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

Act current to 2014-10-27 and last amended on 2013-12-12. Previous Versions

Portfolio Limits

Marginal note:Exclusion from portfolio limits
  •  (1) Subject to subsection (3), the value of all loans, investments and interests acquired by an association and any of its prescribed subsidiaries under section 394 or as a result of a realization of a security interest is not to be included in calculating the value of loans, investments and interests of the association and its prescribed subsidiaries under sections 398 to 402

    • (a) for a period of twelve years following the day on which the interest was acquired, in the case of an interest in real property; and

    • (b) for a period of five years after the day on which the loan, investment or interest was acquired, in the case of a loan, investment or interest, other than an interest in real property.

  • Marginal note:Extension

    (2) The Superintendent may, in the case of any particular association, extend any period referred to in subsection (1) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary.

  • Marginal note:Exception

    (3) Subsection (1) does not apply in respect of an investment or interest described in that subsection if the investment or interest is defined by a regulation made under section 403 to be an interest in real property and

    • (a) the association or the subsidiary acquired the investment or interest as a result of the realization of a security interest securing a loan that was defined by a regulation made under section 403 to be an interest in real property; or

    • (b) the association or the subsidiary acquired the investment or interest under section 394 as a result of a default referred to in that section in respect of a loan that was defined by a regulation made under section 403 to be an interest in real property.

  • 1991, c. 48, s. 397;
  • 1997, c. 15, s. 146;
  • 2001, c. 9, s. 314.

Commercial Loans

Marginal note:Lending limit: regulatory capital of $25 million or less

 An association with twenty-five million dollars or less of regulatory capital shall not, and shall not permit its prescribed subsidiaries to,

  • (a) make or acquire a commercial loan, or

  • (b) acquire control of a permitted entity that holds commercial loans,

if the aggregate value of all commercial loans held by the association and its prescribed subsidiaries exceeds, or the acquisition or making of the commercial loan or the acquisition of control of the entity would cause the aggregate value of all commercial loans held by the association and its prescribed subsidiaries to exceed, 5% of the total assets of the association.

  • 1991, c. 48, s. 398;
  • 2001, c. 9, s. 314.
Marginal note:Lending limit: regulatory capital over $25 million

 An association with more than twenty-five million dollars of regulatory capital may

  • (a) make or acquire commercial loans, or

  • (b) acquire control of a permitted entity that holds commercial loans,

if the aggregate value of all commercial loans held by the association and its prescribed subsidiaries would thereby exceed 5% of the total assets of the association only with the prior approval in writing of the Superintendent and in accordance with any terms and conditions that the Superintendent may specify.

  • 1991, c. 48, s. 399;
  • 2001, c. 9, s. 314.