Security interests in credit union property
 48. (1) This section sets out, for the purposes of section 184 of the Act, the circumstances in which a credit union may create a security interest in property of the credit union.  O. Reg. 237/09, s. 48 (1). (2) A credit union may create a security interest in personal property of the credit union if the property, together with any other property of the credit union subject to a security interest under this subsection, has an aggregate value of less than the greater of, (a) $25,000; and (b) one per cent of the credit union’s total assets, as set out in the audited financial statements of the credit union that were placed before its members at the most recent annual meeting.  O. Reg. 237/09, s. 48 (2). (3) A credit union may create a security interest in property of the credit union if the following conditions are satisfied: 1. The security interest is granted to secure a debt, including any obligation of the credit union to an entity listed in paragraph 2 that is a member of the Canadian Payments Association to settle for payment items of the credit union in accordance with the by-laws and rules of the Canadian Payments Association, which together with other debts for which the credit union has granted a security interest does not exceed 15 per cent of the credit union’s total assets, as set out in the audited financial statements of the credit union that were placed before its members at the most recent annual meeting. 2. The debt is owed to, i. a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada), ii. a corporation registered under the Loan and Trust Corporations Act, or iii. a league, Central 1 Credit Union or Fédération des caisses Desjardins du Québec. iv.  Revoked: O. Reg. 68/17, s. 12 (1). 3. The security agreement under which the security interest is granted provides that the security interest is granted over specifically identified assets and does not create a general charge against the business and undertaking of the credit union. 4. The security interest is limited by its terms to property with a value, together with the total value of all property subject to a security interest under this subsection, that does not exceed 25 per cent of the value of the credit union’s total assets as set out in the audited financial statements of the credit union that were placed before its members at the most recent annual meeting. 5. The security agreement under which the security interest is granted provides that if the value of the property subject to a security interest under this subsection exceeds at any time the limit established in paragraph 4, the security interest does not apply to the portion of the property, or to the portion of the proceeds from the sale of the property, that exceed the limit, regardless of whether the debt in respect of which the security was granted has been repaid in full at that time.  O. Reg. 237/09, s. 48 (3); O. Reg. 68/17, s. 12 (1); O. Reg. 181/19, s. 15 (1). (4) A credit union may create a general security interest in property of the credit union, except property required to satisfy the requirements of adequate liquidity under section 84 of the Act, if the following conditions are satisfied: 1. The debt is owed to a league, Central 1 Credit Union or Fédération des caisses Desjardins du Québec. 2. The security agreement under which the security interest is granted provides that if the Chief Executive Officer orders the credit union to be subject to administration under section 294 of the Act or the Chief Executive Officer is appointed as liquidator of the assets of the credit union, the Chief Executive Officer may require that the security agreement be assigned to the Authority, if the Authority delivers one of the following to the secured party: i. Payment in full of the outstanding balance, as of the close of business on the day of the assignment, of the indebtedness of the credit union secured by the agreement. ii. A guarantee of payment for the outstanding balance, as of the close of business on the day of the assignment, of the indebtedness of the credit union secured by the agreement. iii. Partial payment of the outstanding balance of the indebtedness of the credit union secured by the agreement and a guarantee of payment for the portion of the outstanding balance not paid as of the close of business on the day of the assignment. 3. The security agreement under which the security interest is granted provides that despite paragraph 2, if, i. the security interest granted by the credit union forms part of the collateral security granted or assigned by Central 1 Credit Union to the Bank of Canada as security for an emergency liquidity assistance facility from the Bank of Canada, and ii. the Chief Executive Officer orders the credit union to be subject to administration under section 294 of the Act or the Chief Executive Officer is appointed liquidator of the assets of the credit union, the Chief Executive Officer may require the security agreement be assigned to the Authority only if the Authority delivers to the Bank of Canada payment in full of the outstanding balance of the indebtedness of the credit union secured by the agreement. O. Reg. 181/19, s. 15 (2). (5) A guarantee of payment made under subparagraph ii or iii of paragraph 2 of subsection (4) must provide the following: 1. The Authority shall pay the outstanding balance of the indebtedness, including interest at the interest rate provided for in the debt instrument that forms a part of the security agreement prior to any default under that instrument, by the fifth anniversary of the guarantee, or such earlier date as the Chief Executive Officer may designate. 2. The secured party is not required to exhaust its right to recourse against the credit union or any other person before being entitled to payment or performance by the Authority under the guarantee. 3. The obligations of the Authority under the guarantee are continuing, unconditional and absolute, and will not be released, discharged, diminished, limited or otherwise affected by a change affecting the credit union. O. Reg. 181/19, s. 15 (2) (6) A credit union may create a security interest in property of the credit union in favour of the Authority without satisfying the requirements of subsection (2), (3) or (4).  O. Reg. 237/09, s. 48 (6); O. Reg. 181/19, s. 15 (3). (7) Revoked: O. Reg. 181/19, s. 15 (4). Classes of Loans