Canada Deposit Insurance Corporation Deposit Insurance Information By-law
The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(f)Footnote a of the Canada Deposit Insurance Corporation Act, hereby makes the annexed Canada Deposit Insurance Corporation Deposit Insurance Information By-law.
December 4, 1996
Return to footnote aS.C. 1992, c. 26, s. 4
1 The definitions in this section apply in this By-law.
Act means the Canada Deposit Insurance Corporation Act. (Loi)
- place of business
place of business means a location in Canada where a member institution carries on business and at which a person may make a deposit with the assistance of a representative of a member institution. (lieu d’affaires)
- point of service
point of service means a location in Canada where a member institution carries on business and at which a person may, in person or by electronic means, commence a transaction to open an account with the member institution or to make a deposit with the member institution for a fixed term, but does not include a place of business. (point de service)
- Return of Insured Deposits
Return of Insured Deposits means the form of return of insured deposits established by the Corporation in accordance with subsection 22(1) of the Act. (Déclaration des dépôts assurés)
- SOR/99-385, s. 1
2 No person shall make any false or deceptive representation with respect to
(a) what constitutes, or does not constitute, a deposit;
(b) what constitutes, or does not constitute, a deposit that is insured by the Corporation; or
(c) who is a member institution.
3 (1) Where a member institution makes a representation with respect to any of the matters referred to in paragraphs 2(a) to (c), the representation shall be made in accordance with sections 4 to 9.1.
(2) A member institution shall not make a representation with respect to any of the matters referred to in paragraphs 2(a) to (c) if its deposit insurance has been terminated or cancelled.
- SOR/99-385, s. 2
4 (1) Subject to subsection (2), a member institution may, in its advertising, make the following representation with respect to its status as a member institution, immediately after the name of the member institution:
“MEMBER OF CANADA DEPOSIT INSURANCE CORPORATION”
(2) The representation referred to in subsection (1) may only appear in advertising that concerns exclusively deposits insured under the Act.
(2) A member institution shall display prominently at each of its places of business a membership sign in such a manner that the sign is clearly visible within the place of business during business hours.
(3) Where a member institution shares a place of business with a person other than a member institution, the member institution shall ensure that its representations and the location or manner in which its membership sign is displayed do not give the impression that the other person is also a member institution.
Representations Concerning Deposits and Deposit Insurance
6 The Corporation shall supply to each member institution a copy of a document containing the information set out in Schedule II.
(2) A register shall be
(3) A register shall include the following information:
(a) the name of the member institution;
(b) a representation with respect to its status as a member institution as set out in section 4;
(c) the telephone number of the Corporation that may be used in order to obtain further information on deposit insurance; and
(d) a list of each type of instrument evidencing that the member institution has received or is holding money from or on behalf of a person
(4) The register may include the text of the document referred to in section 6.
(5) A member institution shall provide to the Corporation, with its Return of Insured Deposits, a copy of its register as of April 30 of each year.
- SOR/99-385, s. 3
(1.1) If a person commences a transaction at a point of service by electronic means to open an account or to make a deposit with a member institution for a fixed term, the member institution must
(1.2) If a person commences a transaction at a point of service with a member institution by telephone or facsimile to open an account or to make a deposit for a fixed term, the member institution must
(2) A member institution may, at the request of any depositor or other person, make representations with respect to any of the matters set out in the document referred to in section 6 and in the register referred to in subsection 7(3).
- SOR/99-385, s. 4
(2) A member institution shall not issue an instrument to any person in writing or by electronic or other means unless the instrument bears the following statement on its face:
(a) if the instrument evidences only that the member institution has received or is holding money that does not constitute a deposit that is insured under the Act, the statement “The deposit evidenced by this instrument does not constitute a deposit that is insured under the Canada Deposit Insurance Corporation Act.”; and
(b) if the instrument evidences that the member institution has received or is holding both money that does not constitute a deposit that is insured under the Act and money that does constitute a deposit that is insured under the Act
(i) the statement “Only deposits held in Canadian currency, having a term of five years or less and payable in Canada are insurable under the Canada Deposit Insurance Corporation Act — See deposit register for clarification. This instrument evidences a deposit that is not insured under that Act.”; or
(ii) the statement “The following deposits evidenced by this instrument do not constitute deposits that are insured under the Canada Deposit Insurance Corporation Act:", followed by a list of the deposits.
(3) Where a member institution enters into a transaction with a person by telecommunications facilities, or by electronic or other means, with respect to an instrument, the member institution shall
(a) in the case of an oral communication,
(b) in the case of a communication in writing, issue to the person in writing, by telecommunications facilities or by electronic or other means, a notice that includes the statement set out in subsection (2).
- SOR/99-385, s. 5
- SOR/99-465, s. 1(F)
“Only deposits held in Canadian currency, having a term of five years or less and payable in Canada are insurable under the Canada Deposit Insurance Corporation Act — See deposit register for clarification.”
(2) A member institution may affix the statement set out in paragraph 9(2)(a) to any instrument evidencing that the member institution has received or is holding money that does not constitute a deposit.
- SOR/99-385, s. 6
- SOR/99-465, s. 1(F)
Coming into Force
Footnote *10 (1) Subject to subsection (2), this By-law comes into force on the day on which section 45 of An Act to amend, enact and repeal certain laws relating to financial institutions, chapter 6 of the Statutes of Canada, 1996, comes into force.
Return to footnote *[Note: By-law in force March 1, 1997, see SI/97-27.]
(2) Sections 7 and 8 come into force on March 1, 1998.
GRAPHIC IS NOT DISPLAYED, PLEASE SEE SOR/96-542, P. 3354.
GRAPHIC IS NOT DISPLAYED, PLEASE SEE SOR/96-542, P. 3355.
GRAPHIC IS NOT DISPLAYED, PLEASE SEE SOR/96-542, P. 3356.
GRAPHIC IS NOT DISPLAYED, PLEASE SEE SOR/96-542, P. 3357.
PROTECTING YOUR DEPOSITS
Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation created in 1967 to protect the money you deposit in member financial institutions in case of their failure.
CDIC’s members are banks, trust companies and loan companies that display this sign:
[CDIC will insert membership sign from Schedule I]
What does CDIC insure?
CDIC insures eligible deposits you make with our members. Each CDIC member maintains a register of the eligible deposits it offers, which you may consult at its branches. Insurable deposits include:
|•||savings and chequing accounts;|
|•||term deposits, such as guaranteed investment certificates (GICs), and debentures issued by loan companies;|
|•||money orders and drafts;|
|•||certified drafts and cheques; and|
|•||traveller’s cheques issued by members.|
|To be eligible for deposit insurance protection, your deposit must be payable in Canada, in Canadian currency. Term deposits must be repayable no later than five years after the date of deposit.|
|Not all deposits and investments offered by our members are insurable. For example, CDIC does not insure:|
|•||foreign currency deposits (e.g. accounts in U.S. dollars);|
|•||term deposits with a maturity date of more than five years from the date of deposit;|
|•||debentures issued by chartered banks;|
|•||bonds and debentures issued by governments and corporations;|
|•||Treasury bills; and|
|•||investments in mortgages, stocks and mutual funds.|
|What is the maximum insurance protection?|
|By law, the maximum basic protection for eligible deposits is $60,000 per depositor (principal and interest combined) in each member institution. Deposits are not insured separately in each branch office of a member institution.|
|CDIC provides separate protection for joint deposits, deposits held in trust and deposits held in registered retirement savings plans (RRSPs) and in registered retirement income funds (RRIFs).|
|You are responsible for ensuring that the member institution’s records include all information required for the separate protection of these deposits. (see following sections for details)|
|Deposits you own jointly with someone else are insured separately from deposits in your own name, provided that the records of the member institution:|
|— indicate the deposits are owned jointly; and|
|— include the name and address of each joint owner.|
|The maximum insurance for all deposits having the same joint owners at each member institution is $60,000 (collectively, not per individual owner).|
|Deposits held in trust are insured separately from deposits owned individually by the trustee or the beneficiary, provided that the records of the member institution:|
|— state that the deposit is held in trust;|
|— identify the name and address of the trustee(s); and|
|— identify the name and address of the beneficiary(ies).|
|At each member institution, all eligible deposits having both the same trustee and the same beneficiary are combined, and the total is insured to a maximum of $60,000.|
|If a trust deposit has more than one beneficiary, the portion owned by each beneficiary must be identified on the member institution’s records and updated each year as of April 30. Each beneficiary’s portion is insured up to $60,000.|
|CDIC does not insure all funds held in registered plans. To be insurable, deposits must be held in savings accounts or in term deposits with a maturity date not exceeding five years, and must be payable in Canadian currency.|
|•||Your maximum deposit insurance for all deposits held in RRSPs with the same member institution, including those placed by the trustee of your self-directed plan, is $60,000 (principal and interest combined).|
|•||Your maximum deposit insurance for all deposits held in RRIFs with the same member institution, including those placed by the trustee of your self-directed plan, is $60,000 (principal and interest combined).|
|•||Contributions you make to a plan for your spouse or common-law partner are combined with other deposits held in plans under the name of your spouse or common-law partner with the same member institution not with deposits in your plans.|
The following example shows how deposit insurance applies to eligible deposits at a CDIC member institution. All amounts include principal and interest.
|Carole, RRSP||Term deposits||$40,000||$40,000|
|Robert, in trust for Carole||Term deposits||$50,000||$50,000|
|Paul, RRSP||U.S. dollar||$5,000||$5,000|
|Paul, RRIF||Term deposits||$75,000||$60,000||$15,000|
|Carole and Paul,||Savings||$10,000|
|Paul and Robert,||Savings||$5,000||$5,000|
|What happens if a CDIC member amalgamates with another member?|
|If an amalgamation of CDIC members results in your total insurable deposits with the new member institution exceeding the $60,000 maximum, your insured demand deposits (e.g. savings and chequing accounts) in each institution on the date of merger continue to be insured until withdrawn; insured term deposits continue to be protected until their maturity date. While your deposits total more than $60,000, new deposits placed at the amalgamated member are not insured.|
|If your deposits made with the institutions before the merger total less than $60,000, any new deposits you make at the amalgamated member will be added to those previous deposits, and the total will be insured to the $60,000 maximum.|
|What happens if a member institution fails?|
|•||It is not necessary to file a claim with CDIC.|
|•||CDIC writes to the insured depositors advising them of how and when they will receive payment.|
|•||Payments are made as soon as possible (normally within two months).|
|•||The payment includes principal and interest up to $60,000.|
|•||No interest will be paid from the date the Court officially closes the failed institution, except in extraordinary circumstances (e.g. CDIC takes more than six months to repay insured depositors).|
|•||To avoid collapsing registered plans, CDIC transfers the insured funds to another member.|
|How is deposit insurance funded?|
|CDIC’s member institutions fund deposit insurance through premiums paid on the insured deposits that they hold. If required, CDIC is authorized to borrow additional funds, which CDIC repays with interest.|
|This document contains general information and is not intended to be a legal interpretation of Canadian legislation respecting deposit insurance.|
|Additional information or a CDIC Membership brochure can be obtained by contacting a CDIC member institution or by calling|
|Canada Deposit Insurance Corporation|
|50 O’Connor Street, 17th Floor|
|P.O. Box 2340, Station D|
|Web site: http://www.cdic.ca|
- SOR/97-533, s. 1
- SOR/2001-442, s. 1
- err.(E), Vol. 136, No. 7
- Date modified: