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Canada Deposit Insurance Corporation Act (R.S.C., 1985, c. C-3)

Act current to 2024-03-06 and last amended on 2023-06-22. Previous Versions

Inspection of Member Institutions (continued)

Marginal note:Certain reports to be provided to Corporation

 When a report is sent by the Superintendent to the Minister under section 643 of the Bank Act, section 505 of the Trust and Loan Companies Act or section 437 of the Cooperative Credit Associations Act, a copy of the report shall be sent by the Superintendent at the same time to the Corporation.

  • 2001, c. 9, s. 210

Marginal note:Reporting breaches

  •  (1) If, in the Corporation’s opinion, a member institution is in breach of a provision of this Act or the regulations, a by-law of the Corporation or a condition of its policy of deposit insurance, the Corporation may send a report of the facts to the chief executive officer or chairperson of the board of directors of the member institution. The report may be sent by registered mail or delivered by hand and a copy of it must be provided to the Minister.

  • Marginal note:Presentation of report to directors

    (2) The chief executive officer or chairperson of the board of directors of a member institution to whom a report has been sent or delivered under subsection (1) shall, within 15 days after the receipt of the report, cause

    • (a) the report to be presented to a meeting of the board of directors of the member institution and to be incorporated in the minutes of the meeting; and

    • (b) a certified copy of that portion of the minutes of the meeting that relates to the presentation of the report to be sent by registered mail to the chief executive officer of the Corporation at its head office.

  • R.S., 1985, c. C-3, s. 30
  • R.S., 1985, c. 18 (3rd Supp.), s. 62
  • 1992, c. 26, s. 9(E)
  • 1996, c. 6, s. 35
  • 2005, c. 30, s. 106
  • 2012, c. 5, s. 193(E)
  • 2016, c. 7, s. 129

Termination and Cancellation of Insurance

Marginal note:Notice of termination

  •  (1) Where a report has been sent or delivered under subsection 30(1) and the progress made by the member institution in remedying the breach is not satisfactory to the Corporation, the Corporation shall, by notice,

    • (a) where the member institution is a federal member institution, so inform the institution and the Minister; and

    • (b) where the member institution is a provincial member institution, give the institution not less than thirty days notice of the termination of its policy of deposit insurance.

  • Marginal note:Copy to provincial Minister

    (2) Where a notice of termination is given to a provincial member institution under subsection (1), the Corporation shall forthwith send a copy thereof to the appropriate provincial Minister.

  • Marginal note:Termination of policy

    (3) The policy of deposit insurance of a provincial member institution shall terminate on the expiration of the period specified in the notice given under subsection (1) unless, before the expiration of that period,

    • (a) the Corporation is satisfied that the member institution is taking the necessary action to remedy the breach to which the notice relates; or

    • (b) the appropriate provincial Minister requests an extension of the period to enable the necessary remedial action to be taken, in which case the termination may be deferred by the Corporation for a further period not exceeding sixty days.

  • Marginal note:Where report on federal member institution

    (4) Where a report has been sent or delivered under subsection 30(1) in respect of a federal member institution and the member institution and the Minister have been informed in accordance with subsection (1) by the Corporation that the Corporation is not satisfied with the member institution’s progress in remedying the breach to which the report relates, the Corporation may, unless the Minister advises the Corporation that the Minister is of the opinion that it is not in the public interest to do so, give the member institution not less than thirty days notice of the termination of its policy of deposit insurance.

  • Marginal note:Termination of policy

    (5) The policy of deposit insurance of a federal member institution shall terminate on the expiration of the period specified in the notice given under subsection (4) or such later period not exceeding sixty days as the Corporation may determine unless, before the expiration of that period, the Corporation is satisfied that the member institution is taking the necessary action to remedy the breach to which the notice relates.

  • Marginal note:Conditions of extension

    (5.1) The Corporation may impose conditions on a federal member institution in connection with any extension of the period referred to in subsection (5) and failure by the federal member institution to comply with any such condition constitutes a termination of the extension.

  • Marginal note:Revoking notice

    (6) Where, at any time after a notice of termination has been given to a member institution under subsection 31(1) or (4), the Corporation is satisfied that as the result of any action by the member institution, or any other person, the risk to depositors or to the Corporation has been averted or substantially reduced, the Corporation may revoke its notice of termination.

  • R.S., 1985, c. C-3, s. 31
  • R.S., 1985, c. 18 (3rd Supp.), s. 62
  • 1992, c. 26, s. 10(E)
  • 1996, c. 6, s. 36
  • 2005, c. 30, s. 107

Marginal note:Acceleration of termination of policy of deposit insurance

  •  (1) Despite any other provision of this Act, if, at any time after a notice of termination has been given to a provincial member institution under subsection 31(1), the Corporation concludes that

    • (a) the financial condition of the provincial member institution has deteriorated since the giving of the notice, and

    • (b) the interests of depositors will be adversely affected by any further delay in terminating the provincial member institution’s policy of deposit insurance,

    the Corporation shall without delay send a notice by registered mail, or deliver a notice by hand, to the provincial member institution and to the appropriate provincial Minister, to the effect that the policy of deposit insurance of the institution will be terminated on the expiration of a period of five days after the receipt of the notice by the institution.

  • Marginal note:Revocation

    (2) The Board of Directors of the Corporation or one of its committees established for the purpose may, before the expiry of the period specified in the notice, revoke the notice if, after considering any written representations made by the provincial member institution, it is satisfied that it is appropriate to do so.

  • (3) [Repealed, 2007, c. 6, s. 414]

  • Marginal note:Revocation

    (4) The Corporation shall revoke a notice sent or delivered under subsection (1) where the appropriate provincial Minister or provincial supervisor, as the case may be, has taken control of the provincial member institution or its assets.

  • Marginal note:Termination of policy

    (5) Unless a notice sent or delivered under subsection (1) is revoked under subsection (3) or (4), the policy of deposit insurance of the provincial member institution to which the notice was sent or delivered shall terminate on the expiration of the period specified in the notice.

  • Marginal note:Effect of revocation

    (6) The revocation of a notice under subsection (3) or (4) does not revoke a notice given under subsection 31(1).

  • R.S., 1985, c. 18 (3rd Supp.), s. 62
  • 1996, c. 6, s. 37
  • 2007, c. 6, s. 414

Marginal note:Termination of policy by provincial member institution

  •  (1) A provincial member institution may terminate a policy of deposit insurance by giving such notice of termination as may be required by the policy.

  • Marginal note:Effect of termination

    (2) Unless the policy of deposit insurance of a provincial member institution otherwise provides, section 34 applies in respect of deposits with the institution on the termination of the policy by the institution.

  • R.S., 1985, c. C-3, s. 32
  • R.S., 1985, c. 18 (3rd Supp.), s. 62

Marginal note:Cancellation

  •  (1) Subject to subsection (3), the policy of deposit insurance of a member institution may be cancelled by the Corporation if, in the opinion of the Corporation, the member institution

    • (a) is or is about to become insolvent;

    • (b) has ceased to accept deposits; or

    • (c) has not begun to accept deposits within a period of two years beginning on the day on which it became a member institution.

  • Marginal note:Cancellation

    (2) If a member institution intends to cease to accept deposits, it must notify the Corporation and the institution’s policy of deposit insurance may, subject to subsection (3), be cancelled by the Corporation.

  • Marginal note:No cancellation in certain cases

    (3) The Corporation shall notify the Minister and the Superintendent of the action it is proposing to take under subsection (1) or (2) and it shall not take the action if it is advised by the Minister that in the opinion of the Minister taking the action would not be in the public interest.

  • R.S., 1985, c. C-3, s. 33
  • R.S., 1985, c. 18 (3rd Supp.), s. 62
  • 1996, c. 6, s. 38
  • 2007, c. 6, s. 415
  • 2012, c. 5, s. 194

Marginal note:Effect of termination or cancellation

  •  (1) If the policy of deposit insurance of a member institution is terminated or cancelled by the Corporation, the deposits with the institution on the day the termination or cancellation takes effect, less any withdrawals from those deposits, continue to be insured under the terminated or cancelled policy of deposit insurance for a period of two years or, in the case of a term deposit with a remaining term exceeding two years, to the maturity of the term deposit.

  • Marginal note:Non-application of continued coverage

    (2) Subsection (1) does not apply in respect of a deposit with

    • (a) a member institution if the deposit has been assumed by another member institution; or

    • (b) a former member institution that has received authorization to accept deposits payable in Canada without being a member institution and the policy of deposit insurance of which has been cancelled.

  • Marginal note:Corporations not member institutions

    (3) A corporation is not considered to be a member institution by reason only that its deposits continue to be insured under subsection (1).

  • Marginal note:Continuing obligations

    (4) Termination or cancellation of a policy of deposit insurance does not relieve a former member institution from obligations and liabilities to the Corporation that have accrued before the termination or cancellation.

  • Marginal note:Amendment of order

    (5) If the policy of deposit insurance of a federal member institution is cancelled by the Corporation under paragraph 33(1)(b) or (c) or subsection 33(2), the Superintendent must, under paragraph 54(1)(a) of the Bank Act, paragraph 62(1)(a) of the Cooperative Credit Associations Act or paragraph 58(1)(b) of the Trust and Loan Companies Act, as the case may be, amend the federal member institution’s order approving the commencement and carrying on of business to prohibit the institution from accepting deposits in Canada.

  • R.S., 1985, c. C-3, s. 34
  • 1996, c. 6, s. 39
  • 1999, c. 28, s. 107
  • 2007, c. 6, s. 416
  • 2012, c. 5, s. 195

Marginal note:Creditor remedies available

  •  (1) Where in the opinion of the Corporation a member institution is or is about to become insolvent, the Corporation is deemed to be a creditor of the member institution and the Corporation may initiate and take any measures or proceedings that a creditor of the member institution may initiate or take under law to preserve the assets of the member institution or to have it wound up or liquidated.

  • Marginal note:No measures to be taken in certain cases

    (1.1) The Corporation shall notify the Minister of the action it is proposing to take under subsection (1) and shall not take the action if it is advised by the Minister that in the opinion of the Minister taking the action would not be in the public interest.

  • Marginal note:Presumption

    (2) For the purposes of this section, the Corporation is deemed to be a creditor of a member institution despite the termination or cancellation of the institution’s policy of deposit insurance.

  • R.S., 1985, c. C-3, s. 35
  • R.S., 1985, c. 18 (3rd Supp.), s. 63
  • 1992, c. 27, s. 90
  • 1993, c. 34, s. 14
  • 1996, c. 6, s. 40
  • 2007, c. 6, s. 417

Marginal note:Removal of references to deposit insurance

  •  (1) If the policy of deposit insurance of a member institution is terminated or cancelled, the member institution shall notify its depositors of that fact and shall remove all references to deposit insurance under this Act from all forms of advertising by the institution.

  • Marginal note:Public notice

    (2) The Corporation may, in the manner and through any news media that it considers appropriate, give public notice of the termination or cancellation of the policy of deposit insurance of a member institution if, in the opinion of the Corporation, the public interest requires that such notice be given.

  • R.S., 1985, c. C-3, s. 36
  • 2007, c. 6, s. 418

Provincial Insuring Arrangements

Marginal note:Provincial deposit insurance

  •  (1) If under the law of any province the government of the province or an agent of that government guarantees or insures any of the deposits with a provincial institution operating within the province, the Corporation, subject to section 17.1 and any agreement entered into under subsection (3), may

    • (a) insure some or all of the deposits with the institution; or

    • (b) amend the institution’s policy of deposit insurance, to exclude from the policy any of the deposits with the institution.

  • (2) [Repealed, 2007, c. 6, s. 419]

  • Marginal note:Agreement with province

    (3) The Corporation may, with the approval of the Governor in Council, enter into an agreement with the government, or an agent of the government, of a province referred to in subsection (1), to provide for reciprocal arrangements relating to the administration or operation of the law of that province and of this Act.

  • Marginal note:Regulations

    (4) For the purpose of enabling the Corporation to carry out an insuring arrangement referred to in subsection (1) or provided for in an agreement under subsection (3), the Governor in Council may, by regulation, make provision for any matter or thing arising from the insuring arrangement or agreement.

  • Marginal note:Refund of premiums

    (5) Where the Corporation during any premium year ceases to insure any of the deposits held by a member institution that is a provincial institution, by reason of the fact that such deposits are guaranteed or insured pursuant to the law of a province, the Corporation may refund to that provincial institution the proportion of the premium paid by the provincial institution to the Corporation for that premium year in respect of those deposits that bears the same relation to the premium for the full premium year in respect of those deposits that the unexpired part of the premium year bears to the full premium year, but in no case shall a refund be made that will reduce the premium paid by the provincial institution to the Corporation for the premium year to less than five thousand dollars.

  • Marginal note:Saving

    (6) Nothing in this section shall be construed as authorizing the Corporation to insure deposits contrary to section 12.

  • Definition of deposits

    (7) In this section, deposits includes a part of a deposit.

  • R.S., 1985, c. C-3, s. 37
  • R.S., 1985, c. 18 (3rd Supp.), s. 64
  • 2007, c. 6, s. 419
 

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