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Canada Deposit Insurance Corporation Deposit Insurance Information By-law (SOR/96-542)

Regulations are current to 2019-08-15 and last amended on 2019-06-07. Previous Versions

Representations Concerning Deposits and Deposit Insurance (continued)

Display of Badge (continued)

 [Repealed, SOR/2017-215, s. 6]

 [Repealed, SOR/2017-215, s. 7]

Federal Credit Unions: Statement of Transitional Coverage

  •  (1) A federal credit union shall prepare a statement of transitional coverage that contains the following information which has been verified by the Corporation:

    • (a) the purpose of the statement;

    • (b) a description of the deposit insurance coverage provided by the Corporation that applies to the pre-existing deposits of the federal credit union during the transition period;

    • (c) the day on which the deposit insurance coverage referred to in paragraph (b) expires; and

    • (d) a description of the deposit insurance coverage provided by the Corporation that will apply to the deposits of the federal credit union after the transition period expires.

  • (2) A federal credit union shall, beginning on the day on which it becomes a member institution and ending on the day on which the transition period expires,

    • (a) make the statement of transitional coverage available by way of a hyperlink on every page of its website that refers to deposit products; and

    • (b) make a copy of the statement available to depositors at each of its places of business.

  • (3) A federal credit union shall, for a period of 180 days after the day on which it becomes a member institution, prominently display, at each of its places of business, a sign that refers depositors and all other persons to the statement of transitional coverage and indicates how they can obtain a copy of that statement.

  • (4) Subject to subsection (5), a federal credit union shall, not earlier than 12 weeks but not later than 4 weeks before the end of the transition period, provide to a depositor in respect of any pre-existing deposit that exceeds $100,000 and is to be repaid on a fixed day, a copy of the statement of transitional coverage or an indication of how they can obtain a copy of that statement.

  • (5) A federal credit union that has provided to a depositor a copy of the statement of transitional coverage in respect of a pre-existing deposit, or given to a depositor an indication of how that copy can be obtained, is not required to provide to the same depositor in respect of any other pre-existing deposit a copy of the statement or an indication of how the copy can be obtained.

  • SOR/2017-215, s. 9

Warning Statements for Ineligible Deposits

  •  (1) Subject to subsection (2), if a member institution issues an instrument to a person evidencing that the member institution has received or is holding money that constitutes a deposit that is not eligible to be insured by the Corporation, the member institution shall include on the face of the instrument a warning statement in substantially the same words as one of the following statements:

    • (a) “Not insured by the CDIC”;

    • (b) “Not insured by the Canada Deposit Insurance Corporation”; or

    • (c) “The deposit evidenced by this instrument does not constitute a deposit that is insured under the Canada Deposit Insurance Corporation Act”.

  • (2) If a member institution issues an instrument to a person evidencing that the member institution has received or is holding money that constitutes both a deposit that is eligible to be insured by the Corporation and a deposit that is not eligible to be insured by the Corporation, the member institution shall include on the face of the instrument, in the location specified, if any, a warning statement in substantially the same words as one of the following statements:

    • (a) “Only deposits held in Canadian currency, having a term of five years or less and payable in Canada are eligible to be insured under the Canada Deposit Insurance Corporation Act”;

    • (b) “The following deposits evidenced by this instrument do not constitute deposits that are insured under the Canada Deposit Insurance Corporation Act:” before the list of deposits that are not eligible to be insured by the Corporation;

    • (c) “Not insured by the CDIC” beside the reference to each deposit that is not eligible to be insured by the Corporation;

    • (d) “Not insured by the Canada Deposit Insurance Corporation” beside the reference to each deposit that is not eligible to be insured by the Corporation; or

    • (e) “Not insured by the CDIC” in a footnote the reference mark for which is located beside the reference to each deposit that is not eligible to be insured by the Corporation.

  • (3) If a member institution enters into a transaction with a person by means of telecommunications, or by electronic or other means, with respect to an instrument, the member institution shall

    • (a) in the case of an oral communication,

      • (i) make an oral representation that is substantially the same as one of the statements set out in subsection (2), and

      • (ii) issue to the person in writing, by telecommunications or by electronic or other means, a notice that includes one of the statements set out in subsection (2); or

    • (b) in the case of a communication in writing, issue to the person in writing, by means of telecommunications or by electronic or other means, a notice that includes one of the statements set out in subsection (2).

  • SOR/99-385, s. 5
  • SOR/99-465, s. 1(F)
  • SOR/2006-334, s. 9
  • SOR/2017-215, s. 9
  •  (1) If a member institution elects to affix a warning statement to any document relating to a deposit that is not eligible to be insured by the Corporation, the warning shall be in substantially the same words as the following:

    “Only deposits held in Canadian currency, having a term of five years or less and payable in Canada are eligible to be insured under the Canada Deposit Insurance Corporation Act.”

  • (2) If a member institution elects to affix a warning statement to any document evidencing that the member institution has received or is holding money that does not constitute a deposit that is eligible to be insured by the Corporation, the statement shall be in substantially the same words as one set out in one of paragraphs 9(1)(a) to (c).

  • SOR/99-385, s. 6
  • SOR/99-465, s. 1(F)
  • SOR/2006-334, s. 10
  • SOR/2017-215, s. 9

 [Repealed, SOR/2017-215, s. 10]

Lists of Trade Names and Financial Products

 A member institution shall not, in the course of its deposit-taking activities relating to deposits eligible to be insured by the Corporation, use one of its trade names in its representations about who is a member institution, what constitutes a deposit or what constitutes a deposit that is insured by the Corporation, unless the member institution

  • (a) prepares and maintains an up-to-date list of those trade names;

  • (b) makes the list available on its website in the same location where the membership sign is displayed;

  • (c) provides the Corporation with a copy of the list not later than November 1, 2018 and, after that date, provides the Corporation with a copy of the list with its Return of Insured Deposits;

  • (d) provides the Corporation with not less than 15 days’ notice of any new trade name to be used in the course of its deposit-taking activities relating to deposits eligible to be insured by the Corporation and the date of the intended first public use of that trade name by the member institution; and

  • (e) permits the Corporation to make the contents of the list, and any updates to the list, available to the public.

  • SOR/2017-215, s. 11
  •  (1) A member institution shall prepare and maintain an up-to-date list of each type of instrument evidencing that the member institution has received or is holding money from or on behalf of a person

    • (a) that constitutes a deposit that is eligible to be insured by the Corporation;

    • (b) that is or is to be set out in the member institution’s Return of Insured Deposits; and

    • (c) in respect of which the Corporation collects a premium in accordance with section 21 of the Act.

  • (2) The list shall be

    • (a) in printed form; or

    • (b) entered or recorded by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time.

  • (3) A member institution shall provide a copy of the list to the Corporation with its Return of Insured Deposits.

  • SOR/99-385, s. 4
  • SOR/2006-334, s. 8
  • SOR/2017-215, s. 8
 
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