Canada Deposit Insurance Corporation Act
Marginal note:Assignments — bridge institution
(a) a person is prohibited from terminating or amending the agreement, or claiming an accelerated payment or forfeiture of the term under the agreement, by reason only of
(i) the federal member institution’s insolvency;
(ii) a non-monetary default by the federal member institution in the performance of its obligations under the agreement;
(iii) a monetary default by the federal member institution under the agreement that is remedied by the bridge institution within 60 days following the assignment or assumption of the agreement;
(iv) the making of an order under subsection 39.13(1), or
(v) the agreement being assigned to or assumed by a bridge institution; and
(b) any stipulation in the agreement that has the effect of providing for or permitting anything that, in substance, is contrary to any of subparagraphs (a)(i) to (v) or provides, in substance, that the bridge institution does not have the rights to use or deal with assets that the bridge institution would otherwise have by reason of the occurrence of any circumstance described in those subparagraphs, is of no force or effect.
(2) Subparagraphs (1)(a)(ii) and (iii) do not apply to an eligible financial contract as defined in subsection 39.15(9).
Marginal note:Membership in an organization
(3) If a bridge institution becomes a member of an organization in place of a federal member institution, it is prohibited for the organization to terminate the bridge institution’s membership by reason only of
(a) the federal member institution’s insolvency;
(b) the making of an order under subsection 39.13(1);
(c) a default by the federal member institution in the performance of its obligations under the rules of the organization; or
(d) the federal member institution’s membership being transferred to the bridge institution.
- 2012, c. 5, s. 199
- Date modified: