Objects, Powers and Duties (continued)
Marginal note:Powers of directors
11 (1) The Board shall administer the affairs of the Corporation in all things and make, or cause to be made, for the Corporation any description of contract that the Corporation may by law enter into.
(2) The Board may make by-laws,
(a) for the administration, management and control of the property and affairs of the Corporation;
(b) governing the functions, duties and remuneration of all officers, agents and employees of the Corporation;
(b.1) concerning conflicts of interest and post-employment matters relating to conflicts of interest in respect of directors, officers and employees of the Corporation;
(c) governing the appointment and activities of any special committees created for the purposes of the Corporation;
(d) governing the time and place for the holding of meetings of the directors, and the quorum and procedure in all things at those meetings;
(e) respecting the development, submission and maintenance of resolution plans by domestic systemically important banks, including specifying the contents of those plans;
(f) respecting representations by member institutions and other persons with respect to
(f.1) for the purpose of facilitating the Corporation’s exercise of its functions either under section 14 or in the event that an order is made under subsection 39.13(1), respecting the information that the Corporation can require from member institutions with respect to their deposit liabilities and the time within and manner in which it is to be provided to the Corporation;
(f.2) respecting the capabilities that the Corporation can require member institutions to have to facilitate the Corporation’s exercise of its functions either under section 14 or in the event that an order is made under subsection 39.13(1), including the capability to
(g) prescribing anything that, by virtue of any provision of this Act, is to be prescribed by the by-laws;
(h) prescribing the form and manner in which payments under this Act are to be made by the Corporation; and
(i) governing the conduct in all other particulars of the affairs of the Corporation.
Marginal note:Ministerial approval
(2.01) A by-law made under paragraph (2)(e) is not effective unless it has been approved in writing by the Minister.
Marginal note:Deposit liabilities
(2.1) For the purposes of paragraphs (2)(f.1) and (f.2), deposit liabilities include deposits referred to in paragraphs 12(a) to (c) and liabilities referred to in subsections 2(2), (5) and (6) of the schedule.
Marginal note:Subsection 5(1) of the Statutory Instruments Act
(2.2) If a by-law requires approval in writing by the Minister under this Act in order to be effective, then, for the purposes of subsection 5(1) of the Statutory Instruments Act, the by-law is deemed to be made on the day on which the Corporation receives that approval.
Marginal note:Inspection powers
(3) In carrying out any inspection authorized by this Act or by a policy of deposit insurance, the directors of the Corporation have all the powers conferred on commissioners appointed under Part II of the Inquiries Act for the purpose of obtaining evidence under oath, and the directors may delegate those powers as occasion requires.
- R.S., 1985, c. C-3, s. 11
- R.S., 1985, c. 18 (2nd Supp.), s. 2, c. 18 (3rd Supp.), s. 51
- 1992, c. 26, s. 4
- 2005, c. 30, s. 100
- 2010, c. 12, ss. 1886, 1887
- 2012, c. 5, s. 187
- 2017, c. 20, s. 109
Marginal note:Minister’s direction
11.1 (1) The Minister may, after consultation with the Board, the Governor of the Bank of Canada and the Superintendent, give a written direction to the Corporation if the Minister is of the opinion that not giving the direction might have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.
Marginal note:Compliance without regard to minimizing loss
(2) The Corporation shall comply with the direction without regard to the requirement referred to in paragraph 7(c) that it pursue its objects in a manner that will minimize its exposure to loss.
(3) The Corporation’s directors shall ensure that the direction is implemented in a prompt and efficient manner and, if in so doing they act in accordance with section 115 of the Financial Administration Act, they are not accountable for any consequences arising from the implementation of the direction.
Marginal note:Notification of implementation
(4) After implementing the direction, the Corporation shall notify the Minister without delay that the direction has been implemented.
Marginal note:Best interests
(5) The Corporation’s compliance with a direction is deemed to be in its best interests.
- 2009, c. 2, s. 237
Marginal note:Statutory Instruments Act
(2) The Minister shall cause a notice to be published in the Canada Gazette that a direction was given under subsection 11.1(1) as soon as the Minister is of the opinion that the publication of the notice will not have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.
- 2009, c. 2, s. 237
Marginal note:Recovery of loss
11.3 After the publication of a notice in the Canada Gazette that a direction was given under subsection 11.1(1), the Corporation shall, in accordance with its by-laws, collect a special premium from member institutions or any class of member institutions in order to recover the loss that the Corporation determines it incurred as a result of complying with the direction.
- 2009, c. 2, s. 237
Marginal note:Duty to insure
12 The Corporation shall insure each deposit with a member institution except
(a) a deposit that is not payable in Canada or in Canadian currency;
(b) a deposit in respect of which Her Majesty in right of Canada would be a preferred claimant; and
(c) so much of any one deposit as exceeds one hundred thousand dollars.
- R.S., 1985, c. C-3, s. 12
- 2005, c. 30, s. 101
- continuation day
continuation day, in respect of a local cooperative credit society continued as a federal credit union, means the day set out in the federal credit union’s letters patent continuing the local cooperative credit society as a federal credit union. (date de prorogation)
- pre-existing deposit
pre-existing deposit means a deposit that was made with a local cooperative credit society before it is continued as a federal credit union and that remains outstanding on the continuation day. (dépôt préexistant)
- transition period
transition period, in respect of a pre-existing deposit, means
(a) in the case of a pre-existing deposit that is to be repaid on a fixed day, the period that begins on the continuation day and ends on that fixed day; and
(b) in the case of any other pre-existing deposit, the period that begins on the continuation day and ends on the day that is 180 days after the continuation day. (période transitoire)
Marginal note:Duty to insure certain pre-existing deposits
(2) Despite paragraph 12(c) and subsection 3(1.1) of the schedule, but subject to the other provisions of this Act, if a pre-existing deposit is held by a federal credit union that is a member institution and all or a portion of the pre-existing deposit would have been guaranteed or insured under the law of a province if the local cooperative credit society had not been continued as a federal credit union, the Corporation shall insure the pre-existing deposit during the transition period up to the amount that would have been guaranteed or insured under the law of that province.
Marginal note:Duty to insure certain pre-existing deposits repayable on a fixed day
(3) Despite paragraph 2(2)(a) of the schedule, the Corporation shall insure a pre-existing deposit during the transition period if the deposit is held by a federal credit union that is a member institution and
(a) is repayable on a fixed day that is more than five years after the deposit was made with the local cooperative credit society that was continued as a federal credit union; and
(b) would have been guaranteed or insured under the law of a province if the local cooperative credit society had not been continued as a federal credit union.
Marginal note:Deemed separate deposit
(4) During the transition period, a pre-existing deposit, less any withdrawals from the pre-existing deposit, is deemed, for the purposes of deposit insurance with the Corporation, to be a deposit separate from any deposit made on or after the continuation day.
Marginal note:Deemed withdrawal from pre-existing deposit
(5) During the transition period, any withdrawal — up to the amount of the pre-existing deposit — is deemed, for the purposes of deposit insurance with the Corporation, to be withdrawn from the pre-existing deposit.
- 2010, c. 12, s. 2098
- 2018, c. 27, s. 159
- Date modified: