Cooperative Credit Associations Act — C-41.01 388
Restriction on control and substantial investments 388 (1) Subject to subsections (2) to (4), no association shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity. Exception: indirect investments (2) An association may, subject to Part XII, acquire control of, or acquire or increase a substantial investment in, an entity other than a permitted entity by way of (a) an acquisition of control of an entity referred to in any of paragraphs 390(1)(a) to (h), a specialized financing entity or a prescribed entity that controls or has a substantial investment in the entity; or (b) an acquisition of shares or ownership interests in the entity by (i) an entity referred to in any of paragraphs 390(1)(a) to (h), a specialized financing entity or a prescribed entity that is controlled by the association, or (ii) an entity controlled by an entity referred to in any of paragraphs 390(1)(a) to (h), a specialized financing entity or a prescribed entity that is controlled by the association. Exception: temporary investments, realizations and loan workouts (3) An association may, subject to Part XII, acquire control of, or acquire or increase a substantial investment in, an entity by way of (a) a temporary investment permitted by section 393; (b) an acquisition of shares of a body corporate or of ownership interests in an unincorporated entity permitted by section 394; or (c) a realization of security permitted by section 395. Exception: specialized financing regulations (4) A retail association may, subject to Part XII, acquire control of, or hold, acquire or increase a substantial investment in, an entity other than a permitted entity if it does so in accordance with regulations made under paragraph 389(d) concerning specialized financing. Exception: uncontrolled event (5) An association is deemed not to contravene subsection (1) if the association acquires control of, or acquires or increases a substantial investment in, an entity solely as the result of an event not within the control of the association. Non-application of subsection (2) (5.1) No association shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 390(1)(h). Holding (5.2) If an association holds a substantial investment in an entity referred to in paragraph 390(1)(h) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the association may continue to hold that substantial investment. Application of other provision (6) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, an association may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions of that other provision are met. Timing of deemed acquisition (7) If an association decides to exercise its right under subsection (6), the association is deemed to be acquiring the control or the substantial investment under the other provision. 1991, c. 48, s. 388; 1997, c. 15, s. 141; 2001, c. 9, s. 314; 2007, c. 6, s. 172; 2013, c. 40, s. 173