Bank Act (S.C. 1991, c. 46)

Marginal note:Cooperative basis

• 12.1 (1) For the purposes of this Act, a federal credit union is organized and carries on business on a cooperative basis if

  • (a) a majority of its members are natural persons;

  • (b) it provides financial services primarily to its members;

  • (c) membership in the federal credit union is wholly or primarily open, in a non-discriminatory manner, to persons who can use the services of the federal credit union and who are willing and able to accept the responsibilities of membership;

  • (d) each member has only one vote;

  • (e) a delegate has only one vote even though the delegate is a member or represents more than one member;

  • (f) dividends on any membership share are limited to the maximum percentage fixed in the federal credit union’s letters patent or by-laws; and

  • (g) surplus funds arising from the federal credit union’s operations are used

    • (i) to provide for the financial stability of the federal credit union,

    • (ii) to develop its business,

    • (iii) to provide or improve common services to members,

    • (iv) to provide for reserves or dividends on membership shares and shares,

    • (v) for community welfare or the propagation of cooperative enterprises, or

    • (vi) as a distribution to its members as a patronage allocation.

• Marginal note:Restrictions

  (2) Paragraph (1)(c) is subject to any restrictions in the by-laws of the federal credit union on the classes of persons to which membership may be available, as long as the restrictions are consistent with applicable laws with respect to human rights.