(c) fixing the amount of, or providing for the manner of determining the amount of, the annual premium applicable to each category.
When by-law not effective	(3) A by-law made under subsection (2) is not effective unless it has been approved in writing by the Minister.
Maximum annual premium	(4) In this section, ``maximum annual premium'' means, in respect of a member institution, the greater of
	(a) $5,000, and
	(b) one third of one per cent, or such smaller proportion of one per cent as may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of April 30 in the immediately preceding premium year.
Calculation of deposits	(5) For the purposes of this section, a member institution may use any method approved by the Corporation to determine the aggregate amount of its deposits that are considered to be insured by the Corporation.
	28. Subsection 22(2) of the Act is replaced by the following:
Payable in instalments	(2) One half of the premium payable by a member institution shall be paid to the Corporation on or before July 15 in the premium year for which the premium is payable and the remainder shall be paid to the Corporation, without interest, on or before December 15 in that premium year.
R.S., c. 18 (3rd Supp.), s. 58	29. Subsection 23(1) of the Act is replaced by the following:
Calculation of first premium	23. (1) The premium payable by a member institution in respect of the premium year in which it becomes a member institution shall be the same proportion of the greater of
	(a) the annual premium for that member determined under section 21, and
	(b) the greater of
	(i) $5,000, and
	(ii) one third of one per cent, or such smaller proportion of one per cent as may be fixed in respect of the premium year by the Governor in Council, of an amount equal to the sum of so much of the deposits as are considered to be insured by the Corporation and deposited with the member institution as of the end of the month in which it becomes a member institution,
	as the number of days in which any of the deposits with that member institution are insured by the Corporation in that premium year is of 365.
	30. The Act is amended by adding the following after section 24:
No set-off on premium payment	24.1 Unless the Corporation otherwise agrees, no premium payment shall be made to the Corporation by a member institution that has been reduced or otherwise adjusted on the basis of a set-off or claim that the member institution has against the Corporation.
R.S., c. 18 (3rd Supp.), s. 59	31. Subsection 25.1(2) of the Act is replaced by the following:
Amount of premium surcharge	(2) The amount of the premium surcharge that may be assessed against and collected from a member institution under subsection (1) in respect of any premium year shall be such amount as the Corporation may determine to be fair in the circumstances and in no case shall exceed an amount equal to one sixth of one per cent of so much of each deposit as is considered to be insured by the Corporation and deposited with the member institution as of April 30 in the immediately preceding premium year.
	32. Subsection 26(2) of the Act is repealed.
	33. The Act is amended by adding the following after section 28:
Costs may be charged back	28.1 Where an examination under section 27 or an inspection under section 28 is carried out other than on the once in each year basis referred to in that section, the costs of the examination or inspection may be charged to the member institution in respect of which they were incurred and in such case the amount of the costs constitute and may be recovered as a debt due and payable to the Corporation by the member institution.
1992, c. 26, s. 8(E)	34. Section 29 of the Act is replaced by the following:
Examination considera- tions	29. (1) A person who conducts an examination under section 27 or an inspection under section 28 in respect of a member institution shall make such examination or inspection as the person deems necessary for the purposes of determining whether
	(a) the operations of the member institution are being conducted in accordance with the standards of sound business and financial practices established by the by-laws;
	(b) the member institution is in sound financial condition;
	(c) there has been any change in the circumstances of the member institution that might materially affect the position of the Corporation as an insurer;
	(d) the returns made by the member institution on which its premiums are based are substantially correct; and
	(e) where the member institution is a provincial institution and the Corporation and the person agree, the provisions of the statutes governing the provincial institution are being complied with.
Report	(2) On the completion of the examination or inspection, the person who conducted it shall make a report thereon to the Corporation.
Other reports to be provided to Corporation	(3) Where a report is sent by the Superintendent to the Minister under section 533 of the Bank Act or section 505 of the Trust and Loan Companies Act as to whether the provisions of that Act are being duly observed by a member institution, a copy of the report shall be sent by the Superintendent at the same time to the Corporation.
R.S., c. 18 (3rd Supp.), s. 62	35. The portion of subsection 30(1) of the Act after paragraph (c) is replaced by the following:
	the Corporation may send by registered mail or deliver by hand a report of the facts to the chief executive officer or chairperson of the board of directors of the member institution and shall provide a copy of the report to the Minister.
R.S., c. 18 (3rd Supp.), s. 62	36. Subsections 31(4) and (5) of the Act are replaced by the following:
Where report on federal member institution	(4) Where a report has been sent or delivered under subsection 30(1) in respect of a federal member institution and the member institution and the Minister have been informed in accordance with subsection (1) by the Corporation that the Corporation is not satisfied with the member institution's progress in following the standard or in remedying the breach to which the report relates, the Corporation may, unless the Minister advises the Corporation that the Minister is of the opinion that it is not in the public interest to do so, give the member institution not less than thirty days notice of the termination of its policy of deposit insurance.
Termination of policy	(5) The policy of deposit insurance of a federal member institution shall terminate on the expiration of the period specified in the notice given under subsection (4) or such later period not exceeding sixty days as the Corporation may determine unless, before the expiration of that period, the Corporation is satisfied that the member institution is taking the necessary action to follow the standard or to remedy the breach to which the notice relates.
Conditions of extension	(5.1) The Corporation may impose conditions on a federal member institution in connection with any extension of the period referred to in subsection (5) and failure by the federal member institution to comply with any such condition constitutes a termination of the extension.
R.S., c. 18 (3rd Supp.), s. 62	37. Paragraph 31.1(1)(a) of the Act is replaced by the following:
	(a) the financial condition of the provincial member institution has deteriorated since the giving of the notice, and
R.S., c. 18 (3rd Supp.), s. 62	38. Subsection 33(2) of the Act is replaced by the following:
No cancellation in certain cases	(2) The Corporation shall notify the Minister of the action it is proposing to take under subsection (1) and shall not take the action if it is advised by the Minister that in the opinion of the Minister taking the action would not be in the public interest.
	39. Section 34 of the Act is renumbered as subsection 34(1) and is amended by adding the following:
Non- application of continued coverage	(2) Subsection (1) does not apply in respect of a deposit with a member institution where the deposit has been assumed by another member institution.
R.S., c. 18 (3rd Supp.), s. 63; 1993, c. 34, s. 14	40. Section 35 of the Act is replaced by the following:
Creditor remedies available	35. (1) Where in the opinion of the Corporation a member institution is or is about to become insolvent, the Corporation is deemed to be a creditor of the member institution and the Corporation may initiate and take any measures or proceedings that a creditor of the member institution may initiate or take under law to preserve the assets of the member institution or to have it wound up or liquidated.
No measures to be taken in certain cases	(1.1) The Corporation shall notify the Minister of the action it is proposing to take under subsection (1) and shall not take the action if it is advised by the Minister that in the opinion of the Minister taking the action would not be in the public interest.
Presumption	(2) For the purposes of this section, the Corporation is deemed to be a creditor of a member institution notwithstanding that the deposit insurance of the institution has been terminated or cancelled.
1992, c. 26, ss. 11, 16	41. Sections 39.1 to 39.36 of the Act are replaced by the following:
Report of Superin- tendent	39.1 (1) Where the Superintendent is of the opinion that
	(a) a federal member institution has ceased, or is about to cease, to be viable, and
	(b) the viability of the federal member institution cannot be restored or preserved by the exercise of the Superintendent's powers under the Bank Act or the Trust and Loan Companies Act,
	the Superintendent, after providing the federal member institution with a reasonable opportunity to make representations, shall, in writing, report thereon to the Corporation.
Forming opinion	(2) For the purposes of subsection (1), the Superintendent may take into account all matters the Superintendent considers relevant, but in all cases the Superintendent shall have regard to whether, in the opinion of the Superintendent,
	(a) the federal member institution is dependent to an excessive extent on loans, advances, guarantees or other financial assistance to sustain its operations;
	(b) the federal member institution has lost the confidence of depositors and the public;
	(c) the federal member institution's regulatory capital, within the meaning assigned to that expression by the Bank Act or the Trust and Loan Companies Act, whichever is applicable, is or is about to become substantially deficient; or
	(d) the federal member institution has failed to pay any liability that has become due and payable or will not be able to pay its liabilities as they become due and payable.
Report by Superin- tendent on winding-up circumstances	(3) Where the Superintendent is of the opinion that
	(a) circumstances exist in respect of a federal member institution that would allow the Superintendent to take control of the federal member institution under the Bank Act or the Trust and Loan Companies Act, and
	(b) if such control were taken, grounds would exist for the making of a winding-up order in respect of the federal member institution,
	the Superintendent, after providing the federal member institution with a reasonable opportunity to make representations, shall, in writing, report thereon to the Corporation.
Request of Corporation	39.11 On receipt of a report made by the Superintendent pursuant to section 39.1 and after having taken into account whether
	(a) an agreement for a transaction referred to in section 39.2 is reasonably likely to be expeditiously entered into after the making of the order, and
	(b) any such transaction would be consistent with the objects of the Corporation,
	the Corporation may request the Minister to recommend that one or more orders be made under subsection 39.13(1).
Recommen- dation of Minister	39.12 Where a request referred to in section 39.11 is made by the Corporation, the Minister may, if the Minister is of the opinion that it is in the public interest to do so, recommend to the Governor in Council that one or more orders be made in respect of the federal member institution under subsection 39.13(1).
Order of Governor in Council	39.13 (1) The Governor in Council may, on the recommendation of the Minister pursuant to section 39.12, do either or both of the following:
	(a) by order, vest the shares and subordinated debt of the federal member institution in the Corporation; or
	(b) by order, appoint the Corporation as receiver in respect of the federal member institution.
Effects of vesting order	(2) An order made under paragraph (1)(a)
	(a) vests the shares and subordinated debt of the federal member institution in the Corporation free from any adverse claim, including any claim that a transfer was wrongful or that a particular adverse person was the owner of or had an interest in the shares or subordinated debt, even though the Corporation knows of the adverse claim;
	(b) extinguishes any such adverse claim to the extent that the claim is a claim that a person other than the Corporation is the owner of or has an interest in the shares or subordinated debt;
	(c) does not extinguish any such adverse claim to the extent that the claim is a personal claim against a person other than the Corporation or a person claiming under it; and
	(d) does not prevent a secured creditor or assignee or successor in interest of the person who was the holder of the shares or subordinated debt immediately before the making of the order from being entitled to receive compensation under section 39.28 or 39.32.
Effects of receivership order	(3) An order made under paragraph (1)(b)
	(a) constitutes the Corporation as the exclusive receiver of the assets and undertaking of the federal member institution or of such part thereof as may be specified in the order;
	(b) gives the Corporation, as receiver, in respect of the assets and undertaking of the federal member institution or such part thereof as may be specified in the order, the power to
	(i) enter the federal member institution and take possession and control of the assets and require any person therein to account for and deliver up to the Corporation possession and control of the assets,
	(ii) subject to subparagraph (iii), sell or otherwise dispose of the assets and undertaking by private or public sale or in such other manner and on such terms and conditions as the Corporation deems appropriate,
	(iii) sell or otherwise dispose of any asset that is subject to an agreement creating a security interest to any person who agrees to assume the obligation secured by the security interest,
	(iv) arrange for the assumption by any person of all or any part of the federal member institution's liabilities,
	(v) carry on the business of the federal member institution to the extent that the Corporation deems is necessary or beneficial to the receivership,
	(vi) sue for, defend, compromise and settle, in the name of the federal member institution, any claim made by or against it,
	(vii) in the name of the federal member institution, do all acts and execute all receipts and other documents and for that purpose, when necessary, use its seal, and
	(viii) do all such other things as may be necessary or incidental to the exercise of the Corporation's rights, powers, privileges and immunities as receiver; and