Credit Union Regulations

Link to law: https://www.novascotia.ca/just/regulations/regs/curegs.htm

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Credit Union Regulations
made under Section 257 of the

Credit Union Act

S.N.S. 1994, c. 4

O.I.C. 95-304 (April 11, 1995, effective January 1, 1995), N.S. Reg. 45/95

as amended to O.I.C. 2015-96 (March 31, 2015, effective April 1, 2015), N.S. Reg. 92/2015

 

Table of Contents

Text of regulations

Definitions

Forms

Credit union name

Administering insurance

Advice regarding insurance

Restriction on promotion of insurance company

Restriction on promotion of insurance policy

Restriction on providing information

Restriction on telecommunications device

Restriction re adjacent premises

Arrangement for services

Offices

Unclaimed balances

Payment of prescribed amount on death of a member

Loan policies

Loan requirements and restrictions

Material deposits

Overdrafts

Liquidity reserves and investments

Other investments

Subsidiaries and associated companies

Allowance for doubtful accounts

Equity

Matching

Termination of members

Audit committee

Credit committee

Maximum amount of deposit insurance

Liquidity investments by the Central

Other investments by the Central

Periodic review of the Act

Form 1 - Articles of Incorporation

Form 2 - Consent to Act as a First Director

Form 3 - Notice of Registered Office

Form 4 - Notice of Change of Registered Office

Form 5 - Notice of Change of Directors

Form 6 - Articles of Amendment

Form 7 - Restated Articles of Incorporation

Form 8 - Articles of Amalgamation

Form 9 - Articles of Reorganization

Form 10 - Statement of Intent to Dissolve or Revocation of Intent to Dissolve

Form 11 - Articles of Dissolution

Form 12 - Articles of Revival

Form 13 - Certificate

Form 14 - Certificate

Form 15 - Certificate of Dissolution

Form 16 - Offering Statement

Form 17 - Statement of Change in Facts

Definitions

1     In these regulations

 

                (a)    “Act” means the Credit Union Act;

 

                (b)    “authorized type of insurance” means

 

                         (i)      credit or charge-related insurance,

 

                         (ii)     creditors’ disability insurance,

 

                         (iii)    creditors’ life insurance,

 

                         (iv)    creditors’ loss of employment insurance,

 

                         (v)     creditors’ vehicle inventory insurance,

 

                         (vi)    export credit insurance,

 

                         (vii)   group accident and sickness insurance,

 

                         (viii)  group life insurance,

 

                         (ix)    mortgage insurance,

 

                         (x)     personal accident insurance, or

 

                         (xi)    travel insurance.

 

                (c)    “Central” means The Credit Union Central of Nova Scotia;

 

                (d)    “commercial loan” means any credit accommodation made to a member forthe development, production and sale of goods or services where

 

                         (i)      the credit accommodation is secured by the assets of the member, or

 

                         (ii)     the repayment of the credit accommodation is primarily dependent uponthe cash flow generated by the member;

 

                (e)    “Corporation” means the Nova Scotia Credit Union Deposit InsuranceCorporation;

 

                (f)    “credit or charge card-related insurance” in respect of a credit union means apolicy of an insurance company that provides insurance to the holder of acredit or charge card issued by the credit union as a feature of the card, withoutrequest and without an individual assessment of risk,

 

                         (i)      against loss of, or damage to, goods purchased with the card,

 

                         (ii)     under which the insurance company undertakes to extend a warrantyprovided by the manufacturer of goods purchased with the card, or

 

                         (iii)    against any loss arising from a contractual liability assumed by theholder when renting a vehicle, when the rental is paid for with the card;

 

                (g)    “creditors’ disability insurance” in respect of a credit union means a groupinsurance policy that will pay all or part of the amount of a debt of a debtor tothe credit union, in the event of bodily injury to, or an illness or disability of,

 

                         (i)      the debtor or the spouse of the debtor where the debtor is a naturalperson,

 

                         (ii)     a natural person who is a guarantor of all or part of the debt,

 

                         (iii)    any director or officer of the body corporate where the debtor is a bodycorporate, or

 

                         (iv)    where the debtor is an entity, any natural person who is essential to theability of the debtor to meet the debtor’s financial obligations to thecredit union;

 

                (h)    “creditors’ life insurance” in respect of a credit union means a group insurancepolicy that will pay to the credit union all or part of the amount of a debt of adebtor or, where a debt is in respect of a small business, a farm or fishery, allor part of the amount of the credit limit of a line of credit, in the event of thedeath of

 

                         (i)      the debtor or the spouse of the debtor where the debtor is a naturalperson,

 

                         (ii)     a natural person who is a guarantor of all or part of the debt,

 

                         (iii)    any director or officer of the body corporate where the debtor is a bodycorporate, or

 

                         (iv)    where the debtor is an entity, any natural person who is essential to theability of the debtor to meet the debtor’s financial obligations to thecredit union;

 

                (i)     “creditors’ loss of employment insurance” in respect of a credit union means apolicy of an insurance company that will pay, without any individualassessment of risk, all or part of the amount of a debt of a debtor to the creditunion in the event that

 

                         (i)      the debtor, if the debtor is a natural person, becomes involuntarilyunemployed, or

 

                         (ii)     a natural person who is a guarantor of all or part of the debt becomesinvoluntarily unemployed;

 

                (j)     “creditors’ vehicle inventory insurance” in respect of a credit union means apolicy of an insurance company that provides insurance against direct andaccidental loss or damage to vehicles that are held in stock for display and salepurposes by a debtor of the credit union, some or all of which have beenfinanced by the credit union;

 

                (k)    “document” means a document required to be sent to the Superintendent underthe Act;

 

                (l)     “export credit insurance” means a policy of an insurance company thatprovides insurance to an exporter of goods or services against a loss incurredby the exporter due to a non-payment for exported goods or services;

 

                (m)   “group accident and sickness insurance” in respect of a credit union means agroup insurance policy between an insurance company and the credit unionthat provides accident and sickness insurance severally in respect of a group ofidentifiable persons who individually hold certificates of insurance;

 

                (n)    “group insurance policy” in respect of a credit union means a contract ofinsurance between an insurance company and a credit union, that providesinsurance severally in respect of a group of identifiable persons whoindividually hold certificates of insurance;

 

                (o)    “group life insurance” in respect of a credit union means a group insurancepolicy between an insurance company and the credit union that provides lifeinsurance severally in respect of a group of identifiable persons whoindividually hold certificates of insurance;

 

                (p)    “group of identifiable persons” in respect of a credit union means the creditunion’s employees, its members and the employees of its subsidiaries;

 

                (q)    “insurance company” means an insurer that is licensed to insure risks under theInsurance Act;

 

                (r)    “line of credit” means a commitment on the part of a credit union to lend to adebtor, without a predetermined repayment schedule, one or more amounts,where the aggregate amount outstanding does not exceed a predeterminedcredit limit, which limit does not exceed the reasonable credit needs of thedebtor;

 

                (s)    “mortgage insurance” in respect of a credit union means an insurance policythat provides insurance to the credit union against loss caused by a default onthe part of a debtor who is a natural person under a loan from the credit unionthat is secured by a mortgage on real property or on an interest in real property;

 

                (t)     “personal accident insurance” means a group insurance policy that providesinsurance to a natural person

 

                         (i)      where the insurance company undertakes to pay one or more sums ofmoney in the event of bodily injury to, or the death of, the person that iscaused by an accident, or

 

                         (ii)     whereby the insurance company undertakes to pay a certain sum foreach day that the person is hospitalized in the event of bodily injury tothe person that is caused by an accident or in the event of an illness ordisability of the person;

 

                (u)    “residential property” means real property, the primary use of which isresidential, consisting of a building that is used, or is to be used, as no morethan 4 private dwellings at least 1 of which is, or is to be, occupied by anowner of the real property;

Clause 1(u) amended: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

                (v)    “system credit committee” means a committee established by the Centralpursuant to Section 214 of the Act;

 

                (w)   “travel insurance” means

 

                         (i)      a policy issued by an insurance company that provides insurance to anatural person in respect of a trip by the person away from the placewhere the person ordinarily resides, without any individual assessmentof risk, against

 

                                    (A) loss that results from the cancellation or interruption of the trip,

 

                                    (B)  loss of, or damage to, personal property that occurs while on thetrip, or

 

                                    (C)  loss that is caused by the delayed arrival of personal baggage whileon the trip, or

 

                         (ii)     a group insurance policy that provides insurance to a natural person inrespect of a trip by the person away from the province in which theperson ordinarily resides

 

                                    (A) against expenses incurred while on the trip that result from anillness or the disability of the person that occurs on the trip,

 

                                    (B)  against expenses incurred while on the trip that result from bodilyinjury to, or the death of, the person caused by an accident while onthe trip,

 

                                    (C)  whereby the insurance company undertakes to pay 1 or more sumsof money in the event of an illness or the disability of the personthat occurs on the trip, or of bodily injury to, or the death of, theperson that is caused by an accident while on the trip,

 

                                    (D) against expenses incurred by the person for dental carenecessitated by an accident while on the trip, or

 

                                    (E)  in the event that the person dies while on the trip, against expensesincurred for the return of that person’s remains to the place wherethe person was ordinarily resident before death, or for travelexpenses incurred by a relative of that person who must travel toidentify that person’s remains.

Forms

2     (1)    The forms set out in Schedule “A” are prescribed for the purposes of the Act.

 

       (2)    The instructions set out in Schedule “A” for completing the forms must be followedby the person or persons completing the forms for filing with the Superintendent.

 

       (3)    The Superintendent may require an affidavit of verification of any statementcontained in any form filed with the Superintendent.

Credit union name

3     For the purposes of clause 12(1)(a) of the Act, the Superintendent may allow the name of adissolved credit union to be used by a credit union that is proposed to be incorporated ifthe dissolved credit union was dissolved 10 or more years prior to the date of the proposedincorporation.

Administering insurance

4     (1)    A credit union may administer an authorized type of insurance.

 

       (2)    A credit union may administer a group insurance policy for its employees.

Advice regarding insurance

5     A credit union may provide advice or a service regarding an authorized type of insurance.

Restriction on promotion of insurance company

6     No credit union shall promote an insurance company, agent or broker unless

 

                (a)    the company, agent or broker deals only in authorized types of insurance; or

 

                (b)    the promotion does not take place inside a branch of the credit union and isdirected to

 

                         (i)      all of the holders of credit or charge cards issued by the credit unionwho receive regularly mailed statements of account,

 

                         (ii)     all of the credit union’s customers who are natural persons and whoreceive regularly mailed statements of account, or

 

                         (iii)    the general public.

Restriction on promotion of insurance policy

7     (1)    No credit union shall promote an insurance policy of an insurance company, agent orbroker, or a service in respect thereof, unless

 

                (a)    the policy is of an authorized type of insurance or the service is in respect ofsuch a policy;

 

                (b)    the policy is to be provided by a corporation without share capital other than amutual insurance company or a fraternal benefit society, that carries onbusiness without pecuniary gain to its members and the policy providesinsurance to a natural person in respect of the risks covered by travel insurance;or

 

                (c)    the promotion does not take place inside a branch of the credit union and thepromotion is directed to

 

                         (i)      all of the holders of credit or charge cards issued by the credit unionwho receive regularly mailed statements of account,

 

                         (ii)     all of the credit union’s customers who are natural persons and whoreceive regularly mailed statements of account, or

 

                         (iii)    the general public.

Clause 7(1)(c) replaced: O.I.C. 2007-213, N.S. Reg. 215/2007.

Clause 7(1)(d) repealed: O.I.C. 2007-213, N.S. Reg. 215/2007.

 

       (2)    Despite subsection (1) and Section 6, a credit union may exclude from a promotionreferred to in clause (1)(c) or 6(b) persons

 

                (a)    in respect of whom the promotion would contravene an Act of Parliament or ofthe legislature of a province;

 

                (b)    who have notified the credit union in writing that they do not wish to receivepromotional material from the credit union; or

 

                (c)    who are holders of a credit or charge card that was issued by the credit unionand in respect of which the account is not in good standing.

Subsection 7(2) amended (cross-reference corrected): O.I.C. 1999-80, N.S. Reg. 18/99; O.I.C. 2007-213, N.S.Reg. 215/2007.

Restriction on providing information

8     (1)    No credit union shall

 

                (a)    provide, directly or indirectly, an insurance company, agent or broker with anyinformation respecting

 

                         (i)      a member of the credit union,

 

                         (ii)     an employee of a member of the credit union,

 

                         (iii)    where a member of the credit union is an entity with members, any suchmember, or

 

                         (iv)    where a member of the credit union is a partnership, any partner of thepartnership;

 

                (b)    permit any of its subsidiaries to provide, directly or indirectly, an insurancecompany, agent or broker with any information that it receives from the creditunion respecting

 

                         (i)      a member of the credit union,

 

                         (ii)     an employee of a member of the credit union,

 

                         (iii)    where a member of the credit union is an entity with members, any suchmember, or

 

                         (iv)    where a member of the credit union is a partnership, any partner of thepartnership, or

 

                (c)    permit a subsidiary of the credit union that is a trust or loan company toprovide, directly or indirectly, an insurance company, agent or broker with anyinformation respecting

 

                         (i)      a customer of the subsidiary,

 

                         (ii)     an employee of a customer of the subsidiary,

 

                         (iii)    where a customer of the subsidiary is an entity with members, any suchmember, or

 

                         (iv)    where a customer of the subsidiary is a partnership any partner of thepartnership.

 

       (2)    Subsection (1) does not apply in respect of a credit union or a subsidiary of a creditunion that is a trust and loan company where

 

                (a)    the credit union or the subsidiary has established procedures to ensure that theinformation referred to in that subsection will not be used by an insurancecompany, agent or broker to promote the insurance company, agent or brokeror to promote an insurance policy or a service in respect thereof; and

 

                (b)    the insurance company, agent or broker, as the case may be, has given anundertaking to the credit union or to the subsidiary, in a form acceptable to theSuperintendent that information will not be used to promote the insurancecompany, agent or broker or to promote an insurance policy, or a service inrespect thereof.

Restriction on telecommunications device

9     No credit union shall provide on its premises a telecommunications device that isprimarily for the use of members and that directly links a customer with an insurancecompany, agent or broker.

Restriction re adjacent premises

10   No credit union shall carry on business in premises that are adjacent to an office of aninsurance company, agent or broker unless the credit union clearly indicates to itscustomers that the credit union and its premises are separate and distinct from the office ofthe insurance company, agent or broker.

Arrangement for services

11   For the purposes of subsection 16(3) of the Act any arrangement entered into by a creditunion with a financial institution or any other body corporate for the provision of anyservice or services offered by that financial institution or other body corporate, other thanany arrangement in the normal course of business, must be approved in writing by theCorporation prior to the credit union entering into any such arrangement.

Offices

12   A credit union may establish or relocate an office of the credit union if it has obtained bothof the following approvals before establishing or relocating the office:

 

                (a)    the approval of the directors;

 

                (b)    the approval of the Corporation.

Section 12 replaced: O.I.C. 2005-184, N.S. Reg. 98/2005.

Unclaimed balances

13   (1)    In this Section, “unclaimed balance” means a deposit, including any interest, theaccount for which

 

                (a)    has not had any transactions take place for 7 years; or

 

                (b)    has not had a statement of account requested or acknowledged by the depositorfor 7 years.

 

       (2)    The 7-year period referred to in subsection (1) starts from

 

                (a)    in the case of a deposit made for a fixed period, the day on which the fixedperiod terminated; and

 

                (b)    in the case of any other deposit, the later of

 

                         (i)      the date on which the last transaction took place, and

 

                         (ii)     the date on which a statement of account was last requested oracknowledged by the depositor.

 

       (3)    A credit union shall establish a policy, approved by the Corporation, that sets outdefinitions of dormant and inactive deposits and specifies how dormant and inactivedeposits are to be treated before they become an unclaimed balance.

 

       (4)    On or before January 15 and July 15 of each year, for each deposit that has becomean unclaimed balance since the last notification under this subsection, a credit unionshall notify

 

                (a)    each depositor in writing, mailed to the last address known to the credit unionfor the depositor, informing the depositor that the deposit has become anunclaimed balance and will be transferred to the Corporation unless thedepositor, no later than 30 days after the date of the notice, gives instructions tothe credit union as to the disposition of the unclaimed balance; and

 

                (b)    the Corporation in writing of the particulars of each deposit.

 

       (5)    On or before January 30 and July 30 each year, the Corporation shall publish, in anewspaper with circulation throughout Nova Scotia, a notice of all unclaimedbalances it has received notification of under clause (4)(b) since the last publicationunder this subsection and the notice shall include all of the following information:

 

                (a)    the name of the credit union holding each unclaimed balance;

 

                (b)    the name or names of the depositors of each unclaimed balance and their lastknown community of residence;

 

                (c)    a statement that each deposit has become an unclaimed balance and will betransferred to the Corporation unless the depositor, no later than 30 days afterthe date of publication of the notice, gives instructions to the credit unionholding the unclaimed balance as to the disposition of the unclaimed balance.

 

       (6)    If a credit union and the Corporation give the required notice under subsections (4)and (5) and do not, within 30 days after the date of the notice referred to insubsection (5), receive instructions from a depositor or creditor entitled to theunclaimed balance as to the disposition of the unclaimed balance, the credit unionshall

 

                (a)    pay the Corporation an amount equal to the unclaimed balance; and

 

                (b)    transfer all signature cards and signing authorities relating to the unclaimedbalance to the Corporation.

 

       (7)    Payment to the Corporation under subsection (6) discharges the credit union from allliability to a depositor or creditor in respect of an unclaimed balance.

 

       (8)    An unclaimed balance paid to the Corporation under subsection (6) must be held inperpetuity unless claimed by a depositor or creditor entitled to it.

 

       (9)    If a depositor or creditor requests payment from the Corporation of an unclaimedbalance to which they are entitled, the Corporation shall pay the depositor or creditor

 

                (a)    the amount paid to the Corporation under subsection (6); and

 

                (b)    if the account in which the deposit was made required interest to be paid on thedeposit, interest on the amount paid under subsection (6) at a rate of 2% a yearfrom the date the amount was received by the Corporation.

Section 13 replaced: O.I.C. 2005-184, N.S. Reg. 98/2005.

Payment of prescribed amount on death of a member

14   For the purposes of subsection 44(3) of the Act, the maximum amount that may be paid is$10 000.

Section 14 amended: O.I.C. 2005-184, N.S. Reg. 98/2005.

Loan policies

15   (1)    The loan policies established by a credit union pursuant to Section 45 of the Actshall provide for

 

                (a)    the maximum amount of secured loans that may be made to a member of thecredit union and that may be outstanding at any time;

Clause 15(1)(a) amended: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

                (aa)  the maximum amount of unsecured loans that may be made to a member of thecredit union and that may be outstanding at any time;

Clause 15(1)(aa) added: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

                (b)    the manner in which loans to directors, officers and employees of the creditunion are to be administered;

 

                (c)    the manner in which loans made by the credit union are to be considered andapproved, including guidelines for the amount and type of loans that must besubmitted to the system credit committee for approval;

Clause 15(1)(c) amended: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

                (d)    the extent to which, and the manner in which, loans made by the credit unionare to be secured;

 

                (e)    the circumstances, if any, in which unsecured loans may be made to a memberof the credit union; and

Clause 15(1)(e) amended: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

                (f)    any terms, conditions, restrictions or limitations established by the Corporationin relation to the lending activities of the credit union and such other matters asmay be required by the Corporation.

 

       (2)    The loan policies established by a credit union pursuant to subsection (1) mayprovide for any matters in addition to those required under subsection (1) in relationto the loans that may be made by, and the lending activities of, the credit union if theloan policies so established are not inconsistent with the Act, these regulations andany terms, conditions, restrictions or limitations established by the Corporation.

 

       (3)    The loan policies established by a credit union shall, subject to the Act, this Sectionand any terms, conditions, restrictions or limitations established by the Corporationbe established in accordance with prudent lending policies, standards and proceduresthat a reasonable and prudent person would apply in respect to making loans to avoidundue risk of loss and to obtain a reasonable rate of return.

 

       (4)    The loan policies established by a credit union shall be reviewed by the creditcommittee and approved by the directors and the Corporation no less frequently thanannually.

Subsection 15(4) amended: O.I.C. 2005-184, N.S. Reg. 98/2005.

Loan requirements and restrictions

16   (1)    Loans made by a credit union to its members shall be classified and shown in therecords of the credit union as

 

                (a)    personal loans, including personal line of credit loans;

 

                (b)    loans secured by mortgages on residential property that are insured pursuant tothe National Housing Act (Canada) or that are insured by an insurer that islicensed to carry on business in the Province pursuant to the Insurance Act;

 

                (c)    loans secured by mortgages on residential property that do not exceed 80% ofthe fair market value of the property mortgaged and are not in arrears;

Clause 16(1)(c) amended: O.I.C. 2007-433, N.S. Reg. 359/2007.

 

                (d)    loans secured by mortgages on residential property that are not included inclauses (b) and (c);

 

                (e)    loans to the Government of the Province or a Crown corporation or agency ofthe Province, or to a municipality, school board, hospital corporation or auniversity in the Province, and loans the repayment of which is guaranteed bythe Government of Canada or of a province or territory of Canada;

 

                (f)    commercial loans; and

 

                (g)    loans secured by mortgages on property other than residential property.

 

       (2)    The Corporation shall specify the total amount of the loans classified in accordancewith clauses (1)(f) and (g) that may be made by any particular credit union and thatmay be outstanding at any time.

Subsection 16(2) replaced: O.I.C. 2005-184, N.S. Reg. 98/2005.

Subsection 16(3) repealed: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

       (4)    A credit union shall not make a real estate mortgage loan on the security of propertyreferred to in clauses (1)(b), (c) or (d) for the purpose of purchasing, renovating orimproving the property or to refinance a real estate mortgage loan on the propertyunless

 

                (a)    the amount of the indebtedness, together with the amount of the indebtednessunder other mortgage loans on the security of the property mortgaged that rankequally with or in priority to the real estate mortgage loan

 

                         (i)      in the case of the purchase of the property, does not exceed 80% of thepurchase price or the fair market value of the property, whichever is lessat the time the real estate mortgage loan is granted,

Subclause 16(4)(a)(i) amended: O.I.C. 2007-433, N.S. Reg. 359/2007.

 

                         (ii)     in the case of the renovation or the improvement of the property or therefinancing of a real estate mortgage loan, does not exceed 80% of thefair market value of the property at the time the real estate mortgageloan is granted, or

Subclause 16(4)(a)(ii) amended: O.I.C. 2007-433, N.S. Reg. 359/2007.

 

                         (iii)    exceeds 80% of the amount determined under subclause (i) or (ii), as thecase may be, and the excess is guaranteed or insured by the Governmentof Canada or of a province or territory of Canada, or is otherwiseguaranteed or insured in a manner and to an extent approved by theCorporation; and

Subclause 16(4)(a)(iii) amended: O.I.C. 2007-433, N.S. Reg. 359/2007.

 

                (b)    the income from all sources that is available to the borrower is sufficient torepay the principal and interest of the real estate mortgage loan and any feesand taxes related to it.

 

       (5)    Subject to subsection (7) a credit union shall not make a loan to a member if theamount of the loan, together with the aggregate balances outstanding on other loans,including interest, to the member, the member’s spouse, the member’s dependentchildren or a company in which the member, the member’s spouse or the member’sdependent children or any of them together have an ownership interest greater than10%, exceeds 1% of the assets of the credit union.

 

       (6)    Upon application by a credit union the Corporation may vary the maximum loan setout in subsection (5) upon such terms and conditions as the Corporation considersadvisable.

Subsection 16(6) amended (cross-reference corrected): O.I.C. 1999-80, N.S. Reg. 18/99.

 

       (7)    For the purposes of subsection (5) a credit union may exclude any loan classified inaccordance with clauses (1)(b) and (e) and any loan that is fully secured by a dulyexecuted assignment of deposits or an assignment of securities of or guaranteed bythe Government of Canada, a province or a municipality in Canada.

Subsection 16(7) amended (cross-reference corrected): O.I.C. 2005-184, N.S. Reg. 98/2005.

Material deposits

17   (1)    For the purposes of Section 46 of the Act, a credit union shall report to the Centralthe existence of any deposit in the credit union in excess of $50 000 or 2% of theassets of the credit union, whichever is the greater.

 

       (2)    A credit union shall report all deposits held in excess of the amount set out insubsection (1) to the Central monthly.

Overdrafts

18   (1)    A credit union shall not permit overdrafts unless its directors have established awritten policy respecting overdrafts.

 

       (2)    A copy of the policy referred to in subsection (1) and any changes to the policy shallbe sent to the system credit committee and to the Corporation.

 

       (3)    A credit union shall make such changes to its overdraft policy as are directed by theCorporation.

Liquidity reserves and investments

19   (1)    For the purpose of Section 49 of the Act, a credit union shall maintain liquidityreserves of not less than 10% of the total amount of deposits in and borrowings ofthe credit union.

 

       (2)    Financial instruments in which a credit union may invest its liquidity reserves are

 

                (a)    cash and cash equivalents;

 

                (b)    demand deposits in the Central or a financial institution that is a member of theCanada Deposit Insurance Corporation;

 

                (c)    shares of the Central;

 

                (d)    term deposits in the Central or a financial institution that is a member of theCanada Deposit Insurance Corporation that have a term to maturity of notmore than 1 year;

 

                (e)    levies that are prepaid to the Corporation; and

 

                (f)    debentures or other evidences of indebtedness of the Corporation held by thecredit union.

 

       (3)    A credit union shall maintain 90% of the amount of the liquidity reserves requiredpursuant to subsection (1) in eligible financial instruments of the Central.

Subsection 19(4) repealed: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

       (5)    A credit union shall not borrow for the purpose of establishing and maintainingliquidity reserves other than from its members or the Central.

 

       (6)    A credit union shall report at the end of each month to the Central and theCorporation on the position of its liquidity reserves.

Other investments

20   (1)    For the purposes of Section 50 of the Act, a credit union may, subject to subsection(2), make investments authorized by the investment policies established by the creditunion for that purpose if the investment policies are approved by the Corporation andfiled with the Superintendent.

 

       (2)    A credit union may make investments only in accordance with prudent investmentstandards.

 

       (3)    For the purposes of subsection (2) and subsection 30(5), prudent investmentstandards are those that a reasonable and prudent person would apply in respect of aportfolio of investments so as to avoid undue risk of loss and to obtain a reasonablereturn on the investments made.

 

       (4)    Despite subsections (1), (2) and (3) a credit union may not invest in real estate for itsown use if the total book value of the investment of the credit union in real estate forits own use after the proposed investment is made exceeds 50% of the equity of thecredit union, without the prior approval of the Corporation.

Subsidiaries and associated companies

21   (1)    In this Section

 

                (a)    “associated company” means a corporation more than 10% and less than 51%of the voting shares of which are owned by a credit union;

 

                (b)    “subsidiary” means a corporation 51% or more of the voting shares of whichare owned by a credit union.

 

       (2)    A credit union may, with the approval of the Corporation, establish or acquire as asubsidiary or associated company any corporation that is

 

                (a)    a data processing or information management company;

 

                (b)    a factoring company;

 

                (c)    a financial leasing company;

 

                (d)    a foreign financial institution;

 

                (e)    an investment counselling company;

 

                (f)    a mutual fund distribution company;

 

                (g)    a portfolio management company;

 

                (h)    a real property brokerage company;

 

                (i)     a real property company;

 

                (j)     a management service company;

 

                (k)    an insurance company or insurance brokerage company;

 

                (l)     a securities dealer company;

 

                (m)   a bank;

 

                (n)    a trust company;

 

                (o)    a loan company;

 

                (p)    an auto leasing company; or

Clause 21(2)(p) added: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

                (q)    a tax preparation company.

Clause 21(2)(q) added: O.I.C. 2005-184, N.S. Reg. 98/2005.

Subsection 21(2) amended: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

       (3)    A subsidiary described in subsection (2) shall not invest its funds except as providedfor in the Act or these regulations.

 

       (4)    A credit union shall not make an investment in or guarantee an obligation of asubsidiary of the credit union if, after the making of the investment or the giving ofthe guarantee, the total book value of all such investments and guarantees willexceed 5% of the total assets of the credit union.

 

       (5)    Subsection (4) does not apply where the subsidiary is a trust company or a loancompany.

 

       (6)    With the prior approval of the Superintendent and subject to such terms andconditions as the Superintendent may impose, a credit union may establish or acquireas a subsidiary or associated company, in addition to those set out in subsection (2),any company carrying on any other business activity reasonably ancillary to thebusiness of the credit union.

Allowance for doubtful accounts

22   For the purposes of Section 51 of the Act, the allowance for doubtful accounts required tobe maintained by a credit union shall be equal to the aggregate amount of

 

                (a)    the portion of any loan considered to be uncollectible based on a review of allloans outstanding and taking into consideration all of the factors that have animpact on the collectibility of each loan, including the security held; and

 

                (b)    a percentage of the loans outstanding that are considered to be collectible,calculated on the basis of past loss experience and the economic conditionsthat may have an impact on the loans outstanding.

Equity

23   (1)    For the purpose of subsection 52(1) of the Act, a credit union shall establish andmaintain a level of equity that is not less than 5% of its assets.

 

       (2)    If a credit union’s equity falls below the percentage required by subsection (1), thecredit union shall submit an equity building plan to the Corporation.

 

       (3)    The Corporation shall review an equity building plan submitted by a credit union andshall make recommendations on the plan to the Superintendent.

 

       (4)    An equity building plan is subject to the approval of the Superintendent.

Section 23 replaced: O.I.C. 2005-184, N.S. Reg. 98/2005.

Matching

24   (1)    The directors of a credit union shall

 

                (a)    establish a policy and procedures for matching the terms and return ofinvestments and loans made by the credit union with the terms and return ofdeposits in and other interest sensitive liabilities of the credit union; and

 

                (b)    file a report with the Corporation, not less than once in each quarter of eachfinancial year of the credit union, or more frequently as may be consideredadvisable by the Corporation, showing

 

                         (i)      investments and loans with variable interest rates matched with depositsand other liabilities with variable interest rates; and

 

                         (ii)     fixed rate investments and loans with a term to maturity matched withfixed rate deposits and other liabilities that are of a comparable term.

 

       (2)    A credit union shall file a copy of the policy required pursuant to subsection (1) withthe Corporation and shall make such changes to the policy as are directed by theCorporation.

Termination of members

25   (1)    An appeal under subsection 59(7) of the Act shall be made by submitting a writtennotice of appeal to the Superintendent within 30 days of receiving notice oftermination.

 

       (2)    The notice of appeal shall contain a statement that the termination of membershipwas for reasons other than failure to fulfil financial obligations.

 

       (3)    Within 14 days of receipt of a notice of appeal under subsection (1), theSuperintendent shall notify the credit union of the appeal and the credit union, within14 days after receipt of such notice, shall provide the reasons for termination inwriting to the Superintendent and to the person whose membership has beenterminated.

 

       (4)    Upon receipt of the written reasons for termination, the Superintendent shall convenea hearing to consider the appeal and shall give not less than 14 days notice of thehearing to the person whose membership has been terminated and the credit union.

 

       (5)    Where a hearing has been held under subsection (4), the Superintendent shall notifythe person whose membership has been terminated and the credit union of thedecision of the Superintendent in writing.

Audit committee

26   (1)    The audit committee established under Section 91 of the Act shall be composed of 3or more members of the credit union none of whom is an employee, a member of thecredit committee or the chair of the board of directors of the credit union and at least1 of whom is a director of the credit union.

Subsection 26(1) replaced: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

       (2)    The audit committee shall be chaired by a committee member who is a director ofthe credit union.

 

       (3)    The duties of the audit committee are to do all of the following:

 

                (a)    review and make recommendations to the board regarding all of the following:

 

                         (i)      the selection process for the auditor,

 

                         (ii)     the appointment of the auditor,

 

                         (iii)    the terms of the auditor’s engagement;

 

                (b)    meet with the auditor before an audit begins to review the scope and terms ofengagement of the auditor;

 

                (c)    review and discuss the auditor’s report, including the auditor’s findings, anyrestrictions on the scope of the auditor’s work and any issues that the auditoridentified in performing the audit;

 

                (d)    review the audited financial statements of the credit union and any subsidiariesbefore they are approved by the directors under Section 107 of the Act;

 

                (e)    review and make recommendations to the board regarding all of the following:

 

                         (i)      recommendations and reports by the auditor,

 

                         (ii)     any letters respecting management from the auditor,

 

                         (iii)    any response by the management of the credit union to letters respectingmanagement from the auditors;

 

                (f)    review the organization and independence of the internal auditor of the creditunion, including the internal auditor’s goals, work plans and any problems thatthe internal auditor experienced in performing an audit;

 

                (g)    review any recommendations made by the internal auditor respecting theimprovement of accounting and internal control practices and the responsemade by the management of the credit union to the recommendations;

 

                (h)    monitor adherence by the directors and officers of the credit union to therequirements of Section 96 of the Act;

 

                (i)     review all reports on the affairs of the credit union made by the Superintendentor the Corporation, or any report referred to the audit committee by the boardand monitor the implementation of recommendations that the audit committeeconsiders significant and report to the board on the progress of theimplementation;

 

                (j)     review or develop policies of the credit union as directed by the board andundertake such other duties as are delegated by the board.

Subsection 26(3) replaced: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

       (3A) The audit committee shall report regularly to the board of directors on all matters insubsection (3).

Subsection 26(3A) added: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

       (4)    The audit committee shall ensure that a full and correct record of all proceedings ofthe audit committee is made and kept available for examination by theSuperintendent or any person authorized under the Act to examine the records of acredit union.

Credit committee

27   (1)    The credit committee established under Section 91 of the Act shall be composed of 3or more members of the credit union none of whom is an employee, a member of theaudit committee or the chair of the board of directors of the credit union and at least1 of whom is a director of the credit union.

Subsection 27(1) replaced: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

       (2)    The credit committee shall be chaired by a committee member who is a director ofthe credit union.

 

       (3)    In addition to any other duties that may be given to the committee by the directors ofthe credit union, the duties of the credit committee shall be

 

                (a)    to receive and to review a report prepared by the manager of the credit union atleast quarterly which shall include, on a comparative basis,

 

                         (i)      the total of all loans past due over 30 days, 60 days and 90 days as wellas details including security of those loans past due over ninety days,

 

                         (ii)     the total of all outstanding loans in each loan classification,

 

                         (iii)    the total and the manner of calculation of the allowance required fordoubtful accounts,

 

                         (iv)    the number, amount and type of loans which require approval of thesystem credit committee including whether such approval has beendenied or has been granted upon certain conditions,

Subclause 27(3)(a)(iv) amended: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

                         (v)     a listing of employee, audit committee member, credit committeemember and director loans outstanding that are in arrears and the extentof the arrears,

 

                         (vi)    a listing of overdrafts outstanding, and

 

                         (vii)   the details of all loans previously in arrears that have been restructuredduring the period;

 

                (b)    to recommend to the directors, policies and procedures to be followed by thecredit union for approving and granting loans made by the credit union; and

 

                (c)    to report in writing to the board of directors at the next regular meeting of theboard following a meeting of the credit committee, on the activities of thecredit committee including matters included in clause (a) and including loansmade to directors, officers and employees under clause 15(1)(b).

Clause 27(3)(c) replaced: O.I.C. 2005-184, N.S. Reg. 98/2005.

Subsection 27(4) repealed: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

       (5)    The credit committee shall ensure that a full and correct record of all proceedings ofthe credit committee is made and kept available for examination by theSuperintendent or any person authorized under the Act to examine the records of acredit union.

Maximum amount of deposit insurance

28   The maximum amount that may be paid by the Corporation in respect of the deposits ofany member of a credit union shall be $250 000.

Section 28 amended: O.I.C. 1999-80, N.S. Reg. 18/99.

Liquidity investments by the Central

29   For the purposes of clause 189(a) of the Act, any deposits in the Central made by creditunions for the purpose of establishing and maintaining liquidity reserves shall be investedor maintained by the Central in

 

                (a)    cash on hand;

 

                (b)    demand deposits or deposits with a term to maturity of 1 year or less in theCredit Union Central of Canada;

 

                (c)    demand deposits in a bank or other financial institution that is a member of theCanada Deposit Insurance Corporation;

 

                (d)    unencumbered bonds, debentures or other evidence of indebtedness of orguaranteed by the Government of Canada or the government of any provinceof Canada, which are redeemable or cashable at any time or have a term tomaturity of 1 year or less; or

 

                (e)    unencumbered bonds, debentures, notes, certificates or other evidence ofindebtedness of or guaranteed by a bank or other body corporate which hasbeen accorded a high quality credit rating by a recognized credit rating agency,and which are redeemable or cashable at any time or have a term to maturity of1 year or less.

Other investments by the Central

30   (1)    For the purposes of clause 189(b) of the Act, the Central shall not make a loan or aninvestment, except an investment described in Section 29, unless the Central hassatisfied the requirements of Section 29.

 

       (2)    The Central shall not make a loan to or invest in the securities of any member orassociate member, except as authorized by subsection (3), if

 

                (a)    the aggregate of

 

                         (i)      the amount of the loans made by the Central to the member or associatemember, less the market value of government securities, municipalsecurities and school securities, if any, pledged as security for any suchloans; and

 

                         (ii)     the amount invested by the Central in the securities of the member orassociate member,

 

exceeds 25% of the aggregate of the equity of the Central and the total amountof money of the member or associate member on deposit with the Central.

 

       (3)    The Central may, with the consent of at least 2/3 of its directors, make a loan to amember that would otherwise be prohibited under subsection (2) if the term of theloan does not exceed 1 year and the loan is adequately secured.

 

       (4)    Where a loan is made to a member under subsection (3) the Central shall report themaking of the loan to the Superintendent within 15 days of the directors’ approval.

 

       (5)    Subject to subsections (1), (2) and (3) the Central may make investments only inaccordance with a policy established by the directors and based on prudentinvestment standards as defined in subsection 20(3).

Section 31 repealed: O.I.C. 2005-184, N.S. Reg. 98/2005.

Section 32 repealed: O.I.C. 2005-184, N.S. Reg. 98/2005.

Periodic review of the Act

33   (1)    The Act shall be subject to a general review when directed by the Minister whichshall not be later than 7 years after the Act has come into force or 7 years after apreceding review has been completed.

 

       (2)    When the Minister directs that a review be conducted under subsection (1), theMinister shall form a committee of representatives from the Central and theCorporation to conduct the review.

Subsection 33(2) replaced: O.I.C. 2005-184, N.S. Reg. 98/2005.

       (3)    A committee that is formed under subsection (2) shall

 

                (a)    solicit input from the credit union industry; and

 

                (b)    report in writing to the Minister on the results of its review, including anyrecommendations for change that it considers appropriate.

Subsection 33(3) replaced: O.I.C. 2005-184, N.S. Reg. 98/2005.

 

34   Fees are payable under the Act as follows:

 

                (a)    on issuance by the Superintendent of a certificate of

 

                         (i)      incorporation of a credit union....................................................$265.40

 

                         (ii)     amendment of articles other than an amendment under (iii)........$132.70

 

                         (iii)    amendment of articles correcting a clerical error...........................$24.95

 

                         (iv)    restated articles...........................................................................$132.70

 

                         (v)     amalgamation.............................................................................$265.40

 

                         (vi)    articles of reorganization............................................................$132.70

 

                         (vii)   revival of a credit union..............................................................$132.70

 

                         (viii)  intent to dissolve or revocation of intent to dissolve......................$19.95

 

                (b)    for the approval of charter by-laws or any amendment, repeal

or replacement thereof............................................................................$13.30

 

                (c)    for filing any notice..................................................................................$6.65

 

                (d)    for filing an annual return.......................................................................$26.50

 

                (e)    for late filing of an annual return, for each day after the date

the annual return is due to be filed (maximum total $500 per return).........$6.65

 

                (f)    for a request to reserve one name..............................................................$6.65

 

                (g)    for a search by mail of documents filed by a credit union..........................$6.65

 

                (h)    for an order of the Superintendent.........................................................$132.70

 

                (i)     for a certificate of status..........................................................................$13.30

 

                (j)     for certified copies or photocopies of

 

(i)any articles...................................................................................$13.30

 

                         (ii)     any document not otherwise herein provided

– for the first page..........................................................................$4.50

– for the second and any subsequent pages.............................$0.60 each

 

                (k)    for limited registration of an extra-provincial credit union.......................$66.35

 

                (l)     for filing an offering statement..............................................................$159.25

 

                (m)   for filing a statement of change in facts...................................................$79.60

Section 34 replaced: O.I.C. 2015-96, N.S. Reg. 92/2015.

Form 1 - Articles of Incorporation

Nova Scotia

the Credit Union Act

 

1.    The name of the credit union shall be

 

2.    The registered office of the credit union shall be located at (name of city, town, village ormunicipality only)

 

3.    Membership in the credit union shall be limited to persons having a bond of association asfollows: (delete if there is no bond of association)

 

4.    The credit union shall permit persons to become associates of the credit union on thefollowing terms: (delete if associate status is not to be permitted)

 

5.    The credit union may issue an unlimited number of common shares at an issue price of $(insert issue price which may not be less than $5) each

 

6.    The credit union may issue classes of shares other than common shares. The maximumnumber of shares, the total consideration to be paid and the rights, privileges, restrictionsand conditions attaching to the shares of each class are as follows:

 

       (a)    Class (name of class)

Maximum number of shares (insert number)

Total consideration to be paid (insert total dollars)

Rights, privileges, restrictions and conditions (list items)

 

       (b)    (Insert same information as in (a) for second and subsequent classes)

(Delete this item if no shares other than common are authorized)

 

7.    Transfer of shares shall be subject to the following restrictions: (delete if inapplicable)

 

8.    The credit union shall not carry on the following business: (delete if inapplicable)

 

9.    The credit union shall not exercise the following powers: (delete if inapplicable)

 

10.  The first directors of the credit union are: (set out name and residence address)

 

11.  The incorporators of the credit union are: (set out name, residence address and signature)

Instructions

 

●      If any first director set out in Item 10 is not an incorporator, a Consent to Act as a FirstDirector (Form 2) must be attached.

 

●      Provide a written statement that each director named herein must be qualified under theAct to be a director of the credit union. Please provide a written statement confirming thatthe Director is qualified under the Act to act as a First Director.

 

●      Provide a written statement that to the best of your knowledge and belief, the proposedname of the credit union is not the same as or similar to the name of any known bodycorporate, association, partnership, individual or business so as to be likely to confuse ormislead.

 

●      In paragraphs 10 and 11, state the full names including all given names and full residenceaddresses including street, number, city, town or municipality and postal code. A postoffice box number alone is not acceptable.

 

●      Articles are to be executed in duplicate for delivery to the Superintendent.

Form 2 - Consent to Act as a First Director

Nova Scotia

the Credit Union Act

 

I,

(name in full, including all given names)

residing at

(street and number, city, town, or municipality including postal code)

hereby consent to act as a first director of

 

Dated this day of , 19 .

 

 

Signature of consenting person

Form 3 - Notice of Registered Office

Nova Scotia

the Credit Union Act

 

       I, of                              ,

a first director/incorporator of

hereby give notice that the address of the registered office of the credit union in the locationspecified in the accompanying articles of incorporation is

 

Dated this day of , 19 .

 

Signature of first director/incorporator

Instructions

●      Describe the exact location of the registered office in the city, town, village ormunicipality. Post office box number alone is not acceptable.

 

●      Submit the notice in duplicate.

Form 4 - Notice of Change of Registered Office

Nova Scotia

the Credit Union Act

 

1.    Name of credit union

 

2.    Notice is hereby given that on (date)

the address of the registered office of the credit union was changed to:

 

Dated this day of , 19 .

 

 

Signature of officer of the credit union

Form 5 - Notice of Change of Directors

Nova Scotia

the Credit Union Act

 

1.    Name of credit union, including address

 

2.    Notice is hereby given that on (date)

the following persons ceased to be directors of the credit union:

 

(name, including address)

 

3.    Notice is hereby given that on (date)

the following persons became directors of the credit union:

 

(name, including address)

 

Dated this day of , 19 .

 

 

Signature of officer of the credit union

Instructions

●      State full names and residence addresses. Post office box number alone is not acceptable.

Form 6 - Articles of Amendment

Nova Scotia

the Credit Union Act

 

1.    Name of credit union

 

2.    The amendment to the articles has been authorized by

 

       (a)    the members under subsection 125(1) of the Act                                                     

       (b)    the members under subsection 125(2) of the Act                                                     

       (c)    the directors under subsection 125(2) of the Act                                                     

       (d)    the holders of shares other than common or surplus

                shares under subsection 39(2) of the Act                                                                 

 

and the articles are amended as follows:

 

Dated this day of , 19 .

 

 

Signature

 

Position held

Instructions

●      In paragraph 2, indicate with an “x” the relevant subsection(s) under which the amendmentis authorized and set out the changes that are being made.

 

●      Articles are to be executed in duplicate for delivery to the Superintendent.

Form 7 - Restated Articles of Incorporation

Nova Scotia

the Credit Union Act

 

1.    The name of the credit union shall be

 

2.    The date of incorporation of the credit union is

 

3.    The registered office of the credit union shall be located at (name of city, town, village ormunicipality only)

 

4.    Membership in the credit union shall be limited to persons having a bond of association asfollows: (delete if there is no bond of association)

 

5.    The credit union shall permit persons to become associates of the credit union on thefollowing terms: (delete if associate status is not to be permitted)

 

6.    The credit union may issue an unlimited number of common shares at an issue price of $(insert issue price which may not be less than $5) each

 

7.    The credit union may issue classes of shares other than common shares. The maximumnumber of shares, the total consideration to be paid and the rights, privileges, restrictionsand conditions attaching to the shares of each class are as follows:

 

       (a)    Class (name of class)

Maximum number of shares (insert number)

Total consideration to be paid (insert total dollars)

Rights, privileges, restrictions and conditions (list items)

 

       (b)    (Insert same information as in (a) for second and subsequent classes)

(Delete this item if no shares other than common are authorized)

 

8.    Transfer of shares shall be subject to the following restrictions: (delete if inapplicable)

 

9.    The credit union shall not carry on the following business: (delete if inapplicable)

 

10.  The credit union shall not exercise the following powers: (delete if inapplicable)

 

11.  The directors of the credit union are: (set out name and residence address)

 

12.  The foregoing restated articles of incorporation correctly set out, without substantivechange, the corresponding provisions of the articles of incorporation as amended andsupersede the original articles of incorporation.

 

Dated this day of , 19 .

 

 

Signature

 

Position held

 

●      In paragraph 3, state only the name of the city, town, village or municipality in NovaScotia where the registered office is located.

 

●      In paragraph 11, state the full names including all given names and full residenceaddresses including street, number, city, town or municipality and postal code. A postoffice box number alone is not acceptable.

 

●      Articles are to be executed in duplicate for delivery to the Superintendent.

Form 8 - Articles of Amalgamation

Nova Scotia

the Credit Union Act

 

1.    The name of the amalgamated credit union shall be

 

2.    The registered office of the credit union shall be located at (name of city, town, village ormunicipality only)

 

3.    Membership in the credit union shall be limited to persons having a bond of association asfollows: (delete if there is no bond of association)

 

4.    The credit union shall permit persons to become associates of the credit union on thefollowing terms: (delete if associate status is not to be permitted)

 

5.    The credit union may issue an unlimited number of common shares at an issue price of $(insert issue price which may not be less than $5) each

 

6.    The credit union may issue classes of shares other than common shares. The maximumnumber of shares, the total consideration to be paid and the rights, privileges, restrictionsand conditions attaching to the shares of each class are as follows:

 

       (a)    Class (name of class)

Maximum number of shares (insert number)

Total consideration to be paid (insert total dollars)

Rights, privileges, restrictions and conditions (list items)

 

       (b)    (Insert same information as in (a) for second and subsequent classes)

(Delete this item if no shares other than common are authorized)

 

7.    The credit union shall not carry on the following business: (delete if inapplicable)

 

8.    The credit union shall not exercise the following powers: (delete if inapplicable)

 

9.    The directors of the credit union are: (name and residence address)

 

10.  The amalgamating credit unions have entered into an agreement with each other inaccordance with

 

       (a)    Section 132 of the Act                     ______

       (b)    clause 243(1)(h) of the Act             ______

 

11.  The date of amalgamation is

 

12.  The names of amalgamating credit unions are:

 

13.  The signature of each officer and the position held are set out below.

Instructions

●      In paragraph 2, state only the name of the city, town, village or municipality in NovaScotia where the registered office is located.

 

●      In paragraph 9, state the full names including all given names and full residence addressesincluding street, number, city, town or municipality and postal code. A post office boxnumber alone is not acceptable.

 

●      In paragraph 10, indicate with an “x” the relevant provision under which theamalgamation was approved or ordered.

 

●      Two certified copies of the charter by-laws of the amalgamated credit union as set out inthe amalgamation agreement shall accompany the articles of amalgamation as well asstatutory declarations required by subsection 133(2) of the Act if it is an amalgamationunder Section 132 of the Act and written consent of the supervisor if an amalgamatingcredit union is under supervision.

 

●      If a credit union is ordered by its supervisor to amalgamate under Section 243 of the Act, acertified copy of the order shall accompany the articles of amalgamation.

 

●      Articles are to be executed in duplicate for delivery to the Superintendent.

Form 8 amended (typographical errors corrected): O.I.C. 1999-80, N.S. Reg. 18/99.

Form 9 - Articles of Reorganization

Nova Scotia

the Credit Union Act

 

1.    The name of the credit union shall be

 

2.    In accordance with the court order for reorganization, under Section 139 of the Act thearticles of incorporation are amended as follows:

 

Dated this day of , 19 .

 

 

Signature

 

Position held

Instructions

●      In paragraph 2 state the amendments to the articles of incorporation in accordance with thecourt order and such amendments must conform with and have continuity with theparagraph references of the existing articles.

 

●      A certified copy of the court order must accompany the articles of reorganization togetherwith any notices otherwise required to be filed in order to comply with the terms of theorder.

 

●      Articles are to be executed in duplicate for delivery to the Superintendent.

Form 10 - Statement of Intent to Dissolve or Revocation of Intent to Dissolve

Nova Scotia

the Credit Union Act

 

1.    The name of the credit union is

 

2.    The credit union intends to liquidate and dissolve under Section 143 of the Act.

or

 

The credit union revokes its certificate of intent to dissolve.

 

Dated this day of , 19 .

 

 

Signature

 

Position held

Instructions

●      In paragraph 2 strike out what does not apply.

 

●      Statements of intent to dissolve or revocation of intent to dissolve are to be executed induplicate for delivery to the Superintendent.

Form 11 - Articles of Dissolution

Nova Scotia

the Credit Union Act

 

1.    The name of [the] credit union is

 

2.    The credit union has voluntarily resolved to dissolve under

 

       (a)    subsection 142(1) of the Act           ______

       (b)    subsection 142(2) of the Act           ______

       (c)    subsection 142(3) of the Act           ______

       (d)    Section 143 of the Act                     ______

 

and has discharged all its obligations and now has no property and no liabilities.

 

3.    Documents and records of the credit union shall be kept for 6 years from the date ofdissolution by the Credit Union Deposit Insurance Corporation pursuant to Section 147 ofthe Act.

 

4.    The address of the Corporation is

 

Dated this day of , 19 .

 

 

Signature

 

Position held

Instructions

●      In paragraph 2, indicate with an “x” the relevant provision under which the credit union isbeing dissolved.

 

●      In paragraph 3, state the full address including street, number of [and] postal code.

 

●      Articles are to be executed in duplicate for delivery to the Superintendent.

Form 12 - Articles of Revival

Nova Scotia

the Credit Union Act

 

1.    Name of dissolved credit union

2.    Date of dissolution

3.    Reasons for dissolution

4.    Interest of applicant in revival of the credit union

5.    Name of applicant

Address of applicant

 

Dated this day of , 19 .

 

 

Signature

Instructions

●      In paragraph 5, state the full name and address including street, number, city, town villageor municipality and postal code. Post office box number alone is not acceptable.

 

●      If the dissolved credit union was in default with respect to any filings required under theCredit Union Act, all such defaults must be remedied at the time of delivering the articles.

 

●      Articles are to be executed in duplicate for delivery to the Superintendent.

Form 13 - Certificate

Nova Scotia

the Credit Union Act

 

This is to certify that these articles are effective on

 

 

Superintendent

Form 14 - Certificate

Nova Scotia

the Credit Union Act

 

This is to certify that this statement is effective on

 

 

Superintendent

Form 15 - Certificate of Dissolution

Nova Scotia

the Credit Union Act

 

This is to certify that

 

was this day dissolved by

 

under Section

 

 

Date of dissolution

 

 

Superintendent

Receipt

Issued this day of , 19 .

 

Superintendent

Form 16 - Offering Statement

Nova Scotia

the Credit Union Act

 

1.    The name of the credit union is

 

2.    The date of incorporation of the credit union is

 

3.    The registered office of the credit union is located at (name of city, town, village or municipalityonly)

 

4.    The directors and officers of the credit union are: (set out name, title and residence address)

 

5.    Membership in the credit union is limited to persons having a bond of association asfollows: (delete if there is no bond of association)

 

6.    The credit union permits persons to become associates of the credit union on the followingterms: (delete if associate status is not to be permitted)

 

7.    The credit union may issue an unlimited number of common shares at an issue price of $(insert issue price which may not be less than $5) each

 

8.    Share capital:

 

       -       Class of shares

       -       No. of shares authorized

       -       Issue price

       -       Total consideration to be paid for each class

       -       No. of shares issued

       -       Amount paid thereon

 

9.    Transfer of shares is subject to the following restrictions: (delete if inapplicable)

 

10.  The patronage loan capital outstanding is

 

11.  A description and amount of any mortgages, debentures or other debt obligationsoutstanding (other than patronage loans) is set out below:

 

12.  The restrictions on transfer of any securities issued by the credit union are:

 

13.  A description of the securities issued is set out below:

 

14.  The use of the proceeds is set out below:

 

15.  The commission payable or discount allowable is

 

16.  The amount and particulars of any mortgages, bonds, debentures or other debt obligationsranking ahead of the securities to be issued are:

 

17.  A description of any action, suit or other proceeding to which the credit union is a party isset out below:

 

18.  The material interest of any director, officer or employee in the operation of the creditunion generally is

 

19.  Any material interest of any director, officer or employee in this security issue specificallyis

 

20.  A description of every material contract entered into within 2 years prior to the date of theoffering statement is set out below:

 

21.  Any other material facts not already described are

 

22.  The financial statements and auditor’s reports thereon where required are attached heretoas schedule _____ and are incorporated in and form part of this offering statement.

 

23.  The foregoing constitutes full, true and plain disclosure of all material facts relating to thesecurities proposed to be issued as required by the Act.

 

24.  The date and signatures of all directors of the credit union are set out below.

Instructions

●      In paragraphs 3 and 4, state the full address including street, number, city, town ormunicipality and postal code.

 

●      The financial statements referred to in paragraph 22 must include the audited annualfinancial statements for the most recent fiscal year ended and if the most recent fiscal yearended more than 120 days before the date of this offering statement, include as wellfinancial statements for the period that began immediately after the year end and ended notmore than 60 days before the date of this offering statement.

 

●      The financial statements attached hereto must be properly signed by 2 or more directors ofthe credit union evidencing approval by the directors.

 

●      Offering statements are to be executed in duplicate for delivery to the Superintendent.

Form 17 - Statement of Change in Facts

Nova Scotia

the Credit Union Act

 

1.    Name of credit union

 

2.    Date of change of facts

 

3.    Particulars of change in facts

 

4.    The foregoing constitutes full, true and plain disclosure of any change in facts set forth inthe offering statement receipted by the Superintendent on the day of , 19 .

 

5.    Date and signatures of all directors of the credit union

Instructions

 

●      Statements of change in facts are to be executed in duplicate for delivery to theSuperintendent.

Receipt

Issued this day of , 19 .

 

Superintendent