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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

Inspection of Member Institutions (continued)

Marginal note:Examination considerations

  •  (1) The person who conducts an examination under section 27 or an inspection under section 28 in respect of a member institution shall make all examinations or inspections that the person considers necessary to

    • (a) provide, by way of a rating or any other means, an assessment of the safety and soundness of the member institution, including its financial condition;

    • (b) comment on the operations of the member institution;

    • (b.1) if the member institution is a domestic systemically important bank, provide an assessment of its capacity to absorb losses that it is required to maintain under section 485 of the Bank Act; and

    • (c) if the member institution is a provincial institution and the Corporation and the person agree, comment on whether the provisions of the statutes governing the provincial institution are being complied with.

  • Marginal note:Reports

    (2) The person shall provide written reports to the Corporation on the matters referred to in paragraphs (1)(a) to (c) in a timely manner.

  • Marginal note:Right of Corporation to information

    (3) The Corporation is entitled to all information obtained by or produced by or for the person, whether in the course of conducting the examination or inspection or otherwise, regarding the affairs of the member institution or any of its affiliates or of any person dealing with the member institution or any of its affiliates.

  • Marginal note:Obligation to provide other information

    (4) Without limiting subsection (3), the person shall provide the Corporation with any information that the person considers relevant to any matter referred to in any of paragraphs (1)(a) to (c) or to any report provided under subsection (2).

  • Marginal note:Obligation to inform

    (5) The person shall without delay inform the Corporation if, at any time, whether in the course of conducting an examination or inspection or otherwise, there comes to the attention of the person any change in the circumstances of the member institution that might materially affect the position of the Corporation as an insurer.

  • R.S., 1985, c. C-3, s. 29
  • R.S., 1985, c. 18 (3rd Supp.), s. 61
  • 1992, c. 26, s. 8(E)
  • 1996, c. 6, s. 34
  • 1999, c. 28, s. 106
  • 2001, c. 9, s. 210
  • 2005, c. 30, s. 105
  • 2016, c. 7, s. 128

Marginal note:Review of returns

 If requested to do so by the Corporation, the person who conducts an examination under section 27 or an inspection under section 28 in respect of a member institution shall review, or cause another person to review on the person’s behalf, within the time specified by the Corporation, the correctness of the returns made by the member institution on which its premiums are based and through which its premium classification is in part determined.

  • 2001, c. 9, s. 210

Marginal note:Certain reports to be provided to Corporation

 When a report is sent by the Superintendent to the Minister under section 643 of the Bank Act, section 505 of the Trust and Loan Companies Act or section 437 of the Cooperative Credit Associations Act, a copy of the report shall be sent by the Superintendent at the same time to the Corporation.

  • 2001, c. 9, s. 210

Marginal note:Reporting breaches

  •  (1) If, in the Corporation’s opinion, a member institution is in breach of a provision of this Act or the regulations, a by-law of the Corporation or a condition of its policy of deposit insurance, the Corporation may send a report of the facts to the chief executive officer or chairperson of the board of directors of the member institution. The report may be sent by registered mail or delivered by hand and a copy of it must be provided to the Minister.

  • Marginal note:Presentation of report to directors

    (2) The chief executive officer or chairperson of the board of directors of a member institution to whom a report has been sent or delivered under subsection (1) shall, within 15 days after the receipt of the report, cause

    • (a) the report to be presented to a meeting of the board of directors of the member institution and to be incorporated in the minutes of the meeting; and

    • (b) a certified copy of that portion of the minutes of the meeting that relates to the presentation of the report to be sent by registered mail to the chief executive officer of the Corporation at its head office.

  • R.S., 1985, c. C-3, s. 30
  • R.S., 1985, c. 18 (3rd Supp.), s. 62
  • 1992, c. 26, s. 9(E)
  • 1996, c. 6, s. 35
  • 2005, c. 30, s. 106
  • 2012, c. 5, s. 193(E)
  • 2016, c. 7, s. 129

Termination and Cancellation of Insurance

Marginal note:Notice of termination

  •  (1) Where a report has been sent or delivered under subsection 30(1) and the progress made by the member institution in remedying the breach is not satisfactory to the Corporation, the Corporation shall, by notice,

    • (a) where the member institution is a federal member institution, so inform the institution and the Minister; and

    • (b) where the member institution is a provincial member institution, give the institution not less than thirty days notice of the termination of its policy of deposit insurance.

  • Marginal note:Copy to provincial Minister

    (2) Where a notice of termination is given to a provincial member institution under subsection (1), the Corporation shall forthwith send a copy thereof to the appropriate provincial Minister.

  • Marginal note:Termination of policy

    (3) The policy of deposit insurance of a provincial member institution shall terminate on the expiration of the period specified in the notice given under subsection (1) unless, before the expiration of that period,

    • (a) the Corporation is satisfied that the member institution is taking the necessary action to remedy the breach to which the notice relates; or

    • (b) the appropriate provincial Minister requests an extension of the period to enable the necessary remedial action to be taken, in which case the termination may be deferred by the Corporation for a further period not exceeding sixty days.

  • Marginal note:Where report on federal member institution

    (4) Where a report has been sent or delivered under subsection 30(1) in respect of a federal member institution and the member institution and the Minister have been informed in accordance with subsection (1) by the Corporation that the Corporation is not satisfied with the member institution’s progress in remedying the breach to which the report relates, the Corporation may, unless the Minister advises the Corporation that the Minister is of the opinion that it is not in the public interest to do so, give the member institution not less than thirty days notice of the termination of its policy of deposit insurance.

  • Marginal note:Termination of policy

    (5) The policy of deposit insurance of a federal member institution shall terminate on the expiration of the period specified in the notice given under subsection (4) or such later period not exceeding sixty days as the Corporation may determine unless, before the expiration of that period, the Corporation is satisfied that the member institution is taking the necessary action to remedy the breach to which the notice relates.

  • Marginal note:Conditions of extension

    (5.1) The Corporation may impose conditions on a federal member institution in connection with any extension of the period referred to in subsection (5) and failure by the federal member institution to comply with any such condition constitutes a termination of the extension.

  • Marginal note:Revoking notice

    (6) Where, at any time after a notice of termination has been given to a member institution under subsection 31(1) or (4), the Corporation is satisfied that as the result of any action by the member institution, or any other person, the risk to depositors or to the Corporation has been averted or substantially reduced, the Corporation may revoke its notice of termination.

  • R.S., 1985, c. C-3, s. 31
  • R.S., 1985, c. 18 (3rd Supp.), s. 62
  • 1992, c. 26, s. 10(E)
  • 1996, c. 6, s. 36
  • 2005, c. 30, s. 107

Marginal note:Acceleration of termination of policy of deposit insurance

  •  (1) Despite any other provision of this Act, if, at any time after a notice of termination has been given to a provincial member institution under subsection 31(1), the Corporation concludes that

    • (a) the financial condition of the provincial member institution has deteriorated since the giving of the notice, and

    • (b) the interests of depositors will be adversely affected by any further delay in terminating the provincial member institution’s policy of deposit insurance,

    the Corporation shall without delay send a notice by registered mail, or deliver a notice by hand, to the provincial member institution and to the appropriate provincial Minister, to the effect that the policy of deposit insurance of the institution will be terminated on the expiration of a period of five days after the receipt of the notice by the institution.

  • Marginal note:Revocation

    (2) The Board of Directors of the Corporation or one of its committees established for the purpose may, before the expiry of the period specified in the notice, revoke the notice if, after considering any written representations made by the provincial member institution, it is satisfied that it is appropriate to do so.

  • (3) [Repealed, 2007, c. 6, s. 414]

  • Marginal note:Revocation

    (4) The Corporation shall revoke a notice sent or delivered under subsection (1) where the appropriate provincial Minister or provincial supervisor, as the case may be, has taken control of the provincial member institution or its assets.

  • Marginal note:Termination of policy

    (5) Unless a notice sent or delivered under subsection (1) is revoked under subsection (3) or (4), the policy of deposit insurance of the provincial member institution to which the notice was sent or delivered shall terminate on the expiration of the period specified in the notice.

  • Marginal note:Effect of revocation

    (6) The revocation of a notice under subsection (3) or (4) does not revoke a notice given under subsection 31(1).

  • R.S., 1985, c. 18 (3rd Supp.), s. 62
  • 1996, c. 6, s. 37
  • 2007, c. 6, s. 414
 
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