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Canada Deposit Insurance Corporation Act

Version of section 39.202 from 2009-07-01 to 2010-07-11:

Marginal note:Deposit liabilities

  •  (1) A bridge institution shall assume all of the liabilities with respect to a federal member institution’s deposits that are insured by the Corporation.

  • Marginal note:Subrogation

    (2) If the bridge institution assumes any portion of a federal member institution’s liability that is not insured by the Corporation, the bridge institution is subrogated to all the rights and interests of the creditor against the federal member institution in relation to the entire liability and may maintain an action in respect of those rights and interests in its own name or in the name of the creditor.

  • Marginal note:Creditor’s rights and interests

    (3) As soon as the bridge institution receives an amount equal to the liabilities that are not insured by the Corporation that it assumed, the rights and interests in respect of the balance remaining revert to the creditor.

  • 2009, c. 2, s. 248

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