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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

Deposit Insurance (continued)

  •  (1) [Repealed, 2018, c. 27, s. 164]

  • (2) [Repealed, 1996, c. 6, s. 32]

Federal Institutions Without Deposit Insurance

Marginal note:Interpretation

  •  (1) Subject to subsections (2) and (3), for the purposes of sections 26.02 to 26.06, deposit has the meaning that would be given to it by the schedule, for the purposes of deposit insurance, if the schedule were read without reference to subsections 2(2), (5) and (6) of the schedule.

  • Marginal note:Exception

    (2) For the purposes of subparagraph 26.03(1)(c)(iii) and paragraph 26.03(1)(d), deposit has the meaning that would be given to it by the schedule, for the purposes of deposit insurance, but does not include deposits not payable in Canada or in Canadian currency.

  • Marginal note:Exception

    (3) For the purposes of paragraph 26.03(1)(b) and subsection 26.03(2), deposit has the meaning that would be given to it by the schedule, for the purposes of deposit insurance, if the schedule were read without reference to subsections 2(2), (5) and (6) of the schedule, but does not include deposits prescribed by the by-laws.

  • Marginal note:By-laws

    (4) The Board may make by-laws

    • (a) prescribing the deposits referred to in subsection (3); and

    • (b) prescribing terms and conditions with respect to the acceptance of those deposits.

  • 1997, c. 15, s. 114
  • 1999, c. 28, s. 101

Marginal note:Application

 If a federal member institution intends to accept deposits payable in Canada while no longer being a member institution, it must apply to the Corporation for an authorization to do so. The application must be in a form that is acceptable to the Corporation and must contain the information that the Corporation may require.

  • 1997, c. 15, s. 114
  • 2007, c. 6, s. 410

Marginal note:Granting of application

  •  (1) Subject to section 26.04, the Corporation may give that authorization if

    • (a) [Repealed, 2001, c. 9, s. 209]

    • (b) the sum of all the deposits held by the federal member institution that are less than $150,000 and payable in Canada is less than one per cent of the sum of all the deposits held by the institution that are payable in Canada;

    • (c) the institution has informed all its depositors, in accordance with any rules that may be prescribed by the by-laws,

      • (i) that the institution has applied to become authorized to accept deposits while no longer being a member institution,

      • (ii) that after the institution receives that authorization, no deposit with the institution will be insured in whole or in part by the Corporation, and

      • (iii) that the institution’s obligation to repay the deposit to the depositor will be assumed by a member institution if an option referred to in subparagraph (d)(i) or (ii) is not exercised;

    • (d) in respect of each deposit that is held by the institution, the institution has

      • (i) obtained from the depositor an acknowledgement in writing that the deposit will no longer be insured in whole or in part by the Corporation after the institution receives authorization to accept deposits without being a member institution,

      • (ii) at the request in writing of the depositor, paid to the depositor the principal amount of the deposit and interest determined in accordance with rules prescribed by the by-laws and has not charged any fee or penalty in connection with the payment, or

      • (iii) obtained from a member institution an agreement in writing to assume the institution’s liability in relation to the deposit on the same terms and conditions; and

    • (e) the institution has paid to the Corporation a fee determined in accordance with rules prescribed by the by-laws.

  • Marginal note:Exchange rate

    (2) For the purpose of subsection (1), the rate of exchange that shall be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada shall be determined in accordance with rules prescribed by the by-laws.

  • 1997, c. 15, s. 114
  • 1999, c. 28, s. 102
  • 2001, c. 9, s. 209
  • 2007, c. 6, s. 411

Marginal note:Minister and Superintendent to be informed

  •  (1) Before giving an authorization under subsection 26.03(1), the Corporation must inform the Minister and the Superintendent that it proposes to give the authorization.

  • Marginal note:Minister may prevent authorization

    (2) If the Minister is of the opinion that giving the authorization would not be in the public interest, the Minister may, within thirty days after being informed about the proposal to give the authorization, direct the Corporation not to give the authorization.

  • Marginal note:Authorization after 30 days

    (3) If the Minister does not issue that direction within those 30 days, the Corporation may then give the authorization under subsection 26.03(1). The giving of the authorization cancels the policy of deposit insurance of the federal member institution to which the authorization is given.

  • Marginal note:Amendment of order

    (4) If the Corporation gives the authorization under subsection 26.03(1), the Superintendent must, under paragraph 54(1)(a) of the Bank Act, paragraph 62(1)(a) of the Cooperative Credit Associations Act or paragraph 58(1)(b) of the Trust and Loan Companies Act, as the case may be, amend the federal member institution’s order approving the commencement and carrying on of business accordingly.

  • 1997, c. 15, s. 114
  • 1999, c. 28, s. 103
  • 2007, c. 6, s. 412

Marginal note:Fees by-law

 A by-law prescribing rules for the purpose of paragraph 26.03(1)(e) is not effective unless it has been approved in writing by the Minister.

  • 1997, c. 15, s. 114

Marginal note:Deposits not insured

 After a federal member institution has been given authorization under subsection 26.03(1), no deposit with the institution is insured in whole or in part by the Corporation.

  • 1997, c. 15, s. 114
  • 2007, c. 6, s. 413

Inspection of Member Institutions

Marginal note:Annual inspections

  •  (1) The Superintendent shall, notwithstanding any other Act of Parliament, examine on behalf of the Corporation the affairs of each federal member institution once in each year and at the times that the Corporation may require for a specified purpose.

  • Marginal note:Costs

    (2) Where an examination under subsection (1) is made for a specified purpose, such costs incurred in relation thereto as in the opinion of the Superintendent are extraordinary shall be borne by the Corporation.

  • R.S., 1985, c. C-3, s. 27
  • R.S., 1985, c. 18 (3rd Supp.), s. 60
  • 1991, c. 45, s. 544
  • 1999, c. 28, s. 104

Marginal note:Provincial member institutions

 It is a condition of the policy of deposit insurance of a provincial member institution that

  • (a) the Corporation or a person designated by the Corporation may, at least once in each year and at such other times as the Corporation deems appropriate, make or cause to be made such inspections of the affairs of the provincial member institution as the Corporation or that person may deem to be necessary or expedient;

  • (b) the Corporation and the person designated by the Corporation have, for the purposes referred to in paragraph (a), a right of access to the records of the member institution; and

  • (c) the member institution will cause its officers and auditors to furnish such information and explanations pertaining to its affairs as the Corporation or the person designated by the Corporation may require.

  • R.S., 1985, c. C-3, s. 28
  • R.S., 1985, c. 18 (3rd Supp.), s. 60

Marginal note:Costs may be charged back

 Where an examination or an inspection is carried out other than once in each year, the Corporation may

  • (a) pay the costs of the examination or inspection;

  • (b) charge the costs to the member institution in respect of which they were incurred; and

  • (c) recover the costs from the member institution as a debt due and payable to the Corporation.

  • 1996, c. 6, s. 33
  • 1999, c. 28, s. 105
 
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