I-13.2.2 - Deposit Institutions and Deposit Protection Act

Section 40.17 Disposition versions

2018-07-13

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. 23, s. 376.