Canada Deposit Insurance Corporation Act (R.S.C., 1985, c. C-3)

Act current to 2016-05-12 and last amended on 2014-06-19. Previous Versions

Marginal note:Stay of proceedings — bridge institution
  •  (1) Any action or other civil proceeding before a judicial or quasi-judicial body and any arbitration, to which a bridge institution may become a party by virtue of acquiring an asset or assuming a liability of the federal member institution shall be stayed for a period of 90 days from the day on which the bridge institution acquires the asset or assumes the liability.

  • Marginal note:Waiver

    (2) The bridge institution may waive the stay referred to in subsection (1).

  • 1992, c. 26, s. 11;
  • 1996, c. 6, s. 41;
  • 2009, c. 2, s. 246;
  • 2012, c. 5, s. 199.
Marginal note:Assignments — bridge institution
  •  (1) Subject to subsection (2), if an agreement with a federal member institution is assigned to or assumed by a bridge institution

    • (a) a person is prohibited from terminating or amending the agreement, or claiming an accelerated payment or forfeiture of the term under the agreement, by reason only of

      • (i) the federal member institution’s insolvency;

      • (ii) a non-monetary default by the federal member institution in the performance of its obligations under the agreement;

      • (iii) a monetary default by the federal member institution under the agreement that is remedied by the bridge institution within 60 days following the assignment or assumption of the agreement;

      • (iv) the making of an order under subsection 39.13(1), or

      • (v) the agreement being assigned to or assumed by a bridge institution; and

    • (b) any stipulation in the agreement that has the effect of providing for or permitting anything that, in substance, is contrary to any of subparagraphs (a)(i) to (v) or provides, in substance, that the bridge institution does not have the rights to use or deal with assets that the bridge institution would otherwise have by reason of the occurrence of any circumstance described in those subparagraphs, is of no force or effect.

  • Marginal note:Exception

    (2) Subparagraphs (1)(a)(ii) and (iii) do not apply to an eligible financial contract as defined in subsection 39.15(9).

  • Marginal note:Membership in an organization

    (3) If a bridge institution becomes a member of an organization in place of a federal member institution, it is prohibited for the organization to terminate the bridge institution’s membership by reason only of

    • (a) the federal member institution’s insolvency;

    • (b) the making of an order under subsection 39.13(1);

    • (c) a default by the federal member institution in the performance of its obligations under the rules of the organization; or

    • (d) the federal member institution’s membership being transferred to the bridge institution.

  • 2012, c. 5, s. 199.
Marginal note:Exemption

 The Governor in Council may, in an order made under subsection 39.13(1), provide that subsection 39.15(1) or (2) or any portion thereof does not apply in respect of the federal member institution.

  • 1992, c. 26, s. 11;
  • 1996, c. 6, s. 41.
Marginal note:Leave of court
  •  (1) A superior court may, on any terms that it considers proper, grant leave to a person to do anything that the person would otherwise be prevented from doing by section 39.15 or lift, or reduce the length of, a stay under section 39.151 if the court is satisfied

    • (a) that the person is likely to be materially prejudiced if leave is not granted; or

    • (b) that it is equitable on other grounds to grant leave.

  • Marginal note:Corporation to be made party

    (2) The Corporation must be joined as a respondent in any application under subsection (1) and is entitled to such notice of the application as the court considers proper.

  • Marginal note:Orders of national effect

    (3) An order of a superior court of a province under subsection (1) may, if the order so provides, have effect in all or a part of Canada outside the province.

  • 1992, c. 26, s. 11;
  • 1996, c. 6, s. 41;
  • 2012, c. 5, s. 200.
Marginal note:Termination
  •  (1) Sections 39.14 and 39.15 cease to apply in respect of a federal member institution

    • (a) on the date specified in a notice described in subsection 39.2(3) in respect of the federal member institution; or

    • (b) on the date that a winding-up order is made in respect of the federal member institution.

  • Marginal note:Exception

    (2) Subsection (1) does not apply to subsections 39.15(7.01), (7.02), (7.11) and (7.2) and, only for the purpose of interpreting those subsections, to subsections 39.15(7), (7.03) and (9).

  • 1992, c. 26, s. 11;
  • 1996, c. 6, s. 41;
  • 2012, c. 31, s. 167.
Marginal note:Part VII of Bank Act, etc., inapplicable
  •  (1) The following enactments do not apply in respect of shares of a federal member institution that are vested in the Corporation by an order made under paragraph 39.13(1)(a):

    • (a) section 12.1, paragraph 28(1)(a.1), section 35.1, paragraphs 40(f) and (g), sections 40.1, 47.03, 47.04, 47.06, 47.11, 47.12, 47.15, 47.17 and 47.18, subsection 53(2), paragraph 54(1)(b), section 60.1, subsections 79.2(1) and (2) and sections 159.1, 372, 373, 374, 375, 376, 376.1, 376.2, 377, 377.1, 377.2, 379, 382.1, 385, 401.11, 401.2 and 401.3 of the Bank Act;

    • (b) sections 407, 407.01, 407.02, 407.03, 407.1, 407.2, 408, 411, 428 and 430 of the Insurance Companies Act; and

    • (c) sections 375, 375.1, 376, 379 and 396 and subsection 399(2) of the Trust and Loan Companies Act.

  • Marginal note:Public holding requirement re parent

    (2) An exemption from the application of section 385 of the Bank Act, section 411 of the Insurance Companies Act or section 379 of the Trust and Loan Companies Act that is granted under section 388 of the Bank Act, section 414 of the Insurance Companies Act or section 382 of the Trust and Loan Companies Act continues in force notwithstanding that the entity that controls the bank, insurance company, trust company or loan company is a federal member institution the shares of which are vested in the Corporation by an order made under paragraph 39.13(1)(a).

  • Marginal note:Termination

    (3) Subsections (1) and (2) cease to apply in respect of a federal member institution on the date specified in a notice described in subsection 39.2(3) in respect of the federal member institution.

  • 1992, c. 26, s. 11;
  • 1996, c. 6, s. 41;
  • 2001, c. 9, s. 213;
  • 2010, c. 12, s. 2102.
Marginal note:Provisions do not apply
  •  (1) Section 12.1, paragraph 28(1)(a.1), section 35.1, paragraphs 40(f) and (g), section 40.1, 47.11, 47.12, 47.15 and 47.18, subsection 53(2), paragraph 54(1)(b) and section 159.1 of the Bank Act do not apply if the Corporation is appointed as receiver of a federal member institution that is a federal credit union by an order made under paragraph 39.13(1)(b).

  • Marginal note:Termination

    (2) Subsection (1) ceases to apply in respect of a federal member institution on the date specified in a notice described in subsection 39.2(3) in respect of the federal member institution.

  • 2010, c. 12, s. 2103.

Restructuring Transactions

Marginal note:Restructuring transactions
  •  (1) Where an order has been made under paragraph 39.13(1)(a), the Corporation may, in addition to and not in lieu of any other of its rights and powers, carry out, or cause the federal member institution to carry out,

    • (a) a transaction or series of transactions that involves the sale of all or part of the shares or subordinated debt of the federal member institution;

    • (b) a transaction that involves the amalgamation of the federal member institution;

    • (c) a transaction or series of transactions that involves the sale or other disposition by the federal member institution of all or part of its assets or the assumption of all or part of its liabilities, or both; or

    • (d) any other transaction or series of transactions the purpose of which is to restructure a substantial part of the business of the federal member institution.

  • Marginal note:Transactions for disposition of assets, etc., or restructuring

    (2) Where an order has been made under paragraph 39.13(1)(b), the Corporation, as receiver, may, in addition to any other of its rights and powers, carry out

    • (a) a transaction or series of transactions that involves the sale or other disposition by the Corporation as receiver of all or part of the assets of the federal member institution or the assumption by another person of all or part of its liabilities, or both; or

    • (b) any other transaction or series of transactions the purpose of which is to restructure a substantial part of the business of the federal member institution.

  • Marginal note:Completion of transaction

    (3) Where the Corporation considers that a transaction or series of transactions referred to in subsection (1) or (2) has been substantially completed, it shall cause a notice to that effect, specifying the date on which the transaction or series of transactions was, in the opinion of the Corporation, substantially completed, to be published in the Canada Gazette.

  • Marginal note:Negative pledges inapplicable

    (4) No restriction on the right of the federal member institution to amalgamate, to sell or otherwise dispose of any of its assets or to provide for the assumption of any of its liabilities, other than a restriction provided for in an Act of Parliament, applies so as to prevent the Corporation, the federal member institution or any other person from carrying out a transaction described in subsection (1) or (2).

  • Marginal note:Approval by Minister

    (5) A transaction referred to in subsection (1) or (2) has no force or effect until it is approved by the Minister, unless it is between the Corporation, as receiver for a federal member institution, and a bridge institution.

  • Marginal note:Novation

    (6) Any person who assumes a liability of the federal member institution under a transaction referred to in subsection (1) or (2) becomes liable — instead of the federal member institution — to discharge the liability, on approval of the transaction by the Minister or as soon as the person assumes the liability if the transaction does not require the Minister’s approval.

  • Marginal note:Exception

    (7) Subsection (6) does not apply to the bridge institution’s assumption of any portion of the federal member institution’s liability that is not insured by the Corporation.

  • Marginal note:Novation — trust

    (8) A trust company within the meaning of subsection 57(2) of the Trust and Loan Companies Act that is designated as a bridge institution may become a trustee in substitution for the federal member institution without formality or the consent of any beneficiary of the trust.

  • 1992, c. 26, s. 11;
  • 1996, c. 6, s. 41;
  • 2009, c. 2, s. 247.
 
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