I-13.2.2 - Deposit Institutions and Deposit Protection Act

Updated to 1 April 2011

This document has official status.

chapter A-26

Deposit Insurance Act

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 (Statutes of Canada, 1991, chapter 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.

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. 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,

(a)  make advances of money, with or without security, to a registered institution or an institution whose permit has been suspended or cancelled, or guarantee payment of the debts of such an institution;

(b)  acquire the assets of a registered institution or an institution whose permit has been suspended or cancelled;

(c)  make a deposit or guarantee a deposit made with a registered institution;

(d)  guarantee a registered institution against any loss it may incur following an amalgamation with a registered institution or with an institution whose permit has been suspended or cancelled, or following the acquisition of the assets together with the take-over of the liabilities of such an institution;

(e)  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 an institution whose deposits are guaranteed or insured partly by the Authority and partly by such body or agency;

(f)  obtain the authorization of the Minister to

i.  constitute a legal person or a partnership under an Act of Québec to carry out the winding-up of the assets acquired from a registered institution; or

ii.  acquire any security issued by a registered institution; and

(g)  apply to the Superior Court for an order to force the sale or amalgamation of a registered institution whose permit has been suspended or cancelled.

The Authority may, in addition, act as liquidator of an institution whose permit has been cancelled or act as receiver of a registered institution or an institution whose permit has been suspended or cancelled.

A financial services cooperative may receive a deposit contemplated in subparagraph c of the first paragraph.

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.

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, by a motion, 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 motion for an injunction constitutes an action.

The procedure prescribed in the Code of Civil Procedure (chapter C-25) applies, except that the Authority shall not be ordered to give security.

2009, c. 58, s. 17.

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.

1981, c. 30, s. 1; 1983, c. 10, s. 25; 2002, c. 45, s. 198; 2004, c. 37, s. 90.

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.

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; such return shall be accompanied by the financial statements made in the form prescribed by regulation and bearing the certificate of the auditor of the institution.

1966-67, c. 73, s. 39; 2002, c. 45, s. 198; 2004, c. 37, s. 90.

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;

(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.

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, 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.

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 Autorité des marchés financiers (chapter A-33.2).

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.

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.