Canada Deposit Insurance Corporation Application for Deposit Insurance By-law (SOR/2006-236)

Regulations are current to 2019-07-01

Canada Deposit Insurance Corporation Application for Deposit Insurance By-law

SOR/2006-236

CANADA DEPOSIT INSURANCE CORPORATION ACT

Registration 2006-09-28

Canada Deposit Insurance Corporation Application for Deposit Insurance By-law

The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraphs 11(2)(g)Footnote a and (i) and subsection 18(1)Footnote b of the Canada Deposit Insurance Corporation Act, hereby makes the annexed Canada Deposit Insurance Corporation Application for Deposit Insurance By-law.

Ottawa, September 27, 2006

Interpretation

  •  (1) The following definitions apply in this By-law.

    Act

    Act means the Canada Deposit Insurance Corporation Act. (Loi)

    applicant

    applicant means a provincial institution that makes an application to the Corporation for deposit insurance. (demandeur)

    associate

    associate, when used to indicate a relationship with a person, means

    • (a) a corporation of which that person beneficially owns, directly or indirectly, voting securities that carry more than 10 per cent of the voting rights attached to all of the outstanding voting securities of the corporation;

    • (b) a partner of that person; or

    • (c) a trust or an estate or succession in which that person has a substantial beneficial interest or in respect of which that person serves as a trustee or in a similar capacity. (associé)

    beneficial ownership

    beneficial ownership includes ownership through one or more trustees, legal representatives, agents or mandataries or other intermediaries. (véritable propriétaire)

    common-law partnership

    common-law partnership means the relationship between two individuals who are cohabiting in a conjugal relationship, having so cohabited for a period of at least one year. (union de fait)

    corporation

    corporation means an incorporated body wherever or however incorporated. (personne morale)

    direction

    direction, in respect of the voting securities of an entity, means the power, alone or in combination with one or more persons, directly or indirectly, to exercise or direct the exercise of the voting rights attached to those securities. (haute main)

    entity

    entity means a corporation, a trust, a partnership, a fund, an unincorporated association or organization, Her Majesty in right of Canada or of a province, an agency of Her Majesty in either of those rights, the government of a foreign country or any political subdivision of that government or any agency of that government or of that political subdivision. (entité)

    financial statements

    financial statements includes a balance sheet, a statement of retained earnings, an income statement and a statement of changes in financial position. (états financiers)

    forecast

    forecast means information in respect of prospective results of the operations and financial position or changes in the financial position of an entity, based on assumptions made in respect of future economic conditions and planned courses of action for a specified period, given management’s judgment as to the most probable set of economic conditions. (prévisions)

    influence

    influence, in respect of an entity, means the power to exercise an influence, directly or indirectly and alone or in combination with one or more persons, over the management and policies of the entity, whether through the beneficial ownership of voting securities or otherwise. (influence)

    material

    material, in respect of any matter, means a matter that has or may reasonably be expected to have a bearing on the decision of the Corporation as to whether to approve an applicant for deposit insurance. (important)

    misrepresentation

    misrepresentation means an untrue statement made in respect of a material fact or a statement that is misleading in the context in which it is made due to the omission of a material fact. (fausse déclaration)

    officer

    officer means

    • (a) in respect of a corporation, a chief executive officer, president, vice-president, secretary, controller, treasurer and any other individual designated as an officer of the corporation by by-law or by a resolution of its directors; and

    • (b) in respect of any other entity, any individual designated as an officer of the entity. (dirigeant)

    person

    person means an individual or an entity and includes a legal representative. (personne)

    promoter

    promoter means a person who

    • (a) acting alone or in conjunction with one or more other persons, participates directly or indirectly in the founding, organizing or substantial reorganizing of the business of an applicant; or

    • (b) in connection with the founding, organizing or substantial reorganizing of the business of an applicant, directly or indirectly receives, in consideration of services or property or both services and property, five per cent or more of any class of securities of the applicant or five per cent or more of the proceeds from the sale of any class of securities of a particular issue, other than a person who receives such securities or proceeds either solely as underwriting commissions or solely in consideration of property but does not otherwise take part in the founding, organizing or substantial reorganizing of the business of the applicant. (promoteur)

    regulatory authority

    regulatory authority means a supervisory or regulatory authority of financial institutions, capital markets, securities transactions or commodity futures that has jurisdiction over an applicant. (organisme de réglementation)

    relative

    relative, in respect of a person who is an individual, means an individual related to that person by birth, adoption, marriage or common-law partnership. (parent)

    subsidiary

    subsidiary, when used to indicate a relationship between one corporation and another, means a corporation that is controlled by that other corporation. (filiale)

  • (2) For the purposes of this By-law,

    • (a) a person controls a corporation if securities of the corporation, to which are attached more than 50 per cent of the votes that may be cast to elect directors of the corporation, are beneficially owned by the person and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the corporation;

    • (b) a person controls an unincorporated entity, other than a limited partnership, if more than 50 per cent of the ownership interest in the entity, however designated, is beneficially owned by the person and the person is able to direct the business and affairs of the entity;

    • (c) the general partner of a limited partnership controls the limited partnership; and

    • (d) a person controls an entity if the person has any direct or indirect influence that, if exercised, would result in control in fact of the entity.

  • (3) For the purposes of this By-law, a person who controls an entity is considered to control any other entity that is controlled, or is considered to be controlled, by the entity.

  • (4) For the purposes of this By-law, a person is considered to control an entity where the aggregate of any securities of the entity that are beneficially owned by the person and any securities of the entity that are beneficially owned by any entity controlled by that person is such that, if that person and all of the entities that beneficially own securities of the entity were one person, that person would control the entity.

Application for Deposit Insurance

  •  (1) An application for deposit insurance must contain

    • (a) the information and documentation referred to in sections 3 to 17, in one of Canada’s official languages; and

    • (b) an affidavit as set out in Form 1 of the schedule and, if applicable, an affidavit as set out in Form 2 of the schedule, duly executed.

  • (2) The information and documentation included in an application must be current as of not more than 12 months before the day on which the final information or documentation relating to the application is submitted to the Corporation by the applicant in order to complete the application.

Applicant’s General Information

 The application must include the following information in respect of the applicant:

  • (a) its legal name, including the form of that name in the other official language of Canada, if any;

  • (b) the address, telephone number, e-mail address and facsimile number of

    • (i) its head office,

    • (ii) its principal place of business, if that place of business is located somewhere other than at the head office, and

    • (iii) each of its current branches, if any, and each of its proposed branches, if any;

  • (c) the date of its incorporation, the jurisdiction of its incorporation and the date on which it began to carry on business or proposes to do so;

  • (d) the name, title or office, and address of each of its current and proposed directors and officers and a copy of their curriculum vitae or resumé;

  • (e) whether any director or officer referred to in paragraph (d) is an associate or a relative of any other director or officer referred to in that paragraph or of

    • (i) a director or officer referred to in paragraph 13(e), or

    • (ii) an individual referred to in section 14;

  • (f) detailed information, for each of the directors and officers referred to in paragraph (d), in respect of

    • (i) any conviction, under the laws of any jurisdiction within or outside Canada, for a material criminal offence,

    • (ii) any conviction, under the laws of such a jurisdiction, for a statutory or regulatory violation in relation to any of their businesses or the applicant’s business, and

    • (iii) any proceedings that have been commenced against them in such a jurisdiction in respect of such an offence or violation;

  • (g) detailed information, for each of the directors and officers referred to in paragraph (d), in respect of

    • (i) the suspension or revocation, under the laws of any jurisdiction within or outside Canada, of any licence held by them in relation to the business or affairs of the applicant,

    • (ii) the suspension or cancellation, under the laws of such a jurisdiction, of any registration in their name in relation to the business or affairs of the applicant, and

    • (iii) any investigation that has been or is being conducted in such a jurisdiction in relation to such a licence or registration;

  • (h) the legal name, address, telephone number, e-mail address and facsimile number of its current or proposed external auditor, as applicable;

  • (i) the name, address, telephone number, e-mail address and facsimile number of any person who is, or who, within the 24-month period preceding the day referred to in subsection 2(2) has been, a promoter of the applicant; and

  • (j) the name, title or office, address, telephone number, e-mail address and facsimile number of the individual who is authorized to represent the applicant with respect to the application.

 
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