Financial Institution Indemnity

Financial Institutions in Alberta are indemnified (protected) from loss for negotiating certain Government of Alberta cheques. This program was developed to make it easier for Albertans to cash certain government benefits cheques, since banks and other financial institutions no longer have to be concerned about cashing cheques, so long as the person cashing the cheques has proper identification.

Indemnification for Financial Institutions means that if certain Government of Alberta cheques are presented to a teller to be cashed or deposited, that Financial Institution is protected from loss if the cheque in question turns out to be fraudulently negotiated.

Conditions for Financial Institution Indemnity

There are certain conditions that must be met for this indemnification to apply:

  • The amount covered by the indemnity agreement is the face value of the cheque.

  • The amount of a cheque cannot exceed $10,000.

  • The Financial Institution must confirm that the identity of the person presenting the cheque is the payee named on that cheque.

  • The standard of ID to be used is the usual standard according to the policies and procedures of the Financial Institution that is negotiating the cheque.

  • The only cheques that are covered by this indemnification are Benefits Payments issued on the following Canadian Imperial Bank of Commerce (CIBC) bank accounts:
    • Account # 00-19305
    • Account # 00-14907

  • The indemnity will only apply to payments made to individuals. It does not apply to businesses or organizations, whether incorporated or unincorporated. Cheques deposited via automated teller machines (ATM) or mobile devices are not covered under this indemnity (Section 13).

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Read the Financial Institution Indemnity Agreement

For full details on the Financial Institutions Indemnity Agreement, you can review the complete agreement here.

If you would like further information, please email the Government of Alberta with your questions.

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Page last updated:  July 14, 2017