What Happens in a Failure

For General Trustees

CDIC protects eligible deposits held in a trust separately from other deposits that a trustee or a beneficiary might hold in their own name at the same CDIC member institution, provided certain information is available on the bank’s records. CDIC uses the information on the records of the member institution to initiate its reimbursement calculations. Deposits in valid trusts can be protected up to $100,000 per beneficiary.

Payout Process for General Trustees (other than Nominee Brokers and Professional Trustees)

For general trusts, CDIC will base its deposit insurance calculations on the information available on the records of the failed member. The amount calculated will be reimbursed directly to the trustee who is noted as the depositor of record on behalf of their beneficiary or beneficiaries. The trustee is responsible for distributing the reimbursement of insured deposits to their beneficiaries.

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