Modernizing the Credit Unions and Caisses Populaires Act

CONSULTATION DRAFT

PROPOSED ONTARIO REGULATION
to be made under the
CREDIT UNIONS AND CAISSES POPULAIRES ACT, 1994
GENERAL

CONTENTS


PART I
INTERPRETATION
1.Definitions
2.Class 2 credit unions
3.Widely-distributed security
PART II
ESTABLISHING A CREDIT UNION
4.Articles of incorporation
5.Name
PART III
MEMBERSHIP
6.Trusts for named beneficiaries
7.Payments re deceased members
PART IV
CAPITAL STRUCTURE
8.Number of shares
9.Membership share certificate
10.Offering statement
11.Notice of offering
12.Statement of material change
13.Transfer of securities issued after receipt for an offering statement
PART V
CAPITAL AND LIQUIDITY
14.Adequate capital
15.Total assets
16.Regulatory capital
17.Risk weighted assets of a credit union
18.Forming of groups relating to capital requirements
19.Adequate liquidity for class 1 credit unions
20.Adequate liquidity for class 2 credit unions
21.Encumbered asset
22.Failure to meet requirements for adequate liquidity
23.Provision for doubtful loans and required reserves
PART VI
GOVERNING THE CREDIT UNION
24.Mandatory by-laws
25.Frequency of board meetings
26.Duties of audit committee
27.Remuneration reported in financial statements
28.Bond for persons handling money
29.Bond
PART VII
RESTRICTIONS ON BUSINESS POWERS

Ancillary Businesses

30.Ancillary businesses

Financial Services

31.Prohibition re financial services
32.Same

Networking

33.Networking

Authorized Types of Insurance

34.Authorized types of insurance
35.Group insurance policy
36.Advice about insurance

Restrictions on Insurance

37.Restriction on insurance
38.Same
39.Separate and distinct premises
40.Telecommunications device
41.Promotion of insurer
42.Sharing of information with insurer

Fiduciary Activities

43.Fiduciary activities

Guarantees

44.Guarantees
45.Limit on amount of guarantee

PART VIII
INVESTMENT AND LENDING

46.Interpretation

Security Interests in Credit Union Property

47.Security interests in credit union property

Classes of Loans

48.Classes of loans
49.Agricultural loan
50.Bridge loan
51.Commercial loan
52.Institutional loan
53.Personal loan
54.Residential mortgage loan
55.Syndicated loan
56.Loan to an unincorporated association

Lending Limits

57.Lending limits to a person or connected persons
58.Limits on loans of same class to a person

Eligible Investments

59.Eligible investments for class 1 credit unions
60.Eligible investments for class 2 credit unions
61.Prescribed conditions re improved real estate
62.Definition
63.Prescribed conditions re body corporate

Restriction on Single Investments

64.Restriction re single investments
65.Exception to restriction re single investments

Connected Persons

66.Connected persons

Investment in Subsidiaries

67.Investment in subsidiaries
68.Restriction on investment in subsidiaries
PART IX
INTEREST RATE RISK MANAGEMENT
69.Interpretation
70.Policies and procedures
71.Same
72.Interest rate risk report
PART X
RESTRICTED PARTY TRANSACTIONS

Interpretation

73.Application
74.Definition of “restricted party”
75.Definition of “transaction”

Permitted Transactions

76.Permitted transactions
77.Same
78.Same

Restricted Party Transaction Procedures

79.Restricted party transaction procedures
PART XI
MEETINGS

First Meeting

80.First Meeting
81.Quorum
82.Business to be dealt with

Financial Statements

83.Financial statements
PART XII
RETURNS, EXAMINATIONS AND RECORDS
84.Document retention
85.Maximum fee for by-laws
PART XIII
LEAGUES

Application

86.Application

Capital Structure

87.Capital structure

Adequate Capital

88.Adequate capital

Business Powers

89.Business powers
90.Permitted activities
91.Group insurance
92.Trustee

Investment and Lending

93.Investment and lending
94.Exception to restriction re single investments
95.Same

Subsidiaries

96.Subsidiaries
97.Restriction on investment in subsidiaries

Exemptions from the Act

98.Exemptions from the Act
PART XIV
DEPOSIT INSURANCE CORPORATION OF ONTARIO

Definition

99.Definition

Investment of Funds

100.Investment of funds
101.Same

Deposit Insurance Limit

102.Deposit insurance limit

Amalgamations

103.Amalgamations

Annual Premium

104.Annual premium
105.Payment of annual premium
106.Audited statement of deposits
PART XV
CONTINUING AS OR CEASING TO BE AN ONTARIO CREDIT UNION

Continuing as an Ontario credit union

107.Articles of continuance
108.Conditions for issue of certificate of continuance
109.Limits on transition period

Transfer to another jurisdiction

110.Conditions for issue of certificate of continuance

Continuation under Another Ontario Act

111.Conditions for issue of certificate of continuance
PART XVI
CONSUMER PROTECTION

Disclosure Re Interest Rates, etc.

112.Disclosure re interest rates, etc.
113.Same
114.Disclosure in advertising

Consumer Complaints by Members and Depositors

115.Consumer complaints by members and depositors
116.Same

PART XVII
ADMINISTRATIVE PENALTIES

117.Administrative penalties