Canada Deposit Insurance Corporation Act

Marginal note:Deposit liabilities assumed

• 39.202 (1) A bridge institution shall assume a federal member institution’s deposit liabilities that are both insured by the Corporation and posted in the federal member institution’s records as of the date and time specified in the order referred to in paragraph 39.13(1)(c).

• Marginal note:Interest

  (1.1) Any interest accrued on the deposit liabilities referred to in subsection (1) is assumed by the bridge institution.

• Marginal note:Deeming deposits or withdrawals not entered

  (1.2) Any deposit or withdrawal that is made on or before that date and time but is not posted in the records of the federal member institution as of that date and time, and any deposit or withdrawal made after that date and time, are deemed to be deposited with or withdrawn from, as the case may be, the bridge institution.

• Marginal note:Interest

  (1.3) Any interest accruing on the deposits referred to in subsection (1.2) is owed by the bridge institution.

• Marginal note:Subrogation

  (2) If the bridge institution assumes any portion of a federal member institution’s liability that is not insured by the Corporation, the bridge institution is subrogated to all the rights and interests of the creditor against the federal member institution in relation to the entire liability and may maintain an action in respect of those rights and interests in its own name or in the name of the creditor.

• Marginal note:Creditor’s rights and interests

  (3) As soon as the bridge institution receives an amount equal to the liabilities that are not insured by the Corporation that it assumed, the rights and interests in respect of the balance remaining revert to the creditor.