Cooperative Credit Associations Act (S.C. 1991, c. 48)

Marginal note:Policies re security interests

• 383. (1) The directors of an association shall establish and the association shall adhere to policies regarding the creation of security interests in property of the association to secure obligations of the association and the acquisition by the association of beneficial interests in property that is subject to security interests.

• Marginal note:Order to amend policies

  (2) The Superintendent may, by order, direct an association to amend its policies as specified in the order.

• Marginal note:Compliance

  (3) An association shall comply with an order made under subsection (2) within the time specified in the order.

Marginal note:Regulations and guidelines

383.1 The Governor in Council may make regulations and the Superintendent may make guidelines respecting the creation by an association of security interests in its property to secure obligations of the association and the acquisition by the association of beneficial interests in property that is subject to security interests.

Marginal note:Exception

383.2 Sections 383 and 383.1 do not apply in respect of a security interest created by an association to secure an obligation of the association to the Bank of Canada or the Canada Deposit Insurance Corporation.

Marginal note:Restriction on receivers

384. An association shall not grant to a person the right to appoint a receiver or a receiver and manager of the property or business of the association.

Marginal note:Restriction on partnerships

• 385. (1) Except with the approval of the Superintendent, an association may not be a general partner in a limited partnership or a partner in a general partnership.

• Meaning of “general partnership”

  (2) For the purposes of subsection (1), “general partnership” means any partnership other than a limited partnership.

Marginal note:Deposit acceptance

• 385.01 (1) A retail association may, without the intervention of any other person,

  • (a) accept a deposit from any person whether or not the person is qualified by law to enter into contracts; and

  • (b) pay all or part of the principal of the deposit and all or part of the interest on that principal to or to the order of that person.

• Marginal note:Exception

  (2) Paragraph (1)(b) does not apply if, before payment, the money deposited in the association pursuant to paragraph (1)(a) is claimed by some other person

  • (a) in any action or proceeding to which the association is a party and in respect of which service of a writ or other process originating that action or proceeding has been made on the association; or

  • (b) in any other action or proceeding pursuant to which an injunction or order made by the court requiring the association not to make payment of that money or to make payment thereof to some person other than the depositor has been served on the association.

  If such a claim is made, the money so deposited may be paid to the depositor with the consent of the claimant or to the claimant with the consent of the depositor.