Cooperative Credit Associations Act

Marginal note:Additional powers

• 475 (1) For the purposes of Part X, a central may make a deposit in or a loan to, invest in the debt obligations of, or purchase members’ shares issued by, a cooperative credit society, or a cooperative corporation, that is a member of that central, and any such loan, deposit, investment or purchase shall be deemed not to be a commercial loan.

• Marginal note:Security interest

  (2) Notwithstanding section 383, a central may create a security interest in any of its property to secure an obligation of the central to

  • (a) an association of which the central is a member; or

  • (b) a deposit protection agency, or the government of the province in which the central is incorporated, if the agency or government is designated by the Minister.

• Marginal note:Guarantees

  (3) Paragraph 379(1)(a) does not apply to a central where

  • (a) the guarantee is given on behalf of a member of the central or on behalf of another central; and

  • (b) the payment guaranteed represents the obligation of that member or other central to settle for payment items in accordance with the by-laws and rules of the Canadian Payments Association.