Canada Deposit Insurance Corporation Differential Premiums By-law

7 (1) A member institution shall be classified in premium category 1 as set out in column 1 of Schedule 1, if

• (a) the member institution has been operating as a member institution for less than two fiscal years consisting of at least 12 months each, determined as of the end of the fiscal year ending in the year preceding the filing year; and

• (b) not later than April 30 of the filing year, the member institution provides the Corporation with a declaration confirming that the member institution meets the condition referred to in paragraph (a).

(2) Subsection (1) does not apply to a member institution that

• (a) is a subsidiary of a member institution that has been operating for at least two fiscal years consisting of at least 12 months each, determined as of the end of the fiscal year ending in the year preceding the filing year; or

• (b) has a subsidiary that is a member institution that has been operating for at least two fiscal years consisting of at least 12 months each, determined as of the end of the subsidiary’s fiscal year ending in the year preceding the filing year.

(3) For the purpose of this section, if a member institution is formed by an amalgamation involving one or more member institutions, the amalgamated member institution shall be considered to have started operating on the same day as the amalgamating member institution that has been operating for the longest period of time.