Section 45
Scope of coverage
(1)
The Corporation shall administer a deposit protection scheme for all protected deposits placed with a member institution.
(2)
For the purpose of subsection (1), where a depositor owns more than one deposit with a member institution, the aggregate of those deposits shall be protected by the deposit protection scheme to a maximum amount of $50,000 in respect of the principal and return on the deposits.
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(3)
Subject to regulations made under section 86 —
(a)
where a member institution is obligated to repay monies to a depositor who is acting as a trustee for another or as joint owner with another, and the trusteeship or joint ownership is disclosed on the records of the member institution —
(i)
the deposit of the depositor as trustee or as a joint owner is deemed to be a deposit separate from any deposit of that depositor acting on his own behalf or acting in another trust or joint capacity with the member institution;
(ii)
where a trustee is acting for two or more beneficiaries, the deposit held in trust by him for each beneficiary, shall each be deemed to be a separate deposit; and
(iii)
the deposit held in trust by a trustee for a beneficiary in a member institution is deemed to be a deposit separate from a deposit of that beneficiary with the member institution on his own behalf and shall also be deemed to be separate from any deposit held in trust by another trustee for the beneficiary in the member institution;
(b)
for the avoidance of doubt, where a depositor is a joint owner of a deposit in a member institution with another person, all the deposits of such depositor with such person shall be aggregated and be deemed to be one protected deposit to a maximum amount of $50,000.
(4)
For the purposes of subsection (3) —
(a)
the member institution shall indicate on its records —
(i)
for a trust account, that the account is held by the trustee for the named beneficiaries; or
(ii)
for a joint account, the names of the individual joint owners;
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(b)
the trustee shall —
(i)
maintain detailed records as may be prescribed on the trust accounts;
(ii)
submit to the member institution such records as may be required by the Corporation under this Act; and
(iii)
file a statutory declaration certifying the accuracy of the records submitted at sub-paragraph (ii) when required by the Corporation;
(c)
the trustee in maintaining and submitting any record on the trust accounts required under paragraph (b) shall ensure that the information given shall be true, correct and complete and shall not contain false or deceptive information and the member institution shall rely on such records for the purposes of paragraph (a) and the trustee shall indemnify the member institution in the event of any legal proceedings relating to such records.
(5)
Notwithstanding anything in subsection (3)(a), the Corporation shall not separately protect the deposits held in trust for any beneficiary if, in the opinion of the Corporation, the trust exists primarily for the purpose of obtaining or increasing deposit protection.
(6)
For the purpose of subsection 3(a)(iii), any deposit held on trust by the same trustee for the same beneficiary shall be aggregated and be deemed to be one deposit.
(7)
Subject to regulations made under section 86 and the disclosure made by the trustee under subsection (4)(c), where a depositor —
(a)
operates business as a sole proprietor or a partner of a partnership; or
(b)
carries on any professional practice, that has been disclosed as such on the records of the member institution, a deposit of such business or professional practice is deemed to be separate from the deposits of the depositor on his own behalf or as trustee or joint owner.
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