Yes. I will cover, in division 1, clauses 126 to 139. [Technical difficulty—Editor] for the stability of Canada's financial system by improving the legislative framework that applies to a federally regulated deposit-taking institution or financial market infrastructure in the unlikely event that they were to fail. We also have other amendments that relate to the supervision of payment systems. These amendments are fairly technical and represent a continuation and improvement of the existing framework, rather than new policy.
I'll start with clause 126. The resolution provisions of the Canada Deposit Insurance Corporation Act, or the CDIC Act, provide the power to impose a stay, also known as a suspension of proceedings, to suspend the rights of certain creditors and other counterparties in order to facilitate the resolution of the institution and preserve value. We have amendments that would modify the scope of these stay provisions in certain circumstances. In particular, they support the application of stays and bail-in debt once a resolution has been initiated, exclude sovereign entities and central banks from the state provisions of the act, and provide that CDIC member institutions must include a confirmation of the application of stay provisions in the act in prescribed eligible financial contracts, which are a class of contracts that includes derivatives.
The next clause would modify the provision that authorizes CDIC to take control of a failed member institution. Clause 127 would facilitate the sale by extending the time limit to complete a sale to 12 months from the current limit of 60 days.
Clauses 128 to 132, 134 and 135 would amend the Canada Deposit Insurance Corporation Act and the Payment Clearing and Settlement Act to modify the compensation provisions of these acts, which provide that creditors would not be in a worse-off position by the actions of a resolution authority than under liquidation. More specifically, it clarifies the appeals mechanism available to creditors when a failure has occurred and they request a review of a decision made by CDIC or the Bank of Canada on the compensation to which they are entitled in resolution.
Clauses 133, 136 and 137 would amend the Payment Clearing and Settlement Act to clarify the Bank of Canada's authority to oversee payment exchanges as clearing and settlement systems.
Finally, clauses 138 and 139 would amend the provisions of the CDIC Act that are not yet in force to provide CDIC with a targeted expansion of its authorities to make certain payments of insured trust deposits when there are errors or omissions on the record of the failed member institution.
This concludes my remarks on division 1.