Cooperative Credit Associations Act

Marginal note:Restriction on security interests

• 383 (1) Subject to subsection (3), an association shall not create a security interest in any property of the association to secure an obligation of the association, unless

  • (a) the obligation is to the Bank of Canada or the Canada Deposit Insurance Corporation; or

  • (b) the Superintendent has approved in writing the creation of the security interest.

• Marginal note:Encumbered property

  (2) An association shall notify the Superintendent in writing of any beneficial interest in real and personal property acquired by the association, other than by way of realization, that is subject to a security interest.

• Marginal note:Exceptions

  (3) Subsection (1) does not apply in respect of security interests created on

  • (a) such classes of personal property as the Superintendent may, by order, designate; or

  • (b) property having an aggregate value that is less than such amount as the Superintendent may, by order, specify.