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 a certificate of proof by the DIC of his or her claim. This certificate should then be presented to the Liquidator by the depositor who will be eligible to receive pro rata payment out of the assets of the institution, as and when they are realised or disposed of, in accordance with the laws of distribution in a liquidation.

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