Canada Deposit Insurance Corporation Act (R.S.C., 1985, c. C-3)

Marginal note:Decision conclusive

39.24 Except as otherwise provided in this Act, a decision made by the Corporation under section 39.23 or by an assessor appointed under section 39.26 is for all purposes final and conclusive and shall not be questioned or reviewed in any court.

39.241 [Repealed, 1996, c. 6, s. 41]

Marginal note:Discharge of liability

39.25 Payment of the compensation by the Corporation under section 39.23 discharges the Corporation from its obligations under that section and in no case is the Corporation under any obligation to see to the proper application in any way of any such payment.

Marginal note:Appointment of assessor

39.26 In the circumstances prescribed by the regulations, the Governor in Council shall, by order, appoint as assessor a judge who is in receipt of a salary under the Judges Act to review a decision made by the Corporation under subsection 39.23(1) and determine the amount of compensation, if any, to be paid to a prescribed person.

Marginal note:Sittings and hearings

• 39.27 (1) An assessor may sit at any place and shall arrange for the sittings and hearings that may be required.

• Marginal note:Powers of assessor

  (2) The assessor has all the powers conferred on a commissioner appointed under Part II of the Inquiries Act for the purpose of obtaining evidence under oath.

• Marginal note:Persons to assist

  (3) An assessor may appoint a person to assist him or her in performing his or her functions.

• Marginal note:Payment

  (4) Fees and disbursements payable to the person may be included by the assessor in an amount awarded in respect of costs under subsection (5) or (6).

• Marginal note:Costs of prescribed person

  (5) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to a prescribed person and against the Corporation, the amount that the assessor determines to be just and reasonable to award in respect of those costs is payable by the Corporation to the prescribed person.

• Marginal note:Costs of Corporation

  (6) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to the Corporation and against a prescribed person, the amount that the assessor determines to be just and reasonable to award in respect of those costs constitutes a debt payable by the prescribed person to the Corporation and may be recovered as such in any court of competent jurisdiction.

Marginal note:Regulations

• 39.28 (1) The Governor in Council may make regulations respecting compensation for the purposes of sections 39.23 to 39.27, including regulations

  • (a) prescribing persons referred to in subsection 39.23(1);

  • (b) respecting the factors that the Corporation shall or shall not consider in making a decision under subsection 39.23(1);

  • (c) respecting the circumstances in which an assessor must be appointed under section 39.26;

  • (d) respecting the factors that an assessor shall or shall not consider in making a decision; and

  • (e) respecting procedural requirements.

• Marginal note:By-laws

  (2) The Corporation may make by-laws respecting compensation for the purposes of section 39.23.

• Marginal note:Inconsistency

  (3) In the event of any inconsistency between the regulations made under subsection (1) and the by-laws made under subsection (2), the regulations prevail to the extent of the inconsistency.

39.29 [Repealed, 2016, c. 7, s. 142]

39.3 [Repealed, 2016, c. 7, s. 142]

39.31 [Repealed, 2016, c. 7, s. 142]

39.32 [Repealed, 2016, c. 7, s. 142]

39.33 [Repealed, 2016, c. 7, s. 142]

39.34 [Repealed, 2016, c. 7, s. 142]

39.35 [Repealed, 2016, c. 7, s. 142]

39.36 [Repealed, 2016, c. 7, s. 142]

39.361 [Repealed, 2016, c. 7, s. 142]

39.37 [Repealed, 2016, c. 7, s. 142]

Creation and Operation of Bridge Institutions

Marginal note:Incorporation

• 39.371 (1) The Minister shall, without delay after an order is made under paragraph 39.13(1)(c), issue letters patent incorporating a federal institution.

• Marginal note:Incorporating Act

  (2) The letters patent are issued under whichever of the following Acts regulates the federal member institution that is the subject of the Superintendent’s report under subsection 39.1(1) or (3):

  • (a) the Bank Act;

  • (b) the Cooperative Credit Associations Act; or

  • (c) the Trust and Loan Companies Act.

• Marginal note:Order to commence and carry on business

  (3) The Superintendent shall, without delay after the letters patent are issued, make an order approving the commencement and carrying on of business by the federal institution referred to in subsection (1).

• Marginal note:Content of Superintendent’s order — limitation

  (4) The Superintendent’s order shall not prohibit the federal institution, during the period that it is designated as a bridge institution, from accepting deposits in Canada and shall not make the federal institution, during that period, subject to subsection 413(3) of the Bank Act, subsection 378.1(2) of the Cooperative Credit Associations Act or subsection 413(2) of the Trust and Loan Companies Act.

Marginal note:Duration

• 39.3711 (1) Subject to section 39.3715, the federal institution referred to in subsection 39.371(1) is designated as a bridge institution for a period of two years.

• Marginal note:Extensions

  (2) The Governor in Council may, by order, on the recommendation of the Minister, grant up to three extensions — of one year each — of the period referred to in subsection (1).

39.3712 [Repealed, 2016, c. 7, s. 143]

Marginal note:Financial assistance

39.3713 The Corporation shall provide the financial assistance that a bridge institution needs in order to discharge its obligations, except for its obligations to the Corporation, as they become due.

Marginal note:Shares held by Corporation

39.3714 The Corporation may hold shares in a bridge institution only if the Corporation is the sole shareholder.

Marginal note:Termination of designation

39.3715 A federal institution’s designation as a bridge institution terminates if

• (a) the Corporation is no longer the sole shareholder; or

• (b) the federal institution is amalgamated with a body corporate that is not a bridge institution.

Marginal note:Mandatory dissolution of bridge institution

39.3716 If a bridge institution’s designation has not terminated under section 39.3715, the federal institution’s board of directors shall take all necessary steps to dissolve the federal institution if

• (a) all or substantially all of the federal institution’s assets have been sold or otherwise disposed of; and

• (b) all or substantially all of its liabilities have been assumed or discharged.

Marginal note:Winding-up of federal member institution

• 39.3717 (1) If the Corporation considers that substantially all of the transfers of assets and liabilities of a federal member institution to a bridge institution have been substantially completed, the Corporation shall apply for a winding-up order under the Winding-up and Restructuring Act in respect of the federal member institution.

• Marginal note:Creditor

  (2) For the purposes of the Winding-up and Restructuring Act, the Corporation is deemed to be a creditor of the federal member institution.

• Marginal note:Exception

  (3) If the Superintendent has taken control of the federal member institution or its assets and has requested the Attorney General of Canada to apply for a winding-up order or informs the Corporation that he or she intends to request that the Attorney General of Canada apply for that order, the Corporation is not required to apply for a winding-up order.

Marginal note:Power of the Corporation

• 39.3718 (1) The Corporation may hold any federal institution’s shares that the Corporation acquires in the course of a sale or other disposition of its shares of the bridge institution or that a bridge institution acquires in the course of a sale or other disposition of its assets.

• Marginal note:Maximum period

  (2) The Corporation may hold the shares for a period of no more than five years from the day on which they are acquired and may dispose of them.

• Marginal note:Extension

  (3) The Minister may, by order, extend the period referred to in subsection (2) if general market conditions so warrant.

• Marginal note:Provisions inapplicable

  (4) The following provisions do not apply with respect to the shares referred to in subsection (1):

  • (a) sections 401.2 and 401.3 of the Bank Act;

  • (b) sections 428 and 430 of the Insurance Companies Act; and

  • (c) sections 396 and 399 of the Trust and Loan Companies Act.

Marginal note:Remuneration and benefits

39.3719 An employee or officer of the Corporation shall not receive remuneration or benefits from a bridge institution for being a director or officer of that institution.

Marginal note:Non-liability with respect to employees

• 39.372 (1) If a bridge institution becomes the employer of employees of a federal member institution, the bridge institution is not liable in respect of a liability, including one as a successor employer,

  • (a) that is in respect of the employees or former employees of the federal member institution or a predecessor of the federal member institution or in respect of a pension plan for the benefit of those employees or former employees; and

  • (b) that exists before the bridge institution becomes the employer or that is calculated by reference to a period before the bridge institution becomes the employer.

• Marginal note:Liability of other successor employers

  (2) Subsection (1) does not affect the liability of a successor employer other than the bridge institution.

Marginal note:Corporation’s directions

• 39.3721 (1) The Corporation may give directions to the board of directors of a bridge institution.

• Marginal note:Implementation

  (2) The board of directors of the bridge institution shall ensure that the directions are implemented in a prompt and efficient manner and shall, after implementing a direction, notify the Corporation without delay that it has been implemented.

Marginal note:By-laws — Corporation

• 39.3722 (1) The Corporation may give directions to the board of directors of a bridge institution to make, amend or repeal any by-law.

• Marginal note:By-laws — board of directors

  (2) The board of directors of a bridge institution may, with the prior approval of the Corporation, make, amend or repeal any by-law.

• Meaning of by-law

  (3) For the purposes of subsections (1) and (2), by-law means a by-law of the bridge institution.

39.3723 [Repealed, 2016, c. 7, s. 146]

Restructuring of Provincial Member Institutions

Marginal note:Federal-provincial agreements

• 39.38 (1) The Minister may, with the approval of the Governor in Council, enter into an agreement with an appropriate provincial minister providing for the application of any of sections 39.1 to 39.28 to provincial member institutions incorporated under the laws of that province.

• Marginal note:Orders

  (2) If an agreement has been entered into with an appropriate provincial minister, the Governor in Council may make orders, which are to be consistent with the agreement, providing for the application of any of sections 39.1 to 39.28 to provincial member institutions incorporated under the laws of that province and adapting any of the provisions of those sections in their application to those provincial member institutions.