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

Act current to 2022-11-16 and last amended on 2022-06-23. Previous Versions

Deposit Insurance (continued)

Marginal note:Payment to the Bank of Canada

  •  (1) The Corporation shall pay to the Bank of Canada an amount equal to a returned payment within three months after the expiry of a 10-year period from the applicable date referred to in subsection 14(2.9), and payment to the Bank of Canada accordingly discharges the Corporation from all liability in respect of the returned payment.

  • Marginal note:Notice

    (2) The Corporation shall mail to each person to whom a returned payment remains payable, at the person’s address in so far as the address is known to the Corporation, a notice that the returned payment remains unpaid and that payment of an amount equal to the returned payment will be paid by the Corporation to the Bank of Canada. The notice must be sent at least six months before the date by which payment is to be made by the Corporation to the Bank of Canada and must also include the mailing address and websites where information can be obtained on how to claim the returned payment from the Corporation before payment is made by the Corporation to the Bank of Canada.

  • Marginal note:Provision of information

    (3) The Corporation shall, on making a payment under subsection (1), provide to the Bank of Canada the amount of the returned payment and, in so far as it is known to the Corporation, any information that the Bank of Canada determines is necessary to verify the identity of the depositor who is entitled to the returned payment, including

    • (a) the depositor’s name;

    • (b) the depositor’s address;

    • (c) information relating to the depositor’s pieces of identification; and

    • (d) information relating to another person’s authority to act on behalf of the depositor.

  • Marginal note:Payment to claimant

    (4) Subject to section 22 of the Bank of Canada Act, if payment has been made to the Bank of Canada under subsection (1) in respect of any returned payment, and if payment is demanded from the Bank of Canada by the person who, but for that subsection, would be entitled to receive the returned payment, the Bank of Canada is liable to pay an amount equal to the amount so paid to it to the claimant.

  • Marginal note:Enforcing liability

    (5) The liability of the Bank of Canada under subsection (4) may be enforced by action or other civil proceeding against the Bank of Canada in any court of competent jurisdiction.

  • 2012, c. 5, s. 189

Marginal note:Sale of information to liquidator

  •  (1) The Corporation may sell to the liquidator of a member institution appointed under the Winding-up and Restructuring Act any information that was gathered or produced at the expense of the Corporation, if that expense is not one that may be recovered by the Corporation from the member institution under subsection 14(2.8).

  • Marginal note:Payment part of winding-up costs

    (2) Any amount paid by the liquidator for that information is deemed for the purpose of section 94 of the Winding-up and Restructuring Act to be a cost incurred in the winding-up of the member institution.

  • 1997, c. 15, s. 113

Marginal note:Premiums recoverable

 A premium assessed by the Corporation against a member institution for the purposes of this Act constitutes a debt owing to Her Majesty in right of Canada and the amount thereof together with any interest levied by the Corporation as an overdue charge is recoverable by action in any court of competent jurisdiction.

  • R.S., 1985, c. C-3, s. 15
  • R.S., 1985, c. 18 (2nd Supp.), s. 3, c. 18 (3rd Supp.), s. 53

 [Repealed, R.S., 1985, c. 18 (3rd Supp.), s. 53]

Marginal note:Insurance of federal institutions

  •  (1) The Corporation shall, in the manner and to the extent provided in this Act and the by-laws, insure the deposits held by a federal institution in respect of which an order approving the commencement and carrying on of business has been made by the Superintendent unless

    • (a) that order prohibits the institution from accepting deposits in Canada;

    • (b) that order authorizes the institution to accept deposits in Canada solely in accordance with 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;

    • (c) the institution has been authorized under section 26.03 to accept deposits payable in Canada while no longer being a member institution; or

    • (d) the institution’s policy of deposit insurance has been terminated under section 31 or cancelled under section 33.

  • Marginal note:Effect of amendment to order

    (2) If the order approving the commencement and carrying on of business by a federal institution is at any time amended so as to not contain the prohibition or restriction referred to in paragraphs (1)(a) and (b), respectively,

    • (a) on the day on which the amendment takes effect, any authorization under section 26.03 that permits the institution to accept deposits payable in Canada while no longer being a member institution is revoked;

    • (b) on the day on which the amendment takes effect, any existing cancellation of the institution’s policy of deposit insurance under paragraph 33(1)(b) or (c) or subsection 33(2) is revoked; and

    • (c) as of the day on which the amendment takes effect, the Corporation shall insure the deposits held by the institution under subsection (1).

  • Marginal note:Exception

    (3) Subsection (2) does not apply in respect of a federal institution whose policy of deposit insurance has been terminated under section 31 or cancelled under paragraph 33(1)(a).

  • Marginal note:Notice to Corporation

    (4) The Superintendent shall notify the Corporation of

    • (a) every application to incorporate a federal institution, or to continue a corporation as a federal institution, in respect of which the Superintendent is likely to make an order approving the commencement and carrying on of business that does not contain the prohibition or restriction referred to in paragraphs (1)(a) and (b), respectively; and

    • (b) every application by a federal institution to have its order approving the commencement and carrying on of business amended so as to not contain the prohibition or restriction referred to in paragraphs (1)(a) and (b), respectively.

  • R.S., 1985, c. C-3, s. 17
  • R.S., 1985, c. 18 (3rd Supp.), s. 54
  • 1991, c. 45, s. 543
  • 2005, c. 30, s. 104
  • 2007, c. 6, s. 404
  • 2012, c. 5, s. 190

Marginal note:Insurance of provincial institutions

 On the application of a provincial institution, the Corporation may insure the deposits held by the institution in the manner and to the extent provided in this Act and the by-laws, if

  • (a) the Corporation approves the institution for deposit insurance;

  • (b) the institution is authorized by the province of its incorporation to apply for deposit insurance;

  • (c) the institution agrees, in carrying on its business, not to exercise powers substantially different from the powers exercisable by a company to which the Trust and Loan Companies Act applies; and

  • (d) the Corporation is satisfied that at all times the Corporation will have adequate access to information regarding the institution.

  • 2007, c. 6, s. 404

Marginal note:Policy of deposit insurance

 Every member institution is deemed to have obtained a policy of deposit insurance on the day on which it became a member institution.

  • 2007, c. 6, s. 404

Marginal note:Form of application for deposit insurance

  •  (1) An application for deposit insurance shall be in the form, and accompanied by a fee of the amount and type, that may be prescribed by the by-laws.

  • (2) [Repealed, R.S., 1985, c. 18 (3rd Supp.), s. 55]

  • Marginal note:Contents of policy

    (3) The policy of deposit insurance shall consist of the provisions that may be prescribed by the by-laws.

  • Marginal note:Records retained outside Canada

    (3.1) Where a member institution that is authorized to do so under the by-laws retains at a place outside Canada records referred to in the policy of deposit insurance, including for the purpose of any examination by or on behalf of the Corporation, the Corporation may, in the case referred to in paragraph (a), and shall, in the case referred to in paragraph (b), direct the institution to maintain a copy of those records in Canada:

    • (a) if the Corporation is of the opinion that it does not have immediate, direct, complete and ongoing access to those records; or

    • (b) if the Corporation is advised by the Minister that the Minister is of the opinion that it is not in the national interest for the institution not to maintain a copy of those records in Canada.

  • Marginal note:By-laws

    (3.2) The Board may make by-laws respecting:

    • (a) what constitutes immediate, direct, complete and ongoing access, for the purpose of paragraph (3.1)(a); and

    • (b) the time within and manner in which a member institution is required to comply with a direction under subsection (3.1).

  • Marginal note:Policies deemed to be amended

    (4) If a by-law respecting the content of the policy of deposit insurance is amended, or revoked and replaced, every policy of deposit insurance is deemed to be amended or replaced accordingly.

  • R.S., 1985, c. C-3, s. 18
  • R.S., 1985, c. 18 (3rd Supp.), s. 55
  • 1992, c. 26, s. 7
  • 1999, c. 28, s. 100
  • 2007, c. 6, s. 405
  • 2020, c. 1, s. 21

 [Repealed, R.S., 1985, c. 18 (3rd Supp.), s. 56]

Marginal note:Funds

 The Corporation shall maintain funds for the purpose of carrying out its objects.

  • R.S., 1985, c. C-3, s. 20
  • 2018, c. 27, s. 162

Marginal note:Assessment and collection of premiums

  •  (1) The Corporation shall, for each premium year, assess and collect from each member institution an annual premium in an amount equal to the lesser of

    • (a) the annual premium for that member institution determined under the by-laws, and

    • (b) the maximum annual premium.

  • Marginal note:By-laws re premiums

    (2) The Board may make by-laws respecting the determination of annual premiums for member institutions and, without restricting the generality of the foregoing, may make by-laws

    • (a) for the establishment of a system of classifying member institutions in different categories;

    • (b) respecting the criteria or factors to be taken into account or procedures to be followed by the Corporation in determining the category in which a member institution is classified; and

    • (c) fixing the amount of, or providing for the manner of determining the amount of, the annual premium applicable to each category.

  • Marginal note:When by-law not effective

    (3) A by-law made under subsection (2) is not effective unless it has been approved in writing by the Minister.

  • Marginal note:Maximum annual premium

    (4) In this section, maximum annual premium means, in respect of a member institution, the greater of

    • (a) $5,000, and

    • (b) one third of one per cent, or such smaller proportion of one per cent as may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of April 30 in the immediately preceding premium year.

  • Marginal note:Calculation of deposits

    (5) For the purposes of this section, a member institution may use any method approved by the Corporation for that premium year to determine or estimate the aggregate amount of its deposits that are considered to be insured by the Corporation.

  • R.S., 1985, c. C-3, s. 21
  • R.S., 1985, c. 18 (3rd Supp.), s. 57
  • 1996, c. 6, s. 27
  • 2007, c. 6, s. 406
  • 2018, c. 27, s. 163

Marginal note:Returns

  •  (1) The premium payable by a member institution shall be based on returns to be certified by the institution and submitted in such form and at such time as the Corporation may require.

  • Marginal note:Payable in instalments

    (2) One half of the premium payable by a member institution shall be paid to the Corporation on or before July 15 in the premium year for which the premium is payable and the remainder shall be paid to the Corporation, without interest, on or before December 15 in that premium year.

  • R.S., 1985, c. C-3, s. 22
  • 1996, c. 6, s. 28

Marginal note:Calculation of first premium

  •  (1) The premium payable by a member institution in respect of the premium year in which it becomes a member institution shall be the same proportion of the lesser of

    • (a) the annual premium for that member determined by by-law made under subsection 21(2) based on an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution, and

    • (b) the greater of

      • (i) $5,000, and

      • (ii) one third of one per cent, or such smaller proportion of one per cent as may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution,

    as the number of days in which any of the deposits with that member institution are insured by the Corporation in that premium year is of 365.

  • Marginal note:Payment of first premium

    (2) Despite subsection 22(2), the premium payable by a member institution under subsection (1) must be paid to the Corporation, without interest, within 30 days after the end of the month in which the member institution becomes a member institution.

  • R.S., 1985, c. C-3, s. 23
  • R.S., 1985, c. 18 (3rd Supp.), s. 58
  • 1996, c. 6, s. 29
  • 2001, c. 9, s. 207
  • 2007, c. 6, s. 407

Marginal note:Where premiums payable

 All premiums payable shall be paid to the Corporation at its head office.

  • R.S., 1985, c. C-3, s. 24
  • R.S., 1985, c. 18 (3rd Supp.), s. 58
  • 2009, c. 2, s. 239

Marginal note:No set-off on premium payment

 No member institution shall, without the prior agreement of the Corporation, reduce or extinguish a premium payment, interest or other payment to be made to the Corporation by reason of a set-off or claim by the member institution against the Corporation.

  • 1996, c. 6, s. 30
  • 2001, c. 9, s. 208
 
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