jswizzle3737/ontario_laws_and_regs huggingface dataset:
Prescribed conditions re improved real estate
 62. (1) For the purposes of section 198 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.  O. Reg. 237/09, s. 62 (1). (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.  O. Reg. 237/09, s. 62 (2). (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.  O. Reg. 237/09, s. 62 (3). (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.  O. Reg. 237/09, s. 62 (4); O. Reg. 181/19, s. 20. (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.  O. Reg. 237/09, s. 62 (5).
Definition
 63. For the purposes of sections 61 and 62,  “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 such a building 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.  O. Reg. 237/09, s. 63; O. Reg. 68/17, s. 20.
Prescribed conditions re body corporate
 64. (1) For the purposes of section 198 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.  O. Reg. 237/09, s. 64 (1). (2) Subsection (1) does not apply to a credit union in respect of an investment in the shares of a body corporate described in subsection 68 (1), (a) if, after the investment is made, all the voting rights attached to the voting shares of the body corporate would be owned by credit unions; or (b) if the Chief Executive Officer approves the credit union’s investment before the investment is made.  O. Reg. 237/09, s. 64 (2); O. Reg. 68/17, s. 21; O. Reg. 181/19, s. 21. (3) For the purposes of section 198 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.  O. Reg. 237/09, s. 64 (3). Restriction on Single Investments
Restriction re single investments
 65. For the purposes of section 198 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.  O. Reg. 237/09, s. 65.
Exception to restriction re single investments
 66. For the purposes of subclause 199 (1) (a) (iii) of the Act, the following are prescribed persons and entities: 1.  Revoked: O. Reg. 68/17, s. 22 (2). 2. Central 1 Credit Union or Fédération des caisses Desjardins du Québec.  O. Reg. 237/09, s. 66; O. Reg. 68/17, s. 22; O. Reg. 181/19, s. 22. Connected Persons
Connected Persons
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Connected persons
 67. The following conditions are prescribed as conditions that, if satisfied, result in persons being connected persons for the purposes of section 199 of the Act: 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 of the individual or of the individual’s spouse who lives in the same home as the individual and who is financially dependant on the individual or spouse.  O. Reg. 237/09, s. 67; O. Reg. 68/17, s. 23. Investment in Subsidiaries
Restriction on investment in subsidiaries
 69. For the purpose of subsection 200 (7) of the Act, the prescribed percentage of the credit union’s regulatory capital is 100 per cent.  O. Reg. 237/09, s. 69. PART IX   INTEREST RATE RISK MANAGEMENT
PART IX INTEREST RATE RISK MANAGEMENT
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Interpretation
 70. A credit union’s exposure to interest rate risk refers to the potential negative impact, expressed in dollars, of changes in interest rates on a credit union’s earnings and net asset values when the dates of its payments of principal and interest and its receipts of principal and interest are not matched.  O. Reg. 237/09, s. 70.
Policies and procedures
 71. (1) Every credit union shall establish, for the purposes of managing its exposure to interest rate risk, policies and procedures that address the following matters: 1. The limits on the credit union’s exposure to interest rate risk and on the impact of this exposure on its net interest income and surplus.  The limits must be clear and prudent. 2. The techniques to be used to calculate the amount of the credit union’s exposure to interest rate risk. 3. The internal controls to be implemented to ensure compliance with the policies and procedures. 4. The corrective action to be taken if the limits on the credit union’s exposure to interest rate risk are exceeded. 5. The content and frequency of reports to be made to the board of directors by the management of the credit union about the management of the credit union’s exposure to interest rate risk.  O. Reg. 237/09, s. 71 (1). (2) The limits must take into account fluctuations in interest rates that might reasonably be expected to occur.  O. Reg. 237/09, s. 71 (2). (3) Revoked: O. Reg. 68/17, s. 25. (4) The policies and procedures must require the management of the credit union to submit a report to the board of directors and the Chief Executive Officer if the credit union’s exposure to interest rate risk exceeds the limits established in the policies and procedures, and the report must be submitted within 21 days after the credit union’s exposure to interest rate risk exceeds the limits established in its policies and procedures.  O. Reg. 237/09, s. 71 (4); O. Reg. 181/19, s. 23. (5) A report required by subsection (4) must, (a) describe the circumstances that led to the credit union’s exposure to interest rate risk exceeding the limits; (b) describe the effect that this exposure has had, and may have, on net income; (c) describe the steps taken to bring this exposure within the limits; and (d) include a schedule indicating when the credit union will comply with its policies and procedures.  O. Reg. 237/09, s. 71 (5). (6) The policies must be approved by the board of directors of the credit union.  O. Reg. 237/09, s. 71 (6).
Interest rate risk that exceeds limits
 72. (1) If a credit union’s exposure to interest rate risk exceeds the limits established in its policies and procedures, the credit union shall immediately take steps to bring its exposure within those limits.  O. Reg. 237/09, s. 72 (1). (2) If a credit union’s exposure to interest rate risk exceeds the limits established in its policies and procedures for two consecutive quarters, the credit union shall promptly submit to the Chief Executive Officer a plan approved by the board of directors that describes the steps the credit union intends to take to bring its exposure to interest rate risk within those limits.  O. Reg. 237/09, s. 72 (2); O. Reg. 181/19, s. 24.
Interest rate risk report
 73. (1) A credit union shall prepare a report at the end of each quarter of its fiscal year on its management of the credit union’s exposure to interest rate risk.  O. Reg. 237/09, s. 73 (1). (2) The report must include all information about the management of interest rate risk that the credit union has filed with the Chief Executive Officer.  O. Reg. 237/09, s. 73 (2); O. Reg. 181/19, s. 25. (3) The report must be presented at the next board meeting immediately after it is prepared and the board shall review it.  O. Reg. 237/09, s. 73 (3). PART X   RESTRICTED PARTY TRANSACTIONS Interpretation
PART X RESTRICTED PARTY TRANSACTIONS
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Application
 74. This Part applies with respect to transactions entered into, renewed, extended or modified after March 1, 1995.  O. Reg. 237/09, s. 74.
Definition of “restricted party”
 75. (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 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.  O. Reg. 237/09, s. 75 (1). (2) For the purposes of subsection (1), “officer” includes a person who has not yet assumed the office.  O. Reg. 237/09, s. 75 (2).
Definition of “transaction”
 76. (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.  O. Reg. 237/09, s. 76 (1). (2) The performance of a condition of a transaction forms a part of the transaction and does not constitute a separate transaction.  O. Reg. 237/09, s. 76 (2). (3) The payment of dividends to a restricted party does not constitute a transaction between a credit union and the restricted party.  O. Reg. 237/09, s. 76 (3). Permitted Transactions
Transactions of nominal value or not material
 77. 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.  O. Reg. 237/09, s. 77.
Issue of shares
 78. (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.  O. Reg. 237/09, s. 78 (1). (2) A credit union may issue shares under clause (1) (e) or (f) only with the prior written approval of the Chief Executive Officer.  O. Reg. 237/09, s. 78 (2); O. Reg. 181/19, s. 26.
Permitted transactions
 79. (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. 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.  O. Reg. 237/09, s. 79 (1). (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 purposes with a financial institution that is a direct clearer or a group clearer member under the 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.  O. Reg. 237/09, s. 79 (2). (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.  O. Reg. 237/09, s. 79 (3). (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.  O. Reg. 237/09, s. 79 (4). Restricted Party Transaction Procedures
Restricted party transaction procedures
 80. (1) A credit union shall establish procedures to ensure that it complies with the restrictions governing restricted party transactions.  O. Reg. 237/09, s. 80 (1). (2) The procedures form part of the investment and lending policies and procedures of the credit union for the purposes of section 189 of the Act.  O. Reg. 237/09, s. 80 (2). (3) The procedures must include review and approval procedures to be followed by directors, officers and employees.  O. Reg. 237/09, s. 80 (3). (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.  O. Reg. 237/09, s. 80 (4). (5) The disclosure to be made by a director or officer must be made in the manner set out in sections 146 and 147 of the Act, with necessary modifications.  O. Reg. 237/09, s. 80 (5). PART XI   MEETINGS First Meeting
PART XI MEETINGS
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First Meeting
 81. (1) The first meeting of a credit union must be convened by a majority of the incorporators.  O. Reg. 237/09, s. 81 (1). (2) Written notice of the meeting must be mailed or sent by electronic means to each incorporator at least seven days before the date of the meeting.  O. Reg. 237/09, s. 81 (2). (3) The notice must state the date, time, place and purpose of the meeting.  O. Reg. 237/09, s. 81 (3).
Quorum
 82. At the first meeting of a credit union, a majority of the incorporators constitutes a quorum.  O. Reg. 237/09, s. 82.
Business to be dealt with
 83. The following business must be transacted at the first meeting of a credit union: 1. The directors must be elected. 2. The mandatory by-laws required under subsection 105 (2) of the Act must be enacted. 3. The auditor must be appointed.  O. Reg. 237/09, s. 83. Financial Statements
Financial statements
 84. (1) For the purposes of subsection 213 (1) of the Act, the prescribed matters to be shown on the financial statements of a credit union are: 1. The amount and composition of Tier 1 and Tier 2 capital and the percentage of regulatory capital held for determining compliance to the capital adequacy requirements of section 15. 2. The amount of each type of asset held for liquidity purposes as determined under section 21. 3. The amount of outstanding loans in each of the loan classes described in section 49. 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 held to maturity, available for sale and designated as held for trading.  O. Reg. 237/09, s. 84 (1); O. Reg. 68/17, s. 26. (2) The following time periods are prescribed, for the purposes of subsection 213 (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.  O. Reg. 237/09, s. 84 (2). PART XII   RETURNS, examinations and records
PART XII RETURNS, EXAMINATIONS AND RECORDS
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Document retention
 85. (1) A credit union shall keep and maintain the following in accordance with section 231 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 230 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.  O. Reg. 237/09, s. 85 (1). (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.  O. Reg. 237/09, s. 85 (2).
Maximum fee for by-laws
 86. For the purpose of subsection 233 (2) of the Act, the prescribed amount is $25.  O. Reg. 237/09, s. 86. PART XiII   LEAGUES Application
PART XIII LEAGUES
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Application
 87. This Regulation applies with respect to a league as if it were a credit union, except to the extent modified by this Part.  O. Reg. 237/09, s. 87. Capital Structure
Capital structure
 88. For the purposes of subsection 74.1 (1) of the Act, the following are prescribed persons to whom a security of a league issued under circumstances described in clause 75 (1) (a) of the Act may be transferred: 1. A member of the league issuing the securities. 2. A member of a credit union that is a member of the league issuing the securities. 3. The Authority. O. Reg. 237/09, s. 88; O. Reg. 181/19, s. 27. Adequate Capital
Adequate Capital
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Adequate capital
 89. (1) A league has adequate capital if its regulatory capital at least equals 5 per cent of its total assets.  O. Reg. 237/09, s. 89 (1). (2) Section 15 does not apply with respect to a league.  O. Reg. 237/09, s. 89 (2). Business Powers
Business powers
 90. For the purposes of subsection 241 (3.1) of the Act, a league 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 league. 5. Arranging for group bonding for directors, officers and employees of a credit union, its subsidiaries and subsidiaries of the league. 6. Providing credit counselling to members of credit unions who are repaying loans made by the credit unions.  O. Reg. 237/09, s. 90.
Permitted activities
 91. For the purposes of section 173 of the Act, a league may provide investment counselling and portfolio management services to its members, depositors, subsidiaries and affiliates.  O. Reg. 237/09, s. 91.
Group insurance
 92. (1) A league 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.  O. Reg. 237/09, s. 92 (1). (2) Group accident and sickness insurance and group life insurance administered by a league must be restricted to the league’s employees, its members, the employees of its members or subsidiaries and credit unions that are not members and their employees.  O. Reg. 237/09, s. 92 (2).
Trustee
 93. For the purposes of section 177 of the Act, a league is authorized to act as trustee with respect to an escrow agreement relating to share offerings by a credit union.  O. Reg. 237/09, s. 93. Investment and Lending
Investment and lending
 94. Section 59 does not apply with respect to a loan made by a league to a credit union or to a subsidiary of the league.  O. Reg. 237/09, s. 94.
Exception to restriction re single investments
 95. (1) For the purposes of subsection 199 (1) of the Act, the prescribed amount is 10 per cent of a league’s deposits and regulatory capital.  O. Reg. 237/09, s. 95 (1). (2) Despite subsection (1), La Fédération des caisses populaires de l’Ontario may invest 25 per cent of its deposits and regulatory capital in Fédération des caisses Desjardins du Québec.  O. Reg. 237/09, s. 95 (2); O. Reg. 68/17, s. 27.
Connected persons
 96. The following conditions are prescribed as conditions that, if satisfied in relation to a member or a customer of a league, result in persons being connected for the purposes of section 199 of the Act:   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 league, viii. a person who provides security to a league 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 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.  O. Reg. 237/09, s. 96. Subsidiaries
Subsidiaries
 97. For the purposes of subsection 241 (5) of the Act, leagues may carry on business through the following types of subsidiaries: 1. A subsidiary in which a credit union may invest under the Act. 2. A corporation established to maintain a stabilization fund for the benefit of the credit unions that are members of the league. 3. A corporation established to administer development funds for the creation of new credit unions. 4. A corporation established to administer development funds for investments in, and loans to, small businesses. 5. A corporation that issues payment cards, credit cards or charge cards and operates a payment or charge card plan.  O. Reg. 237/09, s. 97.
Restriction on investment in subsidiaries
 98. For the purpose of subsection 200 (7) of the Act, the prescribed amount is 20 per cent of the league’s regulatory capital and deposits.  O. Reg. 237/09, s. 98. Exemptions from the Act
Exemptions from the Act
 99. Leagues are exempted under subsection 243 (2) of the Act from the following provisions of the Act: 1. Section 31 (admissions outside bonds of association). 2. Section 46 (withdrawal of members). 3. Section 47 (expulsion of members). 4. Section 201.1 (investment in another credit union). 5. Section 217 (requisitions for meetings).  O. Reg. 237/09, s. 99. PART XIV   Deposit Insurance 100. Revoked: O. Reg. 68/17, s. 28. 101, 102. Revoked: O. Reg. 181/19, s. 29. Deposit Insurance
PART XIV DEPOSIT INSURANCE
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Deposit insurance amount
 104. For the purposes of paragraph 2 of subsection 270 (2) of the Act and subsection 271 (3) of the Act, the Authority shall, (a) for an insurable deposit under paragraphs 1 to 6 of subsection 103 (2) of this Regulation, not insure the amount of the insurable deposit that exceeds $250,000; (b) for an insurable deposit under paragraphs 7 to 16 of subsection 103 (2) of this Regulation, insure the full amount of the insurable deposit. O. Reg. 68/17, s. 31; O. Reg. 181/19, s. 30. Annual Premium
Payment of annual premium
 106. A credit union or league shall pay its annual premium within 30 days after the date of the invoice for the premium.  O. Reg. 237/09, s. 106.
Audited statement of deposits
 107. A credit union or league 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.  O. Reg. 237/09, s. 107; O. Reg. 181/19, s. 32. PART XV   Continuing as or Ceasing to be an Ontario Credit Union Continuing as an Ontario Credit Union
PART XV CONTINUING AS OR CEASING TO BE AN ONTARIO CREDIT UNION
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Articles of continuance
 108. The following are prescribed, for the purposes of subsection 316 (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 proper 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.  O. Reg. 237/09, s. 108.
Conditions for issue of certificate of continuance
 109. The following are prescribed as conditions for the purposes of subsection 316 (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 16 (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.  O. Reg. 237/09, s. 109; O. Reg. 181/19, s. 33.
Limits on transition period
 110. (1) The prescribed maximum period for the purposes of paragraph 1 of subsection 316 (12) of the Act is two years beginning on the date the articles of continuance became effective.  O. Reg. 237/09, s. 110 (1). (2) The prescribed maximum extension period for the purposes of paragraph 2 of subsection 316 (12) of the Act is seven years beginning on the date the articles of continuance became effective.  O. Reg. 237/09, s. 110 (2). Transfer to Another Jurisdiction
Conditions for issue of certificate of continuance
 111. The following are prescribed as conditions for the purposes of subsection 316.1 (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 62 (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 ruling, order or 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.  O. Reg. 237/09, s. 111; O. Reg. 181/19, s. 34. Continuation under Another Ontario Act
Conditions for issue of certificate of continuance
 112. The following are prescribed as conditions for the purposes of subsection 316.2 (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 62 (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 ruling, order or 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.  O. Reg. 237/09, s. 112; O. Reg. 181/19, s. 35. PART XVI   CONSUMER PROTECTION Disclosure Re Interest Rates, etc.
PART XVI CONSUMER PROTECTION
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Disclosure Re Interest Rates, etc.
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Disclosure re interest rates, etc.
 113. (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.  O. Reg. 237/09, s. 113 (1). (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.  O. Reg. 237/09, s. 113 (2).
Disclosure upon renewal
 114. 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.  O. Reg. 237/09, s. 114.
Disclosure in advertising
 115. (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.  O. Reg. 237/09, s. 115 (1). (2) An advertisement about an interest-bearing deposit must state how the balance of a deposit account will affect the rate of interest.  O. Reg. 237/09, s. 115 (2). Consumer Complaints by Members and Depositors
Consumer complaints by members and depositors
 116. (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.  O. Reg. 237/09, s. 116 (1). (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).  O. Reg. 237/09, s. 116 (2). (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.  O. Reg. 237/09, s. 116 (3). (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 or a regulation made under the Act, the person may refer the complaint to the Chief Executive Officer.  O. Reg. 237/09, s. 116 (4); O. Reg. 181/19, s. 36 (1). (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.  O. Reg. 237/09, s. 116 (5); O. Reg. 181/19, s. 36 (2). (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.  O. Reg. 237/09, s. 116 (6).
Inquiry by Chief Executive Officer
 117. (1) If, as a result of receiving a complaint, the Chief Executive Officer addresses an inquiry to a credit union or an officer about the conduct of the credit union’s business, the credit union or officer shall promptly reply in writing to the inquiry.  O. Reg. 237/09, s. 117 (1); O. Reg. 181/19, s. 37 (1). (2) If requested to do so by the Chief Executive Officer, the credit union shall give a copy of the Chief Executive Officer’s inquiry and the reply to each director of the credit union and the inquiry and reply shall form part of the minutes of the next board meeting. O. Reg. 181/19, s. 37 (2). PART XVII   ADMINISTRATIVE PENALTIES
PART XVII ADMINISTRATIVE PENALTIES
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Administrative penalties
 118. (1) For the purposes of subsection 331.2 (1) of the Act, the amount of the administrative penalty for a contravention is, for each day on which the contravention occurs or continues, $250 for a credit union.  O. Reg. 237/09, s. 118 (1); O. Reg. 68/17, s. 32; O. Reg. 181/19, s. 38 (1). (2) If the contravention is a failure to file a document or to provide information in accordance with subsection 331.2 (2) of the Act, the contravention occurs on the day following the day on which the document was required to be filed or the information was required to be provided and continues until it is filed or provided, as the case may be, or until the credit union is notified by the Chief Executive Officer or the Authority that the document or the information is no longer required. O. Reg. 181/19, s. 38 (2). (3) Despite subsection (2), where a person or entity has filed a document or provided information in the appropriate form but the document or information is incomplete or inaccurate, the contravention is deemed to have occurred on the day on which the person or entity is given written notice that the document or information is incomplete or inaccurate.  O. Reg. 237/09, s. 118 (3). (4) If the contravention is a failure to hold a meeting in accordance with subsection 331.2 (2) of the Act, the contravention is deemed to occur on the third day following the day on which the meeting was required to be held and continues until the meeting is held or until the credit union is notified by the Chief Executive Officer that the meeting is no longer required. O. Reg. 181/19, s. 38 (3). (5) In determining whether to impose an administrative penalty on a person or entity under section 331.2 of the Act for a purpose set out in subsection 331.1 (1) of the Act, the Chief Executive Officer shall consider only the following: 1. Whether the contravention was caused by an event outside the person or entity’s control. 2. Whether the person or entity could have taken steps to prevent the contravention. 3. With respect to incomplete or inaccurate documents or information, whether due diligence was exercised in filing the documents or preparing the information. 4. Whether the person or entity derived or reasonably might have been expected to derive, directly or indirectly, any economic benefit from the contravention or failure.  O. Reg. 237/09, s. 118 (5); O. Reg. 181/19, s. 38 (4). (6) A person or entity on whom an administrative penalty has been imposed must pay the penalty, (a) if the order is not appealed, within 30 days from the date of the order of the Chief Executive Officer imposing the penalty or such longer time as may be specified in the order; or (b) if the order is appealed under subsection 331.2 (5) of the Act, within 30 days from the date the Tribunal confirms or varies the order or such longer time as may be specified in the order. O. Reg. 181/19, s. 38 (5). (7) Revoked: O. Reg. 555/21, s. 1. Part XVIII   Extra-Provincial Credit Unions Registering
PART XVIII EXTRA-PROVINCIAL CREDIT UNIONS
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Application for registration
 119. An application for registration in the Extra-Provincial Credit Unions Register under clause 332 (6) (a) of the Act must be in a form approved by the Chief Executive Officer and include any materials requested by the Chief Executive Officer. O. Reg. 68/17, s. 33; O. Reg. 181/19, s. 39.
Condition for registration
 120. Only an entity that is incorporated as a credit union in a province or territory of Canada other than Ontario under legislation that is comparable to the Act may be registered in the Extra-Provincial Credit Unions Register under clause 332 (6) (a) of the Act. O. Reg. 68/17, s. 33. Business Powers
Limited activities
 121. The activities of an extra-provincial credit union registered under clause 332 (6) (a) of the Act are limited to participating in a syndicated loan. O. Reg. 68/17, s. 33. Special Rules
Information required by the Chief Executive Officer
 122. Section 225 of the Act applies to an extra-provincial credit union registered under clause 332 (6) (a) of the Act. O. Reg. 68/17, s. 33.
Information required by Authority
 123. Section 226 of the Act applies to an extra-provincial credit union registered under clause 332 (6) (a) of the Act. O. Reg. 68/17, s. 33.
Fees
 124. Section 321.6 of the Act applies to an extra-provincial credit union registered under clause 332 (6) (a) of the Act. O. Reg. 68/17, s. 33. Mortgage Brokerages, Lenders and Administrators Act, 2006 125. An extra-provincial credit union registered under clause 332 (6) (a) of the Act is deemed to be a credit union for the purposes of the Mortgage Brokerages, Lenders and Administrators Act, 2006. O. Reg. 68/17, s. 33. Cancelling the Registration
Mortgage Brokerages, Lenders and Administrators Act, 2006
 125. An extra-provincial credit union registered under clause 332 (6) (a) of the Act is deemed to be a credit union for the purposes of the Mortgage Brokerages, Lenders and Administrators Act, 2006. O. Reg. 68/17, s. 33. Cancelling the Registration
Cancellation of registration on request
 126. The Chief Executive Officer may cancel the registration of an extra-provincial credit union under subsection 332 (6) of the Act at the request of the extra-provincial credit union. O. Reg. 68/17, s. 33; O. Reg. 181/19, s. 40.
Cancellation of registration, Chief Executive Officer’s order
 127. (1) The Chief Executive Officer may make an order cancelling the registration of an extra-provincial credit union under subsection 332 (6) of the Act if, in the Chief Executive Officer’s opinion, one of the following conditions is satisfied: 1. The extra-provincial credit union is failing to comply with sections 121 to 124 of this Regulation. 2. The extra-provincial credit union is doing anything that constitutes a practice that might prejudice or adversely affect the interests of a member, depositor or shareholder of a credit union as defined in section 1 of the Act. 3. The extra-provincial credit union is not carrying on business or is not in operation. O. Reg. 68/17, s. 33; O. Reg. 181/19, s. 41 (1). (2) Section 240.1 of the Act applies with respect to an order under this section. O. Reg. 68/17, s. 33. (3) The Chief Executive Officer shall set out the reasons for his or her decision in the order. O. Reg. 68/17, s. 33; O. Reg. 181/19, s. 41 (2). (4) The extra-provincial credit union that is subject to an order under this section may appeal the order to the Tribunal in accordance with section 240.4 of the Act. O. Reg. 68/17, s. 33.
Cancellation of registration, other jurisdiction
 128. The registration of an extra-provincial credit union under subsection 332 (6) of the Act is automatically and immediately cancelled if, (a) its incorporation in a province or territory of Canada other than Ontario has ceased; or (b) its registration as a credit union in a province or territory of Canada other than Ontario has ceased. O. Reg. 68/17, s. 33.
Effect of cancellation
 129. An extra-provincial credit union whose registration is cancelled must not participate in a syndicated loan in Ontario except to the extent necessary to wind up its participation in a syndicated loan in Ontario. O. Reg. 68/17, s. 33. Transition
Transition
 130. (1) In any document prepared in accordance with this Regulation prior to the day section 1 of Schedule 7 to the Plan for Care and Opportunity Act (Budget Measures), 2018 came into force, a statement or other provision that refers to the Superintendent or to the Corporation shall be deemed, for the purposes of this Regulation, to refer to the Chief Executive Officer or to the Authority, whichever is now required to satisfy the relevant provision in this Regulation. O. Reg. 181/19, s. 42. (2) References in this Regulation to a form approved by, or acceptable to, the Chief Executive Officer are deemed to include the last such form approved by or deemed acceptable to the Superintendent prior to the day section 1 of Schedule 7 to the Plan for Care and Opportunity Act (Budget Measures), 2018
came into force until the Chief Executive Officer approves a subsequent form or deems it acceptable for the purposes of the relevant provision. O. Reg. 181/19, s. 42. (3) References in this Regulation to a document published by the Chief Executive Officer or the Authority are deemed to include the last such document published by the Superintendent or the Corporation, as applicable, prior to the day section 1 of Schedule 7 to the Plan for Care and Opportunity Act (Budget Measures), 2018
came into force until the Chief Executive Officer or Authority publishes a subsequent document for the purposes of the relevant provision. O. Reg. 181/19, s. 42. (4) An order, approval, inquiry, direction, determination, notice or report made or given by the Superintendent or the Corporation in accordance with this Regulation, as it read prior to the day section 1 of Schedule 7 to the Plan for Care and Opportunity Act (Budget Measures), 2018 came into force, is deemed to have been made or given by the Chief Executive Officer or the Authority, whichever is now required to satisfy the relevant provision in this Regulation. O. Reg. 181/19, s. 42. (5) Any notice, document or other information provided to the Superintendent or the Corporation under this Regulation, as it read prior to the day section 1 of Schedule 7 to the Plan for Care and Opportunity Act (Budget Measures), 2018
came into force, is deemed to have been provided to the Chief Executive Officer or the Authority, whichever is now required to satisfy the relevant provision in this Regulation. O. Reg. 181/19, s. 42. (6) In this section, “Corporation” means the Deposit Insurance Corporation of Ontario. O. Reg. 181/19, s. 42.  Français