Note: Ontario Regulation 76/95 has previously been amended. Those amendments are listed in the Table of Regulations - Legislative History Overview which can be found at www.e-Laws.gov.on.ca.
(2) A credit union becomes a class 2 credit union under subsection (1) on the first day on which either of the circumstances described in subsection (1) exist.
(3) A credit union becomes a class 2 credit union on October 6, 2007 if, on that date, it has an outstanding commercial loan that was made before October 6, 2006.
(4) Upon application to the Corporation, a credit union becomes a class 2 credit union when the Corporation is satisfied that,
(5) Once a credit union becomes a class 2 credit union, it remains a class 2 credit union in perpetuity.
(3) For the purposes of paragraph 2 of subsection (2), the amount of a credit union's general loan loss allowance must not exceed 1.25 per cent of the credit union's risk weighted assets.
Percentage for financial year ending after October 5, 2006 and on or before December 31, 2007
Percentage for financial year ending after December 31, 2007 and on or before December 31, 2008
Percentage for financial year ending on or after January 1, 2009
|Less than $50 million||5.00%||4.75%||4.50%|
|$50 million or more but less than $100 million||4.75%||4.50%||4.25%|
|$100 million or more but less than $500 million||4.50%||4.25%||4.00%|
|$500 million or more but less than $1 billion||4.25%||4.00%||3.75%|
|$1 billion or more||4.00%||3.75%||3.50%|
|E + F + G||X||0.15|
is the amount of the credit union's capital charge for interest rate risk as determined under subsection (13).
Section 52 of the Regulation is revoked and the following substituted:
52. An agricultural loan is a loan other than a residential mortgage loan that is made for the purposes of financing,
3. The funds from the sale of another residential property owned by the individual will be used to repay the loan.
(2) Paragraph 6 of section 53 of the Regulation is revoked and the following substituted:
6. The loan is fully secured by a mortgage on the residential property being sold or, before the loan is made, the borrower's solicitor has given the credit union an irrevocable letter of direction from the borrower stating that the funds from the sale of the residential property being sold will be remitted to the credit union.
(1) Section 54 of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:
54. A commercial loan is a loan, other than any of the following types of loans, that is made for any purpose:
(2) Subparagraph 7 i of section 54 of the Regulation is revoked and the following substituted:
Section 57 of the Regulation is revoked and the following substituted:
57. (1) In this section,
"residential mortgage loan" means a loan that is secured by residential property; ("")
"residential property" means real property consisting of buildings that are used, or are to be used, to the extent of at least one half of the floor area of the buildings, as one or more private dwellings. ("")
(2) A credit union shall not make a residential mortgage loan to a person for the purpose of purchasing, renovating or improving the residential property or for the purpose of refinancing such a loan if the amount of the residential mortgage loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the residential property, would exceed 75 per cent of the value of the property when the residential mortgage loan is made.
(3) Subsection (2) does not apply in any of the following circumstances:
61. (1) A class 1 credit union whose total assets are described in a row in Column 1 of the Table to this section shall not make a loan to a person if, as a result of making the loan, the total amount of all outstanding loans made by the credit union to the person and any connected personswould exceed the amount of the total lending limit set out in the same row of Column 2 of the Table.
(2) A class 2 credit union shall not make a loan to a person if, as a result of making the loan, the total amount of all outstanding loans made to the person and any connected persons would exceed 25 per cent of the credit union's regulatory capital.
(3) For the purposes of this section, the total amount of all outstanding loans made by a credit union to a person and any connected persons excludes the portion, if any, of a loan that,