Is Mondex Value a Deposit?
There are three(42) possibly material definitions of the term “deposit” in Canadian law: (i) that in the Schedule to the Canada Deposit Insurance Corporation Act(43) which applies to deposits at member federal and provincial deposit-taking financial institutions; (ii) that in section 25 of the Deposit Insurance Act of Qubec(44) which applies to deposits with provincial deposit-taking financial institutions carrying on business in Qubec; and (iii) that in the Deposits Regulation Act of Ontario(45), which applies to the deposits taken by any deposit-takers that carry on business there and are not otherwise regulated. While the terms of the three definitions differ slightly, it appears to me that only that in the CDICA need be considered in this commentary, since neither of the other two applies to funds under the control of banks or the other federal financial institutions that will be the main participants in the stored value card systems that will be tested in Canada. The issue might a
