Canada Deposit Insurance Corporation Eligible Financial Contracts By-law (SOR/2022-55)

Marginal note:Definition of Act

1 In this By-law, Act means the Canada Deposit Insurance Corporation Act.

Marginal note:Prescribed class of federal member institutions

2 The class consisting of all federal member institutions is prescribed for the purpose of subsection 39.15(7.4) of the Act.

Marginal note:Prescribed class of eligible financial contracts

3 The class consisting of every eligible financial contract that meets the following conditions and to which a federal member institution is a party is prescribed in respect of that institution for the purpose of subsection 39.15(7.4) of the Act:

• (a) it contains provisions permitting the taking of an action referred to in paragraph 39.15(7)(a), (b) or (f) of the Act by a party other than

  • (i) Her Majesty in right of Canada,

  • (ii) the government of a foreign country,

  • (iii) a central bank,

  • (iv) a clearing house, as defined in subsection 39.15(9) of the Act, or

  • (v) a central counter-party, as defined in section 2 of the Payment Clearing and Settlement Act;

• (b) it is not governed by Canadian law or at least one of the other parties to it is neither an individual who is resident in Canada nor a Canadian entity as defined in section 2 of the Bank Act; and

• (c) it meets one of the following conditions:

  • (i) it is entered into, amended or renewed on or after October 1, 2023 and at least one of the other parties to it is

    • (A) a federal member institution or an affiliate of a federal member institution, or

    • (B) an institution that has been identified by the Financial Stability Board as a global systemically important bank or an affiliate of an institution that has been so identified,

  • (ii) it is entered into, amended or renewed on or after October 1, 2024, or

  • (iii) at least one other party to it and the federal member institution are together parties to another contract that is part of a class prescribed by this section.

Marginal note:Contract provisions

4 Every federal member institution must ensure that all eligible financial contracts that are part of the class prescribed in respect of it by section 3 contain provisions indicating the parties’ agreement to the application of subsections 39.15(7.1) to (7.104) and (7.11) of the Act in relation to the actions that the parties, other than any referred to in subparagraphs 3(a)(i) to (v), may take.

Marginal note:Coming into force

5 This By-law comes into force on the day on which it is registered.