Jobs and Economic Growth Act (S.C. 2010, c. 12)

Full Document:

Assented to 2010-07-12

Income Tax Act

2108. Clauses (ii)(A) and (B) in the description of C in paragraph 61.3(1)(b) of the Income Tax Act are replaced by the following:

(A) where the corporation is not an insurance corporation, a federal credit union or a bank to which clause (B) or (C) applies and the balance sheet as of the end of the year was presented to the shareholders of the corporation and was prepared in accordance with generally accepted accounting principles, be considered to be the total liabilities shown on the balance sheet,
(B) where the corporation is a bank, a federal credit union or an insurance corporation that is required to report to the Superintendent of Financial Institutions and the balance sheet as of the end of the year was accepted by the Superintendent, be considered to be the total liabilities shown on that balance sheet,

2109. (1) The definition “bank” in subsection 248(1) of the Act is replaced by the following:
“bank”
« banque »
“bank” means a bank within the meaning assigned by section 2 of the Bank Act (other than a federal credit union) or an authorized foreign bank;
(2) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
“federal credit union”
« coopérative de crédit fédérale »
“federal credit union” has the meaning assigned by section 2 of the Bank Act;

2110. Section 6 of the Bank of Canada Act is amended by adding the following after subsection (4):

Marginal note:Prohibitions — federal credit union
(5) Neither the Governor nor the Deputy Governor shall
- (a) directly or indirectly hold any interest or right in membership shares of a federal credit union, within the meaning of section 2 of the Bank Act, in excess of the minimum number of membership shares of the federal credit union that is required for membership; or
- (b) exercise any right he or she has as a member of such a federal credit union, except any right that he or she has as a customer of the federal credit union.

2111. Section 10 of the Act is amended by adding the following after subsection (3):

Marginal note:Restriction — membership shares of federal credit union
(3.1) If a federal credit union is an institution referred to in any of paragraph (2)(a) to (e), any person who, at the time of being appointed director of the Bank, directly or indirectly holds any interest or right in more than the minimum number of membership shares of the federal credit union, within the meaning of section 2 of the Bank Act, that is required for membership shall, within three months after the appointment, dispose of all membership shares that exceed that minimum number.
Marginal note:Restriction — rights of members
(3.2) If a federal credit union is an institution referred to in any of paragraph (2)(a) to (e), no director of the Bank who is a member of a federal credit union, within the meaning of section 2 of the Bank Act, shall exercise any right that the director has as a member of the federal credit union, except any right that the director has as a customer of the federal credit union.