How quickly will the Liquidator make payments on certificates?

Payments, called dividends, depend on the rate of recovery from the liquidation of the assets of the institution, and the extent and priority of claims from other creditors of the institution. Final disbursements may take several years, depending on the type of assets to be realised.  

Will shareholders of an institution receive any part of their investment before depositors’ claims are satisfied?

Shareholders of a failed institution recover their investment only after all depositors and other creditors receive payment in full on their claims, including interest, in accordance with the laws governing liquidation.  

Does the borrower’s obligations to the institution continue after the institution is closed?

Yes. When acting as Liquidator of a closed institution, the DIC is acting on behalf of all creditors of that institution and its obligation is to collect on all loans promptly and efficiently along with other assets of the institution.  

What is a DIC certificate?

The DIC will issue certificates to cover the value of deposits in excess of the insured maximum of $125,000 as well as other uninsured claims against the failed institution.  

Will the Corporation offset a deposit balance held by a customer against the balance due on the loan?

The Corporation will offset the balance on a deposit account, including any uninsured portion, against a loan if the loan and deposit are held by the same person or persons.  

Can a depositor leave his/her deposit with the transferee institution?

Yes, a depositor, if he/she wishes, can open an account with the transferee institution for the full amount or part of his/her deposit.  

Is the depositor required to produce proof of ownership to the DIC or to the transferee institution?

The depositor has to satisfy the DIC or transferee institution that he/she is the rightful owner of the deposit claimed. In cases of doubt, the transferee institution may refer the matter to the DIC.  

In the event of a deposit transfer, how will a depositor know when and where he can withdraw his funds?

The DIC will notify depositors of the transfer of deposits and of the place and time that the deposits can be withdrawn from the transferee institution.  

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.