jswizzle3737/ontario_laws_and_regs huggingface dataset:
Persons disqualified as auditors
63. (1) No person shall be appointed or act as the auditor of a credit union who is a director, officer, or employee of the credit union, or a member of the credit committee or supervisory committee thereof, or who is a partner, employer or employee of any such director, member, officer or employee, or who is a related person to any director or officer of the credit union or to a member of the credit committee or supervisory committee thereof. Auditors not to be appointed receivers (2) No person shall be appointed a receiver or a receiver and manager or liquidator of any credit union of which he or she or any partner or employer of or a related person to him or her is the auditor or has been the auditor within the two years preceding the person’s appointment as receiver and manager or liquidator. Trustee in bankruptcy not to be auditor (3) No person who is appointed a trustee of the estate of a credit union under the Bankruptcy Act (Canada) or any partner or employer of or a related person to the trustee shall be appointed or act as auditor of the credit union. R.S.O. 1980, c.102, s.63.
Standards of care
65. Every director, officer, member of a supervisory committee and member of a credit committee of a credit union shall exercise the powers and discharge the duties of his or her office honestly, in good faith and in the best interests of the credit union, and in connection therewith shall exercise the degree of care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. R.S.O. 1980, c.102, s.65(1).
Validity of acts of officers and directors
66. An act done by a director, member of the supervisory committee, member of the credit committee or officer of a credit union is not invalid by reason only of any defect that is thereafter discovered in his or her appointment, election or qualification. R.S.O. 1980, c.102, s.66.
Liability
67. The liability imposed by this Act upon a director, member of the credit committee, member of the supervisory committee, officer of a credit union or any person authorized to approve loans under section 51 is in addition to any other liability that is by law imposed upon him or her. R.S.O. 1980, c.102, s.67.
Indemnity
68. (1) Subject to subsection (2), the by-laws of the credit union may provide that every director, credit committee member, supervisory committee member or officer may from time to time be indemnified and saved harmless by the credit union from and against, (a) any liability and all costs, charges and expenses that he or she sustains or incurs in respect of any action, suit or proceeding that is proposed or commenced against him or her or in respect of anything done or permitted by him or her in respect of the execution of the duties of his or her office; and (b) all other costs, charges and expenses that he or she sustains or incurs in respect of the affairs of the credit union. Idem (2) The credit union shall not indemnify any person under subsection (1) in respect of any liability, costs, charges or expenses that he or she sustains or incurs in or about any action, suit or other proceeding as a result of which the person is adjudged to be in breach of any duty or responsibility imposed upon him or her by this Act or any other statute unless, in an action brought against the person in his or her capacity of director, credit committee member, supervisory committee member or officer, the person has achieved complete or substantial success as a defendant. Insurance (3) A credit union may purchase and maintain insurance for the benefit of a director, credit committee member, supervisory committee member or officer thereof, except insurance against a liability, cost, charge or expense incurred as a result of a contravention of section 65. R.S.O. 1980, c.102, s.68.
Notice of meetings
70. (1) Notice of the time and place for holding a meeting of the members of a credit union shall be given in accordance with the by-laws of the credit union, but in no event shall notice be given later than seven days before the date of the meeting or earlier than fifty days before the date of the meeting. Idem (2) Notice of any meeting at which directors are to be elected shall contain the information disclosed by a director under subsection 69(1). Idem (3) Notice of a meeting shall be given to each member of a credit union who on the record date for notice appears on the records of the credit union as a member by, (a) sending the notice by prepaid mail to the member’s latest address as shown on the records of the credit union; (b) delivering the notice to the member at his or her place of employment; or (c) publishing the notice in a newspaper which circulates in the community in which the head office of the credit union is located. Chair (4) The president, or in his or her absence, a vice-president who is a director, shall preside as chair at a meeting of members, but if there is no president or such a vice-president, or if at a meeting neither of them is present within fifteen minutes after the time appointed for the holding of the meeting, the members present shall choose a person from among their number to be the chair. R.S.O. 1980, c.102, s.70.
Annual meeting
71. (1) The first and every successive meeting of a credit union shall be held at such time and place in Ontario as its by-laws provide, and, in default of provisions in that behalf, the annual meeting shall be held at its head office within 120 days of the year end of the credit union. Business to be dealt with (2) At such meeting, the board of directors shall place before the members, (a) financial statements showing matters prescribed by the regulations relating separately to, (i) the period that commenced on the date the credit union came into existence and ended not more than four months before the annual meeting or, if the credit union has completed a financial year, the period that began immediately after the end of the last completed financial year and ended not more than four months before the annual meeting, and (ii) the period covered by the financial year next preceding such latest completed financial year, if any; (b) the report of the supervisory committee, if any; (c) the report of the auditor, if any; and (d) such further information respecting the financial position of the credit union and the results of its operations as its by-laws require. Report of supervisory committee (3) The report of the supervisory committee, if any, to the members shall be read at the annual meeting and shall be open to inspection at the meeting by any member. Report of auditor (4) The report of the auditor, if any, to the members shall be read at the annual meeting and shall be open to inspection at the meeting by any member. Approval of financial statements (5) The board of directors of the credit union shall approve the financial statements referred to in clause (2)(a) and the approval shall be evidenced by the signature at the foot of the balance sheet of two duly authorized directors. Distribution of financial statements (6) The notice of the annual meeting of members shall be accompanied by a copy of the financial statements referred to in clause (2)(a) and a copy of the auditor’s report, if any, or shall specify that copies of the above will be available at the meeting and copies of the above shall also be filed with the Director at least seven days before the date of the meeting. R.S.O. 1980, c.102, s.71.
General meetings
72. The board of directors may at any time call a general meeting of the members for the transaction of any business, the general nature of which is specified in the notice calling the meeting. R.S.O. 1980, c.102, s.72.
Requisition for members’ meeting
73. (1) Five per cent of the members of a credit union may requisition the board of directors to call a general meeting of the members for any purpose that is connected with the affairs of the credit union and that is not inconsistent with this Act. Requisition (2) The requisition shall state the general nature of the business to be presented at the meeting and shall be signed by the requisitionists and deposited at the head office of the credit union and may consist of several documents in like form, each signed by one or more requisitionists. Duty of directors to call meeting (3) Upon deposit of the requisition, the board of directors shall forthwith call a general meeting of the members for the transaction of the business stated in the requisition. When requisitionists may call meeting (4) If the board of directors do not within twenty-one days from the date of the deposit of the requisition call the meeting, any of the requisitionists may call the meeting, which shall be held within sixty days from the date of the deposit of the requisition. Calling of meeting (5) A meeting called under this section shall be called as nearly as possible in the same manner as meetings of members are called under the by-laws, but, if the by-laws provide for more than twenty-one days notice of meetings, twenty-one days notice is sufficient for the calling of the meeting. Repayment of expenses (6) The credit union shall, (a) reimburse all or any of the requisitionists for any reasonable expenses incurred by them by reason of the action taken by them under subsection (4); and (b) retain out of any money due or to become due, by way of fees or other remuneration for their services, to such of the board of directors as were in default, an amount equal to the amount the requisitionists were reimbursed, unless, at the meeting, the members by a majority of the votes cast reject the reimbursement of the requisitionists. R.S.O. 1980, c.102, s.73.
Annual statement to be given to members
74. Every credit union shall without charge supply to every member upon application therefor or as provided by its by-laws, a copy of its last comparative financial statement. R.S.O. 1980, c.102, s.74.
Inspection of books
75. (1) Except as provided in this Act, no member or other person has any right to inspect the books of a credit union. Idem (2) Any member or other person having an interest in the funds of a credit union may inspect the member’s or person’s own account and the books containing the names of the members at all reasonable hours at its head office or at whatever other place they are kept, subject to such conditions as to time and manner of inspection as the by-laws may prescribe. As to loan or deposit accounts of members (3) A credit union may by by-law authorize the inspection of any of its books therein mentioned, in addition to the books containing the names of members, under such conditions as are thereby prescribed, and no person, unless an officer of the credit union or specifically authorized by a resolution thereof, has the right to inspect the loan or deposit account of any other member without such other member’s written consent. R.S.O. 1980, c.102, s.75.
Branch meetings
76. (1) A credit union may establish a branch or branches subject to such terms and conditions as are prescribed by the regulations and the branch may by by-law provide for the holding of meetings of the members who belong thereto. Delegates (2) Where a by-law under subsection (1) is in force, the members of a branch shall elect delegates, by special resolution, to represent the members at the annual or general meeting of the credit union, and the delegates so elected shall exercise the powers of the members of the branch at all meetings of the credit union and the members represented by such delegates are not entitled to vote at the meeting of the credit union. Number and votes (3) The number of delegates and votes allowed each branch at the meeting of the credit union shall be specified by the by-laws of the credit union, as well as the time, place and manner of calling a branch meeting, the number of members of the branch that constitute a quorum and the procedure to be followed in the conduct of the branch meeting. Majority (4) The required majority vote for deciding each issue to be voted on at the branch meeting shall be the same as that required for deciding such issues at meetings of the entire membership of the credit union as specified in this Act, the regulations and the by-laws of the credit union. R.S.O. 1980, c.102, s.76. Dividends
Dividends
77. Subject to the by-laws, the board of directors may declare, and the credit union may pay, a dividend on the amounts paid in on shares held by members at any time during the fiscal year and may, at their discretion, declare rebates of interest paid by members in respect of loans during that fiscal year. R.S.O. 1980, c.102, s.77.
When dividend not to be declared
78. (1) The board of directors shall not declare and the credit union shall not pay any dividend when the credit union is insolvent, or any dividend the payment of which renders the credit union insolvent or that diminishes its capital. Directors’ joint and several liability (2) The directors who vote in favour of or consent to the resolution authorizing the declaration of a dividend are jointly and severally liable to the credit union to the extent of the amount of the dividend so declared and paid or such part thereof as renders the credit union insolvent or diminishes its capital. Exoneration (3) If any director present at the meeting at which such dividend is declared, forthwith, or if any director then absent, within twenty-four hours after he or she becomes aware of the dividend and is able to do so, delivers or sends to the credit union by registered mail his or her protest against the dividend, and within eight days thereafter, sends a copy thereof to the Director, the director thereby and not otherwise exonerates himself or herself from liability. R.S.O. 1980, c.102, s.78. Investments
Investment restrictions
80. The following restrictions, limitations and prohibitions apply to credit unions in the exercise of their investment policies under this Act: 1. A credit union shall not invest any of its funds in bonds, debentures or other evidences of indebtedness on which the payment of principal or interest is in default. 2. A credit union shall not act as an underwriter in connection with the purchase or sale of any securities or other property of any kind. 3. Except as to securities issued or guaranteed by the Government of Canada or the government of a province of Canada, a credit union shall not invest in any one security or make a total investment in any one corporation that is not a credit union or a league, either by the purchase of shares or other securities of such corporation or by lending to it on the security of its debentures or other assets or any part thereof, of more than 10 per cent of the book value of the total assets of the credit union. 4. A credit union shall not make any investment the effect of which will be that it will hold more than 30 per cent of the common shares or 30 per cent of the total issued shares of any one corporation. 5. The total book value of the investments of a credit union in common shares shall not exceed 5 per cent of the book value of the total assets of the credit union. 6. The total book value of the investments of a credit union in real estate or leaseholds for the production of income shall not exceed 10 per cent of the book value of the total assets of the credit union. 7. A credit union shall not make any investment in or loan to another credit union in an amount in excess of 1 per cent of its unimpaired capital, deposits and surplus without the written approval of the Director. 8. A credit union shall not invest in the shares of a corporation that is a member of the credit union. 9. A credit union shall match the terms of investments and loans with the terms of deposits in the manner prescribed by the regulations. 10. A credit union shall not make an investment in or loan to a corporation or partnership in which an employee of the credit union has a direct financial interest. R.S.O. 1980, c.102, s.80; 1983, c.46, s.5.
Loans and deposits
81. (1) Subject to paragraphs 3 and 4 of subsection 11(2), no credit union shall advance money by discount, loan or otherwise to, or accept deposits from, persons other than its members. Limitation on interest (2) Interest, together with all the costs of borrowing including bonuses, premiums and penalties shall not exceed such amount as is prescribed by the regulations. Loans to officers (3) No credit union shall lend to an officer or member of a committee or of the board of directors of the credit union an amount in excess of the aggregate of fully paid up shares and deposits of such officer or member unless the loan is approved by the credit committee, the board of directors, and the supervisory committee. Limitations on loans to members (4) No credit union shall lend to a member an amount that is in excess of 10 per cent of the aggregate of its capital, members’ deposits and surplus, or such lesser percentage as may be prescribed in the by-laws of the credit union. Limitations on loans to unincorporated members (5) No credit union shall lend to a member who is an unincorporated association unless such loan is approved by the credit committee, the supervisory committee and the board of directors. R.S.O. 1980, c.102, s.81.
Loans to corporate and partnership members
82. (1) A credit union may make loans to corporations and partnerships who are members of the credit union in an aggregate not exceeding the greater of, (a) 7 per cent of the credit union’s unimpaired capital, deposits and surplus; or (b) such percentage as the Director may approve, not in excess of 15 per cent of the unimpaired capital deposits and surplus of the credit union, and such loans must be fully secured in the manner provided by the regulations. Loans to unincorporated members (2) A credit union may make secured loans to unincorporated associations who are members in aggregate not exceeding 1 per cent of the credit union’s unimpaired share capital. Loans to individuals (3) A credit union may make loans to members who are individuals on such terms as are provided for in the by-laws. R.S.O. 1980, c.102, s.82.
Reserves
83. Every credit union shall maintain surplus and capital in an amount totalling not less than 5 per cent of the assets of the credit union or such lesser percentage as may be set out by the Director. 1983, c.46, s.6.
Mortgage loans to members
84. A credit union may make loans to its members by way of mortgage, charge or hypothecation on a term not exceeding five years, subject to renegotiation, and, (a) the maximum amount that may be loaned by way of mortgage, subject to any limitation in the by-laws of the credit union, shall not exceed three-quarters of the value of the real estate to which the mortgage or charge relates unless the excess over three-quarters of the value of the real estate to which the mortgage or charge relates is insured or guaranteed by the government of Canada or Ontario, or by an agency thereof, or by a policy of mortgage insurance issued by an insurance company licensed under the Insurance Act for such class of insurance; (b) in the case of a second mortgage, the balance owing on the first mortgage shall be taken into account in meeting the requirements referred to in clause (a); and (c) the mortgage shall contain a definitive provision for repayment which will result in the principal and interest being fully repaid within twenty-five years or such longer period of time as the regulations may prescribe, but if the credit union becomes an approved lender for the purpose of making loans under the National Housing Act (Canada), the provisions of that Act apply to mortgage loans undertaken by the credit union under that Act. R.S.O. 1980, c.102, s.83.
Student loans, etc.
85. A credit union may make guaranteed loans under and in accordance with the Canada Student Loans Act (Canada), the Farm Improvement Loans Act (Canada) or the Fisheries Improvement Loans Act (Canada) and such other Act as may be designated by the regulations. R.S.O. 1980, c.102, s.84.
Loans and advances
86. (1) The credit committee may approve an extension of credit for a member by way of contract loans and advances may be made to such member from time to time within the limits of the approved extension of credit. Review (2) The credit committee shall review all extensions of credit and an extension of credit expires if the member becomes more than ninety days in default of any repayment. Contract loans (3) An extension of credit by way of contract loan is a loan within the meaning of this Act. R.S.O. 1980, c.102, s.85.
Directors, etc., not to guarantee loans
87. No director, member of a credit committee, member of a supervisory committee or credit union officer or employee shall cosign, endorse, or act as a guarantor for any borrower from the credit union unless such loan was made to a related person and approved in the manner provided in section 81. R.S.O. 1980, c.102, s.86.
Postponement or renegotiation of loans
88. The credit committee of a credit union may in its discretion, (a) upon receipt of a written request from a borrower or the borrower’s cosigner, postpone the due date for the repayment of any one or more instalments of the principal of the loan or any part of an instalment or postpone the due date for the payment of any one or more payments of interest on the loan or any part of a payment, or both, and fix due dates accordingly; (b) upon being satisfied that a loan is reasonably secure, authorize the release or substitution of any security or securities, in whole or in part, taken to secure a loan from the credit union to a member; and (c) renegotiate a loan from the credit union to a member upon new terms in the event the circumstances of the borrower have changed. R.S.O. 1980, c.102, s.87.
Disposal of unauthorized investments
89. (1) The Director may order a credit union to dispose of and realize any of its investments not made or held in accordance with this Act, the regulations or the by-laws and the credit union shall within sixty days after receiving the order absolutely dispose of and realize such investments, and, if the amount realized therefrom falls below the amount paid by the credit union for the investments, the board of directors of the credit union are jointly and severally liable for the payment to the credit union of any deficiency. Exoneration (2) If any director present at the meeting at which an investment to which subsection (1) applies is authorized, forthwith, or if any director then absent, within fourteen days after he or she becomes aware of the investment and is able to do so, delivers or sends to the credit union by registered mail his or her protest against the investment, and within thirty days thereafter, sends a copy thereof by registered mail to the Director, the director thereby and not otherwise exonerates himself or herself from liability. R.S.O. 1980, c.102, s.88.
Call of unauthorized loans
90. (1) The Director may order a credit union to call any loan it has made not authorized by this Act, the regulations or the by-laws and the credit union shall within sixty days after receiving the direction call the loan, if possible, and, if within that time the full amount of the loan is not repaid, the members of the credit committee, the person or persons appointed under section 50 and the person or persons authorized under section 51 are jointly and severally liable for the payment to the credit union of any deficiency upon the maturity of the loan. Exoneration (2) If any member of the credit committee present at the meeting at which such loan is authorized, forthwith, or if any credit committee member then absent, within fourteen days after he or she becomes aware of the loan and is able to do so, delivers or sends to the credit union by registered mail his or her protest against the loan, and, within thirty days thereafter, sends a copy thereof by registered mail to the Director, the credit committee member thereby and not otherwise exonerates himself or herself from liability. R.S.O. 1980, c.102, s.89.
Term deposits
91. A credit union may accept money on deposit at a specified rate of interest for a term not longer than five years. R.S.O. 1980, c.102, s.90.
Negotiable orders
92. (1) Where the combined share capital and the deposits of a credit union exceed $100,000 and it has appointed an auditor in accordance with this Act and it has an accounting system satisfactory to the Director and its board of directors has so authorized, it may, so long only as the Director approves in writing, permit its members to use negotiable orders for the withdrawal of money on deposit. Revocation of approval (2) The Director may at any time revoke any approval given under subsection (1). Withdrawal of money (3) No officer or employee of a credit union shall permit any withdrawal of money from the deposit or share account of a member unless the amount in such deposit or share account is equal to or in excess of the amount sought to be withdrawn, and any officer or employee who contravenes this subsection is guilty of an offence under this Act. Remedies not affected (4) Nothing in this section curtails, abridges, defeats or otherwise affects any remedy for the recovery from a member of any amount withdrawn in excess of the amount standing to the member’s credit in the member’s deposit or share account. R.S.O. 1980, c.102, s.91.
Reserve for deposits
93. (1) Each credit union shall at all times maintain a reserve to an aggregate of at least 10 per cent or such greater per cent as the regulations may prescribe of the amount of deposits, shares and borrowings of the credit union in each prescribed class of deposit. 1983, c.46, s.7, part. Idem (2) Of the amount required to be maintained under subsection (1), at least 10 per cent shall be maintained in cash. Loans where reserves deficient (3) No credit union shall make any loan or investment until it has satisfied the requirements of subsection (1). R.S.O. 1980, c.102, s.92(3,4), revised.
Regulations re reserves
94. The Lieutenant Governor in Council may make regulations prescribing further percentages of the reserves or classes of deposits or investments required to be maintained under section 93. R.S.O. 1980, c.102, s.93.
Provision for losses and accrued interest
95. (1) Every credit union in computing its annual net income or loss shall make full provision for, (a) all doubtful loans, other doubtful receivables, and losses on investments; and (b) all interest accruing on deposits. Establishment of reserve (2) A credit union may by special resolution establish a reserve and may transfer to the reserve from undivided earnings or transfer from the reserve to undivided earnings such amounts as the board of directors may by resolution direct. R.S.O. 1980, c.102, s.94. Ontario Share and Deposit Insurance Corporation
Definition
96. In section 97 to 119, “Corporation” means the Ontario Share and Deposit Insurance Corporation. (“Société”) R.S.O. 1980, c.102, s.95; 1981, c.62, s.2.
Corporation continued
97. (1) The corporation known in English as the Ontario Share and Deposit Insurance Corporation and in French as Société ontarienne d’assurance des actions et dépôts is continued as a corporation without share capital. Application (2) The Corporations Act does not apply to the Corporation. Corporation members (3) The members of the Corporation shall be all credit unions incorporated in Ontario. R.S.O. 1980, c.102, s.96.
Board of directors
98. (1) The board of directors of the Corporation, consisting of not more than fifteen persons, shall be appointed by the Lieutenant Governor in Council and shall include one person nominated by each league and one person nomimated by the credit unions who are not members of a league. 1983, c.46, s.9. Chair (2) The board of directors shall elect or appoint from among themselves a chair. R.S.O. 1980, c.102, s.97(2).
Functions
99. (1) The affairs of the Corporation shall be administered by the board of directors. Chair to preside (2) The chair shall preside at all meetings of the Corporation but, where at any meeting the chair is absent, one of the directors present thereat who is chosen so to act by the directors present shall preside and has and shall exercise the powers of the chair. Secretary and treasurer (3) The board of directors may appoint a secretary and a treasurer. Quorum (4) A majority of the members of the board of directors constitutes a quorum. Travelling expenses (5) A member of the board of directors shall be paid by the Corporation out of its income all reasonable travelling and living expenses incurred by the member while absent from his or her ordinary place of residence in the course of his or her duties as a director and, in addition, may be paid out of income as remuneration for his or her services and duties such daily or other amount as may be fixed by the board and reported to its members in its annual report. R.S.O. 1980, c.102, s.98.
Annual report
100. (1) The Corporation shall within four months after the termination of each financial year transmit to its members, the Minister and the Superintendent, an annual report relating to its activities in that year including financial statements of the Corporation in the form required by section 71 and the auditor’s report thereon, which shall be in accordance with sections 63 and 64. Annual examination of the Superintendent (2) The Superintendent shall be deemed to have an interest in the Corporation as representative of all persons who may be claimants against credit unions, and the board of directors, officers and employees of the Corporation shall from time to time furnish the Superintendent with such information and financial statements with respect to the Corporation as the Superintendent may require, and the Superintendent shall make an annual examination and report to the Minister and the Minister shall then lay the annual report of the Corporation and report of the Superintendent before the Assembly if it is in session or, if not, at the next session. R.S.O. 1980, c.102, s.99.
Term of office
101. The members of the board of directors shall hold office for a term of three years commencing on the date on which they were appointed and thereafter until their successors are appointed and any casual vacancy occurring shall be filled in accordance with section 98 for the balance of the term of the director whose office became vacant. 1981, c.62, s.4.
Objects
102. (1) The objects of the Corporation are, (a) to provide, for the benefit of persons having shares or deposits with credit unions in Ontario, deposit insurance against loss of part or all of such shares or deposits, by making payment to the persons to the extent and in the manner authorized by this Act; (b) to act as the administrator of any credit union in respect of which reserves fall below a level designated by the Director and, where necessary, to act as the liquidator of a credit union; (c) to provide, in its discretion, financial assistance for the purpose of assisting a league or credit union in its continued operation or in the orderly liquidation of its operations; (d) to collect and accumulate statistics related to credit unions and leagues as may be necessary for insurance, leagues, credit unions, and Ministry purposes, and to publish system statistics as may be appropriate. Power to appoint (2) The Corporation has the power to appoint an administrator or liquidator to do any act that the Corporation may do under clause (1) (b). 1983, c.46, s.10, part.
Establishing fund
103. When requested by a league or by credit unions that are not members of a league, the Corporation shall, when authorized by the Director, establish and maintain a stabilization fund for the benefit of the league or those credit unions. 1983, c.46, s.10, part.
Ancillary powers
104. (1) The Corporation may do all things necessary or incidental to its objects and in particular, but without limiting the generality of the foregoing, the Corporation may, in furtherance of its objects, (a) acquire assets from credit unions, make loans or advances to credit unions and take security therefor and guarantee loans to or deposits with credit unions; (b) require the payment of levies by credit unions for the purpose of establishing and maintaining the assets of the Corporation; (c) act as a liquidator of the estate and effects of a credit union for the purpose of winding up its affairs and distributing its property; (d) assume the costs of winding up of credit unions; (e) acquire assets of credit unions from a liquidator or receiver thereof; (f) make an advance or grant for the purpose of paying lawful claims against credit unions in respect of any claims of their members for withdrawal of deposits or share capital and become subrogated as an unsecured creditor for the amount of such advance; (g) borrow money on the credit of the Corporation or on bills of exchange or promissory notes drawn, made, accepted or endorsed by or on behalf of the Corporation and may pledge as security all or any part of the assets of the funds; (h) make or cause to be made such inspections or examinations of credit unions as may be authorized under this Act; (i) advise the Director of any adverse implications of proposed new charters; (j) establish and maintain an insurance reserve fund to provide for the continuance or orderly liquidation of any credit union in financial difficulty; (k) declare and pay dividends to its members; and (l) do all such other things, not contrary to this Act, as may be necessary for the exercising of any of the powers of the Corporation. R.S.O. 1980, c.102, s.102; 1983, c.46, s.11. Definition (2) For the purpose of subsection (1), “credit union” includes a league. (“caisse”) 1981, c.62, s.6.
Powers and duties of Corporation
105. The board of directors shall administer the affairs of the Corporation in all things and make, or cause to be made, for the Corporation any description of contract that the Corporation may by law enter into, and, subject to the approval of the Lieutenant Governor in Council, the Corporation may make by-laws for, (a) the administration, management and control of the property and affairs of the Corporation; (b) the functions, duties and remuneration of all officers, agents and employees of the Corporation; (c) the appointment or disposition of any special committees from time to time created by the Corporation; (d) the appointment of an auditor; (e) determining the seal of the Corporation; (f) the time and place for the holding of meetings of the board of directors and the procedure in all things at such meetings; (g) prescribing standards of sound business and financial practices for credit unions; (h) prescribing the manner in which a credit union may represent that it is a contributor to the Corporation; (i) defining the expression “deposit” for the purpose of deposit insurance; (j) authorizing and controlling the use by credit unions of marks, signs, advertisements or other devices indicating that deposits with credit unions are insured by the Corporation; (k) the conduct in all other particulars of the affairs of the Corporation. R.S.O. 1980, c.102, s.103.
Powers of investigation
106. For the purposes of carrying out any investigation or inquiry authorized by this Act, the Corporation may appoint any person in writing to carry out the investigation or inquiry and the person so appointed shall be given free access to the books, records and documents of the credit union and has the powers of a commission under Part II of the Public Inquiries Act, which Part applies to the investigation or inquiry as if it were an inquiry under that Act. R.S.O. 1980, c.102, s.104.
Prohibition as to holding out insured
107. (1) No person, other than a credit union who is a member of the Corporation, shall by any written or oral representations of any kind advertise or hold out any corporation, society or association as being insured or approved for deposit insurance by the Corporation and a person who contravenes this subsection is guilty of an offence. Advertising (2) No credit union shall advertise or hold out by any written or oral representation that it is insured by the Corporation otherwise than by such marks, signs, advertisements or other devices as are authorized by the by-laws of the Corporation and used in the manner and on the occasions prescribed by the by-laws and a credit union who contravenes this subsection is guilty of an offence. R.S.O. 1980, c.102, s.105.
Fiscal year
108. The fiscal year end of the Corporation is the 31st day of December in each year. R.S.O. 1980, c.102, s.106.
Investment of funds
109. (1) The Corporation may, in its discretion, invest any funds not required in carrying out its objectives in the classes of securities in which a credit union may invest its funds under section 79 and subject to the restrictions, limitations and prohibitions contained in section 80. Idem (2) Despite subsection (1), the Corporation shall at all times maintain more than 50 per cent of the book value of its total assets invested in, (a) unencumbered debentures, bonds, stocks or other securities of or guaranteed by the Government of Canada or of or guaranteed by any province of Canada; (b) the bonds, debentures or other evidences of indebtedness issued or guaranteed by a municipal corporation in Canada; (c) guaranteed investment certificates issued by a trust corporation incorporated in Canada if, at the date of investment, the preferred or common shares of the trust corporation are authorized as investments under section 79; (d) cash on hand or on deposit in a bank listed in Schedule I or II to the Bank Act (Canada) or a loan or trust corporation registered under the Loan and Trust Corporations Act or a league, or the Canadian Co-operative Credit Society or other institution that is prescribed by regulation, except that not more than 20 per cent of the book value of its total assets shall at any one time be invested in any one of investments referred to in clauses (a), (b) and (c). R.S.O. 1980, c.102, s.107.
Duty to insure
110. (1) The Corporation shall insure each deposit with a credit union, except so much of any one deposit as exceeds $60,000. R.S.O. 1980, c.102, s.108(1); 1983, c.46, s.12. How payable (2) Where the Corporation is obliged to make payment in respect of any deposit insured by deposit insurance, the Corporation, as soon as possible after the obligation arises, shall, in respect of such deposit, make payment to such person as appears entitled thereto by the records of the credit union with whom the deposit was made, by paying such person an amount in money equal to so much of the person’s money as is insured by the Corporation. Discharge of liability (3) Payment under this section by the Corporation in respect of any deposit insured by deposit insurance discharges the Corporation from all liability in respect of that deposit and in no case is the Corporation under any obligation to see to the proper application in any way of the payment so made. Subrogation (4) Where the Corporation makes a payment under this section in respect of any deposit with a credit union, the Corporation is subrogated to the extent of the payment made to all the rights and interest of the depositor as against that credit union. R.S.O. 1980, c.102, s.108(2-4).
Insuring credit unions
111. (1) No credit union that is carrying on business in Ontario shall accept deposits or money on account of shares after the 1st day of December, 1977 unless it is insured by the Corporation from and after that day in accordance with this Act and the by-laws of the Corporation. Idem (2) Where a credit union commences business in Ontario after the 1st day of December, 1977, the deposits with the credit union shall be insured by the Corporation in accordance with this Act and the by-laws of the Corporation from and after the day the credit union commences business. Certificate (3) Where a credit union becomes insured with the Corporation, the Corporation shall issue to the credit union a certificate of deposit insurance in the form prescribed by the regulations. R.S.O. 1980, c.102, s.109. Deposit insurance certificate (4) A certificate of deposit insurance issued under subsection (3) expires one year after it is issued but may be renewed annually subject to such terms as the Corporation considers neccessary to impose. 1983, c.46, s.13.
Cancellation of deposit insurance
112. (1) The deposit insurance of a credit union may be cancelled on not less than thirty days notice to the credit union by the Corporation when, (a) the credit union is in breach of the standards of business and financial practices prescribed by the Corporation or any conditions of a policy of deposit insurance issued to it; (b) the credit union ceases to accept deposits or issue shares; or (c) an order has been made under section 117 for the Corporation to take possession of the credit union. Effect of cancellation (2) When the deposit insurance of a credit union is cancelled by the Corporation, the deposits with the credit union on the day the cancellation takes effect, less any withdrawals from such deposits, continue to be insured for a period of two years or, in the case of a term deposit with a remaining term exceeding two years, to the maturity thereof. Notification to depositors (3) Where the deposit insurance of a credit union has been cancelled, the credit union shall notify its depositors of that fact and shall cease to accept deposits from the date of cancellation forward. Public notice (4) The Corporation may, in such manner as it considers expedient, give public notice of the cancellation of deposit insurance of a credit union if, in the opinion of the Corporation, the public interest requires that such notice be given. R.S.O. 1980, c.102, s.110.
Repayment of assessments collected
113. (1) Upon the establishment of an insurance reserve fund and an annual insurance premium by the Corporation, the balance of assessments held under the predecessor to this section shall be repaid to the credit unions in the manner in which the assessments were collected. Assessment for stabilization fund (2) For the purpose of a stabilization fund established or maintained under section 103, the Corporation may assess a credit union an amount equal to 1 per cent of its aggregate total shares and deposits at the end of each fiscal year or such other amount established by the regulations for the funding of a stabilization fund for the benefit of credit unions. Write-off (3) Assessments made under this section or a predecessor of this section may be treated as an expense and written off by credit unions under terms prescribed in the regulations. Annual premiums (4) The Corporation shall within ninety days after the start of each calendar year establish an annual premium for each credit union, under terms prescribed by the regulations, to meet its administrative costs and insurance funding and the Corporation has the power to assess, accumulate, manage, invest, disburse and pay out of a fund created for the purpose any money needed to meet claims of credit unions that have received and maintained insurance standing. 1983, c.46, s.14.
Repayments
114. Despite anything in this Act, the Corporation may remit or defer the collection of any assessment made by the Corporation and upon such terms and conditions as it may direct. R.S.O. 1980, c.102, s.112.
Annual examination of credit unions
115. (1) For the purposes of the Corporation, the affairs of each credit union shall be examined by a person provided for under this section at least once in each year, and a copy of such examination shall be forthwith transmitted to the Corporation and the Director. Idem (2) The annual examination shall be made, (a) where the credit union is a member of a league, by the league; (b) where the credit union is not a member of a league, by the Director, and the cost shall be borne by the Corporation, except that the Corporation may, in the place of an examination made under clause (a) or (b), accept the report of the annual examination of the auditor of the credit union. Examination of leagues (3) The Director shall make an annual examination of each league at the expense of the Corporation, and shall give a copy of his or her report to the Corporation. R.S.O. 1980, c.102, s.114, revised.
Contents of examiner’s report
116. (1) The person examining the affairs of a credit union under section 115 shall include in the report whether or not, in the person’s opinion, there has been any change in the circumstances of the credit union that might materially affect the financial position of the credit union and particularly, without limiting the generality of the foregoing, whether or not, in the person’s opinion, (a) the assessment return made by the Corporation and on which payment to the Corporation was based is correct; (b) the operations of the credit union are being conducted in accordance with sound business and financial practices; and (c) the credit union is in a satisfactory financial condition. Idem (2) Each report shall further state whether or not, in the opinion of the examiner under section 115, there has been any contravention of this Act and shall be served on the credit union. R.S.O. 1980, c.102, s.115, revised.
Order taking over management
117. (1) Where the Corporation has received a report under sections 115 and 116, that the affairs of a credit union are not in a satisfactory financial condition, and has given the credit union an opportunity to be heard and after such further inquiry and investigation as the Corporation sees fit to make, the Corporation agrees with the report, the Corporation by order shall, itself or by some other person named in the order, forthwith take possession of the property of such credit union and conduct its business and take such steps as in the Corporation’s opinion may be taken toward the removal of the causes and conditions that have made such proceedings necessary, and for such purposes and without limiting the generality of the foregoing, (a) the Corporation, or person named in the order, has all the powers of the board of directors of the credit union; (b) the Corporation, or person named in the order, has power to exclude from the credit union its officers, directors, servants and agents from the property and business of the credit union; and (c) the Corporation, or person named in the order, has power to carry on, manage and conduct the operations of the credit union and in the name of the credit union to preserve, maintain, realize, dispose of and add to the property of the credit union, to amalgamate with another credit union or to sell to another credit union all or part of its assets, subject to section 131 or 132 to receive the incomes and revenues of the credit union and to exercise all the powers of the credit union. Idem, upon request (2) Upon the request of a credit union, the Corporation may with respect to such credit union exercise the powers mentioned in subsection (1). R.S.O. 1980, c.102, s.116.
Termination of order
118. If at any time the Corporation considers that the affairs of the credit union have been placed in a satisfactory financial condition, the Corporation may return possession of the property of the credit union to it, and, upon such return, the order and the powers of the Corporation under which the Corporation took possession of the property of the credit union terminate. R.S.O. 1980, c.102, s.117.