Credit Union (Ministerial) Regulation

(Consolidated up to 68/2023) 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 Independence of Auditor 12 Independence of auditor Deposits 13 Interest rate Credit Union Deposit Guarantee Corporation 15 Interest rates 16 Corporation ’ s financial estimates Credit Union Central Alberta Limited 17 Directors - interest rates re liability 17.1 Additional composition of Central 18 Financial disclosure and audit Arrangements 18.1 Form of notice of arrangement Evidence 19 Evidence Dispute Resolution 19.1 Dispute resolution process and adjudicator 19.2 Expiry 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 (1) For the purposes of section 1(1)(u) and (x)(ii) of the Act, a prescribed deposit insurance or guarantee plan is a deposit insurance or guarantee plan that has been established under a statute of another province or territory. (2) For the purposes of 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 AR 250/89 s2;25/95;196/2006;75/2020 3 Repealed AR 69/99 s2.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 the Minister be verified under oath or by statutory declaration. AR 250/89 s4;68/2023 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 the Minister 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;68/2023 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 11 Repealed AR 68/2023 s3. Independence of Auditor Independence of auditor 12 (1) A person is independent for the purposes of section 88(1) of the Act if the person 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;68/2023 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 14 Repealed AR 68/2023 s6. 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 Additional composition of Central 17.1 The corporations prescribed by the Minister for the purposes of section 157(b) of the Act are as follows: (a) a cooperative within the meaning of section 1(1)(j) of the Cooperatives Act or a cooperative association registered or incorporated under a predecessor of that Act or a cooperative incorporated or registered under an Act of Canada or of a province or territory similar to that Act; (b) a corporation incorporated by or under any Act of a province or territory of Canada acting as a central credit union or, in relation to credit unions of that jurisdiction, in a role similar to that of Central in relation to Alberta’s credit unions; (c) Concentra Bank; (d) The Co‑operators Group Limited; (e) The CUMIS Group Limited; (f) CU CUMIS Wealth Holdings GP Inc.; (g) the Corporation; (h) Canadian Credit Union Association; (i) 189286 Canada Inc.; (j) Federated Co‑operatives Limited; (k) a Provincial corporation within the meaning of section 1(1)(r) of the Financial Administration Act or, generally, an equivalent corporation of another province or territory or of Canada; (l) Credential Financial Inc.; (m) Northwest & Ethical Investments Inc.; (n) Aviso Wealth GP Inc.; (o) Aviso Wealth Inc.; (p) Everlink Payment Services Inc.; (q) a subsidiary or affiliate of a credit union or of Central or of any corporation named or referred to in this section; (r) any other corporation that is a financial institution; (s) any successor corporation of a corporation referred to in this section. AR 75/2020 s3 Financial disclosure and audit 18 (1) Repealed AR 68/2023 s7. (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;68/2023 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 Evidence 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 Dispute Resolution Dispute resolution process and adjudicator 19.1 (1) Within 7 days after Central notifies the applicant credit union that it has received the credit union’s application under section 216.1(1) of the Act, each party shall appoint a dispute resolution representative and notify the other party of that appointment. (2) Within 15 days after both dispute resolution representatives have been appointed, the representatives shall attempt to select an individual to act as adjudicator, and, if they select an individual, that individual shall be appointed as adjudicator. (3) If a dispute resolution representative fails to act and an adjudicator has not yet been appointed, the party that appointed the representative may appoint another representative within 7 days after the date on which the representative failed to take the action that should have been taken, and the parties have the remainder of the 15 days under subsection (2), if any, to attempt to select an individual to act as adjudicator. (4) Each party shall provide a list of potential adjudicators consisting of 3 individuals and their credentials to the other party and the Minister, if (a) either party fails to appoint a dispute resolution representative in accordance with subsection (1), (b) a dispute resolution representative appointed under subsection (1) fails to act and the party that appointed the representative does not appoint another representative within 7 days after the date on which the representative failed to take an action that should have been taken, (c) a dispute resolution representative appointed under subsection (3) fails to act, or (d) for any other reason, an adjudicator is not appointed under subsection (2). (5) On receiving the lists referred to in subsection (4), the Minister shall appoint an individual from the lists to be the adjudicator. (6) No person shall be appointed as an adjudicator if the person is an employee of either party. (7) The dispute resolution representatives shall attempt to determine the matters in dispute by agreement and, if they fail to agree, shall submit their differences to the adjudicator. (8) Each party is responsible for paying the dispute resolution representative it appointed under subsection (1) or (3) whatever remuneration or expenses are applicable, and the parties must otherwise bear equally the expenses of the dispute resolution process, including any remuneration and expenses of the adjudicator. AR 75/2020 s5 Expiry 19.2 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on November 30, 2027. AR 68/2023 s8 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