3.06 Repealed. [B.C. Reg. 4/95.]

Division 4 — Bonds under
Private Investigators and Security Agencies Act

Amount of security

4.01 Every applicant for a private detective's licence under the Private Investigators and Security Agencies Act shall furnish, and every holder of a private investigator's licence shall maintain, security in the sum of $2 500 for the faithful, honest and lawful conduct by the applicant of his business of a private investigator during the term of the licence applied for; and where an employee of the licensee engages in the business of a private investigator, the amount of the bond required shall be increased by the sum of $500 for each employee so engaged, up to a maximum of $10 500.

Calculating number of salespersons

4.02 Where a private investigator has been licensed under the Private Investigators and Security Agencies Act for an uninterrupted period of not less than 6 months immediately prior to the commencement of the licence period and has applied for a renewal licence, the number of employees employed by the private investigator shall be determined, for the purposes of section 4.01, in each licence period in the first instance by reference to the number of employees employed by the private investigator on December 15 immediately preceding; and unless during the licence period the number of employees employed by the private investigator increases by 3 or more, the private investigator need not increase the security furnished or deposited, but otherwise shall increase it. No decreases shall be made during a licence period.

[am. B.C. Reg. 9/96, s. 6.]

Registrar is obligee

4.03 The obligee in whose favour a bond under this Division shall be given and who shall hold the bond shall be the registrar as defined in section 1 of the Private Investigators and Security Agencies Act.

[am. B.C. Reg. 414/88.]

Division 5

Sections Repealed

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

Division 6

Sections Spent

6.01 to 6.02 Spent.

Division 7 — Bonds under 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.]

Board is obligee

7.02 The obligee in whose favour a bond under this Division shall be given and who shall hold the bond shall be the Board of Hearing Aid Dealers and Consultants constituted under the Hearing Aid Act.

[en. B.C. Reg. 128/72.]

Division 7.1 — Bonds under Independent School Act

Definitions

7.101 In this Division:

"authority" 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

(i) $100 000, and

(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.]

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 — Bonds under Motor Dealer Act

Sections Repealed

7.301 to 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 surety licensed under the Insurance Act.

[en. B.C. Reg. 404/2003, 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 surety licensed under the Insurance Act;

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

[en. B.C. Reg. 347/93; am. B.C. Reg. 186/95, s. (a).]

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

College and Institute Act

Condominium Act

Degree Authorization Act

Employment Standards Act

Ferry Corporation Act

Gas Safety Act

Hearing Aid Act

Heritage Conservation Act

Hotel Room Tax Act

Independent School Act

Insurance Corporation Act

Islands Trust Act

Motion Picture Act

Motor Carrier Act

Motor Dealer Act

Motor Fuel Tax Act

Motor Vehicle 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

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).]

Schedule

[am. B.C. Reg. 145/76, s. 7; 295/2004, s. 2 (c).]

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

(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

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

Bond

(Debt Collection Act)

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

[Provisions of the Bonding Act, R.S.B.C. 1996, c. 30, relevant to the enactment of this regulation: sections 2 and 11]

Copyright (c) Queen's Printer, Victoria, British Columbia, Canada