BNY Trust capital reduction; Equitable Bank Alberta office

Summary#

• Two short notices appeared in the Canada Gazette on October 5, 2024.
• BNY Trust Company of Canada says it will ask the regulator to let it reduce the stated capital of its common shares by up to $26.5 million. Equitable Bank says it has moved the address where enforcement (support) notices must be served in Alberta.

What it does#

• BNY Trust Company of Canada

  • Announces it will apply to the Superintendent of Financial Institutions (Canada) for permission under the Trust and Loan Companies Act (Canada) to reduce the stated capital for its common shares.
  • The sole shareholder approved the plan on September 12, 2024. The company says the reduction could be up to $26.5 million and the Chief Financial Officer will pick the exact amount within that limit.
  • The notice also says the company’s directors and officers are authorized to complete the application. The company published the notice on September 21, 2024, but that does not mean approval has been granted.

• Equitable Bank

  • Says, under the Support Orders and Support Provisions (Banks and Authorized Foreign Banks) Regulations and the Bank Act (Canada), its designated office for service of enforcement notices in Alberta has changed to 909 11th Avenue SW, Suite 1300, Calgary, Alberta T2R 0E7.

Who's affected#

• For the BNY Trust item:

  • The immediate party affected is the sole shareholder of BNY Trust Company of Canada (the planned distribution would go to that shareholder).
  • The regulator, Superintendent of Financial Institutions (Canada), will review the application.
  • It is unclear from the notice whether depositors, creditors, or other external parties will be affected.

• For the Equitable Bank item:

  • People and organizations who need to serve enforcement or support notices to Equitable Bank in Alberta (for example, family-support enforcement officers, lawyers or other parties using formal service) will need to use the new address.

Why it matters#

• The BNY Trust notice signals a possible cash distribution of up to $26.5 million to the company’s sole shareholder and a change to the company’s capital structure. But the change still needs regulator approval, so the outcome is not certain.
• The Equitable Bank notice matters for anyone who must deliver enforcement or support notices to the bank in Alberta. Using the correct office address is required for those legal notices to be valid.