Insured limit, generally

(1) Subject to sub-sections (2), (3) and (4) and section 29, on the occurrence of a covered event in section 25 in respect of a Fund member, the Corporation shall pay to an insured depositor a maximum of twenty thousand dollars in respect of the total insurable deposit held by the insured depositor with that Fund member on the date the event occurred. (2) If the insured depositor holds the insurable deposit in more than one account with the Fund member, the Corporation shall pay a maximum of twenty thousand dollars in respect of– (a) the aggregate insurable deposits held by an individual or an individual in the name of a sole proprietorship or other unincorporated entity on accounts in his or her own right; (b) the aggregate insurable deposits held by a company or other corporate entity, in its own right; (c) each joint account, prorated equally among the joint holders or according to the interest of each joint holder as specified on the records of the account; and (d) each insurable deposit held by the insured depositor as trustee for a different named beneficiary or for a different client. 24 (3) Sub-section (2)(b) shall not apply in respect of an insurable deposit held by an insured depositor as trustee or for a client, if in the opinion of the Corporation, it is held primarily to facilitate the payment or increase the payment of deposit insurance to the beneficiary or client. (4) If an insured depositor is in default of a payment due to a Fund member in respect of a debt, the Corporation shall deduct from a deposit insurance payment under this section, the amount due to the Fund member. (5) A “debt” in sub-section (4) includes an unsecured obligation, a called in guarantee and an outstanding overdraft. Schedule III.