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

Interpretation

• Marginal note:Definitions

  1 In this schedule,

  date of deposit

  date of deposit means, with respect to any moneys constituting a deposit, the day on which credit for the moneys is given to the account of the depositor or the day on which an instrument is issued for the moneys by the institution, as the case may be; (date du dépôt)

  depositor

  depositor means a person whose account has been or is to be credited in respect of moneys constituting a deposit or part of a deposit or a person to whom a member institution is liable in respect of an instrument issued for moneys constituting a deposit or part of a deposit; (déposant)

  loan company

  loan company means a member institution to which the Trust and Loan Companies Act applies and that is not a trust company pursuant to subsection 57(2) of that Act; (société de prêt)

  patronage allocation

  patronage allocation has the same meaning as in section 2 of the Bank Act; (ristourne)

  person

  person includes an association of persons and a government; (personne)

  registered disability savings plan

  registered disability savings plan has the same meaning as in subsection 146.4(1) of the Income Tax Act; (régime enregistré d’épargne-invalidité)

  registered education savings plan

  registered education savings plan has the same meaning as in subsection 146.1(1) of the Income Tax Act; (régime enregistré d’épargne-études)

  subordinated note

  subordinated note[Repealed, 2007, c. 6, s. 421]

  subordinated shareholder loan

  subordinated shareholder loan[Repealed, 2007, c. 6, s. 421]

  trust company

  trust company means a member institution to which the Trust and Loan Companies Act applies and that is a trust company pursuant to subsection 57(2) of that Act. (société de fiducie)

• Marginal note:Definition of deposit

  • 2 (1) Subject to subsection (2), for the purposes of this Act and the by-laws of the Canada Deposit Insurance Corporation, deposit means the unpaid balance of the aggregate of moneys received or held by a federal institution, provincial institution or local cooperative credit society, from or on behalf of a person in the usual course of the deposit-taking business of the institution, for which the institution

    • (a) has given or is obligated to give credit to that person’s account or has issued or is obligated to issue a receipt, certificate, debenture (other than a debenture issued by a bank to which the Bank Act applies), transferable instrument, draft, certified draft or cheque, prepaid letter of credit, money order or other instrument in respect of which the institution is primarily liable, and

    • (b) is obligated to repay the moneys on a fixed day, on demand by that person or within a specified period of time following demand by that person,

    including any interest accrued or payable to that person.

  • Marginal note:Included moneys

    (1.1) For greater certainty, an unpaid balance of moneys received or held by an institution from or on behalf of a mortgagor in respect of realty taxes on mortgaged property is a deposit. The moneys are considered to be repayable on the earlier of the due date of the taxes or the date the mortgage is discharged.

  • Marginal note:Included moneys

    (1.2) For greater certainty, moneys are considered to be a deposit or part of a deposit if they are paid in respect of a deposit that is held in a registered education savings plan or registered disability savings plan under or because of

    • (a) the Canada Education Savings Act or a designated provincial program as defined in subsection 146.1(1) of the Income Tax Act;

    • (b) any other program that has a similar purpose to a designated provincial program referred to in paragraph (a) and that is funded, directly or indirectly, by a province;

    • (c) the Canada Disability Savings Act or a designated provincial program as defined in subsection 146.4(1) of the Income Tax Act; or

    • (d) any other program that has a similar purpose to a designated provincial program referred to in paragraph (c) and that is funded, directly or indirectly, by a province.

  • Marginal note:Excluded moneys

    (2) Moneys held by the institution that were received by it when it was not a federal institution, a provincial institution or a local cooperative credit society are excluded from the moneys referred to in subsection (1).

  • (2.1) [Repealed, 2018, c. 12, s. 211]

  • (2.2) [Repealed, 2018, c. 12, s. 211]

  • Marginal note:Obligation deemed

    (3) For the purposes of subsection (1), if a trust company has deposited moneys in its own guaranteed trust fund on behalf of itself as trustee, it shall be deemed to be obligated to repay the moneys to the same extent as it would have been obligated to repay the moneys had the moneys been deposited by a trustee other than itself.

  • (4) [Repealed, 2001, c. 9, s. 216]

  • Marginal note:Moneys received on or after April 1, 1977

    (5) Despite subsection (1), for the purposes of deposit insurance with the Corporation, if moneys are or were received by a member institution on or after April 1, 1977 for which the institution has issued or is obligated to issue an instrument evidencing a deposit, other than a draft, certified draft or cheque, prepaid letter of credit or money order,

    • (a) the moneys do not constitute a deposit unless the instrument and records of the institution specify the person entitled, at the date of issue of the instrument, to the repayment of the moneys evidenced thereby;

    • (b) the person referred to in paragraph (a) shall be deemed to be the depositor in respect of the moneys unless particulars of a transfer of the instrument are entered in the records of the institution, in which case the most recent transferee shown in the records shall be deemed to be the depositor; and

    • (c) the entry of a transfer in the records of a member institution is ineffective for the purposes of paragraph (b), if the entry is made subsequent to the termination or cancellation of the policy of deposit insurance of the member institution.

  • Marginal note:Moneys received on or after January 1, 1977

    (6) Despite subsection (1), moneys received by a member institution on or after January 1, 1977, for which the institution has issued or is obligated to issue an instrument of indebtedness, other than a draft, certified draft or cheque, prepaid letter of credit or money order, do not constitute a deposit where the instrument is payable outside Canada.

  • Marginal note:Patronage allocation

    (7) A patronage allocation does not constitute a deposit.

• Marginal note:Not part of deposit

  3 If a member institution is obligated to repay to a person any moneys that are received or held by the institution and the date on which the person acquires their interest or right in the moneys is a date subsequent to the date on which the policy of deposit insurance of the member institution is terminated or cancelled, the amount of the moneys is considered not to constitute part of a deposit for the purposes of deposit insurance with the Corporation.

Co-ownership of Deposits

• Marginal note:Co-owned deposits

  • 4 (1) If a member institution is obligated to repay moneys to a depositor who is acting as a co-owner with another person and the co-ownership is disclosed on the records of the member institution, in accordance with the by-laws, the deposit of the depositor is, for the purposes of deposit insurance with the Corporation, considered to be a deposit separate from any deposit of the depositor acting in their own right, in a trust capacity or in another co-ownership capacity with the member institution.

  • Marginal note:Co-ownership

    (2) For greater certainty, if two or more persons are co-owners of two or more deposits, the aggregate of those deposits shall be insured to a maximum of one hundred thousand dollars.

Deferred or Other Special Income Arrangements

• Marginal note:Registered retirement savings plans

  • 5 (1) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor in accordance with a registered retirement savings plan, as defined in subsection 146(1) of the Income Tax Act, and the plan is for the benefit of an individual, then the aggregate of those moneys and any other moneys received from that depositor in accordance with any other registered retirement savings plan that constitute a deposit or part of a deposit for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

  • Marginal note:Registered retirement income funds

    (2) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor under a registered retirement income fund, as defined in subsection 146.3(1) of the Income Tax Act, and the plan is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit or part of a deposit received from that depositor under any other registered retirement income fund that is for the benefit of that individual, is considered to be a single deposit separate from any other deposit for the benefit of that individual.

  • Marginal note:Tax-free savings accounts

    (3) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor under a tax-free savings account, within the meaning assigned by section 146.2 of the Income Tax Act, and the account is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit or part of a deposit received from that depositor under any other tax-free savings account that is for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

  • Marginal note:First home savings account

    (3.1) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor under a first home savings account as defined in subsection 248(1) of the Income Tax Act, and the account is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit or part of a deposit received from that depositor under any other first home savings account that is for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

  • Marginal note:Registered education savings plans

    (4) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor under a registered education savings plan that is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit received from that depositor under any other registered education savings plan that is for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

  • Marginal note:Registered disability savings plans

    (5) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit are received by a member institution from a depositor under a registered disability savings plan that is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit or part of a deposit received from the same depositor under any other registered disability savings plan that is for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

  • Marginal note:Government moneys

    (6) For the purposes of subsections (4) and (5) moneys received by a member institution from a depositor in accordance with a registered education savings plan or a registered disability savings plan are considered to include moneys received from the government of Canada or the government of a province under that plan.

Trust Deposits

General

• Marginal note:Trust deposits

  • 6 (1) If a member institution is obligated to repay moneys to a depositor who is acting as a trustee for another person and the trusteeship is disclosed on the records of the member institution, in accordance with the by-laws, the deposit of the depositor is, for the purposes of deposit insurance with the Corporation, considered to be a deposit separate from any deposit of the depositor acting in their own right, in a co-ownership capacity or acting in a trust capacity for another person with the member institution.

  • Marginal note:Separate trust deposit

    (2) If a member institution is obligated to repay moneys to a depositor who is acting as trustee for a beneficiary and the trusteeship is disclosed on the records of the member institution, in accordance with the by-laws, the interest or right of the beneficiary in the deposit is, for the purposes of deposit insurance with the Corporation, considered to be a deposit separate from any deposit of the beneficiary made with the member institution in their own right for their own use and separate from any interest or right of the beneficiary in respect of any other trust deposit made by another depositor of which the beneficiary is a beneficiary.

  • Marginal note:Deposit of beneficiary

    (3) Subject to section 10, if a member institution is obligated to repay moneys to a depositor who is acting as trustee for two or more beneficiaries and the interest or right of a beneficiary in the deposit is disclosed on the records of the member institution, in accordance with the by-laws, the interest or right of that beneficiary in the deposit is, for the purposes of deposit insurance with the Corporation, considered to be a separate deposit.

  • Marginal note:Multiple deposits

    (4) For greater certainty, if a member institution is obligated to repay moneys to a depositor who is acting as trustee for two or more trusteeships under which the same beneficiary is a beneficiary, the aggregate of the interest or right of that beneficiary in those deposits shall be insured to a maximum of one hundred thousand dollars.

  • Marginal note:Notice to trustees

    (5) The Corporation may, in accordance with the by-laws, require a member institution who is obligated to repay moneys to a depositor who is acting as a trustee for another person to provide the trustee with the information specified by the Corporation.

  • Marginal note:Error or omission

    (6) An error or omission that results in a failure to meet a requirement of this schedule does not prevent a deposit from being considered a separate deposit under subsection (1), (2) or (3) if

    • (a) the trustee is aware of the error or omission and has made their best efforts to correct it; or

    • (b) the trustee is not aware of the error or omission but has exercised due diligence to be in compliance with the requirements of this schedule.

• 6.1 [Repealed, 2021, c. 23, s. 132]

Nominee Broker Deposits

• Marginal note:Additional conditions

  • 7 (1) The following conditions apply to nominee broker deposits in addition to those set out in section 6:

    • (a) at the time the deposit is made and each time a change is made to the deposit, the nominee broker must provide the following information to the member institution for it to disclose on its records

      • (i) the fact that the deposit is made by a nominee broker,

      • (ii) the unique alphanumeric code for each beneficiary of the deposit, assigned in accordance with the by-laws,

      • (iii) the amount or percentage of the interest or right of the beneficiary associated with that code, and

      • (iv) any other information specified in the by-laws; and

    • (b) the nominee broker must provide, in accordance with the by-laws, the following to the Corporation, within three business days after the day on which a request is made by the Corporation:

      • (i) each unique alphanumeric code provided under subparagraph (a)(ii),

      • (ii) the current name and address of the beneficiary associated with that code, and

      • (iii) any other information specified in the by-laws respecting the deposit.

  • Marginal note:Co-ownership

    (2) If two or more persons are co-owners of a deposit, they are, for the purposes of assigning a unique alphanumeric code, considered to be a single beneficiary, separate from any of the persons as a beneficiary — in their own right, in a trust capacity or in another co-ownership capacity — of a deposit made by the same nominee broker with the same member institution.

• Marginal note:Member institution requirements — agreements and arrangements

  • 8 (1) If a member institution enters into an agreement or arrangement respecting nominee broker deposits, the member institution must ensure that the agreement or arrangement includes provisions that require the nominee broker

    • (a) to provide information to the Corporation in accordance with paragraph 7(1)(b);

    • (b) to make an initial attestation to the Corporation and updated attestations in accordance with the bylaws that state whether the nominee broker is, or is not, capable of fullfilling the obligations set out in paragraph 7(1)(b); and

    • (c) to provide and update contact information in accordance with the by-laws to the member institution.

  • Marginal note:Updates

    (2) The member institution must ask the depositor to make an updated attestation under paragraph (1)(b) and to provide updated contact information under paragraph (1)(c) each April.

  • Marginal note:Notice

    (3) If a member institution enters into an agreement or arrangement respecting nominee broker deposits, the member institution must notify the Corporation in accordance with the by-laws.

  • Marginal note:Notice — end of agreement or arrangement

    (4) If a member institution that has entered into an agreement or arrangement respecting nominee broker deposits is no longer a party to that agreement or arrangement, the member institution must notify the Corporation in accordance with the by-laws.

  • Marginal note:Failure to comply with paragraph 7(1)(a)

    (5) If the member institution receives moneys from or holds moneys in a nominee broker deposit and the nominee broker fails to comply with paragraph 7(1)(a), the member institution must, as soon as possible after the failure, provide the nominee broker with the information specified in the by-laws.

Professional Trustee Accounts

• Marginal note:Professional trustee account

  9 A member institution must identify an account as a professional trustee account if the depositor

  • (a) makes an attestation, in accordance with the by-laws, stating that they are a professional trustee;

  • (b) provides contact information in accordance with the by-laws; and

  • (c) requests that the account to be identified as a professional trustee account.

• Marginal note:Deposit of beneficiary

  10 If a deposit referred to in subsection 6(3) is held in an account identified as a professional trustee account, the interest or right of each beneficiary in the deposit does not have to be disclosed on the records of the member institution. However, the interest or right of each beneficiary in the deposit is not, for the purposes of deposit insurance with the Corporation, considered to be a separate deposit unless the depositor meets the conditions set out in section 11.

• Marginal note:Additional conditions

  11 In respect of a deposit held in an account identified as a professional trustee account, the following conditions apply in addition to those set out in subsections 6(1) and (2):

  • (a) the depositor must, in accordance with the by-laws, maintain a record that sets out the current name and address of each beneficiary of a deposit in the account and the amount or percentage of the interest or right of each beneficiary;

  • (b) the depositor must provide, in accordance with the by-laws, information respecting deposits in the account to the Corporation if a request is made by the Corporation; and

  • (c) each April, the depositor must provide the member institution with

    • (i) an attestation, in accordance with the by-laws, stating that they continue to be a professional trustee,

    • (ii) confirmation that the account is to continue to be identified as a professional trustee account, and

    • (iii) updated contact information in accordance with the by-laws.

• Marginal note:Updates

  • 12 (1) A member institution that has identified an account as a professional trustee account must ask the depositor to carry out the actions referred to in paragraph 11(c) each March.

  • Marginal note:Change of status

    (2) A depositor who has requested that the account to be identified as a professional trustee account and who is no longer a professional trustee, must notify the member institution that they are no longer a professional trustee and request that the designation be removed.

  • Marginal note:Designation removed

    (3) A member institution must remove the designation of an account identified as a professional trustee account if

    • (a) the depositor requests that the designation be removed; or

    • (b) the depositor fails to carry out the actions referred to in paragraph 11(c) by April 30.

• Marginal note:Information privileged

  13 For greater certainty, the provision by a depositor to the Corporation of information respecting deposits held in an account identified as a professional trustee account that is subject to solicitor-client privilege or the professional secrecy of advocates and notaries does not constitute a waiver of the privilege or secrecy.

By-laws

• Marginal note:By-laws

  14 For the purposes of the provisions of this schedule, the Board may make by-laws

  • (a) respecting information that is to be disclosed on the records of a member institution in respect of a co-ownership interest, a trusteeship or the interest or right of a beneficiary in a deposit;

  • (b) respecting the assignment of unique alphanumeric codes for beneficiaries of nominee broker deposits;

  • (c) specifying information that is to be disclosed on the records of a member institution in respect of a nominee broker deposit;

  • (d) specifying the information a nominee broker is to provide, and the form and manner in which it is to be provided, under paragraph 7(1)(b);

  • (e) respecting attestations by nominee brokers and professional trustees;

  • (f) respecting contact information referred to in paragraph 8(1)(c) and 9(b) and subparagraph 11(c)(iii);

  • (g) respecting notification requirements for agreements or arrangements respecting nominee broker deposits;

  • (h) specifying information for the purposes of subsection 8(4);

  • (i) respecting records to be maintained under paragraph 11(a);

  • (j) specifying the information a professional trustee is to provide, and the form and manner in which it is to be provided, under paragraph 11(b); and

  • (k) respecting the provision of information to trustees under subsection 6(5).