Marginal note:Effect of termination or cancellation
34. (1) If the policy of deposit insurance of a member institution is terminated or cancelled by the Corporation, the deposits with the institution on the day the termination or cancellation takes effect, less any withdrawals from those deposits, continue to be insured under the terminated or cancelled policy of deposit insurance for a period of two years or, in the case of a term deposit with a remaining term exceeding two years, to the maturity of the term deposit.
Marginal note:Non-application of continued coverage
(2) Subsection (1) does not apply in respect of a deposit with
(a) a member institution if the deposit has been assumed by another member institution; or
(b) a former member institution that has received authorization to accept deposits payable in Canada without being a member institution and the policy of deposit insurance of which has been cancelled.
Marginal note:Corporations not member institutions
(3) A corporation is not considered to be a member institution by reason only that its deposits continue to be insured under subsection (1).
Marginal note:Continuing obligations
(4) Termination or cancellation of a policy of deposit insurance does not relieve a former member institution from obligations and liabilities to the Corporation that have accrued before the termination or cancellation.
Marginal note:Amendment of order
(5) If the policy of deposit insurance of a federal member institution is cancelled by the Corporation under paragraph 33(1)(b) or (c) or subsection 33(2), the Superintendent must, under paragraph 54(1)(a) of the Bank Act, paragraph 62(1)(a) of the Cooperative Credit Associations Act or paragraph 58(1)(b) of the Trust and Loan Companies Act, as the case may be, amend the federal member institution’s order approving the commencement and carrying on of business to prohibit the institution from accepting deposits in Canada.
- R.S., 1985, c. C-3, s. 34;
- 1996, c. 6, s. 39;
- 1999, c. 28, s. 107;
- 2007, c. 6, s. 416;
- 2012, c. 5, s. 195.
Marginal note:Creditor remedies available
35. (1) Where in the opinion of the Corporation a member institution is or is about to become insolvent, the Corporation is deemed to be a creditor of the member institution and the Corporation may initiate and take any measures or proceedings that a creditor of the member institution may initiate or take under law to preserve the assets of the member institution or to have it wound up or liquidated.
Marginal note:No measures to be taken in certain cases
(1.1) The Corporation shall notify the Minister of the action it is proposing to take under subsection (1) and shall not take the action if it is advised by the Minister that in the opinion of the Minister taking the action would not be in the public interest.
(2) For the purposes of this section, the Corporation is deemed to be a creditor of a member institution despite the termination or cancellation of the institution’s policy of deposit insurance.
- R.S., 1985, c. C-3, s. 35;
- R.S., 1985, c. 18 (3rd Supp.), s. 63;
- 1992, c. 27, s. 90;
- 1993, c. 34, s. 14;
- 1996, c. 6, s. 40;
- 2007, c. 6, s. 417.
- Date modified: