Federal Credit Union Conversion Regulations (SOR/2012-268)
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Regulations are current to 2023-03-06 and last amended on 2012-12-19. Previous Versions
Restriction on Issuance of Membership Shares and Securities
9 (1) Unless the converting credit union is subject to an order to increase its capital under subsection 485(3) of the Act, it must not issue membership shares or securities beginning on the day on which the board authorization occurs.
(2) Subsection (1) does not apply to the issuance
(a) to a person applying for membership in the converting credit union of the minimum number of membership shares required for membership under the by-laws;
(b) of membership shares in payment of a patronage allocation to the converting credit union’s members; or
(c) of securities other than shares on market terms and conditions.
(3) A converting credit union must not accept any new applications for membership or issue any new membership shares beginning on the thirtieth day before the date of the valuation report referred to in paragraph 6(k).
Notice of Restrictions
10 As soon as feasible following the board authorization, the converting credit union must publish an announcement at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper of general circulation in each location in which its members normally reside, and continuously for four consecutive weeks on its website, advising members of
(a) the proposed conversion;
(b) the restrictions set out in sections 8 and 9; and
(c) its policy on accepting new members beginning on the day on which the board authorization occurs and ending once the acceptance of new members is prohibited under subsection 9(2).
Application to Minister
11 An application made under section 216.08 of the Act must include
(a) the information referred to in paragraphs 6(a) and (b);
(b) the conversion proposal;
(c) a statement indicating that the Superintendent has approved the conversion proposal and the date on which it was approved;
(d) the special resolutions of the converting credit union’s members and shareholders, if any, accompanied by a certificate from the converting credit union’s board of directors indicating the results of the votes held in respect of the resolutions;
(e) the material referred to in paragraphs 6(k) to (m);
(f) the converting credit union’s response to any requirement imposed by the Superintendent under section 7;
(g) an explanation of how the conversion is in the best interests of the Canadian financial system, including the cooperative financial system;
(h) any by-laws necessary to implement the conversion proposal; and
(i) the proposed letters patent of conversion.
Converting Credit Unions Subject to the Canada Deposit Insurance Corporation Act
12 A converting credit union that is a bridge institution within the meaning of section 2 of the Canada Deposit Insurance Corporation Act or is subject to an order under paragraph 39.13(1)(a) of that Act
(a) need not include the information referred to in paragraphs 3(1)(d) to (f), (h) to (r), (w) and (x) in its conversion proposal;
(b) need not supply to the Superintendent the information referred to in paragraphs 6(c) to (o);
(c) need not include the information referred to in paragraphs 11(c) to (h) in an application under section 216.08 of the Act; and
(d) is not subject to sections 4, 5 and 7 to 10.
Coming into Force
Footnote *13 These Regulations come into force on the day on which section 1995 of the Jobs and Economic Growth Act, chapter 12 of the Statutes of Canada, 2010, comes into force.
Return to footnote *[Note: Regulations in force December 19, 2012, see SI/2012-99.]
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