249. (1) The corporation known in English as the Ontario Share and Deposit Insurance Corporation and in French as Société ontarienne d'assurance des actions et dépôts is continued as a corporation without share capital under the name, in English, of the Deposit Insurance Corporation of Ontario and, in French, Société ontarienne d'assurance-dépôts.
Board of directors
(2) A person is qualified to be a member of the board of directors if the person possesses, by virtue of education, training or experience, the expertise to perform the duties of a member of the board.
Term of office
Duties of board
252. (1) The board of directors of the Corporation shall manage or supervise the management of the affairs of the Corporation and shall perform additional duties as may be imposed under this Act, the regulations or the by-lawssuch additional duties as may be imposed under this Act, prescribed by the regulations or imposed by the by-laws.
Chair to preside
(2) The chair shall preside at all meetings of the Corporation but, if at any meeting the chair is absent, the vice-chair shall preside, and if neither the chair or vice-chair is present, one of the directors present at the meeting who is chosen so to act by the directors present shall preside and has and shall exercise the powers of the chair.
Secretary and treasurer
(5) A member of the board of directors shall be paid by the Corporation out of its income all reasonable travelling and living expenses incurred by the member while absent from his or her ordinary place of residence in the course of his or her duties as a director.
(6) A member of the board of directors may be paid by the Corporation out of its income as remuneration for his or her services and duties such daily or other amount as may be fixed by the board and reported to its members in its annual report.
No liability for acts in good faith
253. (1) No action or other proceeding for damages shall be instituted against the Corporation, or anyone acting under the authority of the Corporation, for any act done in good faith in the execution or intended execution of a duty of the Corporation or for any neglect or default in the execution, in good faith, of that duty.
(a) keep books of account in a form and manner that facilitates the preparation of its financial statements and other financial reports in accordance with generally accepted accounting principles; and
(b) prepare its annual financial statements in accordance with generally accepted accounting principles and the regulations any prescribed requirements. 1994, c. 11, s. 254.
255. (1) The board of directors of the Corporation shall appoint one or more auditors licensed under the Public Accounting Act, 2004 to audit the financial statements of the Corporation for each fiscal year.
(2) The Minister may, at any time, appoint one or more auditors licensed under the Public Accounting Act, 2004 to audit any aspect of the affairs of the Corporation or request the Auditor General to make such an audit.
Co-operation with Minister-directed audit
(3) The directors, officers and employees of the Corporation shall co-operate with and assist the persons performing an audit under subsection (2).
Annual examination of Superintendent
Tabling of annual reports
Information to Minister
(2) At least once each year the Corporation shall advise the Minister about the credit union sector and the adequacy of the Deposit Insurance Reserve Fund and about any matters that concern or can reasonably be expected to concern the Minister in the exercise of his or her responsibilities.
(a) provide insurance against the loss of part or all of deposits with credit unions;
(b) promote and otherwise contribute to the stability of the credit union sector in Ontario with due regard to the need to allow credit unions to compete effectively while taking reasonable risks;
(c) pursue the objects set out in clauses (a) and (b) for the benefit of persons having deposits with credit unions and in such manner as will minimize the exposure of the Corporation to loss;
(d) collect, accumulate and publish such statistics and other information related to credit unions as may be appropriate;
(e) perform the duties provided under this Act or the regulations or do anything the Corporation is required or authorized to do under this Act or the regulations; and
(f) carry out such other objects as the Minister may specify in writing or as may be prescribed
262. (1) The Corporation may do all things necessary or incidental to its objects and in particular, but without limiting the generality of the foregoing, the Corporation may, in furtherance of its objects,
(a) Repeal (moved to s. 276(2))
(b) provide, in its discretion, financial assistance for the purpose of,
(i) assisting a credit union under administration in its continued operation, or
(ii) assisting in the orderly winding up of the operations of a credit union;
(c) make an advance or grant for the purpose of paying lawful claims against a credit union in respect of any claims of its members for withdrawal of deposits;
(g) acquire assets or assume the liabilities of credit unions;
(i) with the approval of the Minister, require the payment of special levies by credit unions for the purpose of establishing and maintaining the assets of the Corporation;
(j) accept powers conferred on it under the Canada Deposit Insurance Corporation Act;
(l) with the approval of the Minister, borrow money,
(i) on the credit of the Corporation,
(ii) on bills of exchange or promissory notes drawn, made, accepted or endorsed by or on behalf of the Corporation, or
(iii) by the issue of debentures;
(m) acquire, hold, improve and alienate real and personal property;
(n) declare and pay premium rebates to credit unions;
(o) act as the supervisor, administrator or liquidator of a credit union;
(p) appoint an agent;
(q) insure any liability of the Deposit Insurance Reserve Fund Corporation with one or more insurers;
(r) advise the Superintendent of any adverse implications of proposed new charters;
(r.1) collect or disclose information concerning a credit union; and
(s) do all such other things, not contrary to this Act, as may be necessary for the exercising of any of the powers of the Corporation;
(2) The Corporation may attach conditions to financial assistance provided under clause (1) (b) and, without limiting the form in which such financial assistance may be provided, the Corporation may provide such financial assistance by,
(a) purchasing securities of a credit union;
(b) making or guaranteeing loans, with or without security, or advances to or deposits with a credit union;
(c) taking security for loans or advances to a credit union; or
(d) guaranteeing the payment of the fees of, and the costs incurred by, a liquidator of a credit union
Payment under guarantee
Delegation of powers and duties
(7) The Corporation may, subject to the conditions that the Corporation considers appropriate, delegate in writing to any officer or employee of the Corporation the exercise of any power or the performance of any duty that this Act confers on or assigns to the Corporation and all acts done and decisions made under the delegation are as valid and effective as if done or made by the Corporation.
(a) for the administration, management and control of the property and affairs of the Corporation;
(b) setting out the functions, duties and remuneration of all officers, agents and employees of the Corporation;
(c) for the appointment or disposition of any special committees from time to time created by the Corporation;
(d) governing the appointment of an auditor;
(e) adopting the seal of the Corporation;
(f) governing the time and place for the holding of meetings of the board of directors and the procedure in all things at such meetings;
(g) prescribing standards of sound business and financial practices for credit unions;
(i) defining the expression "deposit" for the purpose of deposit insurance;
(j) authorizing, controlling and requiring the use by credit unions of marks, signs, advertisements or other devices indicating that deposits with credit unions are insured by the Corporation;
(k) governing the conduct, in all particulars, of the affairs of the Corporation; and
(l) governing the declaration and payment of premium rebates; and
Powers of investigation
Prohibition as to holding out insured
Investment of funds
269. The Corporation may, in its discretion, invest any funds not required in carrying out its objectives in such investments as are prescribed and subject to such restrictions as are prescribed. 1994, c. 11, s. 269.
Insurance of deposits with credit unions
270. (1) Subject to subsection (2), the deposits with every credit union are insured by the Corporation in accordance with this Act and the by-laws of the Corporation except if the deposit insurance of a credit union is cancelled under section 274.
1. A deposit that is not payable in Canada or not in Canadian currency.
2. The amount of any one deposit that exceeds a prescribed amount
Conditions on deposit insurance
Conditions imposed by notice
Insurance continues after member withdraws, etc.
Shares not insurable
Payment for insured deposits
(a) the members of the credit union that holds the deposit pass a resolution for the voluntary liquidation and dissolution of the credit union;
(b) the credit union becomes a bankrupt under the Bankruptcy and Insolvency Act (Canada) or a liquidator is appointed for the credit union under this Act or the Winding-Up and Restructuring Act (Canada)
(c) the Corporation is satisfied that the credit union will be unable to make payment in full, without delay, in respect of any deposits insured by deposit insurance;
(d) the deposit insurance of the credit union that holds the deposit is cancelled; or
(e) the Corporation, as administrator, requires the credit union to be wound up under subparagraph iii of paragraph 6 of subsection 295 (1).
Payment to person apparently entitled
(2) The Corporation, if it is obliged to make payment in respect of any deposit insured by deposit insurance, shall make payment to the person who appears entitled to the payment by the records of the credit union.
Amount of payment
(a) the amount of the deposit according to the terms of the deposit, or
(b) before maturity of the deposit, an amount equal to the principal of the deposit and the accrued and unpaid interest on the deposit on the day it is paid.
Withholding to cover lien
(4) If the credit union has a lien on a deposit under section 44, the Corporation may withhold payment of an amount equal to the amount of the lien and pay that amount to the liquidator of the credit union.
Withholding of amount held as security
Discharge of liability
(6) Payment, under this section, by the Corporation in respect of any deposit insured by deposit insurance discharges the Corporation from all liability in respect of that deposit, and in no case is the Corporation under any obligation to see to the proper application of the payment made.
(7) If the Corporation makes a payment under this section in respect of any deposit with a credit union, the Corporation is subrogated to the extent of the payment made to all the rights and interest of the depositor as against that credit union.
(8) If the Corporation considers it advisable, it may withhold payment in respect of any deposit with a credit union until the Corporation has received a written assignment of all the rights and interests of the depositor against that credit union.
Agreement to administer payments
(9) The Corporation may enter into a deposit administration agreement with a financial institution under which that financial institution agrees to make the payments under this section on behalf of the Corporation.
Insurance of deposits with amalgamating credit unions
(2) A deposit with an amalgamating credit union on the day on which the amalgamated credit union is formed, less any withdrawals from the deposit, is, for the purpose of deposit insurance with the Corporation, separate from a deposit of the same person on that day with another amalgamating credit union that became part of the amalgamated credit union.
Deposits with amalgamated credit union
(3) A deposit made by a person referred to in subsection (2) with an amalgamated credit union after the day on which the amalgamated credit union is formed is insured by the Corporation only to the extent that the aggregate of that person's deposits with the amalgamated credit union, exclusive of the deposit in respect of which the calculation is made, is less than a prescribed amount.
If undertaking acquired
(4) For the purpose of deposit insurance with the Corporation, if one credit union acquires the undertaking and assets of another credit union, those credit unions are considered to be amalgamating credit unions. 1994, c. 11, s. 271.
272. (1) The Corporation may examine the books, records and accounts records and documents of the credit union if the Corporation believes that a payment by the Corporation under this Act in respect of a deposit held by a credit union is imminent and that it is in the best interest of both the depositors with the credit union and the Corporation to make early preparations for the payment.
Application to receivers and liquidators
Insuring credit unions
Cancellation of deposit insurance
(a) the credit union is in breach of the standards of business and financial practices prescribed by the Corporation or any conditions of a policy of deposit insurance issued to it its deposit insurance;
(b) the credit union ceases to accept deposits;
(c) an order has been made appointing the Corporation or another person as the liquidator of the credit union; or
(d) the credit union fails to pay its deposit insurance premiums. or
(e) the Corporation determines, on reasonable grounds, that the credit union is unable to meet its obligations as they come due.
Effect of cancellation
(2) If the deposit insurance of a credit union is cancelled by the Corporation, the deposits with the credit union on the day the cancellation takes effect, less any withdrawals from those deposits, continue to be insured for a period of two years or, in the case of a term deposit with a remaining term exceeding two years, to the maturity of that term.
Notification to depositors
(4) The Corporation may, in the manner it considers expedient, give public notice of the cancellation of deposit insurance of a credit union if, in the opinion of the Corporation, the public interest requires that notice be given. 1994, c. 11, s. 274 (1-4).
Notice to Superintendent, league
Prohibition, advertising, holding out as insured
Advertisement, etc. by credit union or league
(2) A credit union may advertise or hold out that it is insured and a league may advertise or hold out that its members are insured if the advertising or holding out is by marks, signs, advertisements or other devices authorized by the by-laws of the Corporation and used in the manner and on the occasions set out by the by-laws.
Deposit Insurance Reserve Fund
(2) The Corporation shall, within 120 days after the start of each fiscal year of a credit union, establish for, assess and collect from the credit union an annual premium, under prescribed conditions, to meet its administrative costs, insurance funding and the administrative costs of stabilization authorities. 2001, c. 8, s. 30.
1. Deposit insurance claims.
2. The costs associated with the continuance or orderly winding up of credit unions in financial difficulty.
3. Financial assistance provided under clause 262 (1) (b).
4. The costs of the Corporation.
1. Determine the credit union's annual premium for that financial year in accordance with the regulations.
2. Collect the annual premium determined under paragraph 1.
Deposit of premiums
Overdue charges premiums
277. The Corporation may charge interest at a rate equal to the rate prescribed under subsection 161 (1) of the Income Tax Act (Canada) plus 2 per cent on the unpaid amount of any premium instalment that is not paid on or before the due date of that instalment. 1994, c. 11, s. 277.
Deferral of premiums
Annual examination of credit unions
Examination of leagues
Contents of examiner's report
Stabilization authority for credit unions
Duration of designation
Supervision by stabilization authority
Supervision by Corporation
1. The credit union asks, in writing, that it be subject to supervision.
2. The credit union is not in compliance with prescribed capital or liquidity requirements.
3. TThe Corporation, on reasonable grounds, believes that the credit union is conducting its affairs in a way that might be expected to harm the interests of members or depositors or that tends to increase the risk of claims by depositors against the Corporation.
4. The credit union or an officer or director of it does not file, submit or deliver a report or document required to be filed, submitted or delivered under this Act within the time limited under this Act.
5. The credit union has failed to comply with an order of the Superintendent and the Superintendent has requested, in writing, that the credit union be subject to supervision.
6. The credit union has failed to comply with an order of the Corporation.
(a) the credit union is being wound up or placed under administration; or
(b) the Corporation rescinds the order that the credit union be subject to supervision.
Appeal to Tribunal
Exception, if order at credit union's request
Powers of stabilization authority
Approval of by-laws
Powers when credit union supervised
(a) order the credit union to correct any practices that the authority Corporation feels are contributing to the problem or situation that caused the credit union to be ordered subject to its supervision;
(b) order the credit union and its directors, committee members, officers and employees to not exercise any powers of the credit union or of its directors, committee members, officers and employees;
(c) establish guidelines for the operation of the credit union;
(d) order the credit union not to declare or pay a dividend or to restrict the amount of a dividend to be paid to a rate or amount set by the authority;
(f) attend meetings of the credit union's board and its credit and audit committee; and
(g) propose by-laws for the credit union and amendments to its articles of incorporation.
Approval of by-laws, etc.
(3) No by-law, policy or resolution relating to the business, affairs or management of a credit union passed or made by the board during the time the credit union is subject to supervision is of any effect until approved in writing by the Corporation.
(a) an order directing compliance with the Corporation's order; or
(b) such other order as the court considers appropriate.
Expenses of Corporation
No liability for acts in good faith
When designation revoked
Administration by Corporation
1. The Corporation, on reasonable grounds, believes that the credit union is conducting its affairs in a way that might be expected to harm the interests of members, depositors or shareholders or that tends to increase the risk of claims against the deposit insurer, but that supervision by a stabilization authority would, in this case, not be appropriate.
2. The credit union has failed to comply with an order of the Corporation made while the credit union was subject to the supervision of the Corporation.
3. The Corporation is of the opinion that the assets of the credit union are not sufficient to give adequate protection to its depositors.
4. The credit union has failed to pay any liability that is due or, in the opinion of the Corporation, will not be able to pay its liabilities as they become due.
5. After a general meeting and any adjournment of no more than two weeks, the members of the credit union have failed to elect the minimum number of directors required under subsection 93 (2).
5.1. If a vacancy occurs in the board of the credit union resulting in there not being a quorum of directors in office and a general meeting is not called promptly as required under subsection 97 (2).
6. TThe Superintendent has made an order under section 240.
Appeal to court
Notice of appeal
Revocation of order
1. Carry on, manage and conduct the operations of a credit union.
2. Preserve, maintain, realize, dispose of and add to the property of a credit union.
3. Receive the income and revenues of the credit union.
4. Exercise the powers of the credit union and of the directors, officers and committees.
5. Exclude the directors of the credit union and its officers, committee members, employees and agents from the property and business of the credit union.
6. Require the credit union to,
i. amalgamate, by requiring the credit union to enter into an amalgamation agreement under section 310,
ii. dispose of its assets and liabilities, or
iii. be wound up.
Release from administration
Expenses of Corporation