Canada Deposit Insurance Corporation Act — C-3 39.15
s that is related to the making of the order; (d) a conversion under subsection 39.2(2.3) in respect of the federal member institution; or (e) a conversion of any of the federal member institution’s shares or liabilities in accordance with the contractual terms of those shares or liabilities. Stay terminated — notice (7.101) If the Corporation considers that all or substantially all of the federal member institution’s assets will be transferred to a third party and that an eligible financial contract of that institution will not be assigned to a third party, it may give notice to that effect to the parties to that contract, in which case paragraphs (7.1)(a) and (c) cease to apply in respect of that contract at the date and time the notice is issued. Stay terminated (7.102) Paragraph (7.1)(a) and, if the order made under subsection 39.13(1) directs the incorporation of a bridge institution, paragraph (7.1)(c) cease to apply to an eligible financial contract at 5:00 p.m. at the location of the Corporation’s head office on the second business day after the day on which the order is made under subsection 39.13(1), unless the Corporation has undertaken, before that time, to assign the contract to a bridge institution. Interpretation (7.103) For greater certainty, paragraph (7.1)(a) and, if applicable, paragraph (7.1)(c) cease to apply in respect of an eligible financial contract to which both subsection (7.101) and (7.102) apply on the earlier of the date and time that a notice is issued under subsection (7.101) and the date and time set out in subsection (7.102). Insolvency or deteriorated financial condition (7.104) Despite subsections (7.101) and (7.102), an action set out in paragraph (7)(a), (b) or (f) may only be taken by reason of the insolvency or deteriorated financial condition described in paragraph (7.1)(a) if that insolvency or deteriorated financial condition exists on the date and time paragraph (7.1)(a) ceases to apply. Evidence (7.105) Nothing in paragraphs (7.1)(b) to (e) prevents a person from relying on the facts that led to the making of an order under subsection 39.13(1) as evidence of the insolvency or deteriorated financial condition described in paragraph (7.1)(a). Agreements overridden (7.11) Any stipulation in an eligible financial contract is of no force or effect if it (a) has the effect of providing for or permitting anything that, in substance, is contrary to subsection (7.1); or (b) provides, in substance, that, by reason of the occurrence of any circumstance described in paragraphs (7.1)(a) to (e), the federal member institution ceases to have the rights — or, in the case of a bridge institution, does not have the rights — to use or deal with assets that the federal member institution or bridge institution would otherwise have. Exception (7.12) Subsection (7.1) does not apply in respect of an eligible financial contract between the federal member institution and (a) Her Majesty in right of Canada; (b) the government of a foreign country; (c) a central bank; or (d) a clearing house, unless the Corporation has given the undertaking referred to in subsection (3.3) in respect of the institution. Assignment of eligible financial contracts (7.2) Subject to subsection (7.21), the Corporation may assign to a bridge institution or a third party eligible financial contracts — including any claim under such contracts — that are between a federal member institution and an entity or any of the following entities if the Corporation assigns all of those eligible financial contracts to the bridge institution or the third party: (a) another entity that is controlled — directly or indirectly — by the entity; (b) another entity that controls — directly or indirectly — the entity; or (c) another entity that is controlled — directly or indirectly — by the entity referred to in paragraph (b). Eligible third parties (7.21) The Corporation may assign eligible financial contracts to a third party under subsection (7.2) if t