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Canada Deposit Insurance Corporation Eligible Financial Contracts By-law
SOR/2022-55
CANADA DEPOSIT INSURANCE CORPORATION ACT
Registration 2022-03-14
Canada Deposit Insurance Corporation Eligible Financial Contracts By-law
The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g)Footnote a and subsections 39.15(7.4)Footnote b and (7.5)Footnote b of the Canada Deposit Insurance Corporation ActFootnote c, makes the annexed Canada Deposit Insurance Corporation Eligible Financial Contracts By-law.
Return to footnote aR.S., c. 18 (3rd Supp.), s. 51
Return to footnote bS.C. 2021, c. 23, s. 126(4)
Return to footnote cR.S., c. C-3
Ottawa, March 2, 2022
Marginal note:Definitions
1 The following definitions apply in this By-law.
- Act
Act means the Canada Deposit Insurance Corporation Act. (Loi)
- central counterparty
central counterparty means a corporation, association, partnership, agency or other entity that provides a clearing and settlement system and fully guarantees the performance of, or fully novates, eligible financial contracts that are cleared or settled through that system. (contrepartie centrale )
- clearing and settlement system
clearing and settlement system means a system or arrangement for the clearing or settlement of payment obligations between counterparties in one or more financial markets, or for the sharing of payment messages for the purpose of clearing or settlement of such payment obligations. (système de compensation et de règlement)
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, including any of its departments or agencies,
(iii) a central bank,
(iv) a clearing house, as defined in subsection 39.15(9) of the Act,
(v) a central counterparty, or
(vi) a bank that is owned and funded by the governments of two or more countries and established for the purpose of economic development;
(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, 2028, 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 (vi), may take.
Marginal note:Coming into force
5 This By-law comes into force on the day on which it is registered.
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