Canada Deposit Insurance Corporation Act

Marginal note:Acceleration of termination of policy of deposit insurance

• 31.1 (1) Despite any other provision of this Act, if, at any time after a notice of termination has been given to a provincial member institution under subsection 31(1), the Corporation concludes that

  • (a) the financial condition of the provincial member institution has deteriorated since the giving of the notice, and

  • (b) the interests of depositors will be adversely affected by any further delay in terminating the provincial member institution’s policy of deposit insurance,

  the Corporation shall without delay send a notice by registered mail, or deliver a notice by hand, to the provincial member institution and to the appropriate provincial Minister, to the effect that the policy of deposit insurance of the institution will be terminated on the expiration of a period of five days after the receipt of the notice by the institution.

• Marginal note:Revocation

  (2) The Board of Directors of the Corporation or one of its committees established for the purpose may, before the expiry of the period specified in the notice, revoke the notice if, after considering any written representations made by the provincial member institution, it is satisfied that it is appropriate to do so.

• (3) [Repealed, 2007, c. 6, s. 414]

• Marginal note:Revocation

  (4) The Corporation shall revoke a notice sent or delivered under subsection (1) where the appropriate provincial Minister or provincial supervisor, as the case may be, has taken control of the provincial member institution or its assets.

• Marginal note:Termination of policy

  (5) Unless a notice sent or delivered under subsection (1) is revoked under subsection (3) or (4), the policy of deposit insurance of the provincial member institution to which the notice was sent or delivered shall terminate on the expiration of the period specified in the notice.

• Marginal note:Effect of revocation

  (6) The revocation of a notice under subsection (3) or (4) does not revoke a notice given under subsection 31(1).