Canada Deposit Insurance Corporation Act

Version of section 10.1 from 2009-07-01 to 2012-05-23:

Marginal note:Loans to Corporation
  •  (1) At the request of the Corporation, the Minister may, out of the Consolidated Revenue Fund, lend money to the Corporation on such terms and conditions as the Minister may establish.

  • Marginal note:Other borrowing

    (2) The Corporation may borrow money otherwise than under subsection (1) and may borrow by any means, including the issuance and sale of bonds, debentures, notes or any other evidence of indebtedness.

  • Marginal note:Total indebtedness

    (3) The total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed

    • (a) $15,000,000,000 or, if it is greater, the amount determined in accordance with subsections (3.1) to (3.5); or

    • (b) such greater amount as may be authorized for the purposes of this subsection by Parliament under an appropriation Act.

  • Marginal note:Increase

    (3.1) Subject to subsections (3.3) and (3.4), the amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed is increased each year to the amount determined by the formula

    A + (A × B)

    where

    A 
    is the amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed on January 1 of the current year; and
    B 
    is the rate determined by the formula set out in subsection (3.2).
  • Marginal note:Rate

    (3.2) The rate referred to in the description of B in subsection (3.1) is determined by the formula

    (C – D) / D

    where

    C 
    is the total amount of deposits insured by the Corporation on April 30 of the current year; and
    D 
    is the total amount of deposits insured by the Corporation on April 30 of the previous year.
  • Marginal note:Rounding

    (3.3) The amount determined under subsection (3.1) shall be rounded to the nearest billion dollars or, if the amount is equidistant from two consecutive multiples of one billion dollars, it shall be rounded to the higher of those two multiples.

  • Marginal note:No change

    (3.4) The amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed does not change if the amount determined for D in subsection (3.2) is greater than the amount determined for C in that subsection.

  • Marginal note:Date effective

    (3.5) The new amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed comes into effect on December 31 of the current year.

  • Marginal note:Publication

    (3.6) The Corporation shall publish the new amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed in its annual report following the day on which the new amount comes into effect.

  • Marginal note:Fees for borrowing

    (4) The Minister may fix a fee to be paid by the Corporation to the Receiver General in respect of any borrowings by the Corporation and the Minister shall notify the Corporation in writing of any such fee.

  • 1996, c. 6, s. 24;
  • 1997, c. 15, s. 111(E);
  • 2009, c. 2, s. 236.