I-13.2.2, r. 2 - Regulation respecting the application of sections 40.15 to 40.17 of the Deposit Institutions and Deposit Protection Act to protected financial contracts and their transfer

Section 5 Disposition versions

2019-06-13

5. Except for a reason referred to in the second or third paragraph, nothing in section 40.17 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2) prevents, in accordance with the terms of a protected financial contract:

(1)  its resiliation or amendment;

(2)  the forfeiture of the term stipulated therein; or

(3)  any measure in respect of the financial guarantee.

Except as otherwise provided in this Regulation, no measure referred to in the first paragraph may be taken only by reason of one or more of the following:

(1)  the insolvency or deteriorated financial condition of any legal person belonging to the cooperative group, of the cooperative group or of any of the legal person’s providers of credit support or guarantors;

(2)  the resolution board’s order to implement resolution operations;

(3)  a resolution operation other than one that satisfies the following conditions:

(a)  it is carried out under sections 40.40 to 40.46 of the Deposit Institutions and Deposit Protection Act;

(b)  it involves a matter other than merely the transfer of the financial contract to an eligible legal person or an eligible acquirer;

(4)  the conversion of any securities or liabilities of a legal person belonging to the cooperative group in accordance with their terms.

In addition to the reasons referred to in the second paragraph, no measure referred to in subparagraph 1 or 2 of the first paragraph may be taken in respect of a protected financial contract by reason of any resolution operation when the contract has been assumed by an eligible legal person or a third party or when an eligible legal person or an eligible acquirer has become a party to the contract.

The second paragraph does not apply to any measure in respect of a financial guarantee:

(1)  to satisfy an amount payable, or the delivery of property, under or in connection with the financial contract; or

(2)  for the purpose of calculating an amount payable under or in connection with the financial contract by way of netting, setting off or compensation of the financial guarantee or application of the proceeds or value of the financial guarantee; or

(3)  as a remedy for a failure described in subparagraph 1 of section 4.

M.O. 2019-02, s. 5.

2019-03-31

5. Except for a reason referred to in the second or third paragraph, nothing in section 40.17 of the Deposit Institutions and Deposit Protection Act (chapter A-26) prevents, in accordance with the terms of a protected financial contract:

(1)  its resiliation or amendment;

(2)  the forfeiture of the term stipulated therein; or

(3)  any measure in respect of the financial guarantee.

Except as otherwise provided in this Regulation, no measure referred to in the first paragraph may be taken only by reason of one or more of the following:

(1)  the insolvency or deteriorated financial condition of any legal person belonging to the cooperative group, of the cooperative group or of any of the legal person’s providers of credit support or guarantors;

(2)  the resolution board’s order to implement resolution operations;

(3)  a resolution operation other than one that satisfies the following conditions:

(a)  it is carried out under sections 40.40 to 40.46 of the Deposit Institutions and Deposit Protection Act;

(b)  it involves a matter other than merely the transfer of the financial contract to an eligible legal person or an eligible acquirer;

(4)  the conversion of any securities or liabilities of a legal person belonging to the cooperative group in accordance with their terms.

In addition to the reasons referred to in the second paragraph, no measure referred to in subparagraph 1 or 2 of the first paragraph may be taken in respect of a protected financial contract by reason of any resolution operation when the contract has been assumed by an eligible legal person or a third party or when an eligible legal person or an eligible acquirer has become a party to the contract.

The second paragraph does not apply to any measure in respect of a financial guarantee:

(1)  to satisfy an amount payable, or the delivery of property, under or in connection with the financial contract; or

(2)  for the purpose of calculating an amount payable under or in connection with the financial contract by way of netting, setting off or compensation of the financial guarantee or application of the proceeds or value of the financial guarantee; or

(3)  as a remedy for a failure described in subparagraph 1 of section 4.

M.O. 2019-02, s. 5.

Not in force

In force: 2019-03-31

5. Except for a reason referred to in the second or third paragraph, nothing in section 40.17 of the Deposit Institutions and Deposit Protection Act (chapter A-26) prevents, in accordance with the terms of a protected financial contract:

(1)  its resiliation or amendment;

(2)  the forfeiture of the term stipulated therein; or

(3)  any measure in respect of the financial guarantee.

Except as otherwise provided in this Regulation, no measure referred to in the first paragraph may be taken only by reason of one or more of the following:

(1)  the insolvency or deteriorated financial condition of any legal person belonging to the cooperative group, of the cooperative group or of any of the legal person’s providers of credit support or guarantors;

(2)  the resolution board’s order to implement resolution operations;

(3)  a resolution operation other than one that satisfies the following conditions:

(a)  it is carried out under sections 40.40 to 40.46 of the Deposit Institutions and Deposit Protection Act;

(b)  it involves a matter other than merely the transfer of the financial contract to an eligible legal person or an eligible acquirer;

(4)  the conversion of any securities or liabilities of a legal person belonging to the cooperative group in accordance with their terms.

In addition to the reasons referred to in the second paragraph, no measure referred to in subparagraph 1 or 2 of the first paragraph may be taken in respect of a protected financial contract by reason of any resolution operation when the contract has been assumed by an eligible legal person or a third party or when an eligible legal person or an eligible acquirer has become a party to the contract.

The second paragraph does not apply to any measure in respect of a financial guarantee:

(1)  to satisfy an amount payable, or the delivery of property, under or in connection with the financial contract; or

(2)  for the purpose of calculating an amount payable under or in connection with the financial contract by way of netting, setting off or compensation of the financial guarantee or application of the proceeds or value of the financial guarantee; or

(3)  as a remedy for a failure described in subparagraph 1 of section 4.

M.O. 2019-02, s. 5.