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

Act current to 2022-09-11 and last amended on 2022-06-23. Previous Versions

Objects, Powers and Duties

Marginal note:Objects

 The objects of the Corporation are

  • (a) to provide insurance against the loss of part or all of deposits;

  • (b) to promote and otherwise contribute to the stability of the financial system in Canada;

  • (c) to pursue the objects set out in paragraphs (a) and (b) for the benefit of persons having deposits with member institutions and in such manner as will minimize the exposure of the Corporation to loss; and

  • (d) to act as the resolution authority for its members.

  • R.S., 1985, c. C-3, s. 7
  • R.S., 1985, c. 18 (3rd Supp.), s. 49
  • 1996, c. 6, s. 22
  • 2005, c. 30, s. 98
  • 2017, c. 20, s. 108

Marginal note:Power of Governor in Council

  •  (1) The Governor in Council may, by order, exempt the Corporation from the requirement that it pursue its objects in a manner that will minimize its exposure to loss when it takes any action to address a situation that is specified in the order.

  • Marginal note:Condition precedent

    (2) The Governor in Council may make the order only if the Minister is of the opinion, after consultation with the Board, the Governor of the Bank of Canada and the Superintendent, that the requirement that the Corporation pursue its objects in a manner that will minimize its exposure to loss, in respect of a situation that will be specified in the order, might have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

  • Marginal note:Repeal

    (3) The Governor in Council may repeal the order only if the Minister is of the opinion that the requirement that the Corporation pursue its objects in a manner that will minimize its exposure to loss, in respect of the situation specified in the order, will no longer have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

  • 2009, c. 2, s. 234

Marginal note:Coming into force

  •  (1) An order made under subsection 7.1(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 a notice to be published in the Canada Gazette that the order has been made or repealed as soon as the Minister is of the opinion that the publication of the notice will not have an adverse effect on the stability of the financial system in Canada or public confidence in that stability.

  • 2009, c. 2, s. 234

Marginal note:Recovery of loss

 After the publication of a notice in the Canada Gazette that an order was made under subsection 7.1(1), the Corporation shall, in accordance with its by-laws, collect a special premium from member institutions or any class of member institutions in order to recover the loss that the Corporation determines it incurred as a result of pursuing its objects without regard to the requirement that it do so in a manner that minimizes its exposure to loss.

  • 2009, c. 2, s. 234

Marginal note:Federal institutions

 For the purposes of this Act, the following are federal institutions:

  • R.S., 1985, c. C-3, s. 8
  • 1991, c. 45, s. 541
  • 1999, c. 28, s. 99
  • 2001, c. 9, s. 205
  • 2005, c. 30, s. 99

Marginal note:Provincial institutions

 For the purposes of this Act, an incorporated company that carries on, under an Act of the legislature of a province or a constating instrument under provincial jurisdiction, a business substantially similar to the business of a company to which the Trust and Loan Companies Act applies and that is authorized by or under an Act of the legislature of a province to accept deposits from the public is a provincial institution.

  • R.S., 1985, c. C-3, s. 9
  • 1991, c. 45, s. 542

Marginal note:Powers of Corporation

  •  (1) The Corporation may do all things necessary or incidental to the objects of the Corporation and in particular, but without limiting the generality of the foregoing, the Corporation may, in furtherance of its objects,

    • (a) acquire assets from a member institution;

    • (a.1) make or guarantee loans or advances, with or without security, to a member institution;

    • (a.11) make or guarantee a deposit with a member institution;

    • (a.12) assume liabilities of a member institution;

    • (a.2) enter into an agreement with the government of a province, or an agent of the government of a province, respecting any matter relating to the insurance of deposits with provincial institutions in that province;

    • (b) make any investment and enter into any transaction necessary or desirable for the financial management of the Corporation;

    • (c) act as liquidator, receiver or inspector of a member institution or a subsidiary thereof, when duly appointed as such and appoint qualified and competent persons, whether employees of the Corporation or not, to carry out any or all of the functions of the Corporation under the appointment of the Corporation;

    • (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;

    • (f) acquire assets and assume liabilities of a member institution from its liquidator or receiver;

    • (f.1) acquire, by way of security or otherwise, shares and subordinated debt of a member institution and to hold and dispose of those shares and subordinated debt;

    • (g) make an advance for the purpose of paying a claim, against a member institution for which the Corporation is acting as receiver or liquidator, in respect of any insured deposit and of becoming subrogated as an unsecured creditor for the amount of the advance;

    • (h) make or cause to be made such inspections of a member institution as may be authorized under this Act or a policy of deposit insurance;

    • (i) acquire, hold and alienate real and personal property;

    • (i.1) settle or compromise any claim by or against the Corporation; and

    • (j) do all such other things as may be necessary for the exercising of any power of the Corporation.

  • Marginal note:Subsidiary corporations

    (2) For the purposes of facilitating the acquisition, management or disposal of real property or other assets of a member institution that the Corporation may acquire as the result of its operations, the Corporation may, when authorized by order of the Governor in Council,

    • (a) procure the incorporation of a corporation, all the shares of which, on incorporation, would be held by, on behalf of or in trust for the Corporation; or

    • (b) acquire all of the shares of a corporation that, on acquisition, would be held by, on behalf of or in trust for the Corporation.

  • Marginal note:Subsidiary not an agent

    (3) A corporation described in paragraph (2)(a) or (b) is deemed not to be an agent of the Corporation or of Her Majesty in right of Canada.

  • Marginal note:Assets and liabilities

    (3.1) A corporation described in paragraph (2)(a) or (b) may acquire assets and assume liabilities of a member institution from that institution or from its liquidator or receiver.

  • Marginal note:Conditions applicable to the exercise of certain powers

    (4) The Corporation shall, in exercising its powers under paragraph (1)(b), comply with such directions of general application as the Minister may, in writing, give to the Corporation.

  • R.S., 1985, c. C-3, s. 10
  • R.S., 1985, c. 18 (3rd Supp.), s. 50
  • 1992, c. 26, s. 3
  • 1996, c. 6, s. 23
  • 2001, c. 9, s. 206
  • 2016, c. 7, s. 127
  • 2018, c. 27, s. 157

Marginal note:Exemption — shares of member institution

  •  (1) To enable the Corporation to acquire, hold or dispose of shares under paragraph 10(1)(f.1), the Minister may, by order, exempt any person or share specified in the order from any of the following provisions:

    • (a) sections 47.03, 47.04, 47.06, 47.09, 47.11, 47.15, 47.17, 47.18 and 60.1, subsection 79.2(1) and sections 372, 373, 374, 375, 376, 376.1, 376.2, 377, 377.1, 377.2  379, 382.1, 385, 401.11, 401.2 and 401.3 of the Bank Act;

    • (b) sections 407, 407.01, 407.02, 407.03, 407.1, 407.2, 408, 411, 428 and 430 of the Insurance Companies Act; and

    • (c) sections 375, 375.1, 376, 379, 396 and 399 of the Trust and Loan Companies Act.

  • Marginal note:Conditions

    (2) The exemption may be subject to conditions.

  • Marginal note:Duration of exemption

    (3) The exemption ceases to have effect five years after the day on which it comes into force.

  • Marginal note:Extension

    (4) The Minister may, by order, extend the duration of the exemption if general market conditions so warrant.

  • Marginal note:Statutory Instruments Act

    (5) The Statutory Instruments Act does not apply to an order made under this section.

  • 2009, c. 2, s. 235
  • 2010, c. 12, s. 2097

Marginal note:Loans to Corporation

  •  (1) At the request of the Corporation, the Minister may, out of the Consolidated Revenue Fund, lend money to the Corporation on such terms and conditions as the Minister may establish.

  • Marginal note:Other borrowing

    (2) The Corporation may borrow money otherwise than under subsection (1) and may borrow by any means, including the issuance and sale of bonds, debentures, notes or any other evidence of indebtedness.

  • 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 and under subparagraph 60.2(2)(a)(iii) of that Act as it read on September 30, 2020, shall not exceed

    • (a) $15,000,000,000 or, if it is greater, the amount determined in accordance with subsections (3.1) to (3.5); or

    • (b) such greater amount as may be authorized for the purposes of this subsection by Parliament under an appropriation Act.

  • Marginal note:Increase

    (3.1) Subject to subsections (3.3) and (3.4), the amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed is increased each year to the amount determined by the formula

    A + (A × B)

    where

    A
    is $15,000,000,000; and
    B
    is the rate determined by the formula set out in subsection (3.2).
  • Marginal note:Rate

    (3.2) The rate referred to in the description of B in subsection (3.1) is determined by the formula

    (C – D) / D

    where

    C
    is the total amount of deposits insured by the Corporation on April 30 of the current year; and
    D
    is the total amount of deposits insured by the Corporation on April 30, 2008.
  • Marginal note:Rounding

    (3.3) The amount determined under subsection (3.1) shall be rounded to the nearest billion dollars or, if the amount is equidistant from two consecutive multiples of one billion dollars, it shall be rounded to the higher of those two multiples.

  • Marginal note:No change

    (3.4) The amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed does not change if the amount determined under subsection (3.1) for the current year is less than the amount published under subsection (3.6) for the previous year.

  • Marginal note:Date effective

    (3.5) The new amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed comes into effect on December 31 of the current year.

  • Marginal note:Publication

    (3.6) The Corporation shall publish the new amount that the total principal indebtedness outstanding at any time in respect of borrowings under subsections (1) and (2) shall not exceed in its annual report following the day on which the new amount comes into effect.

  • Marginal note:Fees for borrowing

    (4) The Minister may fix a fee to be paid by the Corporation to the Receiver General in respect of any borrowings by the Corporation and the Minister shall notify the Corporation in writing of any such fee.

Marginal note:Powers of directors

  •  (1) The Board shall administer the affairs of the Corporation in all things and make, or cause to be made, for the Corporation any description of contract that the Corporation may by law enter into.

  • Marginal note:By-laws

    (2) The Board may make by-laws,

    • (a) for the administration, management and control of the property and affairs of the Corporation;

    • (b) governing the functions, duties and remuneration of all officers, agents and employees of the Corporation;

    • (b.1) concerning conflicts of interest and post-employment matters relating to conflicts of interest in respect of directors, officers and employees of the Corporation;

    • (c) governing the appointment and activities of any special committees created for the purposes of the Corporation;

    • (d) governing the time and place for the holding of meetings of the directors, and the quorum and procedure in all things at those meetings;

    • (e) respecting the development, submission and maintenance of resolution plans by domestic systemically important banks, including specifying the contents of those plans;

    • (f) respecting representations by member institutions and other persons with respect to

      • (i) what constitutes, or does not constitute, a deposit,

      • (ii) what constitutes, or does not constitute, a deposit that is insured by the Corporation, and

      • (iii) who is a member institution;

    • (f.1) for the purpose of facilitating the Corporation’s exercise of its functions either under section 14 or in the event that an order is made under subsection 39.13(1), respecting the information that the Corporation can require from member institutions with respect to their deposit liabilities and the time within and manner in which it is to be provided to the Corporation;

    • (f.2) respecting the capabilities that the Corporation can require member institutions to have to facilitate the Corporation’s exercise of its functions either under section 14 or in the event that an order is made under subsection 39.13(1), including the capability to

      • (i) identify their deposit liabilities, and

      • (ii) temporarily prevent withdrawals of deposit liabilities;

    • (g) prescribing anything that, by virtue of any provision of this Act, is to be prescribed by the by-laws;

    • (h) prescribing the form and manner in which payments under this Act are to be made by the Corporation; and

    • (i) governing the conduct in all other particulars of the affairs of the Corporation.

  • Marginal note:Ministerial approval

    (2.01) A by-law made under paragraph (2)(e) is not effective unless it has been approved in writing by the Minister.

  • Marginal note:Deposit liabilities

    (2.1) For the purposes of paragraphs (2)(f.1) and (f.2), deposit liabilities include deposits referred to in paragraphs 12(a) to (c) and liabilities referred to in subsections 2(2), (5) and (6) of the schedule.

  • Marginal note:Subsection 5(1) of the Statutory Instruments Act

    (2.2) If a by-law requires approval in writing by the Minister under this Act in order to be effective, then, for the purposes of subsection 5(1) of the Statutory Instruments Act, the by-law is deemed to be made on the day on which the Corporation receives that approval.

  • Marginal note:Inspection powers

    (3) In carrying out any inspection authorized by this Act or by a policy of deposit insurance, the directors of the Corporation have all the powers conferred on commissioners appointed under Part II of the Inquiries Act for the purpose of obtaining evidence under oath, and the directors may delegate those powers as occasion requires.

  • R.S., 1985, c. C-3, s. 11
  • R.S., 1985, c. 18 (2nd Supp.), s. 2, c. 18 (3rd Supp.), s. 51
  • 1992, c. 26, s. 4
  • 2005, c. 30, s. 100
  • 2010, c. 12, ss. 1886, 1887
  • 2012, c. 5, s. 187
  • 2017, c. 20, s. 109
 
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