Category Archives: Loan Customers

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.

Deposit Insurance Corporation •June 10, 2014FAQs, Loan Customers

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.

Deposit Insurance Corporation •June 10, 2014FAQs, Loan Customers

Frequently Asked Questions

If a depositor has more than $200,000 (the current insured limit) in a closed institution and is paid $200,000 by the DIC, what happens to the amount in excess of $200,000?
Are Mutual Funds insured?
What happens to cheques which are not cleared on a depositor’s account before the business of the institution is closed?
How is a depositor notified that an institution in which he or she has a deposit, has been ordered to be closed?

Did You Know?

Misconception: All financial institutions that take deposits are covered under the Deposit Insurance Fund - Fact: ONLY member institutions that are licensed under the Financial Institutions Act, 2008 are covered under the Deposit Insurance Fund. This legislation provides for the regulation of commercial banks and other institutions engaged in the business of banking and business of a financial nature.

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Deposit Insurance Corporation

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