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The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(g) and subsection 14(2.51) of the Canada Deposit Insurance Corporation Act, hereby makes the annexed Interest Payable on Certain Deposits By-law.May 18, 1999notenote
Interpretation
1#
The definitions in this section apply in this By-law.
Act means the Canada Deposit Insurance Corporation Act. (Loi)
(a)in the case of interest referred to in subsection 14(2.3) of the Act, the date of the commencement of the winding-up;
(b)in the case of interest referred to in paragraph 14(2.5)(a) of the Act, the date of the payment by the Corporation; and
(c)in the case of interest referred to in paragraph 14(2.5)(b) of the Act, the date of the commencement of the winding-up. (date d’arrêt)
Application
Prescribed Indexes and Reference Points
Determination of Interest
4#
Subject to sections 5 to 7, the interest accruing and payable in relation to a deposit shall be determined, as of the interest termination date, in accordance with the provisions of the deposit contract between the depositor and the member institution.
5#
(1)Where the term of a deposit contract extends beyond the interest termination date and not all of the information necessary for the calculation of interest is available by that date, the interest accruing and payable in relation to the deposit, other than interest that is payable on or before that date, shall be determined as follows:
(a)if the contract does not provide for periodic interest calculations, the interest is to be determined using the following formula:
(b)if the contract provides for periodic interest calculations and the interest termination date occurs before the first interest calculation date specified in the contract, the interest is to be determined using the following formula:
(c)if the contract provides for periodic interest calculations and the interest termination date occurs on or after the first interest calculation date specified in the contract, the interest is the sum of
(i)the amount of any interest that, in accordance with the contract, is to be calculated on or before the interest termination date but is not payable until after that date, and
(ii)where the interest termination date does not coincide with an interest calculation date specified in the contract, the amount of interest determined using the following formula:
(2)Interest shall not be determined in accordance with subsection (1) where the deposit contract provides for the payment of a minimum amount of interest that exceeds the amount which would be payable under that subsection, or where it provides for the payment of a maximum amount of interest that is less than the amount which would be payable under that subsection.
6#
Except where a minimum amount of interest is payable under the deposit contract, no interest is payable in relation to a deposit if
(a)the index or reference point specified in the contract has not come into existence by the interest termination date and the contract fails to provide for the substitution of an alternative index or reference point; or
(b)the index or reference point specified in the contract no longer exists on the interest termination date, the contract fails to provide for the substitution of an alternative index or reference point, and not all of the information necessary for the calculation of interest is available by that date.
Coming into Force
Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.