Disclosure of Interest (Retail Associations) Regulations
SOR/2003-298
COOPERATIVE CREDIT ASSOCIATIONS ACT
Registration 2003-08-13
Disclosure of Interest (Retail Associations) Regulations
P.C. 2003-1220 2003-08-13
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 385.09Footnote a, subsection 385.1(6)a and sections 385.28a and 463Footnote b of the Cooperative Credit Associations ActFootnote c, hereby makes the annexed Disclosure of Interest (Retail Associations) Regulations.
Return to footnote aS.C. 2001, c. 9, s. 313
Return to footnote bS.C. 2001, c. 9, s. 339
Return to footnote cS.C. 1991, c. 48
Interpretation
Marginal note:Definitions
1 The following definitions apply in these Regulations.
Act
Loi
Act means the Cooperative Credit Associations Act. (Loi) (Loi)
deposit account
compte de dépôt
deposit account means an interest-bearing deposit account. (compte de dépôt) (compte de dépôt)
Deposit Accounts
Marginal note:Manner of disclosure
2 (1) Subject to subsection (2), a retail association shall disclose to a person who requests the retail association to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated
(a) if a statement of account is provided in respect of the deposit account, by means of a written statement delivered to that person, at or before the time the deposit account is opened; or
(b) if no statement of account is provided in respect of the deposit account, by means of
(i) a written statement, copies of which are available and displayed in each branch of the retail association where such accounts are kept, or
(ii) a general notice that is displayed in each branch of the retail association where such accounts are kept.
Marginal note:Opening of account on telephone request
(2) In the case of the opening of a deposit account on a telephone request as contemplated by subsection 385.1(3) of the Act, a retail association shall, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.
Marginal note:Required contents
(3) A written statement and a general notice referred to in subsection (1) or a written statement referred to in subsection (2) shall include
(a) the annual rate of interest;
(b) the frequency of payment of interest;
(c) the manner, if any, in which the balance in the deposit account affects the rate of interest; and
(d) any other circumstance that affects the rate of interest.
Marginal note:Deemed time of providing disclosure
(4) For the purpose of subsection (2), a statement is deemed to have been provided to a customer
(a) if the customer consents to receiving it by electronic means, on the day recorded by a server of the retail association as the time of sending it by electronic means to the customer;
(b) if the customer consents to receiving it by fax, on the day recorded by a fax machine of the retail association as the time of sending it to the customer;
(c) if it is sent to the customer by mail, on the fifth day after the postmark date on the statement; and
(d) if it is provided to the customer in any other way, on the day on which the statement is received by the customer.
Marginal note:Disclosure of changes
3 A retail association shall disclose any change in the rate of interest applicable to a deposit account or any change in the manner of calculating the amount of interest applicable to the deposit account, by means of
(a) a written statement delivered to the person in whose name the account is kept;
(b) a written statement copies of which are available and displayed in each branch of the retail association where such accounts are kept; or
(c) a general notice that is displayed in each branch of the retail association where such accounts are kept.
Marginal note:Renewal of fixed term deposit account
4 If a retail association renews a fixed term deposit account, the retail association shall disclose the rate of interest and the manner of calculating the amount of interest that are applicable to the account in the manner described in subparagraph 2(1)(b)(i) or (ii).
Advertising
Marginal note:Manner of disclosure
5 A retail association shall, in all advertisements referred to in section 385.08 of the Act, disclose how the amount of interest is to be calculated by means of a statement in the advertisement that clearly sets out
(a) in respect of interest-bearing deposits, the manner, if any, in which the balance of a deposit account will affect the rate of interest; and
(b) all other circumstances that will affect the rate of interest.
Coming into Force
Marginal note:Coming into force
6 These Regulations come into force on the day on which they are registered.
- Date modified: