Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)
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Assented to 2018-12-13
PART 4Various Measures (continued)
DIVISION 3Financial Sector (continued)
SUBDIVISION AFinancial Institutions (continued)
Electronic Consent
1991, c. 45Trust and Loan Companies Act
152 Section 539.04 of the Trust and Loan Companies Act is amended by adding the following after subsection (1):
Marginal note:Consent and notice in electronic form
(1.1) Despite subsection (1), the requirements referred to in paragraph (1)(c) may provide that the consent referred to in paragraph (1)(a) and any notice related to that consent may be provided in electronic form.
1991, c. 46Bank Act
153 Section 995 of the Bank Act is amended by adding the following after subsection (1):
Marginal note:Consent and notice in electronic form
(1.1) Despite subsection (1), the requirements referred to in paragraph (1)(c) may provide that the consent referred to in paragraph (1)(a) and any notice related to that consent may be provided in electronic form.
1991, c. 47Insurance Companies Act
154 Section 1037 of the Insurance Companies Act is amended by adding the following after subsection (1):
Marginal note:Consent and notice in electronic form
(1.1) Despite subsection (1), the requirements referred to in paragraph (1)(c) may provide that the consent referred to in paragraph (1)(a) and any notice related to that consent may be provided in electronic form.
Technical Amendments
2018, c. 12Budget Implementation Act, 2018, No. 1
155 Subsection 331(3) of the English version of the Budget Implementation Act, 2018, No. 1 is amended by replacing the paragraphs 495(4.2)(a) and (b) that it enacts with the following:
(a) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, under subsection (4.1); and
(b) respecting the circumstances in which a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (4.1).
Coordinating Amendments
Marginal note:2018, c. 12
156 (1) In this section, other Act means the Budget Implementation Act, 2018, No. 1.
(2) If subsection 331(3) of the other Act comes into force before section 155 of this Act, then
(a) that section 155 is deemed never to have come into force and is repealed; and
(b) paragraphs 495(4.2)(a) and (b) of the English version of the Insurance Companies Act are replaced by the following:
(a) imposing terms and conditions in respect of the acquisition of control of, or acquisition or increase of a substantial investment in, an entity that a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, under subsection (4.1); and
(b) respecting the circumstances in which a property and casualty company, or a marine company, may acquire control of, or acquire or increase a substantial investment in, an entity under subsection (4.1).
(3) If subsection 331(3) of the other Act comes into force on the same day as section 155 of this Act, then that section 155 is deemed to have come into force before that subsection 331(3).
SUBDIVISION BAmendments related to Canada Deposit Insurance Corporation Act
R.S., c. C-3Canada Deposit Insurance Corporation Act
157 Paragraphs 10(1)(d) and (e) of the Canada Deposit Insurance Corporation Act are replaced by the following:
(d) assume the costs of a winding-up of a member institution when the Corporation is appointed to act as a liquidator in the winding-up, or assume the costs of the receiver when the Corporation is appointed to act as such;
(e) guarantee the payment of the fees of, and the costs incurred by any person as, the liquidator or receiver of a member institution when that person is appointed as such;
158 The portion of subsection 10.1(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Total indebtedness
(3) The total principal indebtedness outstanding at any time in respect of borrowings by the Corporation under subsections (1) and (2), excluding the borrowings under paragraph 60.2(2)(c) of the Financial Administration Act, shall not exceed
159 Section 12.1 of the Act is amended by adding the following after subsection (4):
Marginal note:Deemed withdrawal from pre-existing deposit
(5) During the transition period, any withdrawal — up to the amount of the pre-existing deposit — is deemed, for the purposes of deposit insurance with the Corporation, to be withdrawn from the pre-existing deposit.
160 (1) Subsection 13(1) of the Act is replaced by the following:
Marginal note:Deposits with amalgamating institutions
13 (1) When a person has deposits with two or more member institutions that amalgamate and continue in operation as one member institution, in this section referred to as the “amalgamated institution”, a deposit of that person with an amalgamating institution on the day on which the amalgamated institution is formed, less any withdrawals from the deposit, shall, for the purposes of deposit insurance with the Corporation, be deemed to be and continue to be separate from any deposit of that person on that day with the other amalgamating institution or institutions that become part of the amalgamated institution 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.
(2) Section 13 of the Act is amended by adding the following after subsection (4):
Marginal note:Deemed withdrawal from deposit
(5) During the period referred to in subsection (1), any withdrawal by a person — up to the total amount, on the day on which the amalgamated institution is formed, of that person’s deposits with the two or more member institutions that amalgamate — shall, for the purposes of deposit insurance with the Corporation, be deemed to be withdrawn from those deposits.
161 Section 14 of the Act is amended by adding the following after subsection (4.1):
Marginal note:No set-off or compensation
(4.2) Despite section 73 of the Winding-up and Restructuring Act, if the Corporation makes a payment under this section in respect of any deposit with a member institution, the law of set-off or compensation does not apply to a claim by the Corporation on the estate of the member institution in respect of that payment.
162 Section 20 of the Act is replaced by the following:
Marginal note:Funds
20 The Corporation shall maintain funds for the purpose of carrying out its objects.
163 Subsection 21(5) of the Act is replaced by the following:
Marginal note:Calculation of deposits
(5) For the purposes of this section, a member institution may use any method approved by the Corporation for that premium year to determine or estimate the aggregate amount of its deposits that are considered to be insured by the Corporation.
164 Subsection 26(1) of the Act is repealed.
2012, c. 5Financial System Review Act
Amendments to the Act
165 Sections 191 and 192 of the Financial System Review Act are repealed.
Coordinating Amendments
Marginal note:2012, c. 5
166 (1) In this section, other Act means the Financial System Review Act.
(2) If section 191 of the other Act comes into force before section 165 of this Act, then
(a) that section 165 is deemed never to have come into force and is repealed;
(b) section 192 of the other Act is repealed;
(c) subsection 21(1) of the Canada Deposit Insurance Corporation Act is replaced by the following:
Marginal note:Assessment and collection of premiums
(d) paragraph 21(2)(d) of the Act is repealed; and
(e) subsection 21(4) of the Act is replaced by the following:
Marginal note:Maximum annual premium
(4) In this section, maximum annual premium means, in respect of a member institution, the greater of
(a) $5,000, and
(b) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of April 30 in the immediately preceding premium year.
(3) If section 191 of the other Act comes into force on the same day as section 165 of this Act, then that section 165 is deemed to have come into force before that section 191.
(4) If section 192 of the other Act comes into force before section 165 of this Act, then
(a) that section 165 is deemed never to have come into force and is repealed;
(b) section 191 of the other Act is repealed; and
(c) subsection 23(1) of the Canada Deposit Insurance Corporation Act is replaced by the following:
Marginal note:Calculation of first premium
23 (1) The premium payable by a member institution in respect of the premium year in which it becomes a member institution shall be the same proportion of the lesser of the following as the number of days in which any of the deposits with that member institution are insured by the Corporation in that premium year is of 365:
(a) the annual premium for that member determined by by-law made under subsection 21(2) based on an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution, and
(b) the greater of
(i) $5,000, and
(ii) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution.
(5) If section 192 of the other Act comes into force on the same day as section 165 of this Act, then that section 165 is deemed to have come into force before that section 192.
(6) If sections 191 and 192 of the other Act come into force before section 165 of this Act, then
(a) that section 165 is deemed never to have come into force and is repealed;
(b) subsection 21(1) of the Canada Deposit Insurance Corporation Act is replaced by the following:
Marginal note:Assessment and collection of premiums
(c) paragraph 21(2)(d) of the Act is repealed;
(d) subsection 21(4) of the Act is replaced by the following:
Marginal note:Maximum annual premium
(4) In this section, maximum annual premium means, in respect of a member institution, the greater of
(a) $5,000, and
(b) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of April 30 in the immediately preceding premium year.
(e) subsection 23(1) of the Act is replaced by the following:
Marginal note:Calculation of first premium
23 (1) The premium payable by a member institution in respect of the premium year in which it becomes a member institution shall be the same proportion of the lesser of the following as the number of days in which any of the deposits with that member institution are insured by the Corporation in that premium year is of 365:
(a) the annual premium for that member determined by by-law made under subsection 21(2) based on an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution, and
(b) the greater of
(i) $5,000, and
(ii) one third of 1%, or any smaller proportion of 1% that may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution.
(7) If sections 191 and 192 of the other Act come into force on the same day as section 165 of this Act, then that section 165 is deemed to have come into force before those sections 191 and 192.
- Date modified: