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

Act current to 2019-08-28 and last amended on 2019-05-10. Previous Versions

Termination and Cancellation of Insurance (continued)

Marginal note:Termination of policy by provincial member institution

  •  (1) A provincial member institution may terminate a policy of deposit insurance by giving such notice of termination as may be required by the policy.

  • Marginal note:Effect of termination

    (2) Unless the policy of deposit insurance of a provincial member institution otherwise provides, section 34 applies in respect of deposits with the institution on the termination of the policy by the institution.

  • R.S., 1985, c. C-3, s. 32
  • R.S., 1985, c. 18 (3rd Supp.), s. 62

Marginal note:Cancellation

  •  (1) Subject to subsection (3), the policy of deposit insurance of a member institution may be cancelled by the Corporation if, in the opinion of the Corporation, the member institution

    • (a) is or is about to become insolvent;

    • (b) has ceased to accept deposits; or

    • (c) has not begun to accept deposits within a period of two years beginning on the day on which it became a member institution.

  • Marginal note:Cancellation

    (2) If a member institution intends to cease to accept deposits, it must notify the Corporation and the institution’s policy of deposit insurance may, subject to subsection (3), be cancelled by the Corporation.

  • Marginal note:No cancellation in certain cases

    (3) The Corporation shall notify the Minister and the Superintendent of the action it is proposing to take under subsection (1) or (2) and it 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.

  • R.S., 1985, c. C-3, s. 33
  • R.S., 1985, c. 18 (3rd Supp.), s. 62
  • 1996, c. 6, s. 38
  • 2007, c. 6, s. 415
  • 2012, c. 5, s. 194

Marginal note:Effect of termination or cancellation

  •  (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

  •  (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.

  • Marginal note:Presumption

    (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

Marginal note:Removal of references to deposit insurance

  •  (1) If the policy of deposit insurance of a member institution is terminated or cancelled, the member institution shall notify its depositors of that fact and shall remove all references to deposit insurance under this Act from all forms of advertising by the institution.

  • Marginal note:Public notice

    (2) The Corporation may, in the manner and through any news media that it considers appropriate, give public notice of the termination or cancellation of the policy of deposit insurance of a member institution if, in the opinion of the Corporation, the public interest requires that such notice be given.

  • R.S., 1985, c. C-3, s. 36
  • 2007, c. 6, s. 418

Provincial Insuring Arrangements

Marginal note:Provincial deposit insurance

  •  (1) If under the law of any province the government of the province or an agent of that government guarantees or insures any of the deposits with a provincial institution operating within the province, the Corporation, subject to section 17.1 and any agreement entered into under subsection (3), may

    • (a) insure some or all of the deposits with the institution; or

    • (b) amend the institution’s policy of deposit insurance, to exclude from the policy any of the deposits with the institution.

  • (2) [Repealed, 2007, c. 6, s. 419]

  • Marginal note:Agreement with province

    (3) The Corporation may, with the approval of the Governor in Council, enter into an agreement with the government, or an agent of the government, of a province referred to in subsection (1), to provide for reciprocal arrangements relating to the administration or operation of the law of that province and of this Act.

  • Marginal note:Regulations

    (4) For the purpose of enabling the Corporation to carry out an insuring arrangement referred to in subsection (1) or provided for in an agreement under subsection (3), the Governor in Council may, by regulation, make provision for any matter or thing arising from the insuring arrangement or agreement.

  • Marginal note:Refund of premiums

    (5) Where the Corporation during any premium year ceases to insure any of the deposits held by a member institution that is a provincial institution, by reason of the fact that such deposits are guaranteed or insured pursuant to the law of a province, the Corporation may refund to that provincial institution the proportion of the premium paid by the provincial institution to the Corporation for that premium year in respect of those deposits that bears the same relation to the premium for the full premium year in respect of those deposits that the unexpired part of the premium year bears to the full premium year, but in no case shall a refund be made that will reduce the premium paid by the provincial institution to the Corporation for the premium year to less than five thousand dollars.

  • Marginal note:Saving

    (6) Nothing in this section shall be construed as authorizing the Corporation to insure deposits contrary to section 12.

  • Definition of deposits

    (7) In this section, deposits includes a part of a deposit.

  • R.S., 1985, c. C-3, s. 37
  • R.S., 1985, c. 18 (3rd Supp.), s. 64
  • 2007, c. 6, s. 419

Marginal note:Agreements for examination of provincial institutions

  •  (1) Notwithstanding section 28, the Corporation may enter into an agreement with the government, or an agent of the government, of a province referred to in subsection 37(1) to provide for

    • (a) the exchange between the Corporation and that government or agent of information that is obtained by any examination of provincial institutions required by this Act or the law of that province; and

    • (b) special examinations, by representatives of both parties to the agreement and at the request of either party, of any of the provincial institutions that are member institutions operating in that province.

  • Marginal note:In lieu of examination

    (2) The Corporation may accept information received from an exchange of information referred to in paragraph (1)(a) in lieu of any examination required by this Act.

  • R.S., c. C-3, s. 32
 
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