Ontario Deposit Insurance Corporation Act, R.S.O. 1990, c. O.9
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Ontario Deposit Insurance Corporation Act
R.S.O. 1990, CHAPTER O.9
Note: This Act was repealed on October 10, 1997. See: 1997, c. 19, s. 43 (1).
Amended by: 1997, c. 19, s. 43 (1).
Definitions
1. In this Act,
“Board” means the Board of Directors of the Corporation; (“conseil”)
“by-laws” means the by-laws of the Corporation; (“règlements administratifs”)
“Chair” means the Chair of the Board; (“président”)
“Corporation” means the Ontario Deposit Insurance Corporation; (“Société”)
“deposit” means a deposit as defined by section 24; (“dépôt”)
“loan corporation” has the same meaning as it has in the Loan and Trust Corporations Act; (“société de prêt”)
“member institution” means a loan corporation or trust corporation incorporated under the laws of Ontario and registered under the Loan and Trust Corporations Act; (“institution membre”)
“Minister” means the Minister of Financial Institutions; (“ministre”)
“Superintendent” means the Superintendent of Deposit Institutions under the Loan and Trust Corporations Act; (“surintendant”)
“trust corporation” has the same meaning as it has in the Loan and Trust Corporations Act. (“société de fiducie”) R.S.O. 1980, c.328, s.1, revised.
PART I
THE CORPORATION
Corporation continued
2. (1) The corporation known as the Ontario Deposit Insurance Corporation, consisting of the persons who make up the Board, is continued under the name Ontario Deposit Insurance Corporation in English and under the name Société ontarienne d’assurance-dépots in French. R.S.O. 1980, c.328, s.2(1), revised.
Crown agency
(2) The Corporation is, for all purposes of this Act, an agent of Her Majesty, and its powers under this Act may be exercised only as an agent of Her Majesty.
Exception
(3) The Business Corporations Act does not apply to the Corporation.
Property
(4) The Corporation has power to acquire, hold and alienate real and personal property.
Idem
(5) Property acquired by the Corporation is the property of Her Majesty and title thereto may be vested in the name of Her Majesty or in the name of the Corporation. R.S.O. 1980, c.328, s.2(2-5).
Legal proceedings
(6) Actions or other legal proceedings in respect of any right or obligation acquired or incurred by the Corporation on behalf of Her Majesty, whether in its name or in the name of Her Majesty, may be brought or taken by or against the Corporation in any court that would have jurisdiction if the Corporation were not an agent of Her Majesty. R.S.O. 1980, c.328, s.2(6), revised.
Head office
3. (1) The head office of the Corporation shall be at the City of Toronto and at such place therein as the Board shall from time to time determine.
Offices and agents
(2) The Corporation may establish offices or employ agents in any part of Ontario. R.S.O. 1980, c.328, s.3.
Board of directors
4. (1) The Board shall consist of the person appointed as the Chair and the persons who for the time being hold, respectively, the offices of the Deputy Treasurer of Ontario and Deputy Minister of Economics, the Comptroller of Finance, the Deputy Minister of Financial Institutions, and the Superintendent, and such other persons as may be appointed by the Lieutenant Governor in Council.
Alternate director
(2) In the event of the absence or incapacity of any director of the Corporation other than the Chair, the Minister may appoint, for a period not exceeding thirty days, an alternate for such director who shall serve on the Board during such absence or incapacity and who shall, while so serving, be deemed to be a member of the Board.
Travelling expenses
(3) A member of the Board shall be paid by the Corporation 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, but no director of the Corporation, other than the Chair, shall receive any other remuneration for his or her services on the Board. R.S.O. 1980, c.328, s.4.
Chair
5. (1) The Lieutenant Governor in Council shall appoint a person to be the Chair. R.S.O. 1980, c.328, s.5(1).
Disqualification
(2) No person is eligible to be appointed or to continue as Chair who,
(a) is not a Canadian citizen or a person lawfully admitted to Canada as a permanent resident who ordinarily resides in Canada;
(b) is a member of the Senate or House of Commons of Canada or a member of the Assembly;
(c) is a director, officer or employee of a member institution; or
(d) has reached the age of seventy years. R.S.O. 1980, c.328, s.5(2); 1985, c.5, s.6.
Functions
(3) The Chair shall preside at all meetings of the Board, but, where at any meeting the Chair is absent, one of the directors present thereat who is chosen so to act by the directors present shall preside and has and shall exercise the powers of the Chair.
Remuneration
(4) The Chair shall be paid by the Corporation such remuneration as may be fixed by the Lieutenant Governor in Council. R.S.O. 1980, c.328, s.5(3,4).
No personal liability
6. The Chair, the other members of the Board and the officers and employees of the Corporation are not personally liable for anything done by the Board or any of them under the authority of this Act. R.S.O. 1980, c.328, s.6.
Authorized capital
7. (1) The authorized capital of the Corporation is $5,000,000 divided into five shares of the par value of $1,000,000 each.
Subscription
(2) The Treasurer of Ontario shall subscribe for the five shares of the capital stock of the Corporation and shall pay the amount of such subscription out of the Consolidated Revenue Fund at such time or from time to time as the Corporation may require.
Shares not transferable
(3) The shares of the capital stock of the Corporation are not transferable and shall be registered in the books of the Corporation in the name of the Treasurer of Ontario and held by him or her in trust for Her Majesty. R.S.O. 1980, c.328, s.7.
Financial year
8. The financial year of the Corporation ends on the expiration of the 31st day of December in each year. R.S.O. 1980, c.328, s.8.
Audit
9. The accounts and financial transactions of the Corporation shall be audited annually by the Provincial Auditor. R.S.O. 1980, c.328, s.9.
Annual report
10. The Corporation shall be responsible to the Minister and shall, within three months after the termination of each financial year of the Corporation, transmit to the Minister a statement relating to the activities of the Corporation for that year, including the financial statements of the Corporation and the Provincial Auditor’s report thereon, and the Minister shall submit the report to the Lieutenant Governor in Council and shall then lay the report before the Assembly if it is in session or, if not, at the next session. R.S.O. 1980, c.328, s.10.
Objects
11. The objects of the Corporation are,
(a) to provide, for the benefit of persons having deposits with member institutions, insurance (herein referred to as “deposit insurance”) against the loss of part or all of such deposits by making payments to such persons to the extent and in the manner authorized by this Act;
(b) to provide the deposit insurance required by this Act for member institutions;
(c) to examine into the affairs of member institutions for the purpose of obtaining information relative to deposit insurance; and
(d) to accumulate, manage and invest a deposit insurance fund and any other funds accumulated as the result of the operations of the Corporation. R.S.O. 1980, c.328, s.11.
Powers
12. The Corporation may do all things necessary or incidental to the objects of the Corporation and in particular, but without limiting the generality of the foregoing, the Corporation may, in furtherance of its objects,
(a) acquire assets from a member institution, make loans or advances to a member institution and take security therefor and guarantee loans to or deposits with a member institution, for the purpose of reducing a risk to the Corporation or reducing or averting a threatened loss to the Corporation;
(b) act under section 34 when duly authorized and appoint persons, whether employees or not of the Corporation, to carry out any or all of the functions of the Corporation;
(c) assume the costs of a winding up of a member institution when the Corporation is appointed to act as a liquidator in the winding up or assume the costs of the receiver when the Corporation is appointed to act as such and charge such costs of winding up or receivership to the Accumulated Net Earnings of the Corporation;
(d) acquire assets of a member institution from a liquidator or receiver thereof;
(e) make an advance for the purpose of paying a claim, against a member institution for which the Corporation is acting as receiver or liquidator, in respect of any insured deposit and become subrogated as an unsecured creditor for the amount of such advance;
(f) make or cause to be made such inspections of a member institution as may be authorized under this Act; and
(g) 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. R.S.O. 1980, c.328, s.12.
Powers and duties of Board
13. (1) The Board shall administer the affairs of the Corporation in all things and make, or cause to be made, for the Corporation any description of contract that the Corporation may by law enter into, and, subject to the approval of the Lieutenant Governor in Council, the Board may make by-laws for,
(a) the administration, management and control of the property and affairs of the Corporation;
(b) the functions, duties and remuneration of all officers, agents and employees of the Corporation;
(c) the appointment or disposition of any special committees from time to time created by the Board for the purposes of the Corporation;
(d) the issue of the shares of the Corporation;
(e) the declaration and payment of dividends;
(f) determining the seal of the Corporation;
(g) the time and place for the holding of meetings of the directors, the quorum at such meetings and the procedure in all things at such meetings;
(h) prescribing standards of sound business and financial practices for member institutions;
(i) authorizing and controlling the use by member institutions of marks, signs, advertisements or other devices indicating that deposits with such institutions are insured by the Corporation; and
(j) the conduct in all other particulars of the affairs of the Corporation.
Powers of inspection
(2) For the purpose of carrying out any inspection authorized by this Act, the Board may appoint any person to carry out any such inspection, and the person so appointed has the powers of a commission under Part II of the Public Inquiries Act, which Part applies to the inspection as if it were an inquiry under that Act. R.S.O. 1980, c.328, s.13.
Borrowing powers
14. (1) Subject to the approval of the Lieutenant Governor in Council and to section 21, the Corporation may from time to time borrow or raise by way of loan such sums of money as the Corporation may consider requisite for any of the purposes of the Corporation by the issue and sale of debentures, bills or notes of the Corporation in such form or forms, in such denomination or denominations, bearing interest at such rate or rates and payable as to principal and interest at such time or times, in such currency or currencies and at such place or places as the Corporation may determine.
Purposes of Corporation
(2) The purposes of the Corporation, without limiting the generality thereof, include,
(a) the carrying out of the objects of the Corporation;
(b) the payment, refunding or renewal from time to time of the whole or any part of any sum or sums of money borrowed or raised by way of loan or of any securities issued by the Corporation;
(c) the repayment in whole or in part of any advances made by Ontario to the Corporation or of any securities of the Corporation issued and delivered to the Treasurer of Ontario in respect of any advances;
(d) payment of the whole or any part of any loan or of any liability or of any bonds, debentures or other securities, payment whereof is guaranteed or assumed by the Corporation; and
(e) the payment of the whole or any part of any obligation, liability or indebtedness of the Corporation.
Sale, etc., of Corporation’s securities
(3) Subject to the approval of the Lieutenant Governor in Council, the Corporation may sell any debentures, bills or notes of the Corporation either at, or at less or more than, the principal amount thereof and may charge, pledge or otherwise deal with any such debentures, bills or notes as collateral security.
Authorization
(4) A recital or declaration in any resolution or minute of the Corporation authorizing the issue and sale of debentures, bills or notes of the Corporation to the effect that it is necessary to issue and sell such debentures, bills or notes for the purposes of the Corporation in the amount authorized is conclusive evidence to that effect.
Execution of securities
(5) The notes, debentures and other securities of the Corporation shall be executed in such manner as the Corporation, with the approval of the Lieutenant Governor in Council, may determine.
Mechanical reproduction of seal and signature authorized
(6) The seal of the Corporation may be engraved, lithographed, printed or otherwise mechanically reproduced on any debenture, bill or note, and any signature upon any debenture, bill or note and upon any coupon may be engraved, lithographed, printed or otherwise mechanically reproduced, and the seal of the Corporation when so reproduced has the same force and effect as if manually affixed, and any such signature is for all purposes valid and binding upon the Corporation although any person whose signature is so reproduced has ceased to hold office. R.S.O. 1980, c.328, s.14.
Securities of Corporation redeemable in advance
15. Any debenture, bill or note of the Corporation may be made redeemable in advance of maturity at such time or times, at such price or prices and on such terms and conditions as the Corporation may determine at the time of the issue thereof. R.S.O. 1980, c.328, s.15.
Guarantee of payment by Ontario
16. (1) The Lieutenant Governor in Council may authorize the Treasurer of Ontario to guarantee payment by Ontario of any debentures, bills or notes issued by or of any temporary loan made to the Corporation under the authority of this Act.
Form of guaranty
(2) The form of guaranty and the manner of execution shall be determined by the Lieutenant Governor in Council.
Validity of guaranty
(3) Every guaranty given or purporting to be given under the authority of this section is binding upon Ontario and is not open to question upon any ground whatsoever.
Guaranteed debentures, etc., to be indefeasible
(4) Any debenture, bill or note issued by or temporary loan made to the Corporation, payment whereof is guaranteed by Ontario under this section, is valid and binding upon the Corporation, its successors and assigns according to its terms, and the validity of any debenture, bill or note or temporary loan so guaranteed is not open to question on any ground whatsoever. R.S.O. 1980, c.328, s.16.
Trustee, etc., investments in debentures
17. Despite anything in any other Act, debentures issued by the Corporation are at all times a lawful investment for municipal, school and trust funds. R.S.O. 1980, c.328, s.17.
Sale of Corporation’s securities to Ontario and provincial advances to Corporation authorized
18. (1) The Lieutenant Governor in Council may authorize the Treasurer of Ontario,
(a) to purchase any debentures, bills or notes of the Corporation; and
(b) to make advances to the Corporation in such amounts, at such times and on such terms and conditions as the Lieutenant Governor in Council may consider expedient.
Idem
(2) The money required for the purposes of subsection (1) shall be paid out of the Consolidated Revenue Fund. R.S.O. 1980, c.328, s.18.
Investment of funds
19. The Corporation may, in its discretion, invest any funds not required in carrying out its objects in debentures or other securities of Canada or of Ontario, or in any securities guaranteed as to principal and interest by either of them. R.S.O. 1980, c.328, s.19.
Temporary loans
20. (1) Subject to the approval of the Lieutenant Governor in Council, the Corporation may from time to time for any of the purposes of the Corporation borrow by way of temporary loan from any bank listed in Schedule I or II to the Bank Act (Canada) or from any person such sums as the Corporation considers requisite, either by way of bank overdraft or loan or in any other manner whatsoever.
Idem
(2) For the purposes of subsection (1), the Corporation may pledge as security notes, debentures or other securities of the Corporation pending the sale thereof or in lieu of selling the same or may pledge as security bonds, debentures or other securities owned by the Corporation or otherwise give such security as the Corporation may determine, and any cheques, promissory notes or other instruments that may be necessary or desirable for the purposes of subsection (1) or this subsection may be executed in such manner as the Corporation may determine. R.S.O. 1980, c.328, s.20.
Limit of borrowing powers
21. (1) The Corporation shall not borrow or raise by way of loan any sums of money if, after giving effect to such borrowing or loan, the aggregate principal amount of the outstanding debentures, bills and notes issued by the Corporation, of temporary loans raised by the Corporation and of outstanding advances to the Corporation from the Treasurer of Ontario, would exceed $250,000,000.
Idem
(2) Despite subsection (1), the Corporation shall not question the validity of any borrowings by it, or of any debentures, bills or notes issued by it, all of which shall be binding upon the Corporation. R.S.O. 1980, c.328, s.21.
PART II
MEMBER INSTITUTIONS
Applications for Federal deposit insurance authorized
22. (1) Every member institution is authorized to apply to the Canada Deposit Insurance Corporation for deposit insurance under the Canada Deposit Insurance Corporation Act.
Federal-Provincial agreements authorized
(2) The Minister on behalf of Ontario may enter into agreements with the Canada Deposit Insurance Corporation for any purpose in connection with the issuing of policies of deposit insurance to loan corporations and trust corporations incorporated under the laws of Ontario.
Idem
(3) Any such agreement may contain an undertaking by Ontario to indemnify the Canada Deposit Insurance Corporation for any loss to that corporation occurring by reason of its obligation to make payment in respect of any deposit insured by a policy of deposit insurance where the obligation arises during the period specified for that purpose in such agreement. R.S.O. 1980, c.328, s.22.
PART III
DEPOSIT INSURANCE
Deposit insurance required
23. (1) No loan corporation or trust corporation registered under the Loan and Trust Corporations Act shall, after the 30th day of June, 1967, accept, receive or issue deposits unless it holds a certificate or policy of deposit insurance issued by the Canada Deposit Insurance Corporation or unless its deposits are insured in some other manner approved by the Lieutenant Governor in Council.
Extension of time
(2) In the case of any particular loan corporation or trust corporation, the Lieutenant Governor in Council may extend the time for effecting the insurance mentioned in subsection (1). R.S.O. 1980, c.328, s.23.
Deposit defined
24. For the purposes of this Act, a deposit is,
(a) money deposited with a loan corporation or trust corporation registered under the Loan and Trust Corporations Act in respect of which such corporation is liable to the depositors; or
(b) money received under subsections 155(2) to (5) of the Loan and Trust Corporations Act by a trust corporation registered under that Act or a debenture or like obligation issued by a loan corporation registered under that Act, but not including any money so received or debenture or like obligation so issued on or after the 17th day of April, 1967, unless the trust corporation or loan corporation, as the case may be, is obligated, or may by demand of the depositor become obligated, to repay the money so received or the debenture or like obligation so issued on or before the fifth anniversary of the date of receipt of such money or the fifth anniversary of the date of issue of such debenture or like obligation, as the case may be. R.S.O. 1980, c.328, s.24.
Deposits insured
25. (1) All deposits with a member institution that does not hold a policy of deposit insurance issued by the Canada Deposit Insurance Corporation are insured by the Corporation except,
(a) a deposit that is not payable in Canada or in Canadian currency;
(b) so much of any one deposit, including interest thereon, as exceeds $20,000; and
(c) deposits insured under terminated or cancelled deposit insurance under section 34 of the Canada Deposit Insurance Corporation Act.
Payment
(2) Where the Corporation is obliged to make payment in respect of any deposit insured by the Corporation, the Corporation as soon as possible after the obligation arises shall, in respect of such deposit, make payment to such person as appears entitled thereto by the records of the member institution with which the deposit was made,
(a) by making available to such person a transferred deposit with another member institution for so much of the person’s deposit as is insured by the Corporation; or
(b) by paying such person a sum equal to so much of the person’s deposit as is insured by the Corporation.
Effect of payment
(3) Payment under this section by the Corporation in respect of any deposit insured by the Corporation 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 in any way of the payment so made.
Subrogation
(4) Where the Corporation makes a payment under this section in respect of any deposit with a member institution, the Corporation is subrogated for so much of that deposit as is insured by the Corporation to all the rights and interest of the depositor as against that member institution. R.S.O. 1980, c.328, s.25.
Commencement of insurance, existing member institutions
26. (1) Except as provided in section 25, the deposits with a member institution that is carrying on business on the 10th day of February, 1967 are insured by the Corporation from and after that date in accordance with this Act.
Idem, future member institutions
(2) Except as provided in section 25, when a member institution commences business on or after the 10th day of February, 1967, the deposits with such member institution are insured by the Corporation in accordance with this Act on and after the day on which such member institution commences business. R.S.O. 1980, c.328, s.26.
Premiums are debts
27. A premium assessed by the Corporation against a member institution for the purposes of this Act constitutes a debt owing to Her Majesty in right of Ontario, and the amount thereof together with any interest levied by the Corporation as an overdue charge is recoverable by the Corporation by action in any court of competent jurisdiction. R.S.O. 1980, c.328, s.27.
Disposition of premiums
28. All premiums received by the Corporation shall be credited to a Deposit Insurance Fund to be maintained by the Corporation. R.S.O. 1980, c.328, s.28.
Assessment and collection of premiums
29. (1) The Corporation shall each year assess and collect from each member institution an annual premium equal to the greater of,
(a) $500; or
(b) one-thirtieth of 1 per cent of the total amount of such deposits as are deposited with the member institution on the date as of which the return mentioned in subsection (2) is filed with the Corporation and as are insured by the Corporation.
Annual return
(2) Each member institution shall file with the Corporation annually a return to be certified by the member institution and submitted in such form as of such date and at such time as the Corporation may require.
Payable in instalments
(3) One-half of the premium payable by a member institution shall be paid to the Corporation on or before the 30th day of June in the year in which the annual return is to be filed, and the balance shall be paid to the Corporation, without interest, on or before the 31st day of December in that year.
Interest
(4) Despite anything in this section, the Corporation may charge interest not in excess of 10 per cent per annum on the amount of any premium or any part thereof not paid on or before the due date thereof.
Repayments of premiums authorized
(5) Despite anything in this Act, the Lieutenant Governor in Council may authorize and direct the repayment to a member institution of the whole or any part of any premium paid to the Corporation. R.S.O. 1980, c.328, s.29.
Accumulated Net Earnings
30. (1) The Corporation shall maintain the Accumulated Net Earnings account to which shall be credited all earnings including realized profits on the sale of securities and to which shall be charged all operating expenses, losses and specific provisions for losses in respect of insurance and losses on sales of securities.
Separate item in report
(2) The Accumulated Net Earnings shall be reported as a separate item in any statement of assets and liabilities of the Corporation and shown as an addition to or a deduction from the Deposit Insurance Fund. R.S.O. 1980, c.328, s.30.
Inspection of books
31. (1) The Superintendent shall, on behalf of the Corporation, examine the affairs of each member institution at such times as the Corporation may require but no less frequently than once in each year.
Examination of affairs authorized
(2) The Superintendent, at the request of the Canada Deposit Insurance Corporation and on such terms and conditions as may be approved by the Minister, may examine the affairs of any loan corporation or trust corporation registered under the Loan and Trust Corporations Act and report thereon to the Canada Deposit Insurance Corporation.
Powers of Superintendent
(3) In any examination authorized under subsection (2), the Superintendent has and may exercise any of the powers given him or her by section 182 and subsections 183(2) and (3) of the Loan and Trust Corporations Act. R.S.O. 1980, c.328, s.31.
Contents of examiner’s report
32. (1) After each examination of the affairs of a member institution, the Superintendent shall report to the Corporation whether or not, in his or her opinion, there has been any change in the circumstances of the member institution that might materially affect the position of the Corporation as an insurer and particularly, without limiting the generality of the foregoing, whether or not, in his or her opinion,
(a) the returns made by the member institution and on which payment of its premiums were based are correct;
(b) the operations of the member institution are being conducted in accordance with sound business and financial practices; and
(c) the member institution is in a satisfactory financial condition.
Idem
(2) Each such report shall further state whether or not, in the opinion of the Superintendent, there has been any breach of the Loan and Trust Corporations Act and in particular, without limiting the generality of the foregoing, whether or not, in his or her opinion, there has been any breach of the Loan and Trust Corporations Act with respect to,
(a) borrowing powers;
(b) reserves required on deposit under sections 108 and 121 of that Act; and
(c) investments authorized by that Act. R.S.O. 1980, c.328, s.32.
Reporting of defects and breaches
33. (1) Where in the opinion of the Corporation, whether such opinion is based upon consideration of a report from the Superintendent or upon any other report or information, a member institution,
(a) is or may be following unsound business or financial practices;
(b) is or may be in breach of any provision of this Act;
(c) is or may be in breach of any provision of the Loan and Trust Corporations Act; or
(d) is not or may not be in a satisfactory financial condition,
the Corporation shall, in writing and by registered mail, report the same to the president or chair of the board of directors of the member institution and he or she shall cause such report to be presented to a meeting of the directors of the member institution within a period of thirty days after its date of receipt and such report shall be incorporated in the minutes of that meeting of directors.
Copy to Minister
(2) The Corporation shall deliver a copy of each such report to the Minister. R.S.O. 1980, c.328, s.33.
Rehabilitation proceedings
34. (1) Where the Superintendent has reported to the Corporation that, in his or her opinion, the affairs of a member institution are not in a satisfactory financial condition and the Corporation has reported that, in its opinion, the affairs of the member institution are not in a satisfactory financial condition and where the Minister, after a reasonable time has been given to the member institution to be heard by him or her and upon such further inquiry and investigation as the Minister sees fit to make, reports to the Lieutenant Governor in Council that he or she agrees with the opinions of the Superintendent and of the Corporation, the Lieutenant Governor in Council may, if the Lieutenant Governor in Council also agrees with the opinions, order the Corporation forthwith to take possession of the property of the member institution and to conduct the business thereof and to take such steps as in its opinion may be taken toward the removal of the causes and conditions that have made such proceedings necessary.
Idem
(2) The Corporation shall thereupon take possession of the property of such member institution and conduct its business and take such steps as in the Corporation’s opinion may be taken toward the removal of the causes and conditions that have made such proceedings necessary, and for such purposes and without limiting the generality of the foregoing,
(a) the Corporation has all the powers of the board of directors of the member institution;
(b) the Corporation has power to exclude the member institution and its servants and agents from the property and business of the member institution; and
(c) the Corporation has power to carry on, manage and conduct the operations of the member institution and in the name of the member institution to preserve, maintain, realize, dispose of and add to the property of the member institution, to receive the incomes and revenues of the member institution and to exercise all the powers of the member institution.
Idem, upon request
(3) Upon the request of a member institution and with the approval of the Lieutenant Governor in Council, the Corporation may with respect to such member institution exercise the powers mentioned in subsection (2). R.S.O. 1980, c.328, s.34.
Where efforts futile
35. If at any time the Corporation considers that further efforts to place the affairs of a member institution in a satisfactory financial condition would be futile or that the affairs of the member institution have been placed in a satisfactory financial condition, the Corporation may return possession of the property of the member institution to it, and upon such return the powers of the Corporation under subsection 34(2) as a result of the order of the Lieutenant Governor in Council under which the Corporation took possession of the property of the member institution terminate. R.S.O. 1980, c.328, s.35.
Appeal
36. (1) A member institution may appeal to the Divisional Court from any order made by the Lieutenant Governor in Council under subsection 34(1) within thirty days after the making of such order and the delivery of a copy thereof to an officer of the member institution in accordance with the rules of court. R.S.O. 1980, c.328, s.36(1).
Record
(2) The Minister shall certify to the Ontario Court (General Division),
(a) the reports of the Superintendent and of the Corporation that have been reviewed by the Minister and by the Lieutenant Governor in Council;
(b) the record of the reviews; and
(c) all written submissions to the Superintendent and to the Lieutenant Governor in Council and other material that in the opinion of the Minister are relevant to the appeal. R.S.O. 1980, c.328, s.36(2), revised.
Counsel
(3) The Attorney General may designate counsel to assist the court upon the hearing of any appeal taken under this section.
Order
(4) Where an appeal is taken under this section, the court may by order direct the Corporation to take such action as the court considers proper and thereupon the Corporation shall act accordingly.
Further decision
(5) Despite the final disposition of an appeal under this section, the Minister and the Lieutenant Governor in Council have power to make any further reports and orders on new material or where there is a material change in the circumstances, and any such further order is subject to appeal under this section. R.S.O. 1980, c.328, s.36(3-5).
PART IV
OFFENCES
Holding out
37. (1) Every person, other than a member institution, who, by any written or oral representation of any kind, advertises or holds out any company or corporation as being insured or approved for insurance by the Corporation is guilty of an offence.
Advertising
(2) Every member institution that makes any written or oral representation that it is insured by the Corporation otherwise than by such marks, signs, advertisements or other devices as are authorized by the by-laws of the Corporation and used in the manner and on the occasions prescribed by the by-laws is guilty of an offence.
False returns, etc.
(3) Every director, officer or employee of a member institution and every auditor thereof who knowingly prepares, signs, approves or concurs in any account, statement, return, report or document respecting the affairs of the member institution required by the Superintendent, by the Minister or by the Corporation for the purposes of this Act and containing any false or deceptive information or any return that does not present fairly information required by the Superintendent, the Minister or the Corporation for the purposes of this Act is guilty of an offence.
Failure to present report, etc.
(4) Every person who, being a president or chair of the board of directors of a member institution, fails or neglects to present to a meeting of the directors of the member institution, as required by section 33, a report of the Corporation made under that section is guilty of an offence, and, if the directors of the member institution fail or neglect to incorporate such report in the minutes of a meeting of the directors as required by section 33, each director present at such meeting is guilty of an offence.
Penalties, individuals
(5) Every person, other than a corporation or company, guilty of an offence under this section is on conviction liable to a fine of not more than $1,000 or to imprisonment for a term of not more than one year, or to both.
Idem, corporations
(6) Every corporation or company guilty of an offence under this section is on conviction liable to a fine of not more than $25,000. R.S.O. 1980, c.328, s.37.
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