A-26 - Deposit Insurance Act

Full text
chapter A-26
Deposit Insurance Act
DEPOSIT INSURANCEDecember 31 1977
DIVISION I
PURPOSE, SCOPE AND DEFINITIONS
2009, c. 58, s. 2.
1. The purpose of this Act is to foster the stability of the financial system in Québec by establishing a plan to protect deposits of money in the event of the actual or apprehended insolvency of a registered institution.
1966-67, c. 73, s. 1; 1968, c. 71, s. 1; 1977, c. 5, s. 14; 1987, c. 95, s. 368; 1988, c. 64, s. 587; 1999, c. 40, s. 27; 2000, c. 29, s. 618; 2002, c. 45, s. 179; 2002, c. 70, s. 186; 2002, c. 45, s. 179; 2004, c. 37, s. 90; 2009, c. 58, s. 3.
1.1. This Act applies to all deposits of money made in Québec.
However, this Act does not apply to the following deposits, funds, sums or instruments:
(1)  deposits that are not payable in Canada or in Canadian currency;
(2)  deposits made with banks that are not member institutions of the Canada Deposit Insurance Corporation established by the Canada Deposit Insurance Corporation Act (Revised Statutes of Canada, 1985, chapter C-3);
(3)  deposits whose term exceeds that prescribed by the regulations;
(4)  funds obtained at the time of an issue of securities in accordance with the Securities Act (chapter V-1.1), unless otherwise provided by the regulations;
(5)  sums payable under an insurance or annuity contract issued by an insurer carrying on business in Québec, in accordance with the Insurance Act (chapter A-32);
(6)  a promissory note payable in one year or less and, if distributed to a natural person, evidencing a debt of $50,000 or more;
(7)  any other deposit determined by regulation.
2009, c. 58, s. 3.
1.2. In this Act, unless the context indicates a different meaning,
bank means a bank listed in Schedule I or II of the Bank Act (S.C. 1991, c. 46);
equivalent scheme means any law providing protection to depositors that is similar to the protection provided by this Act;
institution means a legal person other than a bank;
registered institution means an insurer that holds a licence under the Act respecting insurance (chapter A-32), a financial services cooperative within the meaning of the Act respecting financial services cooperatives (chapter C-67.3), a trust company or a savings company that holds a licence under the Act respecting trust companies and savings companies (chapter S-29.01) or any other institution determined by regulation that holds a permit under this Act.
2009, c. 58, s. 3.
See special transitional provisions, S.Q. 2018, c. 23 , s. 392.
DIVISION II
GENERAL PROVISIONS
2002, c. 45, s. 180.
2. (Repealed).
1966-67, c. 73, s. 2; 1977, c. 5, s. 14; 2002, c. 45, s. 181.
2.1. The functions of the Authority are
(a)  to govern, within the scope of this Act, the soliciting and receiving of deposits of money from the public;
(b)  to guarantee payment of deposits of money to the extent and in the manner prescribed in this Act and the regulations;
(c)  to manage the deposit insurance fund; and
(d)  to administer the system of permits established in Division IV.
1983, c. 10, s. 1; 2002, c. 45, s. 182; 2004, c. 37, s. 90.
3. (Repealed).
1966-67, c. 73, s. 3; 1996, c. 2, s. 77; 1999, c. 40, s. 27; 2000, c. 56, s. 224; 2002, c. 45, s. 183.
4. (Repealed).
1966-67, c. 73, s. 4; 1999, c. 40, s. 27; 2002, c. 45, s. 183.
5. (Repealed).
1966-67, c. 73, s. 5; 1999, c. 40, s. 27; 2002, c. 45, s. 183.
6. (Repealed).
1966-67, c. 73, s. 6; 1977, c. 5, s. 14; 1983, c. 10, s. 2; 1983, c. 55, s. 161; 1997, c. 35, s. 9; 2002, c. 45, s. 183.
6.1. (Repealed).
1983, c. 10, s. 2; 2002, c. 45, s. 183.
6.2. (Repealed).
1983, c. 10, s. 2; 2002, c. 45, s. 183.
6.3. (Repealed).
1983, c. 10, s. 2; 2002, c. 45, s. 183.
7. (Repealed).
1966-67, c. 73, s. 7; 1983, c. 10, s. 2; 1997, c. 35, s. 10; 2002, c. 45, s. 183.
7.1. (Repealed).
1983, c. 10, s. 2; 1999, c. 40, s. 27; 2002, c. 45, s. 183.
8. (Repealed).
1966-67, c. 73, s. 8; 1983, c. 10, s. 2; 1997, c. 35, s. 11; 2002, c. 45, s. 183.
8.1. (Repealed).
1983, c. 10, s. 2; 2002, c. 45, s. 183.
8.2. (Repealed).
1983, c. 10, s. 2; 2002, c. 45, s. 183.
8.3. (Repealed).
1983, c. 10, s. 2; 1997, c. 35, s. 12; 2002, c. 45, s. 183.
9. (Repealed).
1966-67, c. 73, s. 9; 1983, c. 10, s. 2; 2002, c. 45, s. 183.
10. (Repealed).
1966-67, c. 73, s. 10; 1983, c. 10, s. 2; 1997, c. 35, s. 13; 2002, c. 45, s. 183.
10.1. (Repealed).
1983, c. 10, s. 2; 2002, c. 45, s. 183.
10.2. (Repealed).
1983, c. 10, s. 2; 2002, c. 45, s. 183.
11. (Repealed).
1966-67, c. 73, s. 11; 1983, c. 10, s. 2; 2002, c. 45, s. 183.
11.1. (Repealed).
1983, c. 10, s. 2; 2002, c. 45, s. 183.
12. (Repealed).
1966-67, c. 73, s. 12; 1983, c. 10, s. 2; 2002, c. 45, s. 183.
13. (Repealed).
1966-67, c. 73, s. 13; 1978, c. 15, s. 133, s. 140; 1983, c. 10, s. 2; 2000, c. 8, s. 242; 2002, c. 45, s. 183.
13.1. (Repealed).
1983, c. 10, s. 2; 2002, c. 45, s. 183.
14. (Repealed).
1966-67, c. 73, s. 14; 1983, c. 10, s. 2; 2002, c. 45, s. 183.
15. (Repealed).
1966-67, c. 73, s. 15; 2002, c. 45, s. 183.
16. (Repealed).
1966-67, c. 73, s. 16; 1979, c. 37, s. 43; 2002, c. 45, s. 183.
17. (Repealed).
1966-67, c. 73, s. 17; 1992, c. 61, s. 65; 2002, c. 45, s. 184; 2004, c. 37, s. 90; 2009, c. 58, s. 4.
18. (Repealed).
1966-67, c. 73, s. 18; 1983, c. 10, s. 3; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2009, c. 58, s. 4.
19. (Repealed).
1966-67, c. 73, s. 19; 2002, c. 45, s. 185.
20. The Authority shall, not later than 31 July each year, submit to the Minister a report of its activities related to the administration of the said Act for the preceding fiscal year.
The activity report must contain all the information required by the Minister.
The Minister shall table the activity report of the Authority before the National Assembly within 30 days of its receipt or, if the Assembly is not sitting, within 30 days of resumption.
1966-67, c. 73, s. 20; 1966-67, c. 72, s. 23; 1968, c. 9, s. 90; 1975, c. 76, s. 11; 1981, c. 9, s. 24; 1982, c. 52, s. 52; 1983, c. 10, s. 4; 2002, c. 45, s. 186; 2004, c. 37, s. 90.
21. (Repealed).
1966-67, c. 73, s. 21; 1970, c. 17, s. 102; 2002, c. 45, s. 187.
22. (Repealed).
1966-67, c. 73, s. 22; 1966-67, c. 72, s. 23; 1975, c. 76, s. 11; 1981, c. 9, s. 24; 1982, c. 52, s. 52; 2002, c. 45, s. 187.
DIVISION III
DEPOSITS OF MONEY
23. No individual shall solicit deposits of money from the public.
1966-67, c. 73, s. 23.
24. Notwithstanding any inconsistent provision of any general law or special Act, no institution shall solicit or receive deposits of money from the public unless it is a registered institution.
1966-67, c. 73, s. 24.
25. (Repealed).
1966-67, c. 73, s. 25; 1968, c. 71, s. 2; 1988, c. 64, s. 551; 1999, c. 40, s. 27; 2009, c. 58, s. 4.
26. (Repealed).
1966-67, c. 73, s. 26; 1968, c. 71, s. 3; 1974, c. 70, s. 473; 1977, c. 5, s. 14; 2002, c. 45, s. 188; 2004, c. 37, s. 90; 2009, c. 58, s. 4.
DIVISION IV
PERMITS
27. (1)  Every institution which applies for a permit shall send its application to the Agency in prescribed form, accompanied by the documents prescribed by the regulations.
(2)  The Authority shall issue the permit if the applicant institution fulfils the conditions prescribed by the regulations.
(3)  The decision must be published in the Authority’s bulletin and in the Gazette officielle du Québec.
1966-67, c. 73, s. 27; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2009, c. 58, s. 5.
28. A permit may be issued only to a financial services cooperative, an insurer, a trust company, a savings company or any other institution qualified under the regulations.
1966-67, c. 73, s. 28; 1987, c. 95, s. 370; 2009, c. 58, s. 6.
29. Every registered institution shall keep the books and accounts prescribed by the regulations.
1966-67, c. 73, s. 29.
30. Every permit remains in force unless it is suspended or cancelled.
1966-67, c. 73, s. 30; 1983, c. 10, s. 5.
31. The Authority may suspend or cancel the permit of an institution which
(a)  has committed an offence or which, in the opinion of the Authority, is in contravention of this Act, any Act of Québec, of another province or of the Parliament of Canada governing its activities, or of any regulation, by-law or rule made under any such Act;
(b)  subject to the regulations, no longer, in the opinion of the Authority, fulfils the conditions required for obtaining a permit;
(c)  is insolvent or, in the opinion of the Authority, is about to become so;
(d)  does not, in the opinion of the Authority, follow sound commercial and financial practices;
(e)  is, in the opinion of the Authority, in an unsatisfactory financial position which cannot be improved;
(f)  has failed to repay a deposit of money at maturity or to pay interest on a deposit when due;
(g)  no longer receives deposits of money from the public.
1966-67, c. 73, s. 31; 1983, c. 10, s. 10; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
31.1. The Authority may cancel the permit of an institution at the latter’s request. In addition, it may cancel the permit of an institution which has amalgamated.
1983, c. 10, s. 10; 1987, c. 95, s. 371; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
31.2. Before suspending or cancelling a permit, the Authority must allow the holder to make representations, except in the case of the cancellation of a permit under section 31.1.
1983, c. 10, s. 10; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
31.3. The permit of an institution is cancelled of right upon
(a)  the institution’s dissolution;
(a.1)  the institution’s no longer holding an insurer’s licence under the Act respecting insurance (chapter A-32) or a trust company or savings company licence under the Act respecting trust companies and savings companies (chapter S-29.01), or its no longer being a financial services cooperative within the meaning of the Act respecting financial services cooperatives (chapter C-67.3);
(a.2)  the institution’s not having received deposits of money for over three years;
(a.3)  the institution’s having, in the opinion of the Authority, inadequate assets, which compromises repayment to depositors of guaranteed deposits of money;
(b)  adoption or approval by its shareholders or members of a resolution ordering the winding-up of the institution, other than a resolution requesting the issue of an order contemplated in paragraph d;
(c)  the institution’s coming under a winding-up order for any reason other than bankruptcy or insolvency;
(d)  the institution’s coming under a winding-up order by virtue of the Winding-up Act (Revised Statutes of Canada, 1985, chapter W-11); or
(e)  (paragraph repealed).
1983, c. 10, s. 10; 2009, c. 58, s. 7.
31.4. For the application of section 31.3, a trust company or savings company which is in a position contemplated in section 250 of the Act respecting trust companies and savings companies (chapter S‐29.01) is deemed to be under an order contemplated in paragraph c of section 31.3.
1983, c. 10, s. 10; 1987, c. 95, s. 372; 1999, c. 40, s. 27; 2002, c. 45, s. 189; 2004, c. 37, s. 90; 2009, c. 58, s. 8.
32. An institution whose permit has been suspended or cancelled or whose policy contemplated in section 34 has been suspended, cancelled or rescinded, as the case may be, must disclose that fact to its depositors and remove any sign, mark, advertisement or other means of publicity conveying the information that deposits entrusted to it are guaranteed under the terms of this Act.
1966-67, c. 73, s. 32; 1983, c. 10, s. 11.
32.1. The Authority shall publish the suspension or cancellation of the permit of a registered institution in the Authority’s bulletin and in the Gazette officielle du Québec.
1983, c. 10, s. 11; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2009, c. 58, s. 9.
DIVISION V
GUARANTEE OF DEPOSITS OF MONEY
33. (Repealed).
1966-67, c. 73, s. 33; 1968, c. 71, s. 4; 1983, c. 10, s. 12; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2007, c. 15, s. 16.
33.1. The Authority shall guarantee to every person who makes a deposit of money with a registered institution or a bank the payment, on their respective maturity dates, of the principal and interest of the deposit, up to $100,000.
Such guarantee shall not apply to deposits of money made outside Québec or to those payable only outside Québec. Nor shall it apply to deposits of money made or payable in any currency other than that of Canada.
The Minister may determine, for a period not exceeding two years, that the maximum amount of the guarantee under the first paragraph is to be greater than $100,000.
The Minister may also determine, for the same period, that deposits are to be 100% guaranteed.
The guarantee amount so determined by the Minister shall be substituted for the amount of $100,000 in sections 34, 34.4, 38.1, 39 and 57.
1983, c. 10, s. 13; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2007, c. 15, s. 17; 2009, c. 27, s. 9; 2009, c. 58, s. 10.
33.2. (Repealed).
1983, c. 10, s. 13; 2007, c. 15, s. 18.
34. The Authority, for a premium and on such other conditions as are stipulated in a policy issued by it, may guarantee the payment, on their respective maturity dates, of the principal and interest, up to $100,000, of any deposit of money made outside Québec with a registered institution constituted under an Act of Québec, or with a bank if such bank is authorized for such purpose by the Governor General in Council.
Nevertheless, the suspension of the permit of any institution shall entail suspension of any policy issued to it under the preceding paragraph, and the cancellation thereof shall entail rescission of the policy.
1966-67, c. 73, s. 34; 1966-67, c. 74, s. 1; 1983, c. 10, s. 14; 1999, c. 40, s. 27; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2007, c. 15, s. 19.
34.1. The Authority shall execute its obligation under a guarantee if the institution is unable to make a payment covered by the guarantee when the payment becomes due because
(a)  the institution is under a court order;
(b)  the institution is being dissolved;
(c)  the institution is being liquidated or wound up following the adoption or approval by its shareholders or members of a resolution ordering its liquidation or winding-up, other than a resolution requesting the issue of an order referred to in subparagraph e;
(d)  the institution is under a liquidation or winding-up order for any reason other than bankruptcy or insolvency; or
(e)  the institution is under a winding-up order issued under the Winding-up Act (Revised Statutes of Canada, 1985, chapter W-11).
(f)  (subparagraph repealed).
For the purposes of the first paragraph, the word institution includes a bank.
In the case of a financial services cooperative that is a member, within the meaning of the Act respecting financial services cooperatives (chapter C-67.3), of a security fund, the Authority’s obligation under a guarantee is enforceable only if the fund is exhausted.
1983, c. 10, s. 15; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2009, c. 58, s. 11.
34.2. For the purposes of the first paragraph of section 34.1, a trust company or savings company which is in a position contemplated in section 250 of the Act respecting trust companies and savings companies (chapter S‐29.01) is deemed to be under an order contemplated in subparagraph d of the first paragraph of section 34.1.
1983, c. 10, s. 15; 1987, c. 95, s. 373; 1999, c. 40, s. 27; 2002, c. 45, s. 190; 2004, c. 37, s. 90; 2009, c. 58, s. 12.
34.3. The Authority shall make payments in execution of its obligation under a guarantee within a reasonable time.
The Authority may execute its obligation under a guarantee by placing a deposit in any registered institution or in any bank at the disposal of the depositor.
1983, c. 10, s. 15; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
34.4. The Authority may, with the authorization of the Minister, if the institution is being liquidated or wound-up within the meaning of subparagraphs d and e of the first paragraph of section 34.1, grant a depositor interest on the deposit of money, at a rate determined by regulation, for the period beginning on the date of liquidation or winding-up and ending on the date of the final payment in respect of the deposit of money. The total paid by the Authority must not exceed $100,000.
2009, c. 58, s. 13.
35. The Authority, when it pays a deposit of money in the place and stead of the registered institution, shall be subrogated pleno jure in all the rights of the depositor against the institution, up to the amount so paid.
The Authority’s claim against the registered institution bears interest from the payment to the depositor at a rate equal to the rate determined under section 28 of the Tax Administration Act (chapter A-6.002).
Where the depositor has been paid in part only by the Authority, he does not have, over the Authority, the preference provided in article 1658 of the Civil Code.
1966-67, c. 73, s. 35; 1983, c. 10, s. 16; 1999, c. 40, s. 27; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2009, c. 58, s. 14; 2010, c. 31, s. 175.
35.1. Where the Authority repays part of a guaranteed deposit of money, the Authority ranks equally with the depositor in respect of the amount so repaid and the interest accrued and payable under section 34.4.
2009, c. 58, s. 15.
36. Deposits of money owing by an institution on the date of issue of a permit or of a policy contemplated in section 34 shall be deemed to have been made to a registered institution.
The same shall apply to deposits of money made to an institution after the date of issue of a permit or policy contemplated in section 34 but before 1 July 1970.
1966-67, c. 73, s. 36; 1968, c. 71, s. 5.
37. Deposits of money owing by an institution on the date of suspension or cancellation of its permit, or of the suspension, rescission or expiry of a policy issued in accordance with section 34, shall continue to be guaranteed under this Act or under such policy, as the case may be.
Such deposits shall continue to be so guaranteed for a period of two years or, in the case of deposits for a term expiring in more than two years, until the date when they expire.
The institutions in which such deposits continue to be so guaranteed shall remain, with respect to such deposits and until the day on which they continue to be so guaranteed, subject to the pertinent provisions of this Act, the regulations or the policy, as the case may be, save to the extent provided by the regulations.
1968, c. 71, s. 6; 1983, c. 10, s. 17.
38. When a person makes several deposits of money with the same institution or bank, such deposits, for the purposes of this Act, shall be deemed a single deposit. Nevertheless, such deposits may be considered separate as may be prescribed by the regulations.
1966-67, c. 73, s. 37; 1968, c. 71, s. 7; 1983, c. 10, s. 19.
38.1. When two or more institutions have amalgamated and a person had made deposits with more than one of them, a deposit owing to that person immediately before the amalgamation by one of the institutions is deemed to be separate from any deposit owing to that person immediately before the amalgamation by any other of those institutions, as well as from any deposit made by that person with the institution resulting from the amalgamation after the date of amalgamation.
However, a deposit made by the person with the institution resulting from the amalgamation after the date of amalgamation is guaranteed only to the extent that the aggregate of deposits of that person with the institution, except the said deposit, is less than $100,000.
This section applies also in the case of the amalgamation of two or more banks.
1983, c. 10, s. 19; 1999, c. 40, s. 27; 2007, c. 15, s. 19.
38.2. Section 38.1 applies, with the necessary modifications, in the case of the acquisition, by a registered institution or by a bank, of the assets, together with the take-over of the liabilities, of a registered institution or a bank, or of an institution whose permit has been suspended or cancelled.
For the application of section 38.1, the institutions or banks contemplated in the first paragraph are deemed to be institutions that have amalgamated and the deposits made after the date of acquisition are deemed to be made with the institution resulting from the amalgamation.
1983, c. 10, s. 19.
39. When several deposits are deemed a single deposit by virtue of section 38 and are guaranteed partly by the application of section 33.1 and partly by a policy contemplated in section 34, the total guarantee applicable to such deposits shall not exceed, in principal and interest, the sum of $100,000.
1968, c. 71, s. 8; 1983, c. 10, s. 20; 2007, c. 15, s. 19.
DIVISION VI
SPECIAL POWERS OF THE AUTHORITY
2002, c. 45, s. 191; 2004, c. 37, s. 90.
40. (Repealed).
1966-67, c. 73, s. 38; 1983, c. 10, s. 21; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2009, c. 58, s. 16; 2018, c. 232018, c. 23, s. 369.
40.0.1. The Authority may, after consulting the Minister, provide guidelines to registered institutions concerning the advertising of, and information supplied about, the guarantee covering money deposit products.
If the registered institutions are financial services cooperatives, the Authority shall also consult the federation to which they belong.
Guidelines are not regulations. They may pertain to the development, interpretation or use of the advertising or information referred to in the first paragraph, whether or not it is dealt with in a regulation under this Act.
2009, c. 58, s. 17.
40.0.2. A registered institution that does not comply with the guidelines is presumed not to be adhering to sound commercial practices.
2009, c. 58, s. 17.
40.0.3. The Authority may, if it considers it expedient, give written directions to a registered institution concerning the advertising or information referred to in the first paragraph of section 40.0.1.
Before exercising that power, the Authority must notify the registered institution and give it an opportunity to present observations.
2009, c. 58, s. 17.
40.0.4. The Authority may order a registered institution to cease a course of action or to implement measures specified by the Authority if, in its opinion, the registered institution is not adhering to sound commercial practices, in particular as regards the advertising or information referred to in the first paragraph of section 40.0.1.
2009, c. 58, s. 17.
40.0.5. The Authority may also order a registered institution to cease a course of action or to implement measures specified by the Authority if, in its opinion, the registered institution is not complying with a provision of this Act, a regulation or a written instruction.
At least 15 days before issuing an order, the Authority shall notify the registered institution concerned as prescribed in section 5 of the Act respecting administrative justice (chapter J-3), stating the grounds which appear to justify the order, the date on which the order is to take effect and the right of the institution to submit observations.
2009, c. 58, s. 17.
40.0.6. The order of the Authority must state the reasons which support it, and be sent to all the persons to whom it applies. It must also be sent to every director of the registered institution concerned. The order becomes effective on the day it is served or on any later date indicated in the order.
2009, c. 58, s. 17.
40.0.7. The Authority may, without prior notice, issue a provisional order valid for a period not exceeding 15 days if, in its opinion, any period of time allowed to the registered institution concerned to submit observations may be detrimental.
Such an order must state the reasons on which it is based and becomes effective on the day it is served on the institution to which it applies. The institution may submit observations to the Authority within six days of receiving the order.
2009, c. 58, s. 17.
40.0.8. The Authority may revoke an order issued under this Act.
2009, c. 58, s. 17.
40.0.9. The Authority may apply to a judge of the Superior Court for an injunction in respect of any matter relating to this Act or a regulation under this Act.
The application for an injunction constitutes an action.
The procedure prescribed in the Code of Civil Procedure (chapter C-25.01) applies, except that the Authority shall not be ordered to give security.
2009, c. 58, s. 17; I.N. 2016-01-01 (NCCP).
DIVISION VI.1
PREMIUM
1981, c. 30, s. 1.
40.1. In this division, the accounting period for premiums means the period from 1 May of every year to 30 April of the next year.
1981, c. 30, s. 1; 1983, c. 10, s. 22.
40.2. For the purposes of the guarantee provided for in section 33.1 and for each accounting period for premiums, the Authority shall fix and collect from each registered institution a premium to be paid by the latter.
1981, c. 30, s. 1; 1983, c. 10, s. 24; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
40.2.1. For the purpose of calculating the premium payable, a registered institution must file the declaration of guaranteed deposits on the form prescribed by the Authority, after determining the actual sum of the deposits of money it holds.
Not in force
Despite the first paragraph, a registered institution may file its declaration of guaranteed deposits after estimating the deposits of money using a method determined by regulation of the Authority.
2009, c. 58, s. 18.
40.3. The amount of the premium is equal to the greater of the following amounts:
(a)  a percentage, determined by regulation, of an amount equal to the total of such portion of each deposit as is guaranteed by the Authority under section 33.1 and which is on deposit with the institution and registered on 30 April preceding the accounting period for premiums; or
(b)  an amount determined by regulation.
A regulation made for the purpose of subparagraph b of the first paragraph may authorize the Authority to take into account, in determining the amount of the premium, the fact that a deposit institution is a member of a cooperative group referred to in Division II of Chapter III. Such an amount may then be applicable to all the members of the cooperative group, to a certain category of them or to the federation of which they are members.
1981, c. 30, s. 1; 1983, c. 10, s. 25; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2018, c. 23, s. 373.
40.3.1. The premium of a financial services cooperative is reduced by one half if the cooperative is a member, within the meaning of the Act respecting financial services cooperatives (chapter C-67.3), of a security fund whose mission is to avoid or reduce disbursements by the Authority under this Act.
At the Authority’s request, the Government may fix a different reduction.
1982, c. 52, s. 53; 1999, c. 40, s. 27; 2000, c. 29, s. 619; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2009, c. 58, s. 19.
40.3.2. (Repealed).
1982, c. 52, s. 53; 1999, c. 40, s. 27; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2009, c. 58, s. 20.
40.3.3. (Repealed).
1982, c. 52, s. 53; 1999, c. 40, s. 27; 2000, c. 29, s. 620; 2009, c. 58, s. 20.
40.3.4. In no case may a reduction reduce the premium payable to a smaller amount than that determined under paragraph b of section 40.3.
1982, c. 52, s. 53.
40.4. The Authority may, with the authorization of the Government, not fix or collect a premium from a registered institution whose deposits of money received or payable by it in Québec are guaranteed or insured by a plan which, in the opinion of the Authority, is equivalent to the plan established by this Act.
1981, c. 30, s. 1; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
CHAPTER VI.2
MITIGATION OF RISKS AND LOSSES, AND RESOLUTION PROCESS
2018, c. 232018, c. 23, s. 376; I.N. 2018-08-01.
DIVISION I
MITIGATION OF RISKS AND LOSSES
2018, c. 232018, c. 23, s. 376.
40.5. The Authority may, in particular, on the conditions it determines, for the purpose of reducing a risk to the Authority or averting or reducing a threatened loss to the Authority,
(1)  make advances of money, with or without security, to an authorized deposit institution or guarantee payment of the debts of such an institution;
(2)  acquire the assets of an authorized deposit institution;
(3)  make a deposit or guarantee a deposit made with an authorized deposit institution;
(4)  guarantee an authorized deposit institution against any loss it may incur following an amalgamation with an authorized deposit institution or following the acquisition of the assets together with the take-over of the liabilities of such an institution;
(5)  with the authorization of the Minister, enter, with any body or agency which, in the opinion of the Authority, administers an equivalent scheme, into an agreement concerning a deposit institution whose deposits are guaranteed or insured partly by the Authority and partly by such a body or agency;
(6)  constitute a legal person or a partnership under an Act of Québec to carry out the liquidation or winding-up of the assets acquired from an authorized deposit institution;
(7)  acquire any security issued by an authorized deposit institution; and
(8)  apply to the Superior Court for an order to force the sale or amalgamation of an authorized deposit institution.
The Authority may, in addition, act as liquidator of a deposit institution whose authorization has been revoked or act as receiver of an authorized deposit institution.
2018, c. 232018, c. 23, s. 376.
DIVISION II
RESOLUTION PROCESS
2018, c. 232018, c. 23, s. 376.
§ 1.  — Resolution planning and resolution board
2018, c. 232018, c. 23, s. 376.
40.6. The Authority shall plan operations to resolve problems that could arise from the failure of authorized deposit institutions belonging to a cooperative group within the meaning of section 6.2 of the Act respecting financial services cooperatives (chapter C-67.3) and implement them when their implementation is ordered.
2018, c. 232018, c. 23, s. 376.
40.7. The functions of a resolution board are to approve the plan established by the Authority, order the implementation and closure of the resolution operations, and authorize any resolution operation that was not provided for in the plan.
2018, c. 232018, c. 23, s. 376.
40.8. The resolution board is composed of the person appointed as Deputy Minister of Finance under section 6 of the Act respecting the Ministère des Finances (chapter M-24.01), the President and Chief Executive Officer of the Authority appointed under section 20 of the Act respecting the regulation of the financial sector (chapter E-6.1), who are both members of the board by virtue of office, and a third person appointed by the Minister.
The board shall adopt operating rules.
The Authority must provide the resolution board with the services and equipment the board requests from it, free of charge.
2018, c. 232018, c. 23, s. 376.
40.9. The objective of resolution operations is to ensure the sustainability of a cooperative group’s deposit institution activities despite the group’s failure and without recourse to public funds.
The Authority shall establish a resolution plan specifying, in particular, the operations it intends to implement in case of an institution’s failure in order to achieve that objective. The operations may be those provided for under this subdivision or other measures that the Authority is authorized by law to take.
2018, c. 232018, c. 23, s. 376.
40.10. The resolution plan shall be submitted to the resolution board for approval. The same shall apply to any amendments that may be made to the plan.
The board may ask the Authority to update the plan; it may also request any information about the plan that it considers necessary from the Authority.
2018, c. 232018, c. 23, s. 376.
§ 2.  — Implementation of resolution operations
2018, c. 232018, c. 23, s. 376.
40.11. The Authority shall notify the resolution board without delay if it considers that the failure of deposit institutions belonging to the cooperative group is likely to cause the failure of the other deposit institutions belonging to the group and that the powers conferred on it by the Act respecting financial services cooperatives (chapter C-67.3) are insufficient to remedy the situation.
2018, c. 232018, c. 23, s. 376.
40.12. The resolution board shall order the implementation of resolution operations if it deems it to be in the public interest.
2018, c. 232018, c. 23, s. 376.
40.13. The order of the resolution board is, in all respects, final and conclusive and may not be questioned or reviewed in any court. It must be recorded in writing and a copy of the writing must be sent to the Authority, which must publish it without delay in its bulletin.
2018, c. 232018, c. 23, s. 376.
§ 3.  — Impacts of the resolution board’s order
2018, c. 232018, c. 23, s. 376.
40.14. The resolution board’s order designates the Authority as the receiver of all the legal persons belonging to the cooperative group, including the security fund within the meaning of section 487 of the Act respecting financial services cooperatives (chapter C-67.3), until the closure of the resolution operations.
The Authority is then vested with the powers provided for in paragraphs 1 to 9 of section 19.2 of the Act respecting the regulation of the financial sector (chapter E-6.1), and sections 19.3 to 19.5 and 19.9 of that Act apply to the receivership so established, except any reference to an order of the Superior Court.
2018, c. 232018, c. 23, s. 376.
40.15. Unless otherwise provided in this Act, no civil, administrative or arbitration proceedings may be brought against the legal persons belonging to the cooperative group during the resolution operations. The same shall apply to measures to be taken prior to the exercise of a right or power against those legal persons.
During the resolution process, the following are suspended by operation of law:
(1)  the measures to be taken by a creditor prior to the exercise of a right or power against those legal persons;
(2)  the civil, administrative or arbitration proceedings brought against any legal person belonging to the group; and
(3)  the execution, forced or voluntary, of judgments and other juridical acts on which the law confers the same force and effect as a judgment against those legal persons.
2018, c. 232018, c. 23, s. 376.
40.16. Unless otherwise provided in this Act, compensation may not, during the resolution operations, be claimed from legal persons belonging to the cooperative group, but the legal persons may claim compensation.
They may not, however, claim an amount to which they would not have been entitled had it not been for the impossibility to claim compensation from them.
2018, c. 232018, c. 23, s. 376.
40.17. Unless otherwise provided in this Act, no one may, during the resolution operations, terminate a contract entered into with a legal person belonging to the cooperative group, amend it, or cause the legal person to lose the benefit of the term stipulated in the contract for any of the following reasons:
(1)  insolvency or deteriorated financial position of the legal person, any other legal person in the group, the group, its guarantor or any providers of credit support;
(2)  a default, before the resolution operations were implemented, by the legal person or another legal person belonging to the cooperative group in the performance of obligations under the contract, unless it is a monetary default that is not remedied within the first 60 days of the resolution operations;
(3)  the resolution board’s order to implement the resolution operations;
(4)  any resolution operation; or
(5)  the conversion of any of the legal person’s securities or liabilities in accordance with their terms.
The provisions of a contract to which such a legal person is a party that are inconsistent with the provisions of the first paragraph and provisions which, for the reasons described in the first paragraph, cause the legal person to lose a right or create new obligations for the institution are inoperative.
2018, c. 232018, c. 23, s. 376.
40.18. Unless otherwise provided in this Act, no legal person or organization of which a legal person belonging to the cooperative group is a member at the time the resolution operations are implemented may, for the reasons described in the first paragraph of section 40.17, withdraw the legal person’s membership or otherwise cause it to lose its membership or the rights it confers.
The provisions of a constituting act or of the by-laws of a legal person or organization of which the legal person belonging to the cooperative group is a member that are inconsistent with the provisions of the first paragraph and provisions which, for the reasons described in the first paragraph of section 40.17, cause the legal person to lose a right or create new obligations for the legal person are inoperative.
2018, c. 232018, c. 23, s. 376.
40.19. Sections 40.15 to 40.18 do not prohibit requiring that a legal person belonging to the cooperative group pay a sum of money as consideration for a prestation.
They do not require the lending of a sum of money or the provision of any service that would be provided on credit because of the resolution operations.
2018, c. 232018, c. 23, s. 376.
40.20. A security agreement on the property of a legal person belonging to the cooperative group and the rights it confers on that legal person’s creditor are exempt from the application of sections 40.15 to 40.17 in either of the following cases:
(1)  the security guarantees a claim of the Bank of Canada or the Authority; or
(2)  the agreement has been exempted from the application of those sections under section 40.21.
2018, c. 232018, c. 23, s. 376.
40.21. At the request of a legal person belonging to the cooperative group, the Authority may, if so authorized by the resolution board, exempt a security agreement on that legal person’s property from the application of sections 40.15 to 40.17. The Authority may not exercise that power during the resolution operations.
As a result of that exemption, the Authority is not required to ensure that the secured obligation will be assumed by a third person, or to provide the third person with financial assistance enabling it to perform that obligation.
2018, c. 232018, c. 23, s. 376.
40.22. A regulation of the Authority is to specify how sections 40.15 to 40.18 are to apply to the financial contracts the Authority determines by regulation.
2018, c. 232018, c. 23, s. 376.
40.23. The Authority may exempt a legal person belonging to the cooperative group from the application of any part of sections 40.15 to 40.18 to the extent provided by the resolution plan or, failing that, if it has received prior authorization from the resolution board to do so.
2018, c. 232018, c. 23, s. 376.
40.24. The Superior Court may, on the conditions it considers appropriate, authorize a person to do anything that the person would otherwise be prohibited from doing under sections 40.15 to 40.18, if it is satisfied that
(1)  the person would suffer serious injury if the authorization was not granted; or
(2)  it is equitable on other grounds to grant the authorization.
The Authority is a party to any application under the first paragraph as a defendant and is entitled to receive notice of the application in the manner the Court considers appropriate.
2018, c. 232018, c. 23, s. 376.
§ 4.  — Resolution operations
2018, c. 232018, c. 23, s. 376.
I.  — Consent, authorization and approval
2018, c. 232018, c. 23, s. 376.
40.25. The Authority may implement any resolution operation without the consent, authorization or approval of anyone if the operation is in the resolution plan, or with the sole authorization of the resolution board if it is not in the resolution plan, despite any other Act applicable to the Authority or to any such operation.
The Authority may, subject to the same conditions, exercise all the powers that are conferred by the Act respecting financial services cooperatives (chapter C-67.3) on the federation or on the security fund belonging to the cooperative group.
The first paragraph of section 39 of the Act respecting the regulation of the financial sector (chapitre E-6.1) and sections 77.1 to 77.3 of the Financial Administration Act (chapter A-6.001) apply to the Authority only if it makes a borrowing or an investment, an acquisition or transfer of assets or a financial commitment that was neither provided for in the resolution plan nor authorized by the resolution board.
2018, c. 232018, c. 23, s. 376.
II.  — Amalgamation/continuance and amalgamation/winding-up
2018, c. 232018, c. 23, s. 376.
40.26. The Authority may amalgamate all the financial services cooperatives as well as the security fund belonging to the same cooperative group and have them continued as one Québec savings company. The Authority may also do so with regard to any part of those legal persons that it determines.
That amalgamation/continuance process requires articles of amalgamation/continuance.
2018, c. 232018, c. 23, s. 376.
40.27. The articles of amalgamation/continuance must contain the provisions required to be set out in the articles of constitution of a business corporation that elects to become regulated by Title III of the Trust Companies and Savings Companies Act (2018, chapter 23, section 395), except the particulars concerning the founders.
They must also contain the following information as regards the shares issued by the amalgamating financial services cooperatives:
(1)  the manner in which they are to be converted into shares of the Québec savings company resulting from the amalgamation/continuance;
(2)  if the shares of one of the financial services cooperatives are not to be wholly converted into shares of the savings company, the amount of money or other form of payment the holders of those shares will be entitled to receive in addition to or instead of shares of the Québec savings company resulting from the amalgamation/continuance;
(3)  if applicable, the amount of money or other form of payment that is to be received instead of fractional shares of the Québec savings company resulting from the amalgamation/continuance; and
(4)  if applicable, a provision stating that any shares of a financial services cooperative held by another legal person belonging to the cooperative group are to be cancelled when the amalgamation/continuance becomes effective without any repayment of capital in respect of those shares, and that such shares are not to be converted into shares of the Québec savings company resulting from the amalgamation/continuance.
2018, c. 232018, c. 23, s. 376.
40.28. After having prepared the articles of amalgamation/continuance, the Authority shall prepare, in duplicate, a certificate attesting the amalgamation/ continuance and stating its date of effect, which may be subsequent to the date on which the certificate is made.
The Authority shall send a copy of the articles and of the certificate attesting the amalgamation/continuance to the enterprise registrar, who shall deposit them in the enterprise register.
2018, c. 232018, c. 23, s. 376.
40.29. As of the date of effect shown on the certificate,
(1)  all the legal persons involved in the amalgamation/continuance are continued as one Québec savings company and their patrimonies are joined together to form the patrimony of that savings company; and
(2)  the rights and obligations of the legal persons involved in the amalgamation/continuance become rights and obligations of the Québec savings company resulting from the amalgamation/continuance and the latter becomes a party to any judicial or administrative proceeding to which those legal persons were parties.
2018, c. 232018, c. 23, s. 376.
40.30. The Québec savings company resulting from the amalgamation/continuance shall exercise the rights and perform the obligations under the name of the financial services cooperative or the security fund which, before the amalgamation/continuance, held those rights or owed those obligations.
The savings company shall exercise the rights it has acquired and perform the obligations to which it is bound after the amalgamation/continuance under the name that is assigned to it in the articles of amalgamation/continuance.
Creditors of a financial services cooperative or of the security fund before the amalgamation/continuance may file a judicial application against the savings company, whether under the latter’s name or under the name of the cooperative or fund.
2018, c. 232018, c. 23, s. 376.
40.31. The Québec savings company resulting from the amalgamation/continuance shall have its head office at the place where the federation had its head office before the amalgamation/continuance.
For the purpose of determining the court having territorial jurisdiction in Québec to hear a judicial application based on a right held or obligation owed by a financial services cooperative or the security fund before the amalgamation/continuance, the court of the cooperative’s or fund’s domicile before the amalgamation also has jurisdiction, at the plaintiff’s option.
2018, c. 232018, c. 23, s. 376.
40.32. The Authority may, as the receiver of the federation and the fund under section 40.14, exercise the power conferred on them by section 547.47 of the Act respecting financial services cooperatives (chapter C-67.3) to carry out an amalgamation/winding-up not only with respect to all the financial services cooperatives belonging to the cooperative group and the fund, but also with respect to any number of those legal persons that it determines.
If the amalgamation/winding-up does not involve all the legal persons belonging to the group, the declaration of amalgamation/winding-up required under section 547.48 of that Act must specify the legal persons involved. The other provisions of that same Act relating to an amalgamation/winding-up apply with the necessary modifications.
2018, c. 232018, c. 23, s. 376.
40.33. The provisions of this Act that are applicable, in the event of resolution, to a legal person belonging to a cooperative group apply to any other legal person in which the legal person belonging to that group has been continued, even if, because of such a continuance, the cooperative group as defined by law ceases to exist.
Those provisions continue to apply to the legal persons that belonged to the group and were not continued or dissolved at the time it ceased to exist.
2018, c. 232018, c. 23, s. 376.
III.  — Establishment and operation of a bridge institution and an asset management company
2018, c. 232018, c. 23, s. 376.
40.34. The Authority may establish one of the following deposit institutions in order to have it assume the liabilities, in relation to deposits of money, of a deposit institution belonging to the cooperative group:
(1)  a financial services cooperative;
(2)  a Québec savings company; or
(3)  a trust company.
Such a deposit institution is referred to as a “bridge institution”. The Authority shall grant the authorization referred to in section 28 to the bridge institution as soon as it is established and without an application being filed by that deposit institution.
2018, c. 232018, c. 23, s. 376.
40.35. The Authority acting alone may found a financial services cooperative that is to be a bridge institution. If the cooperative is a credit union, it is not required to be a member of a federation.
As and when the cooperative that is the bridge institution assumes liabilities in relation to deposits of money, the depositors concerned become members of that cooperative by operation of law.
Sections 7, 8, 11 to 15, 33 to 37, 186 to 190, 195 and 286 of the Act respecting financial services cooperatives (chapter C-67.3) do not apply to a cooperative that is a bridge institution.
2018, c. 232018, c. 23, s. 376.
40.36. If the Authority acts as the founder of a business corporation that will be a trust company or a Québec savings company, sections 162 to 181 of the Trust Companies and Savings Companies Act (2018, chapter 23, section 395) do not apply. In addition, if the business corporation is to be a trust company, the Authority shall grant it the authorization required under section 17 of that Act as soon as it is incorporated and without an application being filed by the corporation.
2018, c. 232018, c. 23, s. 376.
40.37. The Authority may establish a business corporation with a view to transferring any part of the assets or liabilities of a legal person belonging to the cooperative group to the corporation, except liabilities in relation to deposits of money.
For the purposes of this Act, such a corporation is called an “asset management company”.
2018, c. 232018, c. 23, s. 376.
40.38. The Authority shall be the receiver of the bridge institution and of the asset management company, unless it designates a person to act as receiver.
The receiver is then vested with the powers provided for in paragraphs 1 to 9 of section 19.2 of the Act respecting the regulation of the financial sector (chapter E-6.1), and sections 19.3 to 19.5 and 19.9 of that Act apply to the receivership thus established, except any reference to an order from the Superior Court.
2018, c. 232018, c. 23, s. 376.
40.39. Despite any contrary provision, bridge institutions and asset management companies are not mandataries of the Authority or of the State.
Likewise, the legislative provisions applicable to a body for any of the following reasons do not apply to a bridge institution or an asset management company:
(1)  at least half of its expenditures are borne directly or indirectly by the Consolidated Revenue Fund;
(2)  at least half of its financing, resources or share capital is derived from that fund; or
(3)  its capital stock forms part of the domain of the State.
2018, c. 232018, c. 23, s. 376.
IV.  — Transfer of a legal person’s assets and liabilities
2018, c. 232018, c. 23, s. 376.
40.40. The Authority may transfer the assets and liabilities of a legal person belonging to the cooperative group to any acquirer. It may also renounce the exercise of a right or concede a right in an asset or a liability.
A transfer or concession may relate to specific assets or liabilities or a universality of assets and liabilities. The Authority is not limited as to the number of such acts it may perform.
A transfer, renunciation or concession may be by gratuitous or onerous title.
2018, c. 232018, c. 23, s. 376.
40.41. If a transfer or concession is made between the legal person and, as the case may be, the Authority, the bridge institution or the asset management company, the Authority shall unilaterally determine the assets or liabilities to be transferred, the rights to be conceded, the consideration to be paid as well as the other terms of the contract.
If a transfer or a concession is made with a third person, the Authority may, on behalf of the legal person, agree on the terms of the contract.
2018, c. 232018, c. 23, s. 376.
40.42. Unless the Authority decides otherwise, the transfer of an asset purges the real rights charging it, unless the asset is part of a universality and the rights charging it secure the liabilities that are part of that universality.
2018, c. 232018, c. 23, s. 376.
40.43. If the Authority transfers to a bridge institution all the deposits of money that are guaranteed by the Authority and entered, at the time the bridge institution is established, in the registers of a same deposit institution belonging to the cooperative group, the deposits and withdrawals made with the latter deposit institution until that time but not yet entered in its registers, as well as the deposits and withdrawals made after that time, are deemed to have been made with the bridge institution. The bridge institution is responsible for the interest accruing on those deposits.
2018, c. 232018, c. 23, s. 376.
40.44. A bridge institution that assumes a liability in relation to a deposit of money that is not entirely guaranteed by the Authority is subrogated pleno jure in all the rights of the depositor against the deposit institution with which the deposit was made for the entire deposit.
Despite the first paragraph of article 1658 of the Civil Code, the depositor may not exercise his or her rights against the deposit institution belonging to the cooperative group, unless the bridge institution receives an amount equal to the non-guaranteed part of the deposit.
2018, c. 232018, c. 23, s. 376.
40.45. Despite any contrary provision of this Act, the assumption by a bridge institution of a liability in relation to a deposit of money does not grant a depositor a guarantee that is superior to the guarantee the depositor would have been granted had the bridge institution not assumed the liability.
2018, c. 232018, c. 23, s. 376.
40.46. Sections 40.15 to 40.19 and 40.24 apply, with the necessary modifications, to any acquirer of the assets and liabilities of a legal person belonging to the cooperative group who, because of such an acquisition, becomes a party to a proceeding to which that legal person was a party, becomes a party to a contract to which that legal person was a party or becomes a member of a legal person or of any other organization of which that legal person was a member.
The prohibition under the first paragraph of section 40.15 and the suspension under the second paragraph of that section are only effective for 90 days from the date of acquisition, but the acquirer may renounce it.
2018, c. 232018, c. 23, s. 376.
V.  — Guarantees and other financial obligations of the Authority
2018, c. 232018, c. 23, s. 376.
40.47. To enable a member of Payments Canada to act as a clearing agent on behalf of a deposit institution belonging to the cooperative group, or on behalf of the bridge institution, the Authority may, in accordance with the Canadian Payments Act (R.S.C. 1985, c. C-21) and Payments Canada’s rules and regulations, undertake to
(1)  unconditionally guarantee the deposit institution’s obligations to the clearing agent as clearing agent; or
(2)  ensure that the deposit institution’s obligations to the clearing agent as clearing agent are assumed by the bridge institution.
2018, c. 232018, c. 23, s. 376.
40.48. The Authority may incur any financial obligation necessary to ensure the implementation of the resolution plan.
2018, c. 232018, c. 23, s. 376.
VI.  — Transfer, cancellation and conversion of securities and of certain debts
2018, c. 232018, c. 23, s. 376.
40.49. The Authority may order the transfer, in its favour, in favour of the bridge institution or in favour of the asset management company, of any part that it determines of the shares and subordinated debt obligations issued by the deposit institutions belonging to the cooperative group.
The transfer takes place as soon as it is entered in the issuer’s registers and, as a result, the acquirer of those shares or obligations becomes a protected purchaser within the meaning of the Act respecting the transfer of securities and the establishment of security entitlements (chapter T-11.002).
2018, c. 232018, c. 23, s. 376.
40.50. The Authority may cancel any part of the shares issued by a deposit institution belonging to the cooperative group. It may also convert such shares into contributed capital securities of a legal person constituted or resulting from an amalgamation/continuance or other conversion carried out for the purposes of the resolution.
The Authority may write off any part of the negotiable and transferable unsecured debts that belong, at the time of issue, to a class prescribed by regulation of the Authority. It may also convert them into contributed capital securities of a legal person constituted or resulting from an amalgamation/ continuance or other conversion carried out for the purposes of the resolution.
2018, c. 232018, c. 23, s. 376.
Not in force
40.51. The Authority must prescribe an indemnification plan by regulation and determine the holders of securities issued by deposit institutions belonging to the cooperative group and the creditors of those institutions that are eligible for the plan.
Only eligible holders of securities and creditors that, because of the resolution operations, are in a worse financial position than they would have been had the deposit institution belonging to the cooperative group been liquidated or wound up are entitled to receive an indemnity.
2018, c. 232018, c. 23, s. 376.
§ 5.  — Closure of resolution operations
2018, c. 232018, c. 23, s. 376.
40.52. The Authority shall notify the resolution board when it considers that the resolution operations are finished with respect to a legal person belonging to the cooperative group.
2018, c. 232018, c. 23, s. 376.
40.53. The resolution board shall order the closure of the resolution operations with respect to a legal person when it considers that it is in the public interest to do so.
2018, c. 232018, c. 23, s. 376.
40.54. The order of the resolution board is, for all purposes, final and conclusive and may not be questioned or reviewed in any court. It must be recorded in writing and a copy of the writing must be sent to the Authority, which must publish it without delay in its bulletin.
As soon as the decision is published, the provisions of this division cease to apply to the legal person named in it.
2018, c. 232018, c. 23, s. 376.
§ 6.  — Administration of resolution operations and immunities
2018, c. 232018, c. 23, s. 376.
40.55. The Authority shall recover, out of the assets of any legal person belonging to the cooperative group and in priority to all other claims, all the costs, charges and expenses properly incurred by the Authority in connection with the resolution operations.
2018, c. 232018, c. 23, s. 376.
40.56. During the resolution operations, the resolution board may ask the Authority to provide any information the board considers desirable to obtain.
2018, c. 232018, c. 23, s. 376.
40.57. Neither the Authority nor the Government are liable for the obligations of legal persons belonging to the cooperative group.
2018, c. 232018, c. 23, s. 376.
DIVISION VII
RETURNS AND INSPECTION
41. Every registered institution, at the times determined by the regulations, shall furnish the Authority with a detailed return of its operations containing the information prescribed by the regulations.
The following must be filed with the return:
(1)  the most recent financial report provided for in the second paragraph of section 133 of the Act respecting financial services cooperatives (chapter C‑67.3), if the registered institution is a credit union that is a member of a federation; or
(2)  the financial statements made in the form prescribed by regulation and bearing the certificate of the institution’s auditor, for any other institution.
1966-67, c. 73, s. 39; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2016, c. 72016, c. 7, s. 221.
41.1. Every registered institution shall also file, at the times determined by the Authority, any statement or return determined by the Authority.
1983, c. 10, s. 27; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
41.2. The Authority may require any additional information or explanation it determines in respect of the return contemplated in section 41 or the documents accompanying it or of the statement or return contemplated in section 41.1. The institution must furnish them to the Authority within such time as the latter may determine.
1983, c. 10, s. 27; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
41.3. The Authority may audit or commission an audit of any book, register, account, contract, record or other document of a registered institution if, in its opinion, the execution of its obligation under a guarantee seems unavoidable. It must notify the Minister of the audit.
The expenses incurred for the audit are determined by the Authority and charged to the registered institution.
2009, c. 58, s. 21.
42. The Authority shall, at least once a year, on such conditions as it determines, inspect or cause to be inspected the affairs of every registered institution.
However, the inspection by the Authority of the affairs of an institution pursuant to any Act applicable to the institution shall stand in lieu of the inspection of the affairs of that institution.
The expenses incurred for the inspection of the affairs of institutions are determined by the Authority and are charged to the institutions according as may be determined by regulation of the Authority.
Where the affairs of an institution are inspected by the Authority pursuant to this Act as well as pursuant to another Act applicable to the institution, this fact shall be taken into consideration by the Authority in determining the expenses incurred for the inspection of the affairs of the institution.
1966-67, c. 73, s. 40; 1983, c. 10, s. 28; 1988, c. 64, s. 552; 2000, c. 29, s. 722; 2002, c. 45, s. 192; 2004, c. 37, s. 90; 2009, c. 58, s. 22.
DIVISION VIII
REGULATIONS
43. In addition to the regulatory powers assigned to it by this Act, the Authority may make regulations for:
(a)  determining the conditions that must be fulfilled and the information and documents that must be furnished by any institution applying for a permit or a policy contemplated in section 34 and the conditions required for the issue of the permit or policy;
(a.1)  determining, among the conditions required for the issue of a permit, the conditions respecting the control of an institution by non-resident persons and their associates, and prescribing a period within which any registered institution that is not in compliance with such conditions on the date of their coming into force shall comply therewith;
(a.2)  defining, for the purposes of application of paragraph a.1, the expressions “control of an institution by non-resident persons”, “non-resident persons” and “associates”;
(b)  determining the classes of institutions, apart from financial services cooperatives, trust companies and savings companies, to which a permit may be issued;
(c)  determining the categories of permits, the classes of holders of permits and the conditions and restrictions respecting each category and class;
(c.1)  establishing a fee scale for the issue of permits;
(d)  determining the form and tenor of applications for permits and policies and the form and tenor of permits and policies;
(e)  determining the term of the policies, the conditions upon which they may be terminated and the other provisions which they must contain;
(e.0.1)  determining, for the purposes of the second paragraph of section 40.2.1, a method for estimating deposits of money;
(e.1)  determining, for the purposes of the application of Division VI.1, the percentage and the amount contemplated in section 40.3, the terms and conditions of payment of the premium, the interest rate exigible in the case of an outstanding premium and, where an institution becomes a registered institution during the period, the modalities of computation of the premium it must pay and the basis of such computation;
(e.2)  (paragraph repealed);
(e.3)  (paragraph repealed);
(f)  determining the rates of premiums for the guarantee contemplated in section 34, the modalities of payment of the premium and the rate of interest exigible when a premium is overdue;
(g)  determining the books and accounts that each class of registered institutions, except trust companies and savings companies, must keep;
(h)  determining for each class of registered institutions except financial services cooperatives, trust companies and savings companies, the rules and standards respecting the composition and liquidity of their assets, including the categories of investments permitted and the quantitative and qualitative standards applicable to each category;
(h.1)  determining the rate of interest applicable to a deposit of money for the purposes of section 34.4;
(i)  determining the only signs, marks, advertisements or other means of publicity that a registered institution may use in order to make known that the deposits of money made therewith are guaranteed under this Act;
(i.1)  determining the cases in which a document attesting that a registered institution has received funds from a person must contain an indication, in the form and tenor determined by the Authority, to the effect that it does not constitute a deposit within the meaning of this Act and the regulations;
(j)  defining the expression “deposit of money”, subject to the provisions of this Act;
(k)  determining the form and tenor of the information that a security fund must provide for the purposes of the second paragraph of section 40.3.1, and when it must be provided;
(l)  prescribing, for each class of registered institutions, the scope of the audit to be made by their auditors for the purposes of the returns or statements which they must furnish to the Authority, and the form of their certificate;
(l.1)  determining audit expenses for the purposes of section 41.3;
(m)  determining the form of the inspection reports made for the Authority and the information which they must contain;
(m.1)  determining the mode of apportionment between the registered institutions or classes of institutions of the expenses incurred for the inspection of the affairs of the registered institutions and the proportions, conditions and dates of their collection;
(m.2)  determining which of the conditions required for obtaining a permit, if not respected, give rise to the suspension or cancellation of a permit under paragraph b of section 31;
(n)  determining the procedure to be followed and the notices to be given before the Authority suspends or cancels the permit of a registered institution;
(n.1)  determining, in addition to the provisions of section 37, the cases or circumstances in which deposits continue to be guaranteed, and fixing the term and the conditions of such continuance;
(n.2)  prolonging, in the cases or circumstances and on the conditions it determines, the guarantee period provided in the second paragraph of section 37;
(o)  determining which provisions of this Act, the regulations or a policy issued under section 34 shall cease to apply to an institution with respect to deposits which continue to be guaranteed under section 37;
(p)  prescribing the cases in which a deposit made by a person with an institution or with a bank may be considered, for the purposes of this Act, as separate from any other deposit made by the same person with the same institution or with the same bank;
(q)  determining the information, documents and evidence that must be furnished by a depositor who demands payment in execution of the guarantee provided under this Act;
(r)  determining the form and tenor of claims and the cases in which a depositor who demands payment in execution of the guarantee provided under this Act is not required to file a claim form with the Authority;
(s)  prescribing conditions governing the replacement of damaged, lost, stolen or destroyed permits and determining the cost payable for replacing them;
(s.1)  clarifying the application of sections 40.15 to 40.18 to the financial contracts it determines;
(s.2)  providing for the classes of negotiable and transferable unsecured debts that may be written off or converted into contributed capital securities under the second paragraph of section 40.50;
(s.3)  providing for the indemnification plan for the holders of shares or securities transferred under section 40.49 or the holders of shares that were cancelled or converted under the first paragraph of section 40.50 and for creditors whose debts were written off or converted under the second paragraph of that section;
(t)  prescribing any form which it deems appropriate for the application of this Act;
(u)  prescribing any other measure which it deems appropriate for the administration of this Act.
1966-67, c. 73, s. 41; 1968, c. 71, s. 9; 1974, c. 72, s. 3; 1981, c. 30, s. 2; 1982, c. 52, s. 54; 1983, c. 10, s. 29; 1984, c. 47, s. 14; 1987, c. 95, s. 374; 1999, c. 40, s. 27; 2000, c. 29, s. 621; 2002, c. 45, s. 193; 2004, c. 37, s. 90; 2009, c. 58, s. 23; 2018, c. 232018, c. 23, s. 382.
44. (Repealed).
1974, c. 72, s. 4; 1988, c. 64, s. 553.
45. A regulation of the Authority under this Act must be submitted for approval to the Minister, who may approve it with or without amendment.
However, a regulation of the Authority under paragraph c.1, l.1, m.1 or s of section 43 must be submitted for approval to the Government, which may approve it with or without amendment.
A draft of a regulation referred to in the first paragraph may not be submitted for approval and the regulation may not be made before the expiry of 30 days after the publication of the draft regulation. The regulation comes into force on the date of its publication in the Gazette officielle du Québec or on any later date determined in the regulation. Sections 4, 8, 11 and 17 to 19 of the Regulations Act (chapter R-18.1) do not apply to the regulation.
The Minister may make a regulation referred to in the first paragraph if the Authority fails to act within the prescribed time.
The Government may make a regulation referred to in the second paragraph if the Authority fails to act within the prescribed time.
1966-67, c. 73, s. 42; 2002, c. 45, s. 194; 2004, c. 37, s. 90; 2009, c. 58, s. 24.
45.1. The Authority may prescribe forms for the purposes of this Act.
2009, c. 58, s. 25.
DIVISION IX
PENAL PROVISIONS
1992, c. 61, s. 66.
46. Every person is guilty of an offence who:
(a)  makes a false statement in an application for a permit or for a policy contemplated in section 34;
(b)  furnishes the Authority with incorrect information;
(c)  falsely leads to the belief, in any manner whatsoever, that the deposits of money received by him are guaranteed under this Act;
(d)  hinders or attempts to hinder, in any manner, a person who does anything that he is required or authorized to do by this Act or the regulations;
(e)  infringes this Act or the regulations.
Every institution is also guilty of an offence which subscribes or issues a document that states or leads to the belief that funds are entrusted to it on deposit, when it is not a registered institution.
1966-67, c. 73, s. 43; 1983, c. 10, s. 30; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
47. Where a legal person has infringed this Act or a regulation, any officer, director, employee or agent of such legal person who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is deemed to have been a party to the offence and is liable to the same penalty as is provided for the legal person, whether or not the legal person has been prosecuted or convicted.
1966-67, c. 73, s. 44; 1999, c. 40, s. 27.
48. Every person convicted of an offence under this Act or the regulations is liable to a minimum fine of $1,000 for a natural person and $3,000 for a legal person, double the profit realized or one fifth of the sums entrusted to or collected by the person, whichever is the greatest amount.
However, in the case of an offence under subparagraph a, b or d of the first paragraph of section 46, the minimum fine is $5,000, double the profit realized or one fifth of the sums entrusted to or collected by the person, whichever is the greatest amount.
In all cases, the maximum fine is $50,000 for a natural person and $200,000 for a legal person, four times the profit realized or half the sums entrusted to or collected by the person, whichever is the greatest amount.
In the case of a second or subsequent conviction, the minimum and maximum fines are doubled.
1966-67, c. 73, s. 45; 1983, c. 10, s. 31; 1990, c. 4, s. 71; 2008, c. 7, s. 16.
48.1. Penal proceedings may be instituted by the Authority for an offence under this Act.
2008, c. 7, s. 16.
48.2. The fine imposed by the court is remitted to the Authority if it has taken charge of the prosecution.
2008, c. 7, s. 16.
48.3. Penal proceedings for an offence under section 46 are prescribed three years from the date the investigation record relating to the offence was opened. However, no proceedings may be instituted if more than five years have elapsed since the date of the offence.
The certificate of the secretary of the Authority indicating the date on which the investigation record was opened constitutes conclusive proof of the date, in the absence of any evidence to the contrary.
2008, c. 7, s. 16.
49. (Repealed).
1966-67, c. 73, s. 46; 1983, c. 10, s. 31; 1992, c. 61, s. 67.
50. (Repealed).
1966-67, c. 73, s. 47; 1983, c. 10, s. 31; 1990, c. 4, s. 72.
51. (Repealed).
1966-67, c. 73, s. 48; 1983, c. 10, s. 32; 2002, c. 45, s. 195; 2004, c. 37, s. 90; 2009, c. 58, s. 26.
DIVISION X
DEPOSIT INSURANCE FUND AND OTHER FINANCIAL PROVISIONS
1983, c. 10, s. 33.
52. The Authority shall maintain a deposit insurance fund.
All the Authority’s financial obligations under this Act shall be discharged out of the deposit insurance fund.
1966-67, c. 73, s. 49; 1983, c. 10, s. 34; 2002, c. 45, s. 196; 2004, c. 37, s. 90.
52.1. The premiums collected by the Authority in accordance with Division VI.1 are paid into the deposit insurance fund together with any sums the Minister of Finance may, with the authorization of the Government and on such conditions as the latter may determine, pay into it from time to time.
1983, c. 10, s. 34; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
52.2. The Authority shall keep an account called the accumulated net income account with which is credited all income including any profits made on the sale of securities, and to which are charged any operating expenses, losses or special funds for losses related to the activities of the Authority and any losses in the sale of securities.
Any accumulated net income must be entered as a separate item in any of the Authority’s statements of assets and liabilities and must be listed as being added to or subtracted from the deposit insurance fund.
1983, c. 10, s. 34; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
53. When the resources of the Authority are insufficient for the payment of its obligations or the exercise of the powers assigned to it by section 40.5, the Minister of Finance, with the authorization of the Government and on such conditions as it determines, may make to the Authority, out of the Consolidated Revenue Fund, the advances necessary for such purpose.
1966-67, c. 73, s. 50; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2018, c. 232018, c. 23, s. 390.
54. The Minister of Finance, with the authorization of the Government and on such conditions as it determines, may guarantee the payment of any commitment of the Authority; the sums which the Government may be required to pay under such guarantee shall be taken out of the Consolidated Revenue Fund.
1966-67, c. 73, s. 51; 1977, c. 5, s. 14; 2002, c. 45, s. 198; 2004, c. 37, s. 90.
55. (Repealed).
1966-67, c. 73, s. 52; 1981, c. 30, s. 3; 2009, c. 58, s. 26.
56. The Authority shall invest the sums making up the deposit insurance fund in accordance with section 38.6 of the Act respecting the regulation of the financial sector (chapter E-6.1).
1966-67, c. 73, s. 53; 1977, c. 5, s. 14; 1988, c. 64, s. 587; 2000, c. 29, s. 622; 2002, c. 45, s. 197; 2004, c. 37, s. 90; 2008, c. 7, s. 17; 2018, c. 23, s. 811.
DIVISION XI
FINAL PROVISIONS
57. The Authority, with the approval of the Government, may make agreements with any other government in Canada which, in its opinion, administers an equivalent scheme, with a view to facilitating the application of this Act or of any similar law administered by such other government. The Authority may also, with the approval of the Government, make such agreements with any body which, in its opinion, administers an equivalent scheme. Such agreement may in particular:
(a)  determine the cases in which the total guarantee which may be granted to a person who has made several deposits of money in the same institution or bank must be limited to the sum of $100,000 in principal and interest, when such deposits are guaranteed in part by the application of the provisions of this Act and in part by the application of the provisions of an equivalent scheme;
(b)  establish, in the cases contemplated in paragraph a, standards respecting the apportionment, between the Authority and any other body charged with guaranteeing deposits of money under an equivalent scheme, of the obligations resulting from the guarantees granted by such bodies;
(c)  prescribe the criteria by which the place where a deposit of money is made or the place where it is payable shall be determined for the purposes of this Act and of any equivalent scheme;
(d)  establish means of ensuring collaboration between the Authority and any other body charged with guaranteeing deposits of money under an equivalent scheme, in the surveillance and inspection of institutions.
To give effect to such agreement, the Authority, by regulation, may determine the manner in which this Act shall apply to any case contemplated by the agreement.
1966-67, c. 73, s. 55; 1968, c. 71, s. 10; 1983, c. 10, s. 35; 2002, c. 70, s. 157; 2002, c. 45, s. 198; 2004, c. 37, s. 90; 2007, c. 15, s. 19; 2009, c. 58, s. 27.
58. The Minister of Finance shall have charge of the carrying out of this Act.
1966-67, c. 73, s. 56; 1966-67, c. 72, s. 23; 1975, c. 76, s. 11; 1981, c. 9, s. 24; 1982, c. 52, s. 52.
59. (This section ceased to have effect on 17 April 1987).
1982, c. 21, s. 1; U. K., 1982, c. 11, Sch. B, Part I, s. 33.
REPEAL SCHEDULE

In accordance with section 17 of the Act respecting the consolidation of the statutes (chapter R-3), chapter 73 of the statutes of 1966/1967, in force on 31 December 1977, is repealed, except sections 54 and 57, effective from the coming into force of chapter A-26 of the Revised Statutes.