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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)

Compensation (continued)

 [Repealed, 2016, c. 7, s. 142]

 [Repealed, 2016, c. 7, s. 142]

 [Repealed, 2016, c. 7, s. 142]

 [Repealed, 2016, c. 7, s. 142]

 [Repealed, 2016, c. 7, s. 142]

 [Repealed, 2016, c. 7, s. 142]

 [Repealed, 2016, c. 7, s. 142]

 [Repealed, 2016, c. 7, s. 142]

 [Repealed, 2016, c. 7, s. 142]

 [Repealed, 2016, c. 7, s. 142]

Creation and Operation of Bridge Institutions

Marginal note:Incorporation

  •  (1) The Minister shall, without delay after an order is made under paragraph 39.13(1)(c), issue letters patent incorporating a federal institution.

  • Marginal note:Incorporating Act

    (2) The letters patent are issued under whichever of the following Acts regulates the federal member institution that is the subject of the Superintendent’s report under subsection 39.1(1) or (3):

  • Marginal note:Order to commence and carry on business

    (3) The Superintendent shall, without delay after the letters patent are issued, make an order approving the commencement and carrying on of business by the federal institution referred to in subsection (1).

  • Marginal note:Content of Superintendent’s order — limitation

    (4) The Superintendent’s order shall not prohibit the federal institution, during the period that it is designated as a bridge institution, from accepting deposits in Canada and shall not make the federal institution, during that period, subject to subsection 413(3) of the Bank Act, subsection 378.1(2) of the Cooperative Credit Associations Act or subsection 413(2) of the Trust and Loan Companies Act.

  • 2009, c. 2, s. 251

Marginal note:Duration

  •  (1) Subject to section 39.3715, the federal institution referred to in subsection 39.371(1) is designated as a bridge institution for a period of two years.

  • Marginal note:Extensions

    (2) The Governor in Council may, by order, on the recommendation of the Minister, grant up to three extensions — of one year each — of the period referred to in subsection (1).

  • 2009, c. 2, s. 251

 [Repealed, 2016, c. 7, s. 143]

Marginal note:Financial assistance

 The Corporation shall provide the financial assistance that a bridge institution needs in order to discharge its obligations, except for its obligations to the Corporation, as they become due.

  • 2009, c. 2, s. 251

Marginal note:Shares held by Corporation

 The Corporation may hold shares in a bridge institution only if the Corporation is the sole shareholder.

  • 2009, c. 2, s. 251

Marginal note:Termination of designation

 A federal institution’s designation as a bridge institution terminates if

  • (a) the Corporation is no longer the sole shareholder; or

  • (b) the federal institution is amalgamated with a body corporate that is not a bridge institution.

  • 2009, c. 2, s. 251

Marginal note:Mandatory dissolution of bridge institution

 If a bridge institution’s designation has not terminated under section 39.3715, the federal institution’s board of directors shall take all necessary steps to dissolve the federal institution if

  • (a) all or substantially all of the federal institution’s assets have been sold or otherwise disposed of; and

  • (b) all or substantially all of its liabilities have been assumed or discharged.

  • 2009, c. 2, s. 251

Marginal note:Winding-up of federal member institution

  •  (1) If the Corporation considers that substantially all of the transfers of assets and liabilities of a federal member institution to a bridge institution have been substantially completed, the Corporation shall apply for a winding-up order under the Winding-up and Restructuring Act in respect of the federal member institution.

  • Marginal note:Creditor

    (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:Exception

    (3) If the Superintendent has taken control of the federal member institution or its assets and has requested the Attorney General of Canada to apply for a winding-up order or informs the Corporation that he or she intends to request that the Attorney General of Canada apply for that order, the Corporation is not required to apply for a winding-up order.

  • 2009, c. 2, s. 251

Marginal note:Power of the Corporation

  •  (1) The Corporation may hold any federal institution’s shares that the Corporation acquires in the course of a sale or other disposition of its shares of the bridge institution or that a bridge institution acquires in the course of a sale or other disposition of its assets.

  • Marginal note:Maximum period

    (2) The Corporation may hold the shares for a period of no more than five years from the day on which they are acquired and may dispose of them.

  • Marginal note:Extension

    (3) The Minister may, by order, extend the period referred to in subsection (2) if general market conditions so warrant.

  • Marginal note:Provisions inapplicable

    (4) The following provisions do not apply with respect to the shares referred to in subsection (1):

  • 2009, c. 2, s. 251

Marginal note:Remuneration and benefits

 An employee or officer of the Corporation shall not receive remuneration or benefits from a bridge institution for being a director or officer of that institution.

  • 2009, c. 2, s. 251

Marginal note:Non-liability with respect to employees

  •  (1) If a bridge institution becomes the employer of employees of a federal member institution, the bridge institution is not liable in respect of a liability, including one as a successor employer,

    • (a) that is in respect of the employees or former employees of the federal member institution or a predecessor of the federal member institution or in respect of a pension plan for the benefit of those employees or former employees; and

    • (b) that exists before the bridge institution becomes the employer or that is calculated by reference to a period before the bridge institution becomes the employer.

  • Marginal note:Liability of other successor employers

    (2) Subsection (1) does not affect the liability of a successor employer other than the bridge institution.

  • 2009, c. 2, s. 251
  • 2012, c. 5, s. 201
 
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