Budget Implementation Act, 2009 (S.C. 2009, c. 2)
Full Document:
Assented to 2009-03-12
Marginal note:R.S., c. 18 (3rd Supp.), s. 58
239. Section 24 of the Act is replaced by the following:
Marginal note:Where premiums payable
24. All premiums payable shall be paid to the Corporation at its head office.
240. The Act is amended by adding the following after section 25.1:
Marginal note:Non-application to special premium
25.2 Section 21, subsection 22(2), section 23 and subsection 37(5) do not apply to a special premium.
Marginal note:By-laws — special premium
25.3 (1) In respect of each order made under subsection 7.1(1) or each direction given under subsection 11.1(1), the Board may make by-laws respecting the recovery from member institutions or any class of member institutions of the loss referred to in section 7.3 or 11.3, as the case may be, including by-laws
(a) fixing the special premium payable by member institutions or any class of member institutions or providing for the manner of fixing the special premium;
(b) establishing a system of classifying member institutions in different classes;
(c) establishing the criteria or factors to be taken into account or procedures to be followed by the Corporation in determining the class in which a member institution is classified; or
(d) respecting the time and manner in which a special premium shall be paid.
Marginal note:When by-law not effective
(2) A by-law made under subsection (1) is not effective unless it has been approved in writing by the Minister.
Marginal note:1992, c. 26, s. 11
241. The heading before section 39.1 of the Act is replaced by the following:
Vesting in Corporation and Appointing Corporation as Receiver
242. Section 39.1 of the Act is amended by adding the following after subsection (3):
Marginal note:Urgency
(4) Despite subsections (1) and (3), the Superintendent may report to the Corporation orally if he or she is of the opinion that the federal member institution’s circumstances must be considered without delay.
Marginal note:1996, c. 6, s. 41
243. (1) Subsection 39.13(1) of the Act is replaced by the following:
Marginal note:Order
39.13 (1) The Governor in Council may, on the recommendation of the Minister made under section 39.12, by order,
(a) vest the shares and subordinated debt of the federal member institution in the Corporation;
(b) appoint the Corporation as receiver in respect of the federal member institution; or
(c) direct the Minister to incorporate a federal institution designated in the order as a bridge institution.
Marginal note:Condition precedent
(1.1) The making of an order, under paragraph (1)(b), appointing the Corporation as receiver of the federal member institution is a condition precedent to the making of an order under paragraph (1)(c) in respect of the federal member institution.
Marginal note:1996, c. 6, s. 41
(2) The portion of subsection 39.13(2) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:But du décret portant dévolution
(2) Le décret portant dévolution :
Marginal note:1996, c. 6, s. 41
(3) The portion of subsection 39.13(3) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Décret nommant séquestre
(3) Le décret pris en vertu de l’alinéa (1)b) fait de la Société le séquestre unique de tout ou partie de l’actif et de l’entreprise de l’institution fédérale membre, selon les termes du décret, et lui donne le pouvoir, entre autres :
244. The Act is amended by adding the following after section 39.13:
Marginal note:Order to exempt or adapt
39.131 (1) The Governor in Council may, by order,
(a) exempt a federal member institution in respect of which an order directing the incorporation of a bridge institution is made, a bridge institution or a subsidiary of any of those institutions from the application of any provision of this Act or the regulations or of the following Acts or regulations made under them:
(i) the Bank Act,
(ii) the Canadian Payments Act,
(iii) the Cooperative Credit Associations Act,
(iv) the Financial Consumer Agency of Canada Act,
(v) the Insurance Companies Act,
(vi) the Office of the Superintendent of Financial Institutions Act,
(vii) the Trust and Loan Companies Act, and
(viii) the Winding-up and Restructuring Act; or
(b) provide that any provision of this Act or the regulations or of the Acts referred to in paragraph (a) or regulations made under them applies to a federal member institution in respect of which an order directing the incorporation of a bridge institution is made, a bridge institution or a subsidiary of any of those institutions only in the manner and to the extent provided for in the order and adapt that provision for the purpose of that application.
Marginal note:Scope or conditions
(2) The exemption may be limited in scope or duration or made subject to conditions.
Marginal note:Coming into force
39.132 (1) An order made under subsection 39.131(1) has effect from the time that it is made.
Marginal note:Statutory Instruments Act
(2) The Statutory Instruments Act does not apply to the order.
Marginal note:Publication
(3) The Minister shall cause the order to be published in the Canada Gazette as soon as the Minister considers appropriate.
Marginal note:1996, c. 6, s. 41
245. (1) Paragraph 39.15(1)(a) of the Act is replaced by the following:
(a) no action or other civil proceeding may be commenced or continued against the federal member institution or in respect of its assets other than a proceeding under the Winding-up and Restructuring Act commenced by the Corporation or the Attorney General of Canada;
Marginal note:1996, c. 6, s. 41
(2) Subsection 39.15(1) of the Act is amended by striking out “and” at the end of paragraph (d) and by replacing paragraph (e) with the following:
(e) no person may terminate or amend any agreement with the federal member institution or claim an accelerated payment, or forfeiture of the term, under any such agreement with the federal member institution by reason only of
(i) the federal member institution’s insolvency,
(ii) a default, before the order was made, by the federal member institution in the performance of its obligations under the agreement,
(iii) the making of the order, or
(iv) the agreement being assigned to or assumed by the bridge institution; and
(f) no person may terminate the federal member institution’s membership in an organization by reason only of
(i) the default by the federal member institution in the performance of its obligations under the rules of the organization,
(ii) the making of the order, or
(iii) the federal member institution’s membership being transferred to the bridge institution.
Marginal note:1996, c. 6, s. 41
(3) Paragraph 39.15(2)(b) of the Act is replaced by the following:
(b) provides, in substance, that the federal member institution ceases to have the rights — or, in the case of a bridge institution, does not have the rights — to use or deal with assets that the federal member institution or bridge institution would otherwise have, on
(i) the federal member institution’s insolvency,
(ii) the default by the federal member institution in the performance of its obligations,
(iii) the making of the order, or
(iv) the agreement being assigned to or assumed by the bridge institutions.
(4) Section 39.15 of the Act is amended by adding the following after subsection (2):
Marginal note:Organization’s rules — no force or effect
(2.1) If an order is made under subsection 39.13(1), any stipulation in the rules of an organization is of no force or effect if it
(a) has the effect of providing for or permitting anything that, in substance, is contrary to paragraph (1)(f) or 39.13(3)(b); or
(b) provides, in substance, that the federal member institution ceases to have the rights — or, in the case of the bridge institution, does not have the rights — of a member of the organization, that the federal member institution or the bridge institution would otherwise have, on
(i) the federal member institution’s insolvency,
(ii) the default by the federal member institution in the performance of its obligations,
(iii) the making of the order, or
(iv) the federal member institution’s membership being transferred to the bridge institution.
(5) Section 39.15 of the Act is amended by adding the following after subsection (3):
Marginal note:Clearing agent
(3.1) A member of the Canadian Payments Association that acts as a clearing agent for a federal member institution at the time an order directing the incorporation of a bridge institution is made with respect to the federal member institution shall act as a clearing agent for the bridge institution, if the Corporation undertakes to
(a) unconditionally guarantee the federal member institution’s obligations to the clearing agent as clearing agent; or
(b) ensure that the federal member institution’s obligations to the clearing agent as clearing agent are assumed by the bridge institution.
Marginal note:2001, c. 9, s. 212(2)
(6) Paragraph 39.15(6)(b) of the Act is replaced by the following:
(b) the Superintendent, on the application of the federal member institution, exempted the security agreement from the application of those paragraphs and that subsection before the making of an order under subsection 39.13(1) and, in the case of an order directing the incorporation of a bridge institution, the Corporation does not undertake to ensure that the obligations secured by the security interest will be assumed by the bridge institution and does not undertake to unconditionally guarantee payment of the obligations secured by the security interest.
(7) Section 39.15 of the Act is amended by adding the following after subsection (7):
Marginal note:Corporation’s undertaking — eligible financial contracts
(7.1) If an order directing the incorporation of a bridge institution is made, the actions referred to in subsection (7) may not be taken by reason only that the order or an order appointing the Corporation as receiver is made in respect of the federal member institution or that the eligible financial contract is assigned to the bridge institution if the Corporation undertakes to
(a) unconditionally guarantee the payment of any amount due or that may become due — in accordance with the provisions of the eligible financial contract — by the federal member institution; or
(b) ensure that all obligations arising from the eligible financial contract will be assumed by the bridge institution.
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