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Responsibilities | CUDIC
Consumer Information -
Your Guide to Credit Union Deposit Insurance
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Preface
The Credit Union Deposit Insurance Corporation of British Columbia (CUDIC) is a government corporation that provides deposit insurance for members' deposits with British Columbia credit unions. The Financial Institutions Commission (FICOM), an agency of the Government of British Columbia, is responsible for administering CUDIC and for regulating financial institutions operating in the province.
Q. Are my deposits safe?
A. CUDIC guarantees that money on deposit and money invested in non-equity shares will be repaid up to a
maximum of $100,000.00 per "separate deposit" in each credit union. Accrued interest
and declared and unpaid dividends are included in this coverage. See below under " What is
guaranteed? " for a description of what constitutes a separate deposit.
Q. Which credit unions are covered by the guarantee?
A. All BC credit unions in the province have deposit insurance coverage with CUDIC.
Q. How do I apply for deposit insurance?
A. Deposit insurance applies automatically to money on deposit and money invested in non-equity shares with a credit union. It is not necessary to apply for deposit insurance. It is mandatory that all credit unions pay premiums to insure all deposits with them up to the prescribed limits.
Q. What is guaranteed?
A. CUDIC guarantees that if a credit union fails and is unable to pay money on deposit or money invested in non-equity shares, the amount in default will be repaid by CUDIC to a maximum of $100,000.00 for each separate deposit.
Each of the following is treated as a "separate deposit" :
(a) the aggregate of all deposits that are shown in the records of the credit union as trust accounts and deposited in trust for the benefit of the same beneficiary whether or not the identity of the beneficiaries are disclosed in the records of the credit union;
(b) the aggregate of all deposits that are shown in the records of the credit union as joint accounts to the credit of the same joint depositors;
(c) the aggregate of all deposits that are shown in the records of the credit union as registered retirement savings plans under the Income Tax Act (Canada) to the credit of the same depositor;
(d) the aggregate of all deposits that are shown in the records of the credit union as registered retirement income funds under the Income Tax Act (Canada) to the credit of the same depositor;
and
(e) the aggregate of all deposits that are not referred to in paragraphs (a) to (d) above that are credited to the same depositor in the records of the credit union.
Q. What is the maximum deposit insurance protection?
A. The maximum deposit insurance coverage provided by CUDIC is $100,000.00 CDN per separate deposit, per credit union.
Example:
Two credit union members obtain deposit insurance protection by making insurable deposits at the same credit union as follows:
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Maximum Coverage |
| Member "A" |
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| Savings, chequing and term deposits |
$100,000.00 |
| Registered Retirement Savings Plan (RRSPs) |
$100,000.00 |
| Registered Retirement Income Fund (RRIFs) |
$100,000.00 |
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| Member "B" |
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| Savings, chequing and term deposits |
$100,000.00 |
| Registered Retirement Savings Plan (RRSPs) |
$100,000.00 |
| Registered Retirement Income Fund (RRIFs) |
$100,000.00 |
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| Members "A" and "B" jointly |
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| Savings, chequing and term deposits |
$100,000.00 |
Q. What is the deposit insurance coverage for joint accounts?
A. The maximum deposit insurance is $100,000.00 for the combined total of the deposits held jointly by the same joint deposit holders in the same credit union.
Q. What is the deposit insurance coverage for RRSPs and RRIFs?
A. The maximum deposit insurance coverage for all deposits shown in the records of the credit union as RRSPs or RRIFs is $100,000.00 for each type of plan.
Q. If I have deposits in separate branches of the same credit union, is each deposit insured separately?
A. No. The deposit insurance guarantee applies to the combined totals of your deposits in any one credit union. For example, if you have an insurable RRSP account with one branch and another insurable RRSP account with a second branch of the same credit union, the combined total of both RRSPs would be insured to a maximum of $100,000.00.
Q. If I have deposits in separate credit unions, is each deposit insured separately?
A. Yes. The deposit insurance guarantee is on a per "separate deposit," per credit union basis.
Q. What if I have foreign currency deposits?
A. Foreign currency deposits are eligible for deposit insurance and are aggregated with other deposits at their Canadian equivalent value.
Q. Does the length of the term of my deposit affect the eligibility for deposit insurance coverage?
A. All deposits, regardless of the length of the term to maturity, are eligible for deposit insurance coverage.
Q. What if I have a loan?
A. The total amount of mortgages, loans and lines of credit owing to the credit union may be deducted from the amount to which a depositor is entitled under the deposit insurance program.
Q. How long will I have to wait to get my money?
A. Deposit insurance claims are paid as soon as possible. The length of time to receive payment of an insured deposit depends on the time required for the Financial Institutions Commission to satisfy its statutory obligation to verify the accuracy of deposit insurance claims. In the case of insured deposits in registered plans, funds would be transferred to a successor trustee.
Q. What is not covered by the deposit insurance guarantee?
A. Credit union equity shares and investments such as mutual funds or RRSP equity plans are not covered by the deposit insurance guarantee.
The information, provided above, is presented in summary form for your convenience and should not be relied upon as a complete explanation of deposit insurance coverage. Reference should be made to the Financial Institutions Act and Regulations.
Additional information may be obtained from your credit union manager or by contacting:
Credit Union Deposit Insurance Corporation
c/o Financial Institutions Commission
Suite 1200 - 13450 102nd Avenue
Surrey, British Columbia, V3T 5X3
Phone: 604 953-5200 or 866 206-3030 (outside local calling area within B.C.)
Fax: 604 953-5301
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