I-13.2.2 - Deposit Institutions and Deposit Protection Act

À jour au 1^er février 2004

Ce document a valeur officielle.

chapter A-26

Deposit Insurance Act

DIVISION I DEFINITIONS

1. In this Act, unless the context indicates a different meaning, the following expressions mean:

(a)  “Agency” : the Agence nationale d’encadrement du secteur financier established under section 1 of the Act respecting the Agence nationale d’encadrement du secteur financier (chapter A‐7.03);

(b)  “bank” : a bank listed in Schedule I or II of the Bank Act (Statutes of Canada, 1991, chapter 46) and registered with the Canada Deposit Insurance Corporation;

(c)  “permit” : a permit issued under this Act;

(d)  “institution” : a legal person other than a bank;

(e)  “registered institution” : an institution holding a permit that is in force;

(f)  “trust company” : a trust company within the meaning of the Act respecting trust companies and savings companies (chapter S‐29.01);

(f.1)  “savings company” : a savings company within the meaning of the Act respecting trust companies and savings companies;

(g)  “financial services cooperative” : a financial services cooperative within the meaning of the Act respecting financial services cooperatives (chapter C‐67.3);

(h)  “regulations” : the regulations made by the Agency and approved by the Government;

(i)  “similar plan” : any law granting to depositors protection similar to that provided by this Act.

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.

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 (Repealed).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 Agency 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.

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 (Repealed).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 (Repealed).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 (Repealed).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. The Agency or any person authorized by it in writing shall have access at all times to all books, records, accounts and other files of any person other than a bank who solicits or accepts deposits of money from the public and may make copies thereof; every person who has the custody, possession or control of such books, records, accounts, files and other documents must give communication thereof to the Agency or to the person authorized by it and facilitate his examination thereof.

1966-67, c. 73, s. 17; 1992, c. 61, s. 65; 2002, c. 45, s. 184.

18. It is forbidden to hinder an inspector or investigator of the Agency in the performance of his duties, to mislead or attempt to mislead him by concealment or fraudulent misrepresentation or to refuse to obey any order he may give under this act or the regulations.

The inspector or investigator shall, if so required, produce a certificate attesting his authority. The certificate requires the signature of the President of the Agency.

1966-67, c. 73, s. 18; 1983, c. 10, s. 3; 2002, c. 45, s. 198.

19. (Repealed).

1966-67, c. 73, s. 19; 2002, c. 45, s. 185.

20. The Agency 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 Agency 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.

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. The following in particular shall be deemed to be deposits of money unless excluded by regulation:

(a)  savings which a savings and credit union receives from its members to be employed to yield a profit and to extend credit to them;

(b)  funds entrusted to a trust company for the purpose of having them invested by the company in its capacity of trustee or mandatary when such company has guaranteed the repayment of such funds or the payment of interest at an agreed rate;

(c)  funds for which the depositary issues a document stating or leading to the belief that the funds have been placed on deposit;

(d)  funds placed with a depositary upon the understanding that the depositor shall have the privilege of making withdrawals in cash or by cheque or transfer or otherwise, in favour of himself or of others.

1966-67, c. 73, s. 25; 1968, c. 71, s. 2; 1988, c. 64, s. 551; 1999, c. 40, s. 27.

26. The following shall be deemed not to be deposits of money:

(a)  deposits the period for repayment of which exceeds that prescribed by the regulations;

(b)  funds obtained at the time of an issue of securities registered with the Agency under the Securities Act (chapter V‐1.1), unless otherwise provided for by the regulations;

(c)  the sums payable under an insurance or annuity contract issued by an insurance company, a mutual benefit association or a charitable association authorized to carry on business in Québec, in accordance with the Insurance Act (chapter A‐32);

(d)  promissory notes or negotiable instruments payable on demand or within twelve months of their issue and of which the amount in principal is at least $50 000.

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.

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 Agency shall issue the permit if the applicant institution fulfils the conditions prescribed by the regulations.

1966-67, c. 73, s. 27; 2002, c. 45, s. 198.

28. A permit may be issued only to a savings and credit union, 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.

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 Agency may suspend or cancel the permit of an institution which

(a)  has committed an offence or which, in the opinion of the Agency, 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 Agency, fulfils the conditions required for obtaining a permit;

(c)  is insolvent or, in the opinion of the Agency, is about to become so;

(d)  does not, in the opinion of the Agency, follow sound commercial and financial practices;

(e)  is, in the opinion of the Agency, 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.

31.1. The Agency 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.

31.2. Before suspending or cancelling a permit, the Agency 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.

31.3. The permit of an institution is cancelled of right upon

(a)  the institution’s dissolution;

(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)  the institution’s coming under a receiving order by virtue of the Bankruptcy and Insolvency Act (Revised Statutes of Canada, 1985, chapter B-3) or, within the meaning of the said Act, assigning its property.

1983, c. 10, s. 10.

31.4. For the application of paragraph b of section 31.3, the resolution ordering the winding-up of a société d’entraide économique is deemed to be approved by its shareholders on the date determined by the Agency according to section 158 of the Act respecting the sociétés d’entraide économique (chapter S‐25.1).

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.

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 Agency shall, in the manner and through the communications media it thinks advisable, give public notice of the suspension or cancellation of the permit of an institution if it considers publication of the notice required in the public interest.

1983, c. 10, s. 11; 2002, c. 45, s. 198.

DIVISION V GUARANTEE OF DEPOSITS OF MONEY

33. The Agency shall guarantee to every person who makes a deposit of money with a registered institution or a bank the payment of such deposit at maturity in principal and interest, but only up to $20 000.

Such guarantee shall not apply to deposits of money made outside Québec or to those payable only outside Québec. Nor shall they apply to deposits of money made or payable in any currency other than that of Canada.

From 4 January 1983, this section applies only to deposits of money owing, at the date of cancellation or expiry of its permit, by an institution whose permit expired or was cancelled before 4 January 1983 and which continue to be guaranteed after 3 January 1983 under section 37.

1966-67, c. 73, s. 33; 1968, c. 71, s. 4; 1983, c. 10, s. 12; 2002, c. 45, s. 198.

33.1. The Agency 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 $60 000.

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.

This section does not apply to deposits of money contemplated in the third paragraph of section 33.

1983, c. 10, s. 13; 2002, c. 45, s. 198.

33.2. Section 33.1 applies also to deposits of money made before 4 January 1983 and owing on that date by an institution registered on that date or by a bank.

1983, c. 10, s. 13.

34. The Agency, 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 $60 000, 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.

34.1. The Agency’s obligation under a guarantee is executory in the following cases only:

(a)  where, owing to a court order, the depositary institution is unable to make any payment contemplated in the guarantee of the Agency;

(b)  where the institution is dissolved;

(c)  where the institution is winding up following the adoption or approval by its shareholders or members of a resolution ordering its winding-up, other than a resolution requesting the issue of an order contemplated in subparagraph e;

(d)  where the institution is under a winding-up order for any reason other than bankruptcy or insolvency;

(e)  where the institution is under a winding-up order by virtue of the Winding-up Act (Revised Statutes of Canada, 1985, chapter W-11); or

(f)  where the institution is under a receiving order by virtue of the Bankruptcy and Insolvency Act (Revised Statutes of Canada, 1985, chapter B-3) or has, within the meaning of the said Act, assigned its property;

and where the Agency finds that it is impossible for the institution to make any payment contemplated in the guarantee on its maturity date.

For the purposes of the first paragraph, the word “institution” includes a bank.

1983, c. 10, s. 15; 2002, c. 45, s. 198.

34.2. For the purposes of the application of subparagraph c of the first paragraph of section 34.1, the resolution ordering the winding-up of a société d’entraide économique is deemed to be approved by its shareholders on the date determined by the Agency according to section 158 of the Act respecting the sociétés d’entraide économique (chapter S‐25.1).

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.

34.3. The Agency shall make payments in execution of its obligation under a guarantee within a reasonable time.

The Agency 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.

35. The Agency, when it pays a deposit of money in the place and stead of the depositary, shall be subrogated pleno jure in all the rights of the depositor against the depositary, up to the amount so paid.

The Agency’s claim against the depositary bears interest from the payment to the depositor at a rate equal to the rate determined under section 28 of the Act respecting the Ministère du Revenu (chapter M‐31).

Where the depositor has been paid in part only by the Agency, he does not have, over the Agency, 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.

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 $60 000.

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.

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 $60 000.

1968, c. 71, s. 8; 1983, c. 10, s. 20.

DIVISION VI SPECIAL POWERS OF THE AGENCY

2002, c. 45, s. 191.

40. The Agency may, in particular, on the conditions it determines, for the purpose of reducing a risk to the Agency or averting or reducing a threatened loss to the Agency,

(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 Agency, administers an equivalent scheme, into an agreement concerning an institution whose deposits are guaranteed or insured partly by the Agency and partly by such body or agency.

The Agency 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 savings and credit union 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.

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 Agency 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.

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 Agency 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.

40.3.1. The Agency may, for each accounting period for premiums and with the authorization of the Government, reduce by one-half the premium established for any registered institution which is a financial services cooperative which is a member, within the meaning of the Act respecting financial services cooperatives (chapter C‐67.3), of a security fund which, in the opinion of the Agency,

(1)  has collected or collects dues so as to be able to fulfil its objects, and

(2)  so carries on its objects as to avoid or reduce disbursements by the Agency in respect of financial services cooperatives or members of financial services cooperatives which are members of the security fund.

1982, c. 52, s. 53; 1999, c. 40, s. 27; 2000, c. 29, s. 619; 2002, c. 45, s. 198.

40.3.2. No reduction of premium may be granted except on the application of a security fund.

The application must be accompanied with a report on the activities of the security fund, in the form and tenor and for the period determined by the Agency.

1982, c. 52, s. 53; 1999, c. 40, s. 27; 2002, c. 45, s. 198.

40.3.3. The reduction is granted to all the financial services cooperatives which are members of the same security fund.

1982, c. 52, s. 53; 1999, c. 40, s. 27; 2000, c. 29, s. 620.

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 Agency 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 Agency, is equivalent to the plan established by this Act.

1981, c. 30, s. 1; 2002, c. 45, s. 198.

DIVISION VII RETURNS AND INSPECTION

41. Every registered institution, at the times determined by the regulations, shall furnish the Agency 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.

41.1. Every registered institution shall also file, at the times determined by the Agency, any statement or return determined by the Agency.

1983, c. 10, s. 27; 2002, c. 45, s. 198.

41.2. The Agency 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 Agency within such time as the latter may determine.

1983, c. 10, s. 27; 2002, c. 45, s. 198.

42. The Agency shall, at least once a year, on such conditions as it determines, examine or cause to be examined the affairs of every registered institution.

However, the examination by the Agency of the affairs of an institution pursuant to any Act applicable to the institution shall stand in lieu of the examination of the affairs of that institution.

The expenses incurred for the examination of the affairs of institutions are determined by the Agency and are charged to the institutions according as may be determined by regulation of the Agency.

Where the affairs of an institution are examined by the Agency pursuant to this Act as well as pursuant to another Act applicable to the institution, this fact shall be taken into consideration by the Agency in determining the expenses incurred for the examination 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.

DIVISION VIII REGULATIONS

43. In addition to the regulatory powers assigned to it by this Act, the Agency 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;

(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.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)  determine the time when an application for reduction of premium may be made and the form and tenor of the application;

(e.3)  determining, with regard to a financial services cooperative that becomes or ceases to be, during an accounting period for premiums, a member of a security fund whose member financial services cooperatives benefit from a reduction of premium if it is advisable to grant, maintain or withdraw the reduction of premium for the unexpired portion of that accounting period;

(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 savings and credit unions, 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;

(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 Agency, 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, for each class of registered institutions, the form of returns or statements to be furnished, the information that such returns or statements must contain and the time when they must be filed;

(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 Agency, and the form of their certificate;

(m)  determining the form of the inspection reports made for the Agency 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 examination 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 Agency 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 Agency;

(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.

44. (Repealed).

1974, c. 72, s. 4; 1988, c. 64, s. 553.

45. A regulation made under section 43 is approved, with or without amendment, by the Government and comes into force on the date of its publication in the Gazette officielle du Québec or on any later date determined therein.

The Government may make any regulation under section 43 not made within the prescribed time by the Agency.

1966-67, c. 73, s. 42; 2002, c. 45, s. 194.

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 Agency 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.

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 institution or person contemplated in section 47 convicted of an offence against a provision of this Act or the regulations thereunder is liable to a fine of $1 000 to $25 000 and, in the case of a second or subsequent conviction, to a fine of $5 000 to $50 000.

Every other person convicted of an offence against a provision of this Act or the regulations thereunder is liable to a fine of $500 to $10 000 and, in the case of a second or subsequent conviction, to a fine of $1 000 to $20 000.

1966-67, c. 73, s. 45; 1983, c. 10, s. 31; 1990, c. 4, s. 71.

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. Every book, record or other document which has been examined or of which an auditor has taken possession or which has been filed with the Agency may be copied or photographed, and every copy or photograph of such book, record or document, certified by the president and director general of the Agency or by a person specially authorized by him to do so, as being a copy or photograph of the original, shall be admissible in evidence and shall have the same probative force as the original.

1966-67, c. 73, s. 48; 1983, c. 10, s. 32; 2002, c. 45, s. 195.

DIVISION X DEPOSIT INSURANCE FUND AND OTHER FINANCIAL PROVISIONS

1983, c. 10, s. 33.

52. The Agency shall maintain a deposit insurance fund.

All the Agency’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.

52.1. The premiums collected by the Agency 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.

52.2. The Agency 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 Agency and any losses in the sale of securities.

Any accumulated net income must be entered as a separate item in any of the Agency’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.

53. When the resources of the Agency 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 Agency, out of the consolidated revenue fund, the advances necessary for such purpose.

1966-67, c. 73, s. 50; 2002, c. 45, s. 198.

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 Agency; 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.

55. The sum of the unpaid balance of the advances made under section 53 and of the commitments guaranteed under section 54 shall not exceed $700,000,000.

1966-67, c. 73, s. 52; 1981, c. 30, s. 3.

56. The amounts received by the Agency under this Act shall be deposited as and when received in a bank or an authorized foreign bank listed in Schedule I, II or III of the Bank Act (Statutes of Canada, 1991, chapter 46) or a financial services cooperative within the meaning of the Act respecting financial services cooperatives (chapter C‐67.3).

Sums which the Agency does not expect to be immediately needed shall be deposited immediately with the Caisse de dépôt et placement du Québec.

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.

DIVISION XI FINAL PROVISIONS

57. The Agency, with the approval of the Government, may make agreements with any other government in Canada which, in its opinion, administers a similar plan, with a view to facilitating the application of this Act or of any similar law administered by such other government. The Agency may also, with the approval of the Government, make such agreements with any body which, in its opinion, administers a similar plan. 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 $60 000 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 a similar plan;

(b)  establish, in the cases contemplated in paragraph a, standards respecting the apportionment, between the Agency and any other body charged with guaranteeing deposits of money under a similar plan, 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 similar plan;

(d)  establish means of ensuring collaboration between the Agency and any other body charged with guaranteeing deposits of money under a similar plan, in the surveillance and inspection of institutions.

To give effect to such agreement, the Agency, 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.

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.