Warning from RBC that banking services to Federal CCA corporations are “at risk”

September 17, 2014 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, Canadian Charity Law, New corporate non-profit acts

I recently saw this notice from RBC to a client of theirs that the registered charity's banking services are at risk if they do not continue to the CNCA.  RBC also wants copies of the continuance documents.  Just a reminder that Federal non-profit corporations under the Canada Corporations Act need to continue to the Canada Not-for-profit Corporations Act.

Here is the notice from RBC:

"URGENT-IMMEDIATE ACTION REQUIRED

September 10,2014

We are writing to you about important requirements associated with the new Canada Not-for-profit Corporations Act (the "NFP Act"), which affect your banking services.  All corporations governed by Part II of the Canada Corporations Act must transition to the new NFP Act by October 17, 2014. According to our records, we have not received confirmation that your corporation has transitioned.

What documentation is required by RBC Royal Bank?

The bank requires a copy of the Certificate of Continuance for your corporation. In addition, please also submit written details of any changes made to the corporation, including changes to the corporation's name and signing authorities. You may be required to complete updated authorization forms or other documents depending on the nature of the changes.

How to submit the documents!

Please deliver the Certificate of Continuance and other supporting documents to any RBC Royal Bank

branch or through your RBC Royal Bank Account Manager before the October 17, 2014 deadline. If you have already provided these documents, no further action is required.

What if RBC Royal Bank does not receive the documentation by the deadline?

If RBC Royal Bank does not receive the required documentation by October 17, 2014, your banking Services are at risk.   The government may take actions to dissolve a corporation that does not transition to the new NFP Act.

More information

More information about the transition process can be found on the government's website at

http:/ /www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/h cs03925.html.

If you have any questions or concerns about the documentation required by the bank, please call

your RBC Royal Bank Account Manager or ----."

Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

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Charity Lawyer Mark Blumberg

Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

mark@blumbergs.ca
416.361.1982
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