What methods of payment may the DIC use in meeting its obligations to the depositors of a failed institution?

The DIC may pay depositors either by transfer to a financial institution with instructions to effect payment to depositors on its behalf, or directly by means of cheques up to the insured limit which will be collected at the DIC’s offices.  

What happens to those depositors whose accounts are subject to further examination?

Such persons will be requested to meet with the relevant DIC officials.  

When can an eligible depositor expect to receive his or her money?

The DIC is statutorily obligated to commence payment to depositors within three months of closure of an institution.  

How is a depositor notified of the date and place of payment of his or her claim after an institution is closed?

Information regarding the date and place of payment will be posted on the doors of the closed institution, published in the press and indicated in notices sent to depositors.  

How is a depositor notified that an institution in which he or she has a deposit, has been ordered to be closed?

When an institution has been closed by the Central Bank and a winding-up order is issued by the Court, each depositor will be notified in writing at the depositor’s last address on record with the institution. This notification will be mailed shortly after the institution closes. Notification will also be …

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If a person has an interest in more than one joint account, what is the extent of his or her insurance coverage?

All joint accounts owned by the same combination of individuals are first added together and the total is insured up to $125,000. In addition, the person’s insurable interest in each joint account held by different combinations of individuals are added together and the total is insured up to the $125,000 …

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What is the insurance coverage on a trust account held under the provisions of an irrevocable express trust?

The interest of a beneficiary in a valid irrevocable trust, is insured up to $125,000 separately from the individual accounts of the settlor, the trustee or other beneficiaries. However, all trust interests created by the same settlor (grantor) in the same institution for the same beneficiary will be added together …

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If two or more persons, for example a husband and wife, have, in addition to the individually owned accounts of each, a valid joint account in the same insured institution, is each account separately insured?

Yes. If each of the co-owners has personally signed a valid account signature card and has a right of withdrawal on the same basis as the other co-owners, the joint account and each of the individually owned accounts are separately insured up to the $125,000 maximum. (The execution of an …

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If a depositor has more than $125,000 (the current insured limit) in a failed institution and is paid $125,000 by the DIC, what happens to the amount in excess of $125,000?

If, for example, a depositor has a total claim of $130,000 he or she would, if the claim is approved, be paid $125,000. Such depositor would then claim against the Liquidator of the closed institution for the remaining $5,000. In respect of this $5,000, the depositor will be issued with …

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What happens if a depositor expects to be paid an amount that is different from what the DIC pays?

The DIC determines from the records of the institution how much a depositor should be paid, based on the principal balance on account with the institution, along with interest accrued up to the date of the institution’s closure. If this amount is not what the depositor expects to receive, the …

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