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

Short Title

Marginal note:Short title

1 This Act may be cited as the Canada Deposit Insurance Corporation Act.

Interpretation

Marginal note:Definitions

2 In this Act,

affairs

affairs, with respect to a member institution, means its business and the relationships among the member institution and its affiliates and the shareholders, directors and officers of the member institution and its affiliates; (affaires internes)

affiliate

affiliate, in respect of a member institution that is

• (a) a bank, means an entity that is affiliated with the bank within the meaning of the Bank Act, or

• (b) other than a bank, means an entity that would be affiliated with the member institution within the meaning of the Bank Act if the member institution were a bank to which that Act applies; (groupe)

appropriate provincial minister

appropriate provincial minister, in relation to a provincial institution, means the minister of the Crown of the province of incorporation of the institution responsible for the supervision of the provincial institution; (ministre provincial compétent)

bank

bank means a bank listed in Schedule I or II to the Bank Act; (banque)

Board

Board means the Board of Directors of the Corporation; (conseil)

bridge institution

bridge institution means a federal institution that is designated as a bridge institution by an order made under paragraph 39.13(1)(c); (institution-relais)

by-laws

by-laws means the by-laws of the Corporation; (règlements administratifs)

Chairman

Chairman[Repealed, 1996, c. 6, s. 21]

Chairperson

Chairperson means the Chairperson of the Board; (président)

Corporation

Corporation means the Canada Deposit Insurance Corporation established by section 3; (Société)

deposit

deposit and depositor mean respectively a deposit and a depositor as defined in the schedule; (dépôt et déposant)

deposit insurance

deposit insurance means the insurance referred to in paragraph 7(a); (assurance-dépôts)

domestic systemically important bank

domestic systemically important bank has the same meaning as in section 2 of the Bank Act; (banque d’importance systémique nationale)

federal credit union

federal credit union has the same meaning as in section 2 of the Bank Act; (coopérative de crédit fédérale)

federal institution

federal institution means a bank, company or association referred to in section 8; (institution fédérale)

federal member institution

federal member institution means a federal institution that is a member institution; (institution fédérale membre)

local cooperative credit society

local cooperative credit society has the same meaning as in section 2 of the Bank Act; (société coopérative de crédit locale)

member institution

member institution means a corporation that has deposit insurance under this Act; (institution membre)

Minister

Minister means the Minister of Finance; (ministre)

nominee broker

nominee broker means a person who is a party to an agreement or arrangement with a member institution in order to make deposits as a nominee on behalf of another person; (courtier-fiduciaire)

nominee broker deposit

nominee broker deposit means a deposit made at a member institution by a nominee broker acting as a nominee on behalf of another person; (dépôt de courtier-fiduciaire)

policy of deposit insurance

policy of deposit insurance or policy means the instrument evidencing the deposit insurance of a member institution; (police d’assurance-dépôts ou police)

premium year

premium year means, in relation to the calculation and payment of premiums pursuant to this Act, the period beginning on May 1 in one year and ending on April 30 in the next year; (exercice comptable des primes)

professional trustee

professional trustee means any of the following who is not a nominee broker:

• (a) the public trustee of a province or a similar public official whose duties involve holding moneys in trust for others;

• (b) a federal, provincial or municipal government, or a department or agency of such a government;

• (c) a lawyer or partnership of lawyers, a law corporation, or a notary or partnership of notaries in the province of Quebec, when they act in that capacity as a trustee of moneys for others;

• (d) a person who is acting as a trustee of moneys for others in the course of business and is required by or under a statute to hold the deposit in trust;

• (e) a person who is acting as a trustee of moneys for others in the course of business and is subject to the rules of a securities commission, stock exchange or other regulatory or self-regulating organization that audits compliance with those rules; or

• (f) a regulated federal or provincial trust company acting in the capacity of a depositor; (fiduciaire professionnel)

provincial institution

provincial institution means a company referred to in section 9; (institution provinciale)

provincial member institution

provincial member institution means a provincial institution that is a member institution; (institution provinciale membre)

provincial supervisor

provincial supervisor, in relation to a provincial institution, means the official of the province of incorporation of the provincial institution who supervises the affairs of the provincial institution; (contrôleur provincial)

receiver

receiver includes a receiver-manager and a sequestrator; (séquestre)

representation

representation means any oral or written statement and includes any advertisement and any mark, sign, trade name or other device; (déclaration)

returned payment

returned payment means any portion of a payment made by the Corporation under subsection 14(2) or (2.1) that is either returned to the Corporation or that otherwise remains under its control; (paiement retourné)

share

share includes

• (a) a conversion or exchange privilege, issued by a member institution, that is convertible at any time into a share,

• (b) an option or a right, issued by a member institution, to acquire a share or a privilege referred to in paragraph (a), and

• (c) a membership share within the meaning of section 2 of the Bank Act; (action)

shareholder

shareholder includes the holder of a membership share of a federal credit union; (actionnaire)

subordinated debt

subordinated debt means debt of a member institution that, by the terms of any instrument evidencing the debt, will, in the event of the insolvency or winding-up of the member institution, be subordinate in right of payment to all deposit liabilities of the member institution and all other liabilities of the member institution except those that, by their terms, rank equally with or are subordinate to that debt and includes

• (a) a conversion or exchange privilege that is convertible at any time into subordinated debt, and

• (b) an option or a right to acquire subordinated debt or a privilege referred to in paragraph (a)

issued by a member institution; (dette subordonnée)

Superintendent

Superintendent means the Superintendent of Financial Institutions appointed pursuant to subsection 5(1) of the Office of the Superintendent of Financial Institutions Act. (surintendant)

Her Majesty

Marginal note:Binding on Her Majesty

2.1 This Act is binding on Her Majesty in right of Canada or a province.

Powers, Etc., of Minister

Marginal note:Delegation

2.2 The Minister may delegate any of the Minister’s powers, duties and functions under this Act to any Minister of State appointed pursuant to the Ministries and Ministers of State Act to assist the Minister.

Constitution of the Corporation

Marginal note:Corporation established

• 3 (1) There is hereby established a corporation, to be called the Canada Deposit Insurance Corporation.

• Marginal note:Agent of Her Majesty

  (2) The Corporation is, for all purposes of this Act, an agent of Her Majesty in right of Canada.

Marginal note:Head office

• 4 (1) The head office of the Corporation shall be at the city of Ottawa.

• Marginal note:Offices and agents

  (2) The Corporation may establish offices or employ agents in any part of Canada.

Marginal note:Board of Directors

• 5 (1) There shall be a Board of Directors of the Corporation consisting of

  • (a) the person appointed as the Chairperson under subsection 6(1);

  • (a.1) the person appointed as the President and Chief Executive Officer of the Corporation under subsection 105(5) of the Financial Administration Act;

  • (b) the persons who for the time being hold the offices of the Governor of the Bank of Canada, the Deputy Minister of Finance, the Superintendent of Financial Institutions and the Commissioner of the Financial Consumer Agency of Canada;

  • (b.1) a Deputy Superintendent of Financial Institutions, or an officer of the Office of the Superintendent of Financial Institutions, appointed by the Minister; and

  • (c) not more than six other members appointed by the Minister with the approval of the Governor in Council.

• Marginal note:Disqualifications

  (1.1) A person is not eligible to be appointed under paragraph (1)(c) or, having been appointed under that paragraph, to continue as a member of the Board, if the person is

  • (a) employed in any capacity in the federal public administration or holds any office or position for which any salary or other remuneration is payable out of public moneys;

  • (b) a member of the Senate or House of Commons of Canada or a member of a provincial legislature; or

  • (c) a director, officer or employee of a federal institution, a provincial institution or a local cooperative credit society.

• Marginal note:Alternate director

  (2) A director referred to in paragraph (1)(b) may, from time to time with the approval of the Minister, designate in writing an alternate to attend in the director’s absence at any meeting of the Board of Directors, and the alternate shall be deemed to be a member of the Board while so attending a meeting of the Board.

• Marginal note:Vacancy

  (3) A vacancy on the Board does not impair the right of the remaining directors to act.

• Marginal note:Acting chairperson

  (4) Where the office of Chairperson is vacant, the Minister may appoint, for a period not exceeding ninety days, an acting Chairperson who shall, while so acting, be a member of the Board and have all the powers of the Chairperson.

• Marginal note:Expenses of directors

  (5) A director shall be paid by the Corporation reasonable travel and living expenses incurred by the director while absent from his or her ordinary place of residence in the course of his or her duties as a director but no director referred to in paragraph (1)(b) shall receive any other remuneration for his or her services on the Board.

• Marginal note:Remuneration of certain directors

  (5.1) A director referred to in paragraph (1)(c) shall be paid by the Corporation for attendance at meetings of the Board such remuneration as may be fixed by the Governor in Council.

Marginal note:Chairperson

• 6 (1) The Governor in Council shall appoint a person of proven financial ability to be Chairperson of the Board.

• Marginal note:Term of office

  (2) Notwithstanding subsection 105(5) of the Financial Administration Act, the Chairperson shall be appointed to hold office during good behaviour for such term as the Governor in Council deems appropriate but may be reappointed on the expiration of his or her term of office and may be removed at any time by the Governor in Council for cause.

• Marginal note:Disqualification

  (3) No person is eligible to be appointed or to continue as Chairperson who

  • (a) is not a Canadian citizen ordinarily resident in Canada;

  • (b) is a member of the Senate or House of Commons or a member of a provincial legislature; or

  • (c) is a director, officer or employee of a federal institution, a provincial institution or a local cooperative credit society.

  • (d) [Repealed, 2007, c. 6, s. 402]

• Marginal note:Presiding at meetings

  (4) The Chairperson shall preside at all meetings of the Board but where at any meeting the Chairperson is absent, one of the directors present thereat who is chosen so to act by the directors present shall preside and have all the powers of the Chairperson.

• Marginal note:Remuneration of Chairperson

  (5) The Chairperson shall be paid by the Corporation such remuneration as may be fixed by the Governor in Council.