Bill C-15

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Royal Assent

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	(b) in the opinion of the Superintendent, a practice or state of affairs exists in respect of the bank that may be materially prejudicial to the interests of the bank's depositors or creditors;
	(c) the assets of the bank are not, in the opinion of the Superintendent, sufficient to give adequate protection to the bank's depositors and creditors;
	(d) any asset appearing on the books or records of the bank is not, in the opinion of the Superintendent, satisfactorily accounted for;
	(e) the regulatory capital of the bank has, in the opinion of the Superintendent, reached a level or is eroding in a manner that may detrimentally affect its depositors or creditors;
	(f) the bank has failed to comply with an order of the Superintendent under paragraph 485(3)(a); or
	(g) the bank's deposit insurance has been terminated by the Canada Deposit Insurance Corporation.
Notice of proposed action	(1.2) The Superintendent must notify a bank of any action proposed to be taken in respect of it under paragraph (1)(b) and of its right to make written representations to the Superintendent within the time specified in the notice, not exceeding ten days after it receives the notice.
Objectives of Superin- tendent	(2) Where, pursuant to subsection (1), the Superintendent has control of the assets of a bank referred to in that subsection, the Superintendent may do all things necessary or expedient to protect the rights and interests of the depositors and creditors of the bank.
	16. Sections 539 to 541 of the Act are repealed.
	17. Sections 542 to 545 of the Act are replaced by the following:
Powers of directors and officers suspended	542. (1) Where the Superintendent takes control of a bank pursuant to subparagraph 538(1)(b)(iii), the powers, duties, functions, rights and privileges of the directors of the bank and of the officers of the bank responsible for its management are suspended.
Superin- tendent to manage bank	(2) Where the Superintendent takes control of a bank pursuant to subparagraph 538(1)(b)(iii), the Superintendent shall manage the business and affairs of the bank and in so doing the Superintendent
	(a) may perform any of the duties and functions that the persons referred to in subsection (1) were performing prior to the taking of control; and
	(b) has and may exercise any power, right or privilege that any such person had or could have exercised prior to the taking of control.
Persons to assist	(3) Where the Superintendent takes control of a bank pursuant to subparagraph 538(1)(b)(iii), the Superintendent may appoint one or more persons to assist in the management of the bank.
Expiration of control	543. Control by the Superintendent under subsection 538(1) of a bank or of the assets of a bank expires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the bank stating that the Superintendent is of the opinion that the circumstances leading to the taking of control by the Superintendent have been substantially rectified and that the bank can resume control of its business and affairs.
Superin- tendent may request winding-up	543.1 The Superintendent may, at any time before the receipt of a request under section 544 to relinquish control of a bank or of the assets of a bank, request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the bank, where
	(a) the assets of the bank are under the control of the Superintendent pursuant to subparagraph 538(1)(b)(i) or (ii); or
	(b) the bank is under the control of the Superintendent pursuant to subparagraph 538(1)(b)(iii).
Requirement to relinquish control	544. Where no action has been taken by the Superintendent under section 543.1 and, after thirty days following the taking of control by the Superintendent under subsection 538(1) of a bank or of the assets of a bank, the Superintendent receives from its board of directors a notice in writing requesting the Superintendent to relinquish control, the Superintendent must, not later than twelve days after receipt of the notice,
	(a) comply with the request; or
	(b) request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the bank.
Advisory committee	545. The Superintendent may, from among the banks that are subject to an assessment under section 23 of the Office of the Superintendent of Financial Institutions Act and required to share in the expenses resulting from the taking of control of a bank pursuant to subsection 538(1), appoint a committee of not more than six members to advise the Superintendent in respect of assets, management and all other matters pertinent to the duties and responsibilities of the Superintendent in exercising control of the bank.
	18. Subsection 546(1) of the Act is replaced by the following:
Expenses payable by bank	546. (1) Where the Superintendent has taken control of a bank pursuant to subparagraph 538(1)(b)(iii) and the control expires or is relinquished pursuant to section 543 or paragraph 544(a), the Superintendent may direct that the bank be liable for repayment of all or part of the expenses resulting from the taking of control of the bank and assessed against and paid by other banks pursuant to section 23 of the Office of the Superintendent of Financial Institutions Act, together with such interest in respect thereof at such rate as is specified by the Superintendent.
	19. Section 547 of the English version of the Act is replaced by the following:
Priority of claim in liquidation	547. In the case of the winding-up of a bank, the expenses resulting from the taking of control of the bank under subsection 538(1) and assessed against and paid by other banks pursuant to section 23 of the Office of the Superintendent of Financial Institutions Act, and interest in respect thereof at such rate as is specified by the Superintendent, constitute a claim of Her Majesty in right of Canada against the assets of the bank that ranks after all other claims but prior to any claim in respect of the shares of the bank.
1991, c. 46, par. 580(a)	20. Subsection 558(1) of the Act is replaced by the following:
Appeal to Federal Court	558. (1) An appeal lies to the Federal Court from any direction of the Minister made pursuant to subsection 402(1).
R.S., c. C-3	CANADA DEPOSIT INSURANCE CORPORATION ACT
	*21. (1) The definition ``Chairman'' in section 2 of the English version of the Canada Deposit Insurance Corporation Act* is repealed.**
	(2) Section 2 of the Act is amended by adding the following in alphabetical order:
``affairs'' « affaires internes »	``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;
``affiliate'' « groupe »	``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;
	(3) Section 2 of the English version of the Act is amended by adding the following in alphabetical order:
``Chairperson' ' « président »	``Chairperson'' means the Chairperson of the Board;
	21.1 The Act is amended by adding the following after section 2.1:
	POWERS, ETC., OF MINISTER
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.
R.S., c. 18 (3rd Supp.), s. 49	22. Paragraph 7(b) of the Act is replaced by the following:
	(b) to be instrumental in the promotion of standards of sound business and financial practices for member institutions and to promote and otherwise contribute to the stability of the financial system in Canada; and
R.S., c. 18 (3rd Supp.), s. 50(2)	23. (1) Paragraph 10(1)(a.l) of the Act is repealed.
	(2) Paragraph 10(1)(b) of the Act is replaced by the following:
	(b) make any investment and enter into any transaction necessary or desirable for the financial management of the Corporation;
	(3) Section 10 of the Act is amended by adding the following after subsection (2):
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.
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.
	24. The Act is amended by adding the following after section 10:
Loans to Corporation	10.1 (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.
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.
Total indebtedness	(3) The total principle indebtedness outstanding at any time in respect of borrowings under this section shall not exceed
	(a) six billion dollars; or
	(b) such greater amount as may be authorized for the purposes of this subsection by Parliament under an appropriation Act.
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.
1992, c. 26, s. 5	25. Subsection 13(3) of the Act is replaced by the following:
Where assets acquired	(3) For the purpose of deposit insurance with the Corporation, where a member institution assumes deposit liabilities of another member institution, those member institutions are deemed to be amalgamating institutions and subsections (1) and (2) apply where a person has deposits with both institutions.
Deemed deposits	(4) Where a member institution assumes deposit liabilities of another member institution, the deposits in respect of those liabilities are, for the purposes of sections 21, 23 and 25.1, deemed to be deposited with the member institution that assumes them as of the day on which they are assumed.
1992, c. 26, s. 6	26. (1) Paragraph 14(2.1)(c) of the Act is replaced by the following:
	(c) an order is made in respect of the federal member institution under subsection 39.13(1).
R.S., c. 18 (3rd Supp.), s. 52(1)	(2) Subsection 14(2.2) of the Act is repealed.
R.S., c. 18 (3rd Supp.), s. 52(1)	(3) Subsections 14(2.3) to (2.5) of the Act are replaced by the following:
How interest on deposit to be calculated	(2.3) For the purpose of calculating the payment of the Corporation in respect of any deposit insured by deposit insurance where a winding-up order has been made in respect of the member institution that holds the deposit, the interest accruing and payable in relation to the deposit shall be included only to the date of the commencement of the winding-up.
Corporation may pay interest	(2.4) Where the Corporation makes a payment pursuant to subsection (2), the Corporation may pay, in addition to the amount the Corporation is obliged to pay, interest on that amount at a rate determined in accordance with rules prescribed by the by-laws for the period commencing on the date of the commencement of the winding-up in respect of the member institution that holds the deposit and ending on the date of the making of the payment in respect of the deposit, but the aggregate of the payments made under this subsection and subsection (2) in relation to the deposit shall in no case exceed sixty thousand dollars.
How interest and deposit to be calculated	(2.5) For the purpose of calculating the payment of the Corporation in respect of any deposit insured by deposit insurance where the Corporation makes a payment pursuant to subsection (2.1),
	(a) subject to paragraph (b), the interest accruing and payable in relation to the deposit shall be included only to the date of the payment by the Corporation; or
	(b) if a proceeding for the winding-up of the member institution that holds the deposit has been commenced before the date of the payment by the Corporation but a winding-up order has not yet been made, the interest accruing and payable in relation to the deposit shall be included only to the date of the commencement of the winding-up.
	(4) Section 14 of the Act is amended by adding the following after subsection (2.7):
Costs of examination	(2.8) The costs incurred by the Corporation in carrying out an examination in respect of a member institution under subsection (2.7) shall be paid by the member institution and may be recovered by the Corporation as a debt due and payable to the Corporation.
Date of computing liability	(2.9) For the purposes of calculating the payment to be made by the Corporation in respect of any deposit insured by deposit insurance, the amount of the deposit shall be determined, where the Corporation makes a payment pursuant to
	(a) subsection (2), as of the date of the commencement of the winding-up;
	(b) subsection (2.1) in the winding-up circumstances described in paragraph (2.5)(b), as of the date of the commencement of the winding-up; or
	(c) subsection (2.1), otherwise than in the winding-up circumstances described in paragraph (2.5)(b), as of the date on which any of the circumstances described in subsection (2.1) first occurs in respect of the member institution concerned.
	(5) Subsection 14(5) of the Act is replaced by the following:
Assignment	(5) Where the Corporation deems it advisable, it may withhold payment in respect of any deposit with a member institution until it has received an assignment in writing of all the rights and interests of the depositor in relation to the deposit.
Time limitation for claims	(6) No action may be taken against the Corporation in respect of the obligation of the Corporation to make a payment in relation to a deposit held by a member institution that is being wound up unless the action is commenced within ten years after the date of the commencement of the winding-up.
Interpreta- tion	(7) In this section, ``commencement of the winding-up'' means the time a winding-up is deemed to commence pursuant to section 5 of the Winding-up and Restructuring Act.
R.S., c.18 (3rd Supp.), s. 57	27. Section 21 of the Act is replaced by the following:
Assessment and collection of premiums	21. (1) The Corporation shall, for each premium year, assess and collect from each member institution an annual premium in an amount equal to the lesser of
	(a) the annual premium for that member institution determined under the by-laws, and
	(b) the maximum annual premium.
By-laws re premiums	(2) The Board may make by-laws respecting the determination of annual premiums for member institutions and, without restricting the generality of the foregoing, may make by-laws
	(a) for the establishment of a system of classifying member institutions in different categories;
	(b) respecting the criteria or factors to be taken into account or procedures to be followed by the Corporation in determining the category in which a member institution is classified; and

Bill C-15

CANADA DEPOSIT INSURANCE CORPORATION ACT

POWERS, ETC., OF MINISTER