Canada Deposit Insurance Corporation Act
Marginal note:Notice of termination
31 (1) Where a report has been sent or delivered under subsection 30(1) with regard to the failure of a member institution to follow a standard of sound business and financial practices established under the by-laws or in regard to the breach by the member institution of any of the by-laws applicable to it or of the conditions of its policy of deposit insurance and the progress made by the member institution in following the standard or in remedying the breach is not satisfactory to the Corporation, the Corporation shall, by notice,
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 follow the standard or 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 following the standard or 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 follow the standard or 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
- Date modified: