AR 250/89 CREDIT UNION (MINISTERIAL) REGULATION (Consolidated up to 170/2012)
ALBERTA REGULATION 250/89
Credit Union Act
CREDIT UNION (MINISTERIAL) REGULATION
Table of Contents
Interpretation and Application
1 Interpretation
2 Interpretation provision applicable to the Act
Administration 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3 Repealed AR 69/99 s2.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 85(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;170/2012
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 Schedule 1 Repealed AR 69/99 s6.
Schedule 2
Form
NOTICE OF ARRANGEMENT
(name of acquiring credit union)
(name of member or depositor)
You are advised, pursuant to section 188(3)(d) of the Credit Union Act, that the assets and liabilities of (name of dissolving credit union) , of which you are/were* a depositor/member*, have been/are being* acquired and taken over by (name of acquiring credit union) .
On (effective date of the Minister’s certificate of approval) , all your business with (dissolving credit union) was/will be* transferred to (name of acquiring credit union).
Signed (officer of acquiring credit union)
(address and telephone number of
acquiring credit union’s registered office)
* Delete whichever is inapplicable
AR 25/95 Sched.;196/2006
