Canada Deposit Insurance Corporation Act

Marginal note:Granting of application

• 26.03 (1) Subject to section 26.04, the Corporation may give that authorization if

  • (a) [Repealed, 2001, c. 9, s. 209]

  • (b) the sum of all the deposits held by the bank that are less than $150,000 and payable in Canada is less than one per cent of the sum of all the deposits held by the bank that are payable in Canada;

  • (c) the bank has informed all its depositors, in accordance with such rules as may be prescribed by the by-laws,

    • (i) that the bank has applied to become authorized to accept deposits without being a member institution,

    • (ii) that after the bank receives that authorization, no deposit with the bank will be insured in whole or in part by the Corporation, and

    • (iii) that the bank’s obligation to repay the deposit to the depositor will be assumed by a member institution if an option referred to in subparagraph (d)(i) or (ii) is not exercised;

  • (d) in respect of each deposit that is held by the bank, the bank has

    • (i) obtained from the depositor an acknowledgement in writing that the deposit will no longer be insured in whole or in part by the Corporation after the bank receives authorization to accept deposits without being a member institution,

    • (ii) at the request in writing of the depositor, paid to the depositor the principal amount of the deposit and interest determined in accordance with rules prescribed by the by-laws and has not charged any fee or penalty in connection with the payment, or

    • (iii) obtained from a member institution an agreement in writing to assume the bank’s liability in relation to the deposit on the same terms and conditions; and

  • (e) the bank has paid to the Corporation a fee determined in accordance with rules prescribed by the by-laws.

• Marginal note:Exchange rate

  (2) For the purpose of subsection (1), the rate of exchange that shall be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada shall be determined in accordance with rules prescribed by the by-laws.