Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7)
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Assented to 2016-06-22
PART 4Various Measures (continued)
DIVISION 5Bank Recapitalization Regime (Bail-in) (continued)
R.S., c. C-3Canada Deposit Insurance Corporation Act (continued)
Marginal note:2009, c. 2, s. 248
140 Subsection 39.201(3) of the Act is repealed.
Marginal note:1996, c. 6, s. 41
141 (1) The portion of subsection 39.22(1) of the Act before paragraph (b) is replaced by the following:
Marginal note:Winding-up
39.22 (1) The Corporation shall apply for a winding-up order in respect of a federal member institution under the Winding-up and Restructuring Act if a notice has not been published under subsection 39.2(3) in respect of the institution on or before
(a) the 60th day after the day on which the order is made under subsection 39.13(1); or
Marginal note:1996, c. 6, s. 41
(2) Paragraph 39.22(1)(b) of the English version of the Act is replaced by the following:
(b) the day on which any extension of that period ends.
(3) Section 39.22 of the Act is amended by adding the following after subsection (1):
Marginal note:Winding-up — certain cases
(1.1) Despite subsection (1), if an order is made under paragraph 39.13(1)(d) or subsection 39.13(1.3) in respect of the institution, the Corporation shall apply for a winding-up order in respect of the institution under the Winding-up and Restructuring Act if a notice has not been published under subsection 39.2(3) in respect of the institution on or before
(a) the day that is one year after the day on which the order is made under subsection 39.13(1) or any shorter period specified in the order made under paragraph 39.13(1)(d) or subsection 39.13(1.3), as the case may be; or
(b) the day on which any extension of the applicable period ends.
Marginal note:1996, c. 6, s. 41
(4) Subsection 39.22(3) of the Act is replaced by the following:
Marginal note:Extension
(3) The Governor in Council may, by order made on the recommendation of the Minister, grant one or more extensions of the period set out in subsection (1) — of up to 30 days each — but the last extension must expire not later than 180 days after the day on which the order is made under subsection 39.13(1).
Marginal note:Extension — certain cases
(4) The Governor in Council may, by order made on the recommendation of the Minister, grant one or more extensions of the applicable period set out in subsection (1.1) — of up to one year each — but the last extension must expire not later than five years after the day on which the order is made under subsection 39.13(1).
Marginal note:1996, c. 6, s. 41; 2002, c. 8, par. 182(1)(d); 2009, c. 2, s. 250
142 Sections 39.23 to 39.37 of the Act are replaced by the following:
Marginal note:Amount of compensation
39.23 (1) If an order is made under subsection 39.13(1), the Corporation shall, in accordance with the regulations and the by-laws, determine the amount of compensation, if any, to be paid to a prescribed person.
Marginal note:Persons entitled to compensation
(2) Only a prescribed person who is in a worse financial position than they would have been had the federal member institution been liquidated under the Winding-up and Restructuring Act is entitled to be paid compensation.
Marginal note:Duty to pay compensation
(3) The Corporation shall pay the compensation and shall decide whether to pay it wholly or partly in cash or wholly or partly in any other form, including shares, that the Corporation considers appropriate.
Marginal note:Determining amount — no comparison with others
(4) In determining the amount of compensation to which a person is entitled, the following shall not be taken into account:
(a) any shares or other interest or right received by another person as a result of an order made under subsection 39.13(1) or retained by another person; and
(b) any common shares received by another person as a result of a conversion of shares or liabilities in accordance with the contractual terms of those shares or liabilities.
Marginal note:Decision conclusive
39.24 Except as otherwise provided in this Act, a decision made by the Corporation under section 39.23 or by an assessor appointed under section 39.26 is for all purposes final and conclusive and shall not be questioned or reviewed in any court.
Marginal note:Discharge of liability
39.25 Payment of the compensation by the Corporation under section 39.23 discharges the Corporation from its obligations under that section and in no case is the Corporation under any obligation to see to the proper application in any way of any such payment.
Marginal note:Appointment of assessor
39.26 In the circumstances prescribed by the regulations, the Governor in Council shall, by order, appoint as assessor a judge who is in receipt of a salary under the Judges Act to review a decision made by the Corporation under subsection 39.23(1) and determine the amount of compensation, if any, to be paid to a prescribed person.
Marginal note:Sittings and hearings
39.27 (1) An assessor may sit at any place and shall arrange for the sittings and hearings that may be required.
Marginal note:Powers of assessor
(2) The assessor has all the powers conferred on a commissioner appointed under Part II of the Inquiries Act for the purpose of obtaining evidence under oath.
Marginal note:Persons to assist
(3) An assessor may appoint a person to assist him or her in performing his or her functions.
Marginal note:Payment
(4) Fees and disbursements payable to the person may be included by the assessor in an amount awarded in respect of costs under subsection (5) or (6).
Marginal note:Costs of prescribed person
(5) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to a prescribed person and against the Corporation, the amount that the assessor determines to be just and reasonable to award in respect of those costs is payable by the Corporation to the prescribed person.
Marginal note:Costs of Corporation
(6) If the assessor determines that it is just and reasonable that costs in the proceeding before the assessor be awarded to the Corporation and against a prescribed person, the amount that the assessor determines to be just and reasonable to award in respect of those costs constitutes a debt payable by the prescribed person to the Corporation and may be recovered as such in any court of competent jurisdiction.
Marginal note:Regulations
39.28 (1) The Governor in Council may make regulations respecting compensation for the purposes of sections 39.23 to 39.27, including regulations
(a) prescribing persons referred to in subsection 39.23(1);
(b) respecting the factors that the Corporation shall or shall not consider in making a decision under subsection 39.23(1);
(c) respecting the circumstances in which an assessor must be appointed under section 39.26;
(d) respecting the factors that an assessor shall or shall not consider in making a decision; and
(e) respecting procedural requirements.
Marginal note:By-laws
(2) The Corporation may make by-laws respecting compensation for the purposes of section 39.23.
Marginal note:Inconsistency
(3) In the event of any inconsistency between the regulations made under subsection (1) and the by-laws made under subsection (2), the regulations prevail to the extent of the inconsistency.
Marginal note:2009, c. 2, s. 251
143 Section 39.3712 of the Act is repealed.
Marginal note:2009, c. 2, s. 251
144 Subsection 39.3721(2) of the Act is replaced by the following:
Marginal note:Implementation
(2) The board of directors of the bridge institution shall ensure that the directions are implemented in a prompt and efficient manner and shall, after implementing a direction, notify the Corporation without delay that it has been implemented.
Marginal note:2009, c. 2, s. 251
145 Subsection 39.3722(2) of the Act is replaced by the following:
Marginal note:By-laws — board of directors
(2) The board of directors of a bridge institution may, with the prior approval of the Corporation, make, amend or repeal any by-law.
Marginal note:2009, c. 2, s. 251; 2012, c. 5, s. 202
146 Section 39.3723 of the Act is repealed.
Marginal note:1996, c. 6, s. 41
147 (1) Subsection 39.38(1) of the Act is replaced by the following:
Marginal note:Federal-provincial agreements
39.38 (1) The Minister may, with the approval of the Governor in Council, enter into an agreement with an appropriate provincial minister providing for the application of any of sections 39.1 to 39.28 to provincial member institutions incorporated under the laws of that province.
Marginal note:1996, c. 6, s. 41
(2) Subsection 39.38(2) of the English version of the Act is replaced by the following:
Marginal note:Orders
(2) If an agreement has been entered into with an appropriate provincial minister, the Governor in Council may make orders, which are to be consistent with the agreement, providing for the application of any of sections 39.1 to 39.28 to provincial member institutions incorporated under the laws of that province and adapting any of the provisions of those sections in their application to those provincial member institutions.
Marginal note:R.S., c. 18 (3rd Supp.), s. 68
148 (1) Subsection 45.1(1) of the Act is replaced by the following:
Marginal note:No liability for acts in good faith
45.1 (1) Her Majesty in right of Canada, any servant or agent of Her Majesty, the Corporation, its directors, officers and employees and any person acting on behalf of the Corporation are not liable to any member institution, depositor with, or creditor or shareholder of, any member institution, or to any other person, for any damages, payment, compensation, contribution or indemnity that any such member institution, depositor, creditor, shareholder or other person may suffer or claim by reason of anything done or omitted to be done, in good faith, in the exercise, execution or performance — or the purported exercise, execution or performance — of any powers, duties and functions under this Act.
Marginal note:R.S., c. 18 (3rd Supp.), s. 68
(2) Subsection 45.1(2) of the Act is replaced by the following:
Marginal note:Obligation remains
(2) Nothing in subsection (1) shall be construed to relieve the Corporation from the obligation to make payment in respect of a deposit insured under this Act or to pay compensation under section 39.23.
Marginal note:2009, c. 2, s. 252
149 Section 45.11 of the Act is replaced by the following:
Marginal note:Directors and officers of institutions
45.11 (1) Directors and officers of a federal member institution in respect of which an order is made under paragraph 39.13(1)(a) or (b) or of a bridge institution are not liable for any damages, payment, compensation, contribution or indemnity that any person may suffer or claim by reason of anything done or omitted to be done during the period set out in subsection (3), in good faith, in the exercise, execution or performance of any powers, duties and functions as directors or officers of the institution.
Marginal note:Indemnification
(2) Section 119 of the Financial Administration Act and the regulations made under that section apply to the directors and officers referred to in subsection (1) in respect of anything done or omitted to be done in the exercise, execution or performance of their powers, duties and functions during the period set out in subsection (3), as if the federal member institution or the bridge institution were a Crown corporation within the meaning of section 83 of that Act.
Marginal note:Time period
(3) The period referred to in subsections (1) and (2) begins on the day on which the order is made under subsection 39.13(1) and ends
(a) on the date specified in a notice described in subsection 39.2(3) in respect of the federal member institution;
(b) on the day on which the bridge institution ceases to be designated as such; or
(c) on the day on which a winding-up order is made in respect of the federal member institution or the bridge institution.
Marginal note:Foreign relief — no recognition or enforcement
45.12 (1) Except with the consent of the Attorney General of Canada, no judgment, order or other relief given in a proceeding outside Canada in respect of an order made under subsection 39.13(1) shall be recognized or enforceable in any manner in Canada.
Marginal note:No proceedings
(2) Except with the consent of the Attorney General of Canada, no proceedings shall be commenced in any court in Canada in respect of the judgment, order or other relief given outside Canada.
Marginal note:2009, c. 2, s. 253
150 (1) Subsections 45.3(1) and (2) of the Act are replaced by the following:
Marginal note:Disclosures prohibited
45.3 (1) Subject to subsection 12(1) of the Privacy Act, any information with respect to the affairs of a federal member institution in respect of which an order is made under paragraph 39.13(1)(a) or (b), a bridge institution, a subsidiary of either of those institutions or any person dealing with such an institution or subsidiary is confidential, shall be treated accordingly and shall not be disclosed.
Marginal note:Duration of prohibition
(2) The prohibition applies only during the period set out in subsection 45.11(3).
Marginal note:2009, c. 2, s. 253
(2) Paragraph 45.3(3)(d) of the Act is replaced by the following:
(d) to the Corporation for the purposes of fulfilling its functions under this Act or as a shareholder of the federal member institution or the bridge institution;
Marginal note:2009, c. 2, s. 253
(3) Paragraphs 45.3(4)(a) and (b) of the Act are replaced by the following:
(a) in the normal conduct of the business of the federal member institution, the bridge institution or a subsidiary of either of those institutions;
(b) for the purposes of selling the shares or assets of the federal member institution, the bridge institution or a subsidiary of either of those institutions;
Marginal note:2009, c. 2, s. 253
(4) Paragraph 45.3(4)(f) of the Act is replaced by the following:
(f) in any other circumstance that the board of directors of the federal member institution, the bridge institution or a subsidiary of either of those institutions considers necessary.
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