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

Act current to 2019-07-01 and last amended on 2019-05-10. Previous Versions

Restructuring of Federal Member Institutions (continued)

Restructuring Transactions (continued)

Marginal note:Liquidator bound

  •  (1) The liquidator of a federal member institution appointed under the Winding-up and Restructuring Act is bound by the terms and conditions of any transaction that involves the sale or other disposition of the federal member institution’s assets or the assumption by a bridge institution of any portion of the federal member institution’s liabilities and shall carry out those transactions or cause them to be carried out.

  • Marginal note:Expenses

    (2) All costs, charges and expenses properly incurred by the liquidator in complying with the terms and conditions of any transaction referred to in subsection (1), including the liquidator’s remuneration, are payable by the bridge institution.

  • 2009, c. 2, s. 248

Marginal note:Right transferable

 If the assets that are sold under a transaction described in section 39.2 or by a bank designated as a bridge institution include any outstanding security under section 426 or 427 of the Bank Act, the buyer of the assets may hold the security for the life of the loan to which the security relates and all the provisions of that Act relating to the security and its enforcement continue to apply to the buyer as though the buyer were a bank.

  • 1992, c. 26, s. 11
  • 1996, c. 6, s. 41
  • 2009, c. 2, s. 249

Marginal note:Winding-up

  •  (1) The Corporation shall apply for a winding-up order in respect of a federal member institution under the Winding-up and Restructuring Act if a notice has not been published under subsection 39.2(3) in respect of the institution on or before

    • (a) the 60th day after the day on which the order is made under subsection 39.13(1); or

    • (b) the day on which any extension of that period ends.

  • Marginal note:Winding-up — certain cases

    (1.1) Despite subsection (1), if an order is made under paragraph 39.13(1)(d) or subsection 39.13(1.3) in respect of the institution, the Corporation shall apply for a winding-up order in respect of the institution under the Winding-up and Restructuring Act if a notice has not been published under subsection 39.2(3) in respect of the institution on or before

    • (a) the day that is one year after the day on which the order is made under subsection 39.13(1) or any shorter period specified in the order made under paragraph 39.13(1)(d) or subsection 39.13(1.3), as the case may be; or

    • (b) the day on which any extension of the applicable period ends.

  • Marginal note:Deeming

    (2) For the purposes of the Winding-up and Restructuring Act, the Corporation is deemed to be a creditor of the federal member institution.

  • Marginal note:Extension

    (3) The Governor in Council may, by order made on the recommendation of the Minister, grant one or more extensions of the period set out in subsection (1) — of up to 30 days each — but the last extension must expire not later than 180 days after the day on which the order is made under subsection 39.13(1).

  • Marginal note:Extension — certain cases

    (4) The Governor in Council may, by order made on the recommendation of the Minister, grant one or more extensions of the applicable period set out in subsection (1.1) — of up to one year each — but the last extension must expire not later than five years after the day on which the order is made under subsection 39.13(1).

  • 1992, c. 26, s. 11
  • 1996, c. 6, s. 41
  • 2016, c. 7, s. 141

Compensation

Marginal note:Amount of compensation

  •  (1) If an order is made under subsection 39.13(1), the Corporation shall, in accordance with the regulations and the by-laws, determine the amount of compensation, if any, to be paid to a prescribed person.

  • Marginal note:Persons entitled to compensation

    (2) Only a prescribed person who is in a worse financial position than they would have been had the federal member institution been liquidated under the Winding-up and Restructuring Act is entitled to be paid compensation.

  • Marginal note:Duty to pay compensation

    (3) The Corporation shall pay the compensation and shall decide whether to pay it wholly or partly in cash or wholly or partly in any other form, including shares, that the Corporation considers appropriate.

  • Marginal note:Determining amount — no comparison with others

    (4) In determining the amount of compensation to which a person is entitled, the following shall not be taken into account:

    • (a) any shares or other interest or right received by another person as a result of an order made under subsection 39.13(1) or retained by another person; and

    • (b) any common shares received by another person as a result of a conversion of shares or liabilities in accordance with the contractual terms of those shares or liabilities.

  • 1992, c. 26, s. 11
  • 1996, c. 6, s. 41
  • 2016, c. 7, s. 142

Marginal note:Decision conclusive

 Except as otherwise provided in this Act, a decision made by the Corporation under section 39.23 or by an assessor appointed under section 39.26 is for all purposes final and conclusive and shall not be questioned or reviewed in any court.

  • 1992, c. 26, s. 11
  • 1996, c. 6, s. 41
  • 2009, c. 2, s. 250
  • 2016, c. 7, s. 142

 [Repealed, 1996, c. 6, s. 41]

Marginal note:Discharge of liability

 Payment of the compensation by the Corporation under section 39.23 discharges the Corporation from its obligations under that section and in no case is the Corporation under any obligation to see to the proper application in any way of any such payment.

  • 1992, c. 26, s. 11
  • 1996, c. 6, s. 41
  • 2016, c. 7, s. 142

Marginal note:Appointment of assessor

 In the circumstances prescribed by the regulations, the Governor in Council shall, by order, appoint as assessor a judge who is in receipt of a salary under the Judges Act to review a decision made by the Corporation under subsection 39.23(1) and determine the amount of compensation, if any, to be paid to a prescribed person.

  • 1992, c. 26, s. 11
  • 1996, c. 6, s. 41
  • 2016, c. 7, s. 142

Marginal note:Sittings and hearings

  •  (1) An assessor may sit at any place and shall arrange for the sittings and hearings that may be required.

  • Marginal note:Powers of assessor

    (2) The assessor has all the powers conferred on a commissioner appointed under Part II of the Inquiries Act for the purpose of obtaining evidence under oath.

  • Marginal note:Persons to assist

    (3) An assessor may appoint a person to assist him or her in performing his or her functions.

  • Marginal note:Payment

    (4) Fees and disbursements payable to the person may be included by the assessor in an amount awarded in respect of costs under subsection (5) or (6).

  • Marginal note:Costs of prescribed person

    (5) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to a prescribed person and against the Corporation, the amount that the assessor determines to be just and reasonable to award in respect of those costs is payable by the Corporation to the prescribed person.

  • Marginal note:Costs of Corporation

    (6) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to the Corporation and against a prescribed person, the amount that the assessor determines to be just and reasonable to award in respect of those costs constitutes a debt payable by the prescribed person to the Corporation and may be recovered as such in any court of competent jurisdiction.

  • 1992, c. 26, s. 11
  • 1996, c. 6, s. 41
  • 2016, c. 7, s. 142

Marginal note:Regulations

  •  (1) The Governor in Council may make regulations respecting compensation for the purposes of sections 39.23 to 39.27, including regulations

    • (a) prescribing persons referred to in subsection 39.23(1);

    • (b) respecting the factors that the Corporation shall or shall not consider in making a decision under subsection 39.23(1);

    • (c) respecting the circumstances in which an assessor must be appointed under section 39.26;

    • (d) respecting the factors that an assessor shall or shall not consider in making a decision; and

    • (e) respecting procedural requirements.

  • Marginal note:By-laws

    (2) The Corporation may make by-laws respecting compensation for the purposes of section 39.23.

  • Marginal note:Inconsistency

    (3) In the event of any inconsistency between the regulations made under subsection (1) and the by-laws made under subsection (2), the regulations prevail to the extent of the inconsistency.

  • 1992, c. 26, s. 11
  • 1996, c. 6, s. 41
  • 2016, c. 7, s. 142
 
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