jswizzle3737/ontario_laws_and_regs huggingface dataset:
Commercial loan
 66. (1) A commercial loan is a loan, other than any of the following types of loans, that is made for any purpose: 1. An agricultural loan, a bridge loan, an institutional loan, a personal loan or a residential mortgage loan. 2. A loan to an unincorporated association. 3. A loan that consists of deposits made by the credit union with a financial institution, Central 1 Credit Union or Fédération des caisses Desjardins du Québec. 4. A loan that is fully secured by a deposit with, i. a financial institution, including the credit union making the loan, or ii. Central 1 Credit Union or Fédération des caisses Desjardins du Québec. 5. A loan that is fully secured by debt obligations that are guaranteed by, i. a financial institution other than the credit union making the loan, or ii. Central 1 Credit Union or Fédération des caisses Desjardins du Québec. 6. A loan that is fully secured by a guarantee of, i. a financial institution other than the credit union making the loan, or ii. Central 1 Credit Union or Fédération des caisses Desjardins du Québec. 7. An investment in a debt obligation that is, i. fully guaranteed by a financial institution other than the credit union making the loan, ii. fully secured by deposits with a financial institution, including the credit union making the loan, or iii. fully secured by debt obligations that are fully guaranteed by a financial institution other than the credit union making the loan. 8. An investment in a debt obligation issued by the Government of Canada, the government of a province or territory of Canada or a municipality or by an agency of such a government or municipality. 9. An investment in a debt obligation guaranteed by, or fully secured by securities issued by, the Government of Canada, the government of a province or territory of Canada, a municipality or by an agency of such a government or municipality. 10. An investment in a debt obligation issued by a central, Central 1 Credit Union or Fédération des caisses Desjardins du Québec. 11. An investment in a debt obligation that is widely distributed. 12. An investment in shares or ownership interests that are widely distributed. 13. An investment in a participating share. 14. An investment in shares of a central, Central 1 Credit Union or Fédération des caisses Desjardins du Québec. (2) A commercial loan includes the supply of funds for use in automated bank machines that are not owned and operated by the credit union.
Institutional loan
 67. An institutional loan is a loan given to, (a) the Government of Canada; (b) the government of a province or territory of Canada; (c) an agency of the Government of Canada; (d) an agency of the government of a province or territory of Canada; (e) a school board or college funded primarily by the Government of Canada or by the government of a province or territory of Canada; (f) any other entity funded primarily by the Government of Canada, the government of a province or territory of Canada or a municipality; or (g) a municipality or an agency of one.
Personal loan
 68. A personal loan is a loan given to, (a) an individual for personal, family or household use; or (b) an individual or an entity for any other use if the loan does not exceed $25,000 and if the total outstanding amount of such loans to the individual or it and to connected persons does not exceed $25,000.
Residential mortgage loan
 69. A residential mortgage loan is a loan that is secured by a mortgage on residential property and to which any of the following apply: 1. The amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the residential property, does not exceed 80 per cent of the value of the property when the loan is made. 2. The loan is insured under the National Housing Act (Canada), or guaranteed or insured by a government agency. 3. The loan is insured by an insurer licensed to undertake mortgage insurance.
Syndicated loan in Ontario
 70. A syndicated loan in Ontario is a loan, including any related credit facilities, to which all of the following conditions apply: 1. The loan is made under a syndicated loan agreement. 2. The syndicating lead is one of the following institutions: i. A credit union, or a subsidiary of a credit union if that credit union is the only other party, other than the borrower, to the syndicated loan agreement. ii. A central. iii. Central 1 Credit Union. iv. Fédération des caisses Desjardins du Québec. v. A bank listed in Schedule I to the Bank Act (Canada). 3. The only parties to the syndicated loan agreement are the following entities: i. The syndicating lead. ii. A borrower from Ontario. iii. One or more of the following entities: A. A credit union or its subsidiary or affiliate. B. A central. C. Central 1 Credit Union. D. Fédération des caisses Desjardins du Québec. E. A financial institution other than a securities dealer. F. An extra-provincial credit union registered under clause 273 (6) (a) of the Act. 4. Each of the parties to the syndicated loan agreement, other than the borrower, agrees to contribute a specified portion of the loan and to be bound by the terms and conditions of the syndicated loan agreement. 5. The syndicating lead contributes at least 10 per cent of the loans, including any related credit facilities, and underwrites, disburses and administers them on behalf of the parties to the syndicated loan agreement.
Syndicated loan outside Ontario
 71. A syndicated loan outside Ontario is a loan, including any related credit facilities, to which all of the following conditions apply: 1. The loan is made under a syndicated loan agreement. 2. The syndicating lead is one of the following entities: i. An entity that is incorporated as a credit union or central or federation in a province or territory of Canada other than Ontario under legislation that is comparable to the Act. ii. A bank listed in Schedule I to the Bank Act (Canada). 3. The parties to the syndicated loan agreement include, but are not limited to, the following entities: i. The syndicating lead. ii. A borrower from a province or territory of Canada other than Ontario. iii. A credit union or a central. 4. Each of the parties to the syndicated loan agreement, other than the borrower, agrees to contribute a specified portion of the loan and to be bound by the terms and conditions of the syndicated loan agreement. 5. The syndicating lead contributes at least 10 per cent of the loans, including any related credit facilities, and underwrites, disburses and administers them on behalf of the parties to the syndicated loan agreement.
Loan to an unincorporated association
 72. A loan to an unincorporated association is a loan to an unincorporated association or organization, (a) that is not a partnership registered under the Business Names Act; and (b) that is operated on a non-profit basis for educational, benevolent, fraternal, charitable, religious or recreational purposes. Lending Limits
Lending Limits
nan
Limits on loans of same class to a person
 74. (1) A credit union shall establish prudent lending limits for each class of loans that it is authorized by its by-laws to make. (2) For the purposes of the lending limits established by a credit union, (a) a loan in an amount that exceeds the lending value of any property that is given as security for the loan, as determined in accordance with the credit union’s lending policies, is an under-secured loan; (b) a loan in an amount that does not exceed the lending value of the property that is given as security for the loan, as determined in accordance with the credit union’s lending policies, is a fully secured loan; and (c) a loan to a person includes a loan to two or more persons for which they are jointly and severally liable. Eligible Investments
Eligible Investments
nan
Eligible investments
 75. (1) For the purposes of section 167 of the Act, a credit union may hold as an investment any asset authorized by its investment policies, other than a prohibited investment, subject to the conditions set out in the Act, this Regulation and the Authority rules. (2) A credit union shall not invest in a derivative instrument unless it is purchased for the purposes of managing interest rate or foreign exchange risk. (3) A credit union shall not make a direct investment in, or purchase of, any commodity, including metals, food and grain, that trades on a commodity exchange. (4) The total book value of all investments by a credit union in the following types of shares, other than shares in its subsidiaries, must not exceed 70 per cent of the credit union’s regulatory capital: 1. Shares of a body corporate or ownership interests in an unincorporated association that are widely distributed. 2. Participating shares of a body corporate. (5) The total book value of all investments by a credit union and its subsidiaries in improved real estate in Canada must not exceed 100 per cent of the credit union’s regulatory capital. (6) For the purposes of subsection (5), the total book value does not include the book value of real estate acquired by the credit union and its subsidiaries, (a) to protect its investment in a mortgage on the real estate; or (b) in satisfaction of debts previously contracted in the course of the credit union’s business.
Prescribed conditions re improved real estate
 76. (1) For the purposes of section 167 of the Act, the following are prescribed conditions that must be satisfied if a credit union invests in improved real estate, either by purchasing it or by way of a loan secured by a mortgage on it: 1. The amount advanced on a mortgage plus all outstanding mortgages with an equal or prior claim against the real estate must not exceed the lending value of the real estate. 2. Despite paragraph 1, the amount may exceed the lending value of the real estate if the loan secured by the mortgage is approved or insured under the National Housing Act (Canada). 3. Despite paragraph 1, the amount may exceed the lending value of the real estate, i. if the excess amount is guaranteed or insured through an agency of the Government of Canada or of the government of a province or territory of Canada, or ii. if the excess amount is insured by an insurer licensed to undertake mortgage insurance. (2) If a credit union or a subsidiary acquires or has the right to possess or sell real estate for either of the following purposes and then sells it and takes back a mortgage on the sale, the investment in the mortgage need not meet the requirements of subsection (1): 1. To protect its investment in a mortgage on the real estate. 2. In satisfaction of debts previously contracted in the course of the credit union’s business. (3) Subsection (1) does not apply with respect to a mortgage taken back by the credit union on the sale of property held by the credit union for its own use. (4) A credit union shall not retain real estate acquired under circumstances described in subsection (2) for more than two years without obtaining the approval of the Chief Executive Officer. (5) For the purposes of subsection (1), “lending value” means, in respect of real estate, 80 per cent of the market value of the real estate, but if the credit union considers a lesser percentage appropriate in the circumstances under its investment and lending policies, the lending value is that lesser percentage of the market value of the real estate.
Definition
 77. For the purposes of sections 75 and 76, “improved real estate” means real estate, (a) on which there exists a building capable of being used for residential, financial, commercial, industrial, educational, professional, institutional, religious, charitable or recreational purposes, (b) on which a building described in clause (a) is being built or is about to be built, (c) on which farming operations are being conducted, or (d) that is vacant land restricted by law to being used for commercial, industrial or residential purposes.
Prescribed conditions re body corporate
 78. (1) For the purposes of section 167 of the Act, it is a prescribed condition that a credit union not directly or indirectly invest in the shares of a body corporate if, as a result of the investment, (a) the voting rights attached to the aggregate of any voting shares of the body corporate beneficially owned by the credit union and by any entities it controls would exceed 30 per cent of the voting rights attached to all of the outstanding voting shares of the body corporate; or (b) the aggregate of any shares of the body corporate beneficially owned by the credit union and by any entities it controls would represent ownership of more than 30 per cent of the shareholders’ equity of the body corporate. (2) Subsection (1) does not apply to a credit union in respect of an investment in the shares of a body corporate if the Chief Executive Officer approves the credit union’s investment before the investment is made. (3) For the purposes of section 167 of the Act, it is a prescribed condition that a credit union not directly or indirectly invest in ownership interests in an unincorporated entity if, as a result of the investment, the aggregate of any ownership interests, however designated, into which the entity is divided that would be beneficially owned by the credit union and by entities it controls would exceed 30 per cent of all the ownership interests into which the unincorporated entity is divided, unless the Chief Executive Officer approves the credit union’s investment before the investment is made. Restriction on Single Investments
Restriction on Single Investments
nan
Restriction re single investments
 79. (1) For the purposes of section 167 of the Act, a credit union shall not directly or indirectly invest, by way of purchases from or loans to one person or more than one person that, to its knowledge, are connected persons, more than 25 per cent of the credit union’s regulatory capital. (2) The limit set out in subsection (1) does not apply if, (a) the investment is in the form of deposits with or loans to, (i) a financial institution that is not a credit union or a securities dealer, (ii) the Authority, or (iii) Central 1 Credit Union or Fédération des caisses Desjardins du Québec; or (b) the investment is in securities issued or guaranteed by the Government of Canada, including mortgages insured under the National Housing Act (Canada), by the government of any province of Canada or by any municipality in Canada. (3) The following conditions, if satisfied, result in persons being connected persons for the purposes of this section: 1. In relation to a person or entity, if another person or entity is one of the following: i. A body corporate in which the person or entity holds or beneficially owns, directly or indirectly, at least 35 per cent of the voting securities. ii. An affiliate of a body corporate described in subparagraph i. iii. A person or entity that has a 50 per cent interest in a partnership in which the person or entity also has a 50 per cent interest. iv. A partnership in which the person or entity is a partner. v. A trust or estate in which the person or entity has a substantial beneficial interest. vi. A trust or estate in respect of which the person or entity serves as a trustee or in a similar capacity. vii. A person or entity on whose financial resources the person or entity depends to repay a loan to the credit union. viii. A person or entity who provides security to the credit union for a loan to the person or entity. 2. In relation to an individual, if another individual is one of the following: i. A spouse of the individual who is financially dependent on the individual. ii. A relative by blood, marriage or adoption of the individual or of the individual’s spouse who lives in the same home as the individual and who is financially dependent on the individual or spouse. Investment in Subsidiaries
Investment in Subsidiaries
nan
Restriction on investment in subsidiaries
 80. For the purposes of subsection 168 (6) of the Act, the prescribed percentage of the credit union’s regulatory capital is 100 per cent. PART ix   meetings First Meeting
PART IX MEETINGS
nan
First Meeting
nan
First meeting
 81. (1) The first meeting of a credit union shall be convened by a majority of the incorporators. (2) Written notice of the meeting shall be delivered to each incorporator at least seven days before the date of the meeting. (3) The notice must state the date, time, place and purpose of the meeting.
Quorum
 82. At the first meeting of a credit union, a majority of the incorporators constitutes a quorum.
Business to be dealt with
 83. The following business shall be transacted at the first meeting of a credit union: 1. The directors shall be elected. 2. The mandatory by-laws required under subsection 98 (2) of the Act shall be enacted. 3. The auditor shall be appointed. Financial Statements
Financial Statements
nan
Financial statements
 84. (1) For the purposes of subsection 177 (1) of the Act, the prescribed matters to be shown on the financial statements of a credit union are the following: 1. The amount and composition of Tier 1 and Tier 2 capital and the percentage of regulatory capital held for determining compliance with the Authority rules. 2. The amount of each type of asset held for liquidity purposes as determined under the Authority rules. 3. The amount of outstanding loans in each of the loan classes described in section 63. 4. The amount of impaired loans, the allowance for impairment and the charge for impairment. 5. The value of investments in marketable securities that are designated as amortised cost, fair value through other comprehensive income or fair value through profit or loss. (2) The following time periods are prescribed, for the purposes of subsection 177 (1) of the Act, as the time periods to which the prescribed matters must relate: 1. The most recently completed financial year. 2. The financial year immediately before the most recently completed financial year. Members’ and Shareholders’ Meetings
Members’ and Shareholders’ Meetings
nan
Notice of meetings
 85. (1) Notice of the time and place for holding a meeting of the members of a credit union shall be given at least 10 days before the date of the meeting but not more than 50 days before the date of the meeting. (2) Notice of a meeting at which a special resolution is to be voted on shall include a summary of the special resolution, including, for a special resolution to confirm a by-law, a summary of the by-law. (3) For greater certainty, this section applies with necessary modifications to meetings of holders of shares of the credit union other than patronage shares.
Annual meetings
 86. (1) Unless otherwise authorized by the Chief Executive Officer, the annual meeting of the members of a credit union shall be held no later than 120 days after the end of the credit union’s last completed financial year. (2) On application by a credit union, the Chief Executive Officer may authorize the credit union to hold its annual meeting of members on a day that is more than 120 days after the end of the last completed financial year if the Chief Executive Officer considers the extension of time to be reasonable in the circumstances, and the Chief Executive Officer may impose such conditions as the Chief Executive Officer considers appropriate. (3) At an annual meeting, the board shall place before the members, (a) the audited financial statements of the credit union; (b) the report of the auditor; (c) the report of the audit committee; and (d) such further information respecting the financial position of the credit union and the results of its operations as the by-laws require. (4) The notice of an annual meeting of the members must, (a) specify that copies of the audited financial statements, the auditor’s report and the audit committee report will be available for inspection, by any member, at the meeting and at the offices of the credit union and electronically at least 10 days before the meeting; and (b) set out any matters to be dealt with at the annual meeting in addition to the business described in subsection (3) in sufficient detail to permit members to form a reasonable judgment on the matter.
Notice of proposal
 87. (1) Any proposal of a member submitted for consideration at a meeting must be attached to the notice of the meeting. (2) If the member submitting the proposal so requests, a statement by the member in support of the proposal and the name and address of the member must be attached to the notice of the meeting. (3) The statement must not be longer than 200 words. (4) A proposal is not required to be attached to the notice of the meeting if, (a) the proposal is not submitted at least 90 days before the anniversary date of the previous annual meeting; (b) it clearly appears that the proposal is submitted primarily for the purpose of, (i) enforcing a personal claim or redressing a personal grievance against the credit union or its directors, officers, members or security holders, or (ii) promoting general economic, political, racial, religious, social or similar causes; (c) a proposal by the member had been attached to another notice of a meeting within the preceding two years and the member did not present the proposal at the meeting; (d) substantially the same proposal was submitted to the members at a meeting held within the preceding two years and the proposal was defeated; or (e) the right conferred is being abused to get publicity. (5) The two-year period referred to in clauses (4) (c) and (d) ends when the proposal is given to the credit union. (6) No credit union or person acting on behalf of a credit union incurs any liability from circulating a proposal or statement in compliance with this section.
Refusing proposal
 88. (1) If a credit union does not intend to include a proposal in a notice of a meeting, it shall, within 10 days after receiving the proposal, notify the member submitting it of the intention to omit the proposal from the notice and send to the member reasons for the refusal. (2) Any member who disagrees with a refusal to include a proposal may apply to the court for an order restraining the holding of the meeting at which the proposal is sought to be presented. (3) A credit union, or any person who objects to a proposal, may apply to the court for an order allowing the credit union to omit the proposal from the notice of meeting, and the court, if it is satisfied that subsection 87 (4) applies, may make the order. (4) On an application under subsection (2) or (3), the court may grant the order applied for or any other order that it considers appropriate.
Different ways of member voting
 89. (1) A member of a credit union may vote in person or, unless the articles or by-laws of the credit union provide otherwise, by mail, by telephone or by electronic means. (2) The by-laws or articles of a credit union may set out conditions that apply to voting in the different ways allowed under subsection (1). Part x   returns, examinations and records
PART X RETURNS, EXAMINATIONS AND RECORDS
nan
Document retention
 90. (1) A credit union shall keep and maintain the following in accordance with section 203 of the Act: 1. A copy of its articles of incorporation and any amendments to them or, if applicable, its other incorporating document and any amendments to it. 2. A copy of its articles of continuance, if applicable. 3. The by-laws and resolutions, including special resolutions, of the credit union. 4. The register of members, shareholders and security holders required by section 202 of the Act to be kept by the credit union. 5. A register of the directors, members of the audit committee and any other committees established by the board and all officers of the credit union, setting out their names, residential addresses, including the street and number, if any, their occupations and the several dates on which they have become or ceased to be a member of the board or committee. 6. A register of all securities held by the credit union. 7. Books of account and accounting records of the credit union. 8. The minutes of all proceedings at meetings of members, shareholders, directors and committees. 9. The audited financial statements of the credit union placed before the members at the most recent annual meeting. (2) Despite paragraph 8 of subsection (1), a credit union may dispose of minutes of committee proceedings that were held more than six years before the disposition.
Maximum fee for by-laws
 91. For the purpose of subsection 205 (3) of the Act, the prescribed amount is $25. Part XI   restricted party transactions Interpretation
PART XI RESTRICTED PARTY TRANSACTIONS
nan
Interpretation
nan
Definition of “restricted party”
 92. (1) For the purposes of the Act, “restricted party” means, in relation to a credit union, a person who is or has been in the preceding 12 months, (a) a director or officer of the credit union, (b) a spouse of a director or officer of the credit union, (c) a relative by blood, marriage or adoption of a person described in clause (a) or (b), if the relative lives in the home of a person described in clause (a) and is financially dependent on a person described in clause (a) or (b), (d) the auditor of the credit union, if the auditor is an individual, (e) a corporation in which a director or officer of the credit union beneficially owns, directly or indirectly, more than 10 per cent of the voting shares, (f) a corporation controlled by a person described in clause (a), (b), (c) or (d), or (g) an affiliate of the credit union, other than a subsidiary. (2) For the purposes of subsection (1), “officer” includes a person who has not yet assumed the office.
Definition of “transaction”
 93. (1) For the purposes of the Act, “transaction”, as between a credit union and a restricted party, includes, (a) a guarantee given by the credit union on behalf of the restricted party, (b) an investment by the credit union in securities issued by the restricted party, (c) a loan from the credit union to the restricted party, (d) an assignment taken or acquisition made by the credit union of a loan made by a third party to the restricted party, and (e) a security interest taken by the credit union in securities issued by the restricted party. (2) The performance of a condition of a transaction forms a part of the transaction and does not constitute a separate transaction. (3) The payment of dividends to a restricted party does not constitute a transaction between a credit union and the restricted party. Permitted Transactions
Permitted Transactions
nan
Transactions of nominal value or not material
 94. A credit union may enter into a transaction with a restricted party if the value of the transaction is nominal or if the transaction is not material when measured by criteria established by the board.
Issue of shares
 95. (1) A credit union may issue to a restricted party shares that are fully paid for with money or that are issued, (a) upon the conversion of other issued and outstanding securities of the credit union; (b) as a share dividend; (c) as a patronage return; (d) in accordance with an amalgamation agreement; (e) in exchange for shares of another body corporate; or (f) in exchange for other property. (2) A credit union may issue shares under clause (1) (e) or (f) only with the prior written approval of the Chief Executive Officer.
Permitted transactions
 96. (1) A credit union or its subsidiary may enter into any of the following transactions with a restricted party if the transaction is authorized in advance by at least two-thirds of the members of the board of the credit union: 1. A written contract for the purchase of goods or services, other than management services, required by the credit union or the subsidiary to carry on business. The term of the contract and of each potential renewal must not exceed five years. The contract must state the consideration to be paid and the consideration must not exceed fair market value. 2. A written contract for the provision of management services to or by the credit union or subsidiary. It must be reasonable that the credit union or subsidiary supply the services. The amount to be paid must not exceed fair market value. 3. A written lease of personal property for the credit union or subsidiary to use in carrying on business. The term of the lease and of each potential renewal must not exceed five years. The amount to be paid must not exceed fair market value. 4. A written lease of real property for the credit union or subsidiary to use in carrying on business. The term of the lease and of each potential renewal must not exceed 10 years. The amount to be paid must not exceed fair market value. 5. A contract of employment with an officer of the credit union or a subsidiary. 6. A written contract for employment benefit plans and pension plans and for other reasonable commitments incidental to the credit union or subsidiary employing individuals. 7. A loan. The credit union or subsidiary must be otherwise authorized under the Act to make the loan. The terms of the loan must be no more favourable than those offered in the ordinary course of business by the credit union to its members. (2) A credit union or a subsidiary may enter into any of the following transactions with a restricted party: 1. A contract of employment with an individual who is not a director or officer of the credit union or subsidiary. 2. A deposit made by the credit union for clearing and settlement purposes with a financial institution with a settlement account at the Bank of Canada under the rules and by-laws of the Canadian Payments Association. 3. A contract to borrow money from the restricted party. 4. The receipt of deposits from the restricted party. 5. The issuance of debt obligations to the restricted party. (3) The by-laws of the credit union may require the transactions described in subsection (2) to be authorized by a process specified in the by-laws. (4) A credit union may make residential mortgage loans or personal loans to directors or officers of the credit union on terms more favourable than those offered in the ordinary course of business by the credit union to its members if two-thirds of the members of the board have approved the policies and procedures governing the making of such loans. Restricted Party Transaction Procedures
Restricted Party Transaction Procedures
nan
Restricted party transaction procedures
 97. (1) A credit union shall establish procedures to ensure that it complies with the restrictions governing restricted party transactions. (2) The procedures form part of the investment and lending policies of the credit union for the purposes of section 153 of the Act. (3) The procedures must include review and approval procedures to be followed by directors, officers and employees. (4) The procedures must require that a restricted party disclose to the credit union, in writing, the party’s interest in a transaction or a proposed transaction with the credit union or its subsidiary. (5) The disclosure to be made by a director or officer must be made in the manner set out in sections 111 and 112 of the Act, with necessary modifications. PART XII   Centrals Application
PART XII CENTRALS
nan
Application
nan
Application
 98. This Regulation applies with respect to a central as if it were a credit union, except to the extent modified by this Part. Capital Structure
Capital Structure
nan
Capital structure
 99. For the purposes of subsection 67 (1) of the Act, the following are prescribed persons to whom a security of a central issued under circumstances described in clause 68 (1) (a) of the Act may be transferred: 1. A member of the central issuing the securities. 2. A member of a credit union that is a member of the central issuing the securities. 3. The Authority. Business Powers
Business Powers
nan
Business powers
 100. For the purposes of subsection 214 (4) of the Act, a central may engage in or carry on the following business activities and provide the following services: 1. Accepting deposits and making loans. 2. Guaranteeing loans. 3. Providing administrative, advisory, educational, managerial, promotional and technical services to credit unions. 4. Arranging for one or more pension plans for the directors, officers, employees and members of credit unions, their subsidiaries and subsidiaries of the central. 5. Arranging for group bonding for directors, officers and employees of a credit union, its subsidiaries and subsidiaries of the central. 6. Providing credit counselling to members of credit unions who are repaying loans made by the credit unions.
Permitted activities
 101. For the purposes of section 138 of the Act, a central may provide investment counselling and portfolio management services to its members, depositors, subsidiaries and affiliates.
Group insurance
 102. (1) A central may administer a group insurance policy for its employees, its members, the employees of its members or subsidiaries and credit unions that are not members and their employees. (2) Group accident and sickness insurance and group life insurance administered by a central must be restricted to the central’s employees, its members, the employees of its members or subsidiaries and credit unions that are not members and their employees.
Trustee
 103. For the purposes of section 142 of the Act, a central is authorized to act as trustee with respect to an escrow agreement relating to share offerings by a credit union. Investment and Lending
Investment and Lending
nan
Investment and lending
 104. Section 74 does not apply with respect to a loan made by a central to a credit union or to a subsidiary of the central.
Exception to restriction re single investments
 105. (1) For the purposes of section 167 of the Act, a central shall not directly or indirectly invest, by way of purchase from or loans to one person or more than one person that, to its knowledge, are connected persons, more than 10 per cent of the central’s regulatory capital or such other amount that is approved by the Chief Executive Officer. (2) The following conditions, if satisfied, result in persons being connected persons for the purposes of this section: 1. Another person or entity is one of the following: i. A body corporate in which the member or customer holds or beneficially owns, directly or indirectly, at least 20 per cent of the voting securities. ii. An affiliate of a body corporate described in subparagraph i. iii. A person or entity that has a 50 per cent interest in a partnership in which the member or customer also has a 50 per cent interest. iv. A partnership in which the member or customer is a partner. v. A trust or estate in which the member or customer has a substantial beneficial interest. vi. A trust or estate in respect of which the member or customer serves as trustee or in a similar capacity. vii. A person or entity on whose financial resources the member or customer depends to repay a loan to a central. viii. A person who provides security to a central for a loan to the member or customer. 2. Another individual is one of the following: i. A spouse who is financially dependent on the member or customer. ii. A relative by blood, marriage or adoption of the member or customer or of the member’s or customer’s spouse who lives in the same home as the member or customer, who is financially dependent on the member, customer or spouse. Subsidiaries
Subsidiaries
nan
Restriction on investment in subsidiaries
 106 For the purposes of subsection 168 (6) of the Act, the prescribed amount is 20 per cent of the central’s regulatory capital and deposits. Exemptions from the Act
Exemptions from the Act
nan
Exemptions from the Act
 107. Centrals are exempted under subsection 215 (2) of the Act from the following provisions of the Act: 1. Section 40 (withdrawal of members). 2. Section 41 (expulsion of members). 3. Section 170 (investment in another credit union). 4. Section 180 (requisition for members’ meetings). Part XIII   Deposit insurance Deposit Insurance
PART XIII DEPOSIT INSURANCE
nan
Deposit Insurance
nan
Deposit insurance amount
 109. For the purposes of paragraph 2 of subsection 218 (2) of the Act and subsection 220 (3) of the Act, the Authority shall, (a) for an insurable deposit under paragraphs 1 to 6 of subsection 108 (2) of this Regulation, not insure the amount of the insurable deposit that exceeds $250,000; and (b) for an insurable deposit under paragraphs 7 to 18 of subsection 108 (2) of this Regulation, insure the full amount of the insurable deposit. O. Reg. 105/22, s. 109; O. Reg. 111/23, s. 3. Annual Premium
Annual Premium
nan
Annual premium
 110. (1) For the purposes of paragraph 1 of subsection 225 (1) of the Act, the Authority shall determine the credit union’s annual premium in accordance with this section. (2) The Authority shall determine the differential premium score of each credit union and central in accordance with subsection (3) and with the rules set out in the Differential Premium Score Determination published by the Authority on the Authority’s website, as it may be amended from time to time. (3) The differential premium score of a credit union or central at a particular time is determined with reference to the following components: 1. Capital: the level of regulatory capital of a credit union or central. 2. Corporate governance: the effectiveness of the governance practices of the credit union or central, as determined with reference to the Act and the Authority rules. (4) The annual premium payable by a credit union or central for a financial year that begins on or after January 1, 2022 is calculated as follows: 1. If the differential premium score of a credit union or central is 90 or over, its annual premium is $0.75 per $1,000 of the funds described in subsection (5) for a credit union and in subsection (6) for a central. 2. If the differential premium score of a credit union or central is 0, its annual premium is $2.25 per $1,000 of those funds. 3. If the differential premium score of the credit union or central is between 0 and 90, its annual premium is the rate per $1,000 of those funds calculated using the formula, A = 0.75 ($1.75 – [B / 90 × $0.75]) in which, “A” is the rate, and “B” is the credit union or central’s differential premium score. (5) The calculation of the annual premium for a credit union is based on Canadian funds on deposit with the credit union, and no premium is payable with respect to that portion of a deposit that is uninsured by virtue of section 218 of the Act. (6) The calculation of the annual premium for a central is based on Canadian funds on deposit with the central for a person that is not a credit union, and no premium is payable with respect to that portion of a deposit that is uninsured by virtue of section 218 of the Act. (7) The Authority may estimate the amount of funds on deposit with the credit union or central using the quarterly financial return of the credit union or central and may adjust the premium upon receiving the audited financial statements. (8) The annual premium payable by a credit union or central that carries on business for less than one year shall be reduced by an amount proportionate to the period during which it did not carry on business. (9) Despite subsections (4) and (8), the minimum annual premium payable by a credit union or central is $250. (10) The Authority may use approximate figures in determining or calculating an amount under this section.
Payment of annual premium
 111. A credit union or central shall pay its annual premium within 30 days after the date of the invoice for the premium.
Audited statement of deposits
 112. A credit union or central shall file an audited statement of its deposits with the Authority at such time as the Authority directs and respecting such period as the Authority directs. PART XIV   CONTINUING AS OR CEASING TO BE AN ONTARIO CREDIT UNION Continuing as an Ontario Credit Union
PART XIV CONTINUING AS OR CEASING TO BE AN ONTARIO CREDIT UNION
nan
Continuing as an Ontario Credit Union
nan
Articles of continuance
 113. The following are prescribed, for the purposes of subsection 257 (3) of the Act, as documents that must accompany the articles of continuance: 1. A copy of the incorporating document of the body corporate, together with all amendments to the document, certified by the officer of the incorporating jurisdiction who is authorized to so certify. 2. A letter of satisfaction, certificate of continuance or other document issued by the authorized officer of the incorporating jurisdiction that indicates that the body corporate is authorized under the laws of the jurisdiction in which it was incorporated or continued to apply for articles of continuance.
Conditions for issue of certificate of continuance
 114. The following are prescribed as conditions for the purposes of subsection 257 (5) of the Act: 1. The Chief Executive Officer shall not issue a certificate of continuance unless the body corporate satisfies the Chief Executive Officer that the matters set out in paragraphs 1 to 5 of subsection 13 (2) of the Act are satisfied. 2. The Chief Executive Officer shall not issue a certificate of continuance unless the body corporate satisfies the Chief Executive Officer that the body corporate would meet all the requirements of the Act if it were continued as a credit union.
Limits on transition period
 115. (1) The prescribed maximum period for the purposes of paragraph 1 of subsection 257 (12) of the Act is two years beginning on the date the articles of continuance became effective. (2) The prescribed maximum extension period for the purposes of paragraph 2 of subsection 257 (12) of the Act is seven years beginning on the date the articles of continuance became effective. Transfer to Another Jurisdiction
Transfer to Another Jurisdiction
nan
Conditions for issue of certificate of continuance
 116. The following are prescribed as conditions for the purposes of subsection 258 (5) of the Act: 1. The Chief Executive Officer shall not issue a certificate of approval of continuance unless the credit union satisfies the Chief Executive Officer as to the following: i. The shareholders or members who voted against the special resolution to apply for the certificate of continuance will be entitled to be paid the value of their membership, patronage and other shares, calculated in accordance with subsection 54 (2) of the Act. ii. The credit union will proceed with the continuation before the certificate of approval of continuation expires, unless the directors, with the authorization of the shareholders or members, abandon the application. 2. The Chief Executive Officer shall not issue a certificate of approval of continuance unless the credit union satisfies the Chief Executive Officer that after the credit union is continued under the laws of the other jurisdiction, the laws of that jurisdiction provide in effect that, i. the continued body corporate will possess all the property, rights, privileges and franchises and be subject to all the liabilities, including civil, criminal and quasi-criminal, and all contracts, disabilities and debts of the credit union, ii. a conviction against, or a ruling, an order or a judgment in favour of or against, the credit union may be enforced by or against the continued body corporate, and iii. the continued body corporate will continue as a party in any civil action commenced by or against the credit union. 3. The Chief Executive Officer shall include, in each certificate of approval of continuance, a condition that the certificate expires if the credit union has not been continued within six months after the certificate was issued. Continuation under Another Ontario Act
Continuation under Another Ontario Act
nan
Conditions for issue of certificate of continuance
 117. The following are prescribed as conditions for the purposes of subsection 259 (5) of the Act: 1. The Chief Executive Officer shall not issue a certificate of approval of continuance unless the credit union satisfies the Chief Executive Officer that the shareholders or members who voted against the special resolution to apply for the certificate of continuance will be entitled to be paid the value of their membership, patronage and other shares, calculated in accordance with subsection 54 (2) of the Act. 2. The Chief Executive Officer shall not issue a certificate of approval of continuance unless the credit union satisfies the Chief Executive Officer that, after the credit union is continued, i. the continued body corporate will possess all the property, rights, privileges and franchises and be subject to all the liabilities, including civil, criminal and quasi-criminal, and all contracts, disabilities and debts of the credit union, ii. a conviction against, or a ruling, an order or a judgment in favour of or against, the credit union may be enforced by or against the continued body corporate, and iii. the continued body corporate will continue as a party in any civil action commenced by or against the credit union. 3. The Chief Executive Officer shall include, in each certificate of approval of continuance, a condition that the certificate expires if the credit union has not been continued within six months after the certificate was issued. Dissolution
Dissolution
nan
Minimum number of members
 118. For the purposes of clause 241 (1) (c) of the Act, the prescribed minimum number of members is 20. PART XV   consumer protection Disclosure re Interest Rates, etc.
PART XV CONSUMER PROTECTION
nan
Disclosure re Interest Rates, etc.
nan
Disclosure re interest rates, etc.
 119. (1) A credit union shall disclose to a prospective depositor the applicable rate of interest for the person’s account and the manner of calculating the interest payable. (2) Whenever there is a change in the rate of interest or in the manner of calculating the amount of interest that applies to a deposit account, the credit union shall disclose the change by means of, (a) delivering a written statement to a person in whose name the account is maintained; (b) displaying and making available copies of a written statement at each branch of the credit union where the accounts are held; or (c) displaying a general notice at each branch of the credit union where the accounts are kept.
Disclosure upon renewal
 120. If a credit union renews a term deposit account, the credit union shall disclose to the depositor the rate of interest for the account and the manner of calculating the interest payable.
Disclosure in advertising
 121. (1) In an advertisement about an interest-bearing deposit or a debt obligation, a credit union shall disclose how the interest is to be calculated and any circumstances that will affect the rate of interest. (2) An advertisement about an interest-bearing deposit must state how the balance of a deposit account will affect the rate of interest. Consumer Complaints by Members and Depositors
Consumer Complaints by Members and Depositors
nan
Consumer complaints by members and depositors
 122. (1) A credit union shall designate an officer or employee of the credit union to receive and attempt to resolve complaints made by members and depositors. (2) A credit union shall advise its members and depositors, in a manner that it considers appropriate, of the name and contact information of the officer or employee designated under subsection (1). (3) If a person makes a written complaint to the credit union about the business activities of the credit union, the credit union shall give the person a written response to the complaint setting out the credit union’s proposed resolution of the complaint. (4) A credit union shall also inform the person who made the complaint that, if the person is not satisfied with the proposed solution and if the person believes that the complaint relates to a contravention of the Act, a regulation or an Authority rule, the person may refer the complaint to the Chief Executive Officer. (5) A credit union shall keep a copy of every complaint it receives, every response it issues and any other document that relates to a complaint for six years from the date of the complaint and shall make them available if requested to do so by the Chief Executive Officer. (6) The officer or employee designated under subsection (1) shall report at least once annually to the board about the complaints received and how they were disposed of in a form that is satisfactory to the board.