COOPERATIVE CREDIT ASSOCIATIONS ACTRegulatory Capital (Cooperative Credit Associations) RegulationsRegulations Defining the Regulatory Capital of an AssociationP.C.1992-1847 19928
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His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to the definition regulatory capital in section 2 and section 463 of the Cooperative Credit Associations Act*, is pleased hereby to make the annexed Regulations defining the regulatory capital of an association.S.C. 1991, c. 48Short TitleThese Regulations may be cited as the Regulatory Capital (Cooperative Credit Associations) Regulations.InterpretationIn these Regulations,Act means the Cooperative Credit Associations Act; (Loi)designated entity means an entity other thanan insurance company,a securities dealer, oran entity controlled by an insurance company or securities dealer; (entité désignée)insurance company means an insurance company that is incorporated by or under the laws of Canada or of a province; (société d’assurances)minority interest means an equity interest, in an entity that is controlled by an association, that is held by a person other thanthe association, oran entity controlled by the association; (participation minoritaire)securities dealer means an entity described in paragraph (g) of the definition financial institution in section 2 of the Act. (négociant en valeurs mobilières) SOR/2001-422, s. 1Regulatory CapitalSubject to subsection (2) and section 4, the regulatory capital of an association, at a particular time, is the aggregate of the amounts ofmembers’ equity and shareholders’ equity,minority interests, andsubordinated indebtednessthat would be reported in the financial statements of the association prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 292(4) of the Act, less the amount of goodwill that would be included in those financial statements.In calculating the amount of regulatory capital under subsection (1), an amount may be included in respect of a security only ifthe security is, by its terms, subordinate in right of payment to all deposit liabilities and all other liabilities of the entity that issued the security other than liabilities that, by their terms, rank equally with, or are subordinate to, that security;the security is issued and fully paidup; andin respect of subordinated indebtedness or a preferred share, the securityhas an initial minimum term of five years or more or has no term, andcannot be redeemed or purchased for cancellation in the first five years after it is issued.SOR/94-63, s. 2For the purposes of sections 401 and 402 of the Act, the regulatory capital of an association is the amount determined under section 3, less the aggregate ofall amounts each of which is the amount of shareholders’ equity and subordinated indebtedness of an insurance company or securities dealer controlled by the association, or of an entity controlled by an insurance company or securities dealer controlled by the association, that is included in the amount of regulatory capital of the association determined under section 3,all amounts each of which is the amount of investments, other than shareholders’ equity or subordinated indebtedness referred to in paragraph (a), of the association or a designated entity controlled by the association in an insurance company or securities dealer controlled by the association, or in an entity controlled by an insurance company or securities dealer controlled by the association, if the investments are part of the capital of the insurance company or securities dealer,all amounts each of which is the amount of loans, other than subordinated indebtedness referred to in paragraph (a), made by the association or by a designated entity controlled by the association to an insurance company or securities dealer controlled by the association, or to an entity controlled by an insurance company or securities dealer controlled by the association, if the loans are part of the capital of the insurance company or securities dealer, andall amounts each of which is the amount of a minority interest in an insurance company or securities dealer controlled by the association, or in an entity controlled by an insurance company or securities dealer controlled by the association, that is included in the amount of regulatory capital of the association determined under section 3.For the purposes of paragraphs (1)(b) and (c), capital meansin respect of an insurance company to which the Insurance Companies Act applies, regulatory capital within the meaning of the Regulatory Capital (Insurance Companies) Regulations; andin respect of any other insurance company or a securities dealer, an amount that would be treated as capital by a regulatory body that regulates the insurance company or securities dealer.SOR/2001-422, s. 2