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

Act current to 2019-06-20 and last amended on 2019-05-10. Previous Versions

Objects, Powers and Duties (continued)

Marginal note:Federal institutions

 For the purposes of this Act, the following are federal institutions:

  • R.S., 1985, c. C-3, s. 8
  • 1991, c. 45, s. 541
  • 1999, c. 28, s. 99
  • 2001, c. 9, s. 205
  • 2005, c. 30, s. 99

Marginal note:Provincial institutions

 For the purposes of this Act, an incorporated company that carries on, under an Act of the legislature of a province or a constating instrument under provincial jurisdiction, a business substantially similar to the business of a company to which the Trust and Loan Companies Act applies and that is authorized by or under an Act of the legislature of a province to accept deposits from the public is a provincial institution.

  • R.S., 1985, c. C-3, s. 9
  • 1991, c. 45, s. 542

Marginal note:Powers of Corporation

  •  (1) The Corporation may do all things necessary or incidental to the objects of the Corporation and in particular, but without limiting the generality of the foregoing, the Corporation may, in furtherance of its objects,

    • (a) acquire assets from a member institution;

    • (a.1) make or guarantee loans or advances, with or without security, to a member institution;

    • (a.11) make or guarantee a deposit with a member institution;

    • (a.12) assume liabilities of a member institution;

    • (a.2) enter into an agreement with the government of a province, or an agent of the government of a province, respecting any matter relating to the insurance of deposits with provincial institutions in that province;

    • (b) make any investment and enter into any transaction necessary or desirable for the financial management of the Corporation;

    • (c) act as liquidator, receiver or inspector of a member institution or a subsidiary thereof, when duly appointed as such and appoint qualified and competent persons, whether employees of the Corporation or not, to carry out any or all of the functions of the Corporation under the appointment of the Corporation;

    • (d) assume the costs of a winding-up of a member institution when the Corporation is appointed to act as a liquidator in the winding-up, or assume the costs of the receiver when the Corporation is appointed to act as such;

    • (e) guarantee the payment of the fees of, and the costs incurred by any person as, the liquidator or receiver of a member institution when that person is appointed as such;

    • (f) acquire assets and assume liabilities of a member institution from its liquidator or receiver;

    • (f.1) acquire, by way of security or otherwise, shares and subordinated debt of a member institution and to hold and dispose of those shares and subordinated debt;

    • (g) make an advance for the purpose of paying a claim, against a member institution for which the Corporation is acting as receiver or liquidator, in respect of any insured deposit and of becoming subrogated as an unsecured creditor for the amount of the advance;

    • (h) make or cause to be made such inspections of a member institution as may be authorized under this Act or a policy of deposit insurance;

    • (i) acquire, hold and alienate real and personal property;

    • (i.1) settle or compromise any claim by or against the Corporation; and

    • (j) do all such other things as may be necessary for the exercising of any power of the Corporation.

  • Marginal note:Subsidiary corporations

    (2) For the purposes of facilitating the acquisition, management or disposal of real property or other assets of a member institution that the Corporation may acquire as the result of its operations, the Corporation may, when authorized by order of the Governor in Council,

    • (a) procure the incorporation of a corporation, all the shares of which, on incorporation, would be held by, on behalf of or in trust for the Corporation; or

    • (b) acquire all of the shares of a corporation that, on acquisition, would be held by, on behalf of or in trust for the Corporation.

  • Marginal note:Subsidiary not an agent

    (3) A corporation described in paragraph (2)(a) or (b) is deemed not to be an agent of the Corporation or of Her Majesty in right of Canada.

  • Marginal note:Assets and liabilities

    (3.1) A corporation described in paragraph (2)(a) or (b) may acquire assets and assume liabilities of a member institution from that institution or from its liquidator or receiver.

  • Marginal note:Conditions applicable to the exercise of certain powers

    (4) The Corporation shall, in exercising its powers under paragraph (1)(b), comply with such directions of general application as the Minister may, in writing, give to the Corporation.

  • R.S., 1985, c. C-3, s. 10
  • R.S., 1985, c. 18 (3rd Supp.), s. 50
  • 1992, c. 26, s. 3
  • 1996, c. 6, s. 23
  • 2001, c. 9, s. 206
  • 2016, c. 7, s. 127
  • 2018, c. 27, s. 157

Marginal note:Exemption — shares of member institution

  •  (1) To enable the Corporation to acquire, hold or dispose of shares under paragraph 10(1)(f.1), the Minister may, by order, exempt any person or share specified in the order from any of the following provisions:

    • (a) sections 47.03, 47.04, 47.06, 47.09, 47.11, 47.15, 47.17, 47.18 and 60.1, subsection 79.2(1) and sections 372, 373, 374, 375, 376, 376.1, 376.2, 377, 377.1, 377.2  379, 382.1, 385, 401.11, 401.2 and 401.3 of the Bank Act;

    • (b) sections 407, 407.01, 407.02, 407.03, 407.1, 407.2, 408, 411, 428 and 430 of the Insurance Companies Act; and

    • (c) sections 375, 375.1, 376, 379, 396 and 399 of the Trust and Loan Companies Act.

  • Marginal note:Conditions

    (2) The exemption may be subject to conditions.

  • Marginal note:Duration of exemption

    (3) The exemption ceases to have effect five years after the day on which it comes into force.

  • Marginal note:Extension

    (4) The Minister may, by order, extend the duration of the exemption if general market conditions so warrant.

  • Marginal note:Statutory Instruments Act

    (5) The Statutory Instruments Act does not apply to an order made under this section.

  • 2009, c. 2, s. 235
  • 2010, c. 12, s. 2097

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 by the Corporation under subsections (1) and (2), excluding the borrowings under paragraph 60.2(2)(c) of the Financial Administration Act, 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 $15,000,000,000; 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, 2008.
  • 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 under subsection (3.1) for the current year is less than the amount published under subsection (3.6) for the previous year.

  • 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
  • 2012, c. 5, s. 186
  • 2018, c. 27, s. 158
 
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