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An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)

Assented to 2007-03-29

R.S., c. C-3Canada Deposit Insurance Corporation Act

 Subsection 6(3) of the Canada Deposit Insurance Corporation Act is amended by adding the word “or” at the end of paragraph (b), by striking out the word “or” at the end of paragraph (c) and by repealing paragraph (d).

Marginal note:R.S., c. 18 (3rd Supp.), s. 52(1)
  •  (1) Subsections 14(1) and (2) of the Act are replaced by the following:

    Marginal note:Obligation regarding insured amount
    • 14. (1) As soon as possible after the Corporation is obliged to make payment in respect of a deposit insured by deposit insurance, it shall make available to the person that in its opinion appears to be entitled to be paid in respect of the deposit an amount of money equal to so much of the person’s deposit as is insured by the Corporation.

    • Marginal note:How amount to be made available

      (1.1) The amount is to be made available by making a monetary payment to the person or a deposit to the credit of the person at another member institution, whether or not the person has an account at that institution. The Corporation may make the amount available in more than one instalment if, in its opinion, it is appropriate to do so.

    • Marginal note:Obligatory payment

      (2) The Corporation shall, in the manner described in subsection (1.1), make payment in respect of any deposit insured by deposit insurance if a winding-up order has been made in respect of the member institution that holds the deposit.

  • Marginal note:R.S., c. 18 (3rd Supp.), s. 52(1)

    (2) The portion of subsection 14(2.1) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Discretionary payment

      (2.1) The Corporation may, in the manner described in subsection (1.1), make payment in respect of any deposit insured by deposit insurance if

Marginal note:R.S., c. 18 (3rd Supp.), s. 54; 2005, c. 30, s. 104(1)

 Section 17 of the Act is replaced by the following:

Marginal note:Insurance of federal institutions
  • 17. (1) The Corporation shall, in the manner and to the extent provided in this Act and the by-laws, insure the deposits held by a federal institution in respect of which an order approving the commencement and carrying on of business has been made by the Superintendent unless

    • (a) that order prohibits the institution from accepting deposits in Canada;

    • (b) that order authorizes the institution to accept deposits in Canada solely in accordance with subsection 413(3) of the Bank Act, subsection 378.1(2) of the Cooperative Credit Associations Act or subsection 413(2) of the Trust and Loan Companies Act;

    • (c) the institution has been authorized under section 26.03 to accept deposits payable in Canada while no longer being a member institution; or

    • (d) the institution’s policy of deposit insurance has been terminated under section 31 or cancelled under section 33.

  • Marginal note:Effect of amendment to order

    (2) If the order approving the commencement and carrying on of business by a federal institution is at any time amended so as to not contain the prohibition or restriction referred to in paragraphs (1)(a) and (b), respectively,

    • (a) on the day on which the amendment takes effect, any authorization under section 26.03 that permits the institution to accept deposits payable in Canada while no longer being a member institution is revoked;

    • (b) on the day on which the amendment takes effect, any existing cancellation of the institution’s policy of deposit insurance under paragraph 33(1)(b) or subsection 33(2) is revoked; and

    • (c) as of the day on which the amendment takes effect, the Corporation shall insure the deposits held by the institution under subsection (1).

  • Marginal note:Exception

    (3) Subsection (2) does not apply in respect of a federal institution whose policy of deposit insurance has been terminated under section 31 or cancelled under paragraph 33(1)(a).

  • Marginal note:Notice to Corporation

    (4) The Superintendent shall notify the Corporation of

    • (a) every application to incorporate a federal institution, or to continue a corporation as a federal institution, in respect of which the Superintendent is likely to make an order approving the commencement and carrying on of business that does not contain the prohibition or restriction referred to in paragraphs (1)(a) and (b), respectively; and

    • (b) every application by a federal institution to have its order approving the commencement and carrying on of business amended so as to not contain the prohibition or restriction referred to in paragraphs (1)(a) and (b), respectively.

Marginal note:Insurance of provincial institutions

17.1 On the application of a provincial institution, the Corporation may insure the deposits held by the institution in the manner and to the extent provided in this Act and the by-laws, if

  • (a) the Corporation approves the institution for deposit insurance;

  • (b) the institution is authorized by the province of its incorporation to apply for deposit insurance;

  • (c) the institution agrees, in carrying on its business, not to exercise powers substantially different from the powers exercisable by a company to which the Trust and Loan Companies Act applies; and

  • (d) the Corporation is satisfied that at all times the Corporation will have adequate access to information regarding the institution.

Marginal note:Policy of deposit insurance

17.2 Every member institution is deemed to have obtained a policy of deposit insurance on the day on which it became a member institution.

Marginal note:1992, c. 26, s. 7

 Subsections 18(3) and (4) of the Act are replaced by the following:

  • Marginal note:Contents of policy

    (3) The policy of deposit insurance shall consist of the provisions that may be prescribed by the by-laws.

  • Marginal note:Policies deemed to be amended

    (4) If a by-law respecting the content of the policy of deposit insurance is amended, or revoked and replaced, every policy of deposit insurance is deemed to be amended or replaced accordingly.

 

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