Provincial guarantee of term deposits
8 (1) Subject to subsection (3), if a term deposit maintained at the Province of Ontario Savings Office is transferred to a transferee pursuant to an agreement authorized by section 2 and in accordance with the rules in section 6, the Minister, on behalf of the Crown, shall guarantee to the depositor of the term deposit the payment by the transferee, on the earlier of the maturity date or termination date of the term deposit, of an amount equal to the sum of, (a)  the lesser of, (i)  the principal amount of the term deposit that was outstanding as of the end of the day on which the term deposit was transferred, and (ii)  the principal amount of the term deposit that was outstanding as of the end of the day on which the depositor makes a claim under the guarantee; and (b)  all interest on the amount referred to in clause (a) that is accrued and not paid to the end of the day on which the depositor makes the claim under the guarantee, calculated at the rate of interest applicable on the date of the transfer or the rate applicable on the date the claim is made, whichever is lower.  2002, c. 8, Sched. H, s. 8 (1). Prerequisites for payment (2) Despite subsection (1), no claim under the guarantee shall be paid unless, (a)  the depositor has demanded payment from the transferee; (b)  before the depositor makes a claim under the guarantee, the demand referred to in clause (a) remains unpaid for 10 business days after the day the demand is made; (c)  the depositor has not received payment at the time the claim under the guarantee is paid; (d)  the maturity date of the term deposit has not been extended; and (e)  the depositor satisfies the Minister that the claim is valid.  2002, c. 8, Sched. H, s. 8 (2). Winding-up, etc., of transferee (3) Despite subsection (1), if a transferee is ordered to be wound-up under the Winding-up and Restructuring Act (Canada) or is adjudged bankrupt under the Bankruptcy and Insolvency Act (Canada), the amount guaranteed under this section to the depositor of the term deposit transferred to the transferee is the sum of, (a)  the lesser of, (i)  the principal amount of the term deposit that was outstanding as of the end of the day on which the term deposit was transferred, and (ii)  the principal amount of the term deposit that was outstanding as of the date on which the transferee is ordered to be wound-up or is adjudged bankrupt; (b)  all interest on the amount referred to in clause (a) that is accrued and unpaid to the end of the day on which the depositor makes a claim under the guarantee, calculated at the rate of interest applicable on the date of the transfer or the rate applicable on the date the claim is made, whichever is lower; and (c)  the amount, if any, determined under the prescribed rules in respect of loss of future interest on the term deposit.  2002, c. 8, Sched. H, s. 8 (3). Payment reduced for deposit insurance (4) The amounts payable by the Crown under this section in respect of a term deposit shall be reduced by all amounts, if any, that are paid or payable to the depositor by the Canada Deposit Insurance Corporation or the Financial Services Regulatory Authority of Ontario in respect of the term deposit.  2002, c. 8, Sched. H, s. 8 (4); 2019, c. 7, Sched. 50, s. 1. Subrogation (5) If the Crown makes a payment under this section, the Crown shall be subrogated, to the extent of the amount paid, to all the rights and interests of the depositor and may maintain an action in respect of those rights and interests in the name of the depositor or in the name of the Crown.  2002, c. 8, Sched. H, s. 8 (5). Payment by the Crown (6) Payment by the Crown to a depositor under this section discharges and releases the Crown absolutely from all liability to the depositor in respect of the term deposit, and no further claim may be made by any person against the Crown in respect of the term deposit.  2002, c. 8, Sched. H, s. 8 (6). Set-off against transferee (7) If the Crown makes a payment under this section, the Crown may retain by way of deduction or set-off the amount of the payment from any amount owing by the Crown to the transferee of the term deposit under any agreement authorized by this Act or under any note, bond or other evidence of indebtedness issued by the Minister under this Act.  2002, c. 8, Sched. H, s. 8 (7). Section Amendments with date in force (d/m/y) 2019, c. 7, Sched. 50, s. 1 - 08/06/2019