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

Act current to 2016-09-18 and last amended on 2016-06-22. 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 or third party
  •  (1) Subject to subsection (2), if an agreement with a federal member institution is assigned to or assumed by a bridge institution or a third party,

    • (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 insolvency or deteriorated financial condition of the federal member institution or any of its affiliates, providers of credit support or guarantors,

      • (ii) the making of an order under subsection 39.13(1) or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order,

      • (iii) a non-monetary default, before the order was made, by the federal member institution or any of its affiliates in the performance of obligations under the agreement,

      • (iv) a monetary default, before the order was made, under the agreement by the federal member institution or any of its affiliates that is remedied within 60 days after the day on which the agreement is assigned or assumed,

      • (v) the assignment or assumption of the agreement to or by a bridge institution or a third party,

      • (vi) the transfer to a third party of all or part of the assets or liabilities of the federal member institution or any of its affiliates,

      • (vii) a conversion under subsection 39.2(2.3) in respect of the federal member institution, or

      • (viii) a conversion of any of the federal member institution’s shares or liabilities in accordance with the contractual terms of those shares or liabilities; 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 (viii) or provides, in substance, that the bridge institution or the third party does not have the rights to use or deal with assets that the bridge institution or the third party 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)(iii) and (iv) do not apply to an eligible financial contract, as defined in subsection 39.15(9).

  • Marginal note:Membership in organization

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

    • (a) the insolvency or deteriorated financial condition of the federal member institution or any of its affiliates, providers of credit support or guarantors;

    • (b) the making of an order under subsection 39.13(1) or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order;

    • (c) a non-monetary default, before the order was made, by the federal member institution or any of its affiliates in the performance of obligations under the rules of the organization;

    • (d) a monetary default, before the order was made, under the rules of the organization by the federal member institution or any of its affiliates that is remedied within 60 days after the day on which the order is made;

    • (e) the transfer of the federal member institution’s membership to a bridge institution or a third party;

    • (f) the transfer to a third party of all or part of the assets or liabilities of the federal member institution or any of its affiliates;

    • (g) a conversion under subsection 39.2(2.3) in respect of the federal member institution; or

    • (h) a conversion of any of the federal member institution’s shares or liabilities in accordance with the contractual terms of those shares or liabilities.

  • 2012, c. 5, s. 199;
  • 2016, c. 7, s. 135.
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:Exceptions

    (2) Despite paragraph (1)(a),

    • (a) paragraph 39.15(1)(e) or (f) or subsection 39.15(2) or (2.1) continues to apply to the extent that it produced its effects by reason of

      • (i) the insolvency or deteriorated financial condition of the federal member institution or any of its affiliates, providers of credit support or guarantors,

      • (ii) the making of the order under subsection 39.13(1) or any change of control or ownership of the federal member institution or any of its affiliates that is related to the making of the order,

      • (iii) a non-monetary default, before the order was made, by the federal member institution or any of its affiliates in the performance of obligations under an agreement or the rules of an organization,

      • (iv) a monetary default, before the order was made, under an agreement or the rules of an organization by the federal member institution or any of its affiliates that was remedied within 60 days after the day on which the order was made,

      • (v) a conversion under subsection 39.2(2.3) in respect of the federal member institution, or

      • (vi) a conversion of any of the federal member institution’s shares or liabilities in accordance with contractual terms of those shares or liabilities; and

    • (b) subject to subsections 39.15(7.101) and (7.102), subsections 39.15(7.01), (7.1) and (7.11) to (7.2) continue to apply and — only for the purpose of interpreting those subsections 39.15(7.01), (7.1) and (7.11) to (7.2) — subsections 39.15(7) and (9) continue to apply.

  • Marginal note:Stay terminated by order

    (3) The Governor in Council may, by order, declare that paragraph (2)(a) ceases to apply in respect of the federal member institution if the Governor in Council considers that all or substantially all of the institution’s assets have been transferred to a bridge institution or a third party.

  • 1992, c. 26, s. 11;
  • 1996, c. 6, s. 41;
  • 2012, c. 31, s. 167;
  • 2016, c. 7, s. 136.
 
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