Exemption from Deposit Insurance By-law (Notice to Depositors)

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-99-381/FullText.html

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Exemption from Deposit Insurance By-law (Notice to Depositors)

SOR/99-381CANADA DEPOSIT INSURANCE CORPORATION ACT
Registration 1999-10-05
Exemption from Deposit Insurance By-law (Notice to Depositors)The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraphs 11(2)(g)Footnote a and 26.3(1)(c)Footnote b of the Canada Deposit Insurance Corporation Act, hereby makes the annexed Exemption from Deposit Insurance By-law (Notice to Depositors).

Return to footnote aR.S., c. 18 (3rd Supp.), s. 51
Return to footnote bS.C. 1997, c. 15, s. 114

September 29, 1999Interpretation

1 The definitions in this section apply in this By-law.

Act
Act means the Canada Deposit Insurance Corporation Act. (Loi)
applicant
applicant means a federal member institution that applies to the Corporation under section 26.02 of the Act for authorization to accept deposits without being a member institution. (demandeur)

SOR/2008-105, s. 1.
Previous Version

Contents of Notice

2 An applicant shall provide its depositors with a notice, written in at least one of the official languages of Canada, that contains the information referred to in paragraph 26.03(1)(c) of the Act and that informs them

(a) that in order to keep their deposits that are payable in Canada or in Canadian currency with the applicant, they must provide the applicant with an acknowledgement in writing, in the form accompanying the notice, that those deposits will no longer be insured in whole or in part by the Corporation after the applicant receives authorization to accept deposits without being a member institution;
(b) that at their request in writing, they will be paid the principal amount of their deposits that are payable in Canada or in Canadian currency and interest determined in accordance with the Exemption from Deposit Insurance By-law (Interest on Deposits); and
(c) that if they do not provide the applicant with an acknowledgement referred to in paragraph (a) or submit a request referred to in paragraph (b), the applicant’s liability in relation to deposits that are payable in Canada or in Canadian currency will be assumed by another member institution on the same terms and conditions.

General Notification of Depositors

3 (1) An applicant shall, not less than 15 days and not more than 90 days after the date of receipt by the Corporation of the applicant’s application, send a notice, accompanied by an acknowledgement form for the use of depositors, to each of the depositors shown in the applicant’s records as of the day before the sending date.
(2) The notice and acknowledgement form shall be sent by prepaid mail, by courier or by facsimile or other form of electronic transmission to the depositors’ addresses or numbers, as applicable, shown in the applicant’s records as of the day before the sending date.

Notification of Subsequent Depositors

4 (1) An applicant shall, on or before accepting a deposit from a person who was not a depositor shown in the applicant’s records as of the day before the sending date referred to in section 3, give or send a notice to that person, accompanied by an acknowledgement form for that person’s use.
(2) The notice and acknowledgement form shall be given by personal delivery or sent by a means referred to in subsection 3(2).

Coming into Force

5 This By-law comes into force on October 15, 1999.