Canada Deposit Insurance Corporation Eligible Financial Contracts By-law

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.