Investment Limits (Cooperative Credit Associations) Regulations

Marginal note:Definitions

• 5 (1) The following definitions apply in this section.

  real property percentage

  pourcentage de biens immeubles

  real property percentage of an association means the amount determined by the formula

  (A/B) × 100%

  where

  A

  is the total value of all interests of the association in real property, other than interests that, because of section 397 of the Act, are not to be included in computing the value of loans, investments and interests of the association, and of its subsidiaries prescribed by section 4, under sections 398 to 402 of the Act; and

  B

  is the regulatory capital of the association.

  equity percentage

  pourcentage de capitaux propres

  equity percentage of an association means the amount determined by the formula

  ((A + B)/C) × 100%

  where

  A

  is the total value of all participating shares that are beneficially owned by the association and its subsidiaries prescribed by section 4, other than

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

  • (b) shares that, because of section 397 of the Act, are not to be included in computing the value of loans, investments and interests of the association, and of its subsidiaries prescribed by section 4, under sections 398 to 402 of the Act;

  B

  is the total value of all ownership interests in unincorporated entities that are beneficially owned by the association and its subsidiaries prescribed by section 4, other than

  • (a) ownership interests in permitted entities in which the association has a substantial investment, and

  • (b) ownership interests that, because of section 397 of the Act, are not to be included in computing the value of loans, investments and interests of the association, and of its subsidiaries prescribed by section 4, under sections 398 to 402 of the Act; and

  C

  is the regulatory capital of the association.

• Marginal note:Prescribed percentage — real property

  (2) For the purpose of section 401 of the Act, the prescribed percentage of the regulatory capital of an association is

  • (a) 35%, if the association is primarily engaged in the business of managing liquidity or providing treasury, clearing, settlement or payment services;

  • (b) 70%, if the association is not an association referred to in paragraph (a) and its equity percentage does not exceed 30%; and

  • (c) 100% minus its equity percentage, if the association is not an association referred to in paragraph (a) and its equity percentage exceeds 30%.

• Marginal note:Prescribed percentage — equity

  (3) For the purpose of section 402 of the Act, the prescribed percentage of the regulatory capital of an association is

  • (a) 35%, if the association is primarily engaged in the business of managing liquidity or providing treasury, clearing, settlement or payment services;

  • (b) 70%, if the association is not an association referred to in paragraph (a) and its real property percentage does not exceed 30%; and

  • (c) 100% minus its real property percentage, if the association is not an association referred to in paragraph (a) and its real property percentage exceeds 30%.