Community Financial Services Act

DEPOSIT GUARANTEE REGULATION

Definitions

1 In this regulation:

"aboriginal band" means a body of aboriginal peoples of Canada

(a) for whose use and benefit in common, lands, the legal title to which is vested in the government of Canada, have been set apart before, on or after September 4, 1951,

(b) for whose use and benefit in common moneys are held by the government of Canada, or

(c) declared by the Governor in Council to be a band for the purposes of the Indian Act (Canada);

"aboriginal band council" means

(a) in the case of an aboriginal band to which section 74 of the Indian Act (Canada) applies, the council established under that section, or

(b) in the case of an aboriginal band to which section 74 of that Act does not apply, the council chosen according to the custom of the band or, if there is no council, the chief of the aboriginal band chosen according to the custom of the band;

"aboriginal peoples of Canada" includes the Indian, Inuit and Metis peoples of Canada;

"Act" means the Community Financial Services Act;

"depositor" has the same meaning as in section 19 of the Act;

"employee benefit plan" includes any of the following plans that are designed for and provided to employees:

(a) a group sickness, accident or disability plan;

(b) a private health services plan;

(c) a supplementary unemployment benefit plan;

(d) a deferred profit sharing plan;

(e) a group term life insurance policy;

(f) a profit sharing plan;

(g) an income maintenance insurance plan;

"pooled trust account" means an account that is

(a) shown in the records of the corporation as a separate account, and

(b) maintained by a trustee for the deposit of trust funds on behalf of beneficiaries generally,

whether or not the identity of each beneficiary is disclosed in the records of the corporation;

"tribal council" means an association of aboriginal bands or aboriginal band councils or both that is created for the purpose of furthering the joint interests of the council members;

"union" means a trade union as that term is defined under the Canada Labour Code (Canada)¹ and includes a trade union as that term is defined under the Labour Relations Code.

Prescribed deposit for section 19 (3) (a) of the Act

2 For the purposes of the definition of "qualifying funds" in section 19 of the Act, the following are collectively prescribed as a deposit of a depositor to whom the limit set out in section 19 (3) (a) of the Act applies:

(a) the aggregate of all deposits payable in Canada in Canadian dollars that are

(i) credited to accounts shown in the records of the corporation as trust accounts, and

(ii) deposited in trust for the benefit of the depositor,

whether or not the identity of the beneficiary is disclosed in the records of the corporation, whether or not funds have been deposited in trust for the benefit of the depositor in more than one pooled trust account and whether or not the beneficiaries of each of those accounts are identical;

(b) the aggregate of all other deposits payable in Canada in Canadian dollars, except deposits to any account held jointly by the depositor and one or more individuals or entities, that are credited to the depositor in the records of the corporation.

Prescribed deposit for section 19 (3) (b) of the Act

3 (1) Subject to subsection (2), for the purposes of the definition of "qualifying funds" in section 19 of the Act, each of the following is prescribed as a deposit of a depositor to whom the limit set out in section 19 (3) (b) of the Act applies:

(a) the aggregate of all deposits payable in Canada in Canadian dollars that are

(i) credited to accounts shown in the records of the corporation as trust accounts, and

(ii) deposited in trust for the benefit of the depositor,

whether or not the identity of the beneficiary is disclosed in the records of the corporation;

(b) the aggregate of all deposits payable in Canada in Canadian dollars that are shown in the records of the corporation as joint accounts to the credit of the same joint depositors;

(c) the aggregate of all deposits payable in Canada in Canadian dollars that are shown in the records of the corporation as registered retirement savings plans under the Income Tax Act (Canada) to the credit of the same depositor;

(d) the aggregate of all deposits payable in Canada in Canadian dollars that are shown in the records of the corporation as registered retirement income funds under the Income Tax Act (Canada) to the credit of the same depositor;

(e) the aggregate of all deposits payable in Canada in Canadian dollars that are not referred to in paragraphs (a) to (d) that are credited to the same depositor in the records of the corporation.

(2) If funds are deposited in trust for the benefit of the same beneficiary in more than one pooled trust account and the beneficiaries of each of those accounts are not identical, the funds deposited for that beneficiary in each of those pooled trust accounts are, if that beneficiary is a depositor to whom the limit set out in section 19 (3) (b) of the Act applies, prescribed as a deposit of that depositor if and to the extent that those deposits are payable in Canada in Canadian dollars.

Prescribed depositors

4 The following entities are prescribed for the purposes of section 19 (3) (a) of the Act:

(a) a corporation, including, without limitation,

(i) an incorporated aboriginal organization, and

(ii) an incorporated religious organization;

(b) an aboriginal band;

(c) a tribal council, whether incorporated or not;

(d) a registered charity as defined in section 248 (1) of the Income Tax Act (Canada);

(e) a union;

(f) the Crown in right of Canada or of a province;

(g) a pension plan organized and administered by or on behalf of an entity referred to in paragraphs (a) to (f);

(h) a public body;

(i) an employee benefit plan.

Requirement for notice

5 (1) In the event of a failure, refusal or neglect to pay described in paragraph (b) of the definition of "qualifying funds" in section 19 of the Act, a depositor of the corporation may, subject to section 19 (3) of the Act, claim each deposit attributable to that depositor under section 2 or 3 of this regulation by delivering to the minister a written claim in a form satisfactory to the minister.

(2) A depositor may claim a deposit under section 2 or one or more deposits under section 3 but not both.

(3) A claim for a deposit under subsection (1) must be delivered to the minister not more than 12 months after the date that the depositor made the demand for payment of that deposit contemplated by paragraph (b) of the definition of "qualifying funds" in section 19 of the Act.

(4) As soon as practical after receipt by the minister of a depositor's claim in accordance with subsections 1) to (3), if the minister is satisfied as to the correctness of the amount claimed, the government must pay out of the consolidated revenue fund to the depositor the amount to which the depositor is entitled under section 19 of the Act.

(5) If payment is made under subsection (4) to a depositor whose claim included a claim for repayment in respect of a deposit shown in the records of the corporation as a joint account, the payment made to the depositor in respect of that claim is deemed to satisfy the guarantee obligation of the government to all joint holders of that account in respect of the money deposited in that joint account and no claim in respect of that money may be made by any other depositor or accepted by the government.

(6) The government may, under section 19 (4) of the Act, deduct from a payment made in respect of a joint account any indebtedness owed to the corporation by any of the joint holders of the account, whether or not the indebtedness for which the deduction is made is owed by the depositor claiming the repayment.

(7) Without limiting subsection (6), section 19 (5) of the Act and, in the case of a payment made in relation to a joint account, subsection (5) of this section apply to every payment made under subsection (4) of this section whether or not a deduction has been made against that payment under section 19 (4) of the Act.

[Provisions of the Community Financial Services Act, R.S.B.C. 1996, c. 61, relevant to the enactment of this regulation: sections 19 and 32]

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