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

Act current to 2014-09-01 and last amended on 2013-12-12. Previous Versions

Marginal note:Meaning of “total assets”

 For the purposes of sections 398 and 399, “total assets”, in respect of an association, has the meaning given to that expression by the regulations.

  • 1991, c. 48, s. 400;
  • 2001, c. 9, s. 314.

Real Property

Marginal note:Limit on total property interest

 An association shall not, and shall not permit its prescribed subsidiaries to, purchase or otherwise acquire an interest in real property or make an improvement to any real property in which the association or any of its prescribed subsidiaries has an interest if the aggregate value of all interests of the association in real property exceeds, or the acquisition of the interest or the making of the improvement would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the association.

  • 1991, c. 48, s. 401;
  • 2001, c. 9, s. 314.

Equities

Marginal note:Limits on equity acquisitions

 An association shall not, and shall not permit its prescribed subsidiaries to,

  • (a) purchase or otherwise acquire any participating shares of any body corporate or any ownership interests in any unincorporated entity, other than those of a permitted entity in which the association has, or by virtue of the acquisition would have, a substantial investment, or

  • (b) acquire control of an entity that holds shares or ownership interests referred to in paragraph (a),

if the aggregate value of

  • (c) all participating shares, excluding participating shares of permitted entities in which the association has a substantial investment, and

  • (d) all ownership interests in unincorporated entities, other than ownership interests in permitted entities in which the association has a substantial investment,

beneficially owned by the association and its prescribed subsidiaries exceeds, or the purchase or acquisition would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the association.

  • 1991, c. 48, s. 402;
  • 2001, c. 9, s. 314.

Miscellaneous

Marginal note:Regulations

 For the purposes of this Part, the Governor in Council may make regulations

  • (a) defining the interests of an association in real property;

  • (b) determining the method of valuing those interests; or

  • (c) exempting classes of associations from the application of sections 397 to 402.

  • 1991, c. 48, s. 403;
  • 1997, c. 15, s. 147;
  • 2001, c. 9, s. 314.
Marginal note:Divestment order
  •  (1) The Superintendent may, by order, direct an association to dispose of, within any period that the Superintendent considers reasonable, any loan, investment or interest made or acquired in contravention of this Part.

  • Marginal note:Divestment order

    (2) If, in the opinion of the Superintendent,

    • (a) an investment by an association or any entity it controls in shares of a body corporate or in ownership interests in an unincorporated entity enables the association to control the body corporate or the unincorporated entity, or

    • (b) the association or any entity it controls has entered into an arrangement whereby it or its nominee may veto any proposal put before

      • (i) the board of directors of a body corporate, or

      • (ii) a similar group or committee of an unincorporated entity,

      or whereby no proposal may be approved except with the consent of the association, the entity it controls or the nominee,

    the Superintendent may, by order, require the association, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the association no longer controls the body corporate or unincorporated entity or has the ability to veto or otherwise defeat any proposal referred to in paragraph (b).

  • Marginal note:Divestment order

    (3) If

    • (a) an association

      • (i) fails to provide or obtain within a reasonable time the undertakings referred to in subsection 392(1), (2) or (4), or

      • (ii) is in default of an undertaking referred to in subsection 392(1) or (2) and the default is not remedied within ninety days after the day of receipt by the association of a notice from the Superintendent of the default, or

    • (b) a permitted entity referred to in subsection 392(4) is in default of an undertaking referred to in subsection 392(4) and the default is not remedied within ninety days after the day of receipt by the association of a notice from the Superintendent of the default,

    the Superintendent may, by order, require the association, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the association no longer has a substantial investment in the entity to which the undertaking relates.

  • Marginal note:Exception

    (4) Subsection (2) does not apply in respect of an entity in which an association has a substantial investment permitted by this Part.

  • 1991, c. 48, s. 404;
  • 2001, c. 9, s. 314.