4 Verification of
documents, etc.
5 Errors in
certificates
Organization and
Structure
6 Essential
components of name
7 Year in name
8 Name search
report and consents
9 Names proposed
in search reports
Directors
10 Interest rate
re directors’ liability
Financial Disclosure
and Audit
11 Monthly
financial and statistical reports
12 Independence of
auditor
Deposits
13 Interest rate
Loans
14 Intervals for
interest on loans
Credit Union Deposit
Guarantee Corporation
15 Interest rates
16 Corporation’s financial estimates
Credit Union Central
Alberta Limited
17 Directors -
interest rates re liability
18 Financial
disclosure and audit
Arrangements
18.1 Form of notice
of arrangement
Miscellaneous
19 Evidence
20 Commencement
Schedule
Interpretation and
Application
Interpretation
1(1) In this Regulation,
(a) “prescribed”
includes prescribed by this Regulation;
(b) “principal
Regulation” means
the Credit Union (Principal) Regulation (Alta. Reg. 249/89).
(2) Definitions and other interpretation provisions
generally applicable in the principal Regulation apply also to this Regulation.
AR 250/89 s1
Interpretation
provision applicable to the Act
2 For the purpose of construing section
1(1)(yy) of the Act, “securities”
(a) includes
any other security within the meaning of the Securities Act, and
(b) does not include conditional sales
agreements or financial lease agreements.
AR 250/89
s2;25/95;196/2006
3 Repealed AR 69/99 s2.
Administration
Verification of
documents, etc.
4 The Minister may require that
a document or a fact stated in a document required by the Act or the
regulations to be sent to him be verified under oath or by statutory
declaration.
AR 250/89 s4
Errors in
certificates
5(1) If
a certificate containing an error is issued to a credit union by the Minister,
the credit union shall, on the request of the Minister, pass the resolutions,
send him the documents required to comply with the Act and take any other steps
that the Minister reasonably requires, and the Minister may demand the
surrender of the certificate and issue a corrected certificate.
(2) A
certificate corrected under subsection (1) must bear the effective date of the
certificate it replaces.
(3) The issue of a corrected certificate under this
section does not affect the rights of a person who acts in good faith, for
value and without notice of the error in reliance on the certificate containing
the error.
AR 250/89 s5
Organization and
Structure
Essential components of
name
6(1) The name of a credit union must not contain
anything other than
(a) letters
of the alphabet used in the English or French language,
(b) arabic
numerals, and
(c) punctuation
marks, symbols or other marks in common usage in the English or French
language.
(2) The first character of the name of a credit
union must be an arabic numeral or a letter of the alphabet.
AR 250/89 s6
Year in name
7 A credit union may not have a
name that contains a year unless the credit union results from an amalgamation
and the year is the year in which the amalgamation took place.
AR 250/89 s7
Name search report
and consents
8(1) The name search report referred to in section
1(1)(ll) of the Act is a report referred to in subsection (2).
(2) In
the case of
(a) the
incorporation of a new credit union,
(b) a
change in the name of a credit union, or
(c) the
amalgamation of 2 or more credit unions where the name of the amalgamated
credit union is not to be the same as that of one of the amalgamating credit
unions,
there must accompany
the documents sent to the Minister in connection with the incorporation, change
of name or amalgamation an original Alberta Search Report from the NUANS (Newly
Upgraded Automated Name Search) system maintained by the Government of Canada,
dated not more than 90 days before the submission of the report.
AR 250/89 s8;206/2001
Names proposed in
search reports
9 A name identified in a name
search report as “proposed” may not be used by a credit union unless the credit
union is the person who first proposed the name or unless it has the consent in
writing of the person who first proposed the name.
AR 250/89 s9
Directors
Interest rate re
directors’ liability
10(1) Interest under section 74(1) of the Act is
payable at the rate of 2% per annum plus the rate that is the average of the
Bank of Canada rates applicable on the last Thursday of each month for the 12
completed months prior to the resolution under that subsection, compounded
annually.
(2) The rate calculated using subsection (1) shall
be rounded upwards or downwards to the nearest whole number and, where the
portion of the average rate occurring after the decimal point is equal to .5%,
it shall be rounded upwards to the next whole number.
AR 250/89 s10
Financial Disclosure and
Audit
Monthly financial and
statistical reports
11(1) Pursuant to section 85(1) of the Act, a credit
union shall provide
(a) to
the Corporation and Central, financial and statistical reports in respect of
each calendar month no later than the 20th day of the following month,
(a.1) to
the Corporation and Central, a financial and statistical report in respect of
each fiscal year no later than January 31 of the year following the end of the
fiscal year being reported on, and
(b) to the Minister, each quarterly report made
or to be made by the audit committee to the board pursuant to section 82(1) of
the Act, no later than the 60th day after the end of each quarter reported on.
AR 250/89
s11;25/95;196/2006
Independence of
auditor
12(1) A person is independent for the purposes of
section 88(1) of the Act if he is independent of
(a) the
credit union and its subsidiaries and affiliates, and
(b) the
directors and officers of the credit union and of its subsidiaries and
affiliates.
(2) For
the purposes of this section,
(a) independence
is a question of fact, and
(b) a
person is not independent if
(i) that person, a business partner of that person who is engaged in
auditing the business and affairs of the credit union or any of its
subsidiaries or affiliates or a spouse or adult interdependent partner
(including an individual referred to in section 2(5)(c) of the Act) or child of
that person or of such a partner who has the same home as the person or partner
(A) is a business partner, director or officer
of the credit union or of any of its subsidiaries or affiliates,
(B) beneficially owns, directly or indirectly,
or exercises control over, any of the voting shares of any of the subsidiaries
or affiliates of the credit union,
(C) is or has been a receiver, a receiver and
manager, a liquidator or a trustee in bankruptcy of the credit union or any of
its subsidiaries or affiliates within the preceding 2 years, or
(D) has a loan from the credit union or its
subsidiary or affiliate any payment of principal or interest on which is in
arrears for more than 60 days,
(ii) that person or a business partner referred to in subclause (i) is
an employee of the credit union or of any of its subsidiaries or affiliates, or
(iii) that person controls a corporation which has
a loan referred to in subclause (i)(D).
AR 250/89
s12;171/2003;196/2006
Deposits
Interest rate
13(1) The rate of interest prescribed for the
purposes of sections 117(8), 118(4) and 120(5) and (6) of the Act is
(a) the
rate that the credit union would have been liable to pay had the account been
active, or
(b) the
greater of the average of Central’s prime rates over the period for which
interest is to be calculated less 3.75%, calculated on at least a monthly
basis, and 1%,
at the election of the
body corporate paying the interest.
(2) For
the purposes of subsection (1)(a), where the type of account in question is no
longer being offered, the rate to be used is that of the most closely
comparable account currently being offered.
(3) The method of calculating the rate of interest,
including, if applicable, Central’s prime rate, must be consistent from year to
year.
AR 250/89
s13;69/99;196/2006
Loans
Intervals for interest
on loans
14(1) The interval referred to in section 135 of the
Act is extended to one year in the case of
(a) loans
secured by securities issued or guaranteed by the Government of Canada or of a
province, or deposits of a credit union or that are insured by the Canada
Deposit Insurance Corporation,
(b) loans
made in respect of any business that is seasonal in nature, and
(c) loans
made under programs that have been approved by the Corporation as promotional
loan programs.
(2) The Corporation may approve loan programs as
promotional loan programs for the purposes of this Regulation.
AR 250/89
s14;69/99;196/2006
Credit Union Deposit
Guarantee Corporation
Interest rates
15(1) Section 10 of this Regulation applies in
relation to the Corporation.
(2) Interest
under section 151(4) of the Act is payable at the rate of 2% per annum plus the
rate that is the average of the Bank of Canada rates applicable on the last
Thursday of each month for the quarter in which the assessment was made,
compounded quarterly.
(3) Section 10(2) applies with respect to
subsection (2).
AR 250/89 s15;196/2006
Corporation’s financial estimates
16(1) At
least 60 days prior to the commencement of each fiscal year, the Corporation
shall provide to the Minister for his approval a corporate plan in respect of
that fiscal year and in the form directed by the Minister, showing
(a) the
Corporation’s financial objectives,
(b) the
Corporation’s expected financial performance in respect of those objectives,
(c) the
operating budget for the Corporation and its subsidiaries,
(d) the
capital budget, including investments of the Corporation and its subsidiaries,
and
(e) other
financial estimates, if any, that the Minister has requested.
(2) If
the Minister does not approve the corporate plan, the Corporation shall amend
the plan in such a manner that the plan meets the Minister’s approval.
(3) Where, after approval of the corporate plan, the
Corporation anticipates that the total amount of expenditures or commitments to
make expenditures will vary significantly from those stated in the approved
plan, the Corporation shall forthwith provide an amendment to the corporate
plan for approval by the Minister.
AR 250/89 s16
Credit Union Central
Alberta Limited
Directors - interest
rates re liability
17 Section 10 of this Regulation
applies in relation to Central.
AR 250/89 s17
Financial disclosure
and audit
18(1) Pursuant to section 166(1) of the Act
(incorporating section 84(1) of the Act) Central shall provide to the Minister
financial and statistical reports in respect of each calendar month no later
than the 20th day of the following month.
(1.1) Central
shall notify the Minister, at the earliest practicable time, of any changes
made to any national liquidity agreement and of any calls on or drawdowns made
from a pool covered by such an agreement.
(2) Section 12 of this Regulation applies in
relation to Central.
AR 250/89
s18;69/99;196/2006
Arrangements
Form of notice of
arrangement
18.1 The form prescribed for the
purposes of section 188(3)(d) of the Act is that set out in Schedule 2.
AR 25/95 s4;196/2006
Miscellaneous
Evidence
19(1) Except in a proceeding under section 195 of the
Act to dissolve or to liquidate and dissolve a credit union, a certificate
issued under the Act or the regulations or a certified copy of it, when
introduced as evidence in any civil, criminal or administrative action or
proceeding, is conclusive proof of the facts certified in it without proof of
the signature or official character of the person appearing to have signed the
certificate.
(2) If records maintained by the Minister are
prepared and maintained other than in written form, a reproduction of the text
of those records, if it is certified by the Minister, is admissible in evidence
to the same extent as the original written records would have been.
AR 250/89 s19;196/2006
Commencement
20 This Regulation comes into
force on November 1, 1989.
AR 250/89 s20
