I-3 - Taxation Act

Section 810 Disposition versions

2006-03-01

810. A deposit insurance corporation may deduct:

(a)  the aggregate of the losses it has sustained during the year from the disposition of obligations owned by it and issued by other than a member institution;

(b)  the portion, deducted in computing its profits for the year, of the amount by which the cost to the corporation of acquiring each obligation it owns at the end of the year exceeded the principal amount thereof at the time it was so acquired;

(c)  the aggregate of the expenses it has incurred:

i.  in collecting premiums and assessments from member institutions;

ii.  in the performance of its duties as curator of a bank or as liquidator or receiver of a member institution when duly appointed to such duties;

iii.  in the course of making or causing to be made such inspections as may reasonably be considered to be appropriate for assessing the solvency or financial stability of a member institution; and

iv.  in supervising or administering a member institution in financial difficulty; and

(d)  the aggregate of all amounts each of which is an amount that is not otherwise deductible by the corporation for the year or any other taxation year and that is

i.  an amount paid by the corporation in the year pursuant to a legal obligation to pay interest on borrowed money used to lend money to, or otherwise provide assistance to, a member institution in financial difficulty, to assist in the payment of any losses suffered by members or depositors of a member institution in financial difficulty, to lend money to a subsidiary wholly-owned corporation of the corporation where the subsidiary is deemed by section 806.1 to be a deposit insurance corporation, to acquire property from a member institution in financial difficulty, or to acquire shares of the capital stock of a member institution in financial difficulty; or

ii.  an amount paid by the corporation in the year pursuant to a legal obligation to pay interest on an amount that would be deductible under subparagraph i if it were paid in the year.

1975, c. 22, s. 218; 1986, c. 19, s. 165; 1989, c. 77, s. 92; 1997, c. 3, s. 71.