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Vol. 141, No. 19 — May 12, 2007 By-law Amending Certain Exemption from Deposit Insurance By-laws Made Under the Canada Deposit Insurance Corporation ActStatutory authority Canada Deposit Insurance Corporation Act Sponsoring agency Canada Deposit Insurance Corporation REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the By-law.) Description The Board of Directors of the Canada Deposit Insurance Corporation ("CDIC") proposes to make the By-law Amending Certain Exemption from Deposit Insurance By-laws Made Under the Canada Deposit Insurance Corporation Act ("Amending By-law") pursuant to paragraph 11(2)(g), subsections 26.01(3) and (4), paragraphs 26.03(1)(c) and (e) and subsection 26.03(2) of the Canada Deposit Insurance Corporation Act ("CDIC Act"). Paragraph 11(2)(g) of the CDIC Act authorizes the CDIC Board of Directors to make by-laws "prescribing anything that, by virtue of any provision of this Act, is to be prescribed by the by-laws." Subsections 26.01(3) and (4) permit the Board to make by-laws prescribing certain deposits that can be accepted without being a member of CDIC and the terms and conditions with respect to the acceptance of those deposits. Paragraphs 26.03(1)(c) and (e) require that rules related to informing depositors or relating to the fee charged by CDIC must be prescribed by by-law. Subsection 26.03(2) requires that the rate of exchange to be applied shall be determined in accordance with rules prescribed by the by-laws. The Amending By-law amends each of the following by-laws (collectively referred to as the "Exemption from Deposit Insurance By-laws"):
As a consequence of amendments to section 26.02, paragraphs 26.03(1)(b) to (e), subsections 26.04(1) and (3) and section 26.06 of the CDIC Act that received Royal Assent on March 29, 2007, all federal member institutions, not only banks, that meet the criteria are entitled to accept deposits without being a member of CDIC. In the circumstances, all references to "bank" in the Exemption from Deposit Insurance By-laws must be changed to "federal member institution." The Amending By-law changes the word "bank" to "federal member institution" in all places it occurs in the Exemption from Deposit Insurance By-laws. Alternatives There are no available alternatives. The Exemption from Deposit Insurance By-laws must be amended to reflect the amendments to the CDIC Act. Benefits and costs The Amending By-law will align the Exemption from Deposit Insurance By-laws with the current CDIC Act. No additional costs should be attributed directly to these changes. Consultation As the changes are statutorily driven and technical in nature, only consultation through pre-publication in the Canada Gazette is necessary. Compliance and enforcement There are no compliance or enforcement issues.
Sandra Chisholm Notice is hereby given that the Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g) (see footnote a), subsections 26.01(3) (see footnote b) and (4) (see footnote c), paragraphs 26.03(1)(c) (see footnote d) and (e) (see footnote e) and subsection 26.03(2) (see footnote f) of the Canada Deposit Insurance Corporation Act, proposes to make the annexed By-law Amending Certain Exemption from Deposit Insurance By-laws Made Under the Canada Deposit Insurance Corporation Act. Interested persons may make representations with respect to the proposed By-law within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Sandra Chisholm, Director, Insurance, Canada Deposit Insurance Corporation, 50 O'Connor Street, 17th Floor, Ottawa, Ontario K1P 5W5 (e-mail: schisholm@cdic.ca). Ottawa, May 1, 2007
GUY L. SAINT-PIERRE
BY-LAW AMENDING CERTAIN EXEMPTION FROM DEPOSIT AMENDMENTS 1. The following provisions are amended by replacing the word "bank" with the words "federal member institution" wherever it occurs: (a) the definition "applicant" in section 1 of the Exemption from Deposit Insurance By-law (Notice to Depositors) (see footnote 1); (b) section 1 of the Exemption from Deposit Insurance By-law (Exemption Fee) (see footnote 2); (c) section 1 of the Exemption from Deposit Insurance By-law (Foreign Currency Deposits) (see footnote 3); and (d) in the Exemption from Deposit Insurance By-Law (Prescribed Deposits) (see footnote 4) (i) the definition "first deposit transaction" in section 1, (ii) the portion of section 2 before paragraph (a), (iii) the portion of paragraph 2(h) before subparagraph (i), and (iv) subparagraph 2(h)(iii).
COMING INTO FORCE 2. This By-law comes into force on the day on which section 410 of An Act to amend the law governing financial institutions and to provide for related and consequential matters, chapter 6 of the Statutes of Canada, 2007, comes into force or, if it is later, on the day on which it is registered. [19-1-o] R.S., c. 18 (3rd Supp.), s. 51 S.C. 1999, c. 28, s. 101 S.C. 1999, c. 28, s. 101 S.C. 2007, c. 6, s. 411 S.C. 2007, c. 6, s. 411 S.C. 1997, c. 15, s. 114 SOR/99-381 SOR/99-382 SOR/99-384 SOR/2000-42 |
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