jswizzle3737/ontario_laws_and_regs huggingface dataset:
Definitions
 1. (1) In this Regulation, “agricultural loan” means an agricultural loan described in section 50; (“prêt agricole”) “authorized types of insurance” means the types of insurance listed in subsection 35 (1); (“types d’assurance autorisés”) “bridge loan” means a bridge loan described in section 51; (“prêt-relais”) “Capital Adequacy Guideline for Ontario’s Credit Unions and Caisses Populaires” means the publication with that title that is published in The Ontario Gazette by the Authority, as the publication may be amended from time to time; (“Lignes directrices relatives à la suffisance du capital des caisses populaires et credit unions de l’Ontario”) “commercial loan” means a commercial loan described in section 52; (“prêt commercial”) “credit union website” means a website that a credit union uses in relation to its business, including any information provided by the credit union that is accessible on a telecommunications device, but does not include a website that is accessible only by employees or agents of the credit union; (“site Web de caisse”) “guarantee” includes the issuance of a letter of credit; (“garantie”) “institutional loan” means an institutional loan described in section 53; (“prêt institutionnel”) “insurer” means an insurer licensed under the Insurance Act; (“assureur”) “participating share” means a share of a body corporate that carries the right to participate in the earnings of the body corporate to an unlimited degree and to participate in a distribution of the remaining property of the body corporate on dissolution; (“action participative”) “personal loan” means a personal loan described in section 54; (“prêt personnel”) “regulatory capital” means regulatory capital as determined under section 17; (“capital réglementaire”) “residential mortgage loan” means a residential mortgage loan described in section 55; (“prêt hypothécaire résidentiel”) “residential property” means an individual condominium residential unit or a building with one to four units where at least one half of the floor area of the building is utilized as one or more private residential dwellings; (“bien résidentiel”) “risk weighted assets” means the amount of the risk weighted assets as determined under section 18; (“actif pondéré en fonction des risques”) “total assets” means total assets as determined under section 16. (“actif total”)  O. Reg. 237/09, s. 1 (1); O. Reg. 277/15, s. 1 (1); O. Reg. 68/17, s. 1; O. Reg. 181/19, s. 1. (2) For the purposes of this Regulation, a lodgement of title is not a mortgage.  O. Reg. 237/09, s. 1 (2). (3) For the purposes of this Regulation, two or more persons are connected persons if they satisfy the conditions prescribed in section 67.  O. Reg. 237/09, s. 1 (3). (4) For the purposes of this Regulation, a website is not a credit union website by reason only that the website provides access to a credit union website or promotes the business of a credit union. O. Reg. 277/15, s. 1 (2). 2. Revoked: O. Reg. 68/17, s. 2.
Widely distributed security
 3. (1) A security is widely distributed, (a) if it is listed or posted for trading on a recognized stock exchange; or (b) if a prospectus relating to the issuance of the security is filed under the laws of a province or a jurisdiction outside Canada.  O. Reg. 237/09, s. 3 (1). (2) A debt obligation is widely distributed if no prospectus is required in respect of its distribution under the laws of a province or a jurisdiction outside Canada and, (a) at least 90 per cent of the maximum authorized principal of the debt obligation is held by one or more persons other than the credit union making the loan and its subsidiaries and, (i) the debt obligation is issued to at least 25 persons other than the credit union and its subsidiaries within six months after the day on which the first of the debt obligations is issued, or (ii) the debt obligations are issued on a continuous basis and there are, on average, at least 25 holders other than the credit union and its subsidiaries; or (b) when the debt obligation is issued, it meets at least three of the following criteria: 1. Its initial term is one year or less. 2. It is rated by a rating agency. 3. It is distributed through a person authorized to trade in securities. 4. It is distributed in accordance with an offering circular or memorandum or a similar document relating to the distribution of securities.  O. Reg. 237/09, s. 3 (2). PART II   ESTABLISHING A CREDIT UNION
Articles of incorporation
 4. (1) The following information must be set out in the articles of incorporation of a credit union: 1. Its name. 2. The address of its head office and the name of the municipality or township in Ontario where its principal place of business is located. 3. The minimum and maximum number of directors. 4. The full name, date of birth, citizenship or landed immigrant status and residential address of each director. 5. The classes and maximum number, if any, of shares other than membership shares that the credit union is authorized to issue. 6. The rights, privileges, restrictions and conditions, if any, attaching to each class of shares. 7. The board’s authority with respect to any class of shares that may be issued in series.  O. Reg. 237/09, s. 4 (1). (2) Articles filed when a credit union is first incorporated must also set out the full name, date of birth and residential address of each incorporator.  O. Reg. 237/09, s. 4 (2). (3) Articles approved by the Minister before March 1, 1995 shall be deemed to comply with subsections (1) and (2).  O. Reg. 237/09, s. 4 (3).
Name
 5. Central 1 Credit Union, Canadian Credit Union Association and an extra-provincial credit union registered under clause 332 (6) (a) of the Act are prescribed persons for the purposes of section 20 of the Act. O. Reg. 68/17, s. 3. PART III   MEMBERSHIP 6. Revoked:  O. Reg. 514/10, s. 1.
Payments re deceased members
 7. (1) For the purposes of paragraph 1 of subsection 42 (2) of the Act, the prescribed amount is $50,000.  O. Reg. 237/09, s. 7 (1). (2) For the purposes of paragraph 2 of subsection 42 (2) of the Act, the prescribed amount is $50,000.  O. Reg. 237/09, s. 7 (2). PART IV   CAPITAL STRUCTURE
Number of shares
 8. For the purposes of subsection 52 (2) of the Act and despite any limit set out in the by-laws of a credit union, the prescribed limit on the number of membership shares that may be issued to a member of the credit union is the sum of, (a) the minimum number of membership shares required under the by-laws of the credit union; and (b) the number of membership shares that would be issued by the credit union for an additional consideration of $1,000, as determined at the time the membership shares are issued.  O. Reg. 237/09, s. 8.
Disclosure re insurance of membership shares
 9. Prior to issuing any membership share, a credit union shall disclose to the member that membership shares are not insured by the Authority.  O. Reg. 237/09, s. 9; O. Reg. 181/19, s. 2.
Membership share certificate
 10. For the purposes of subsection 52 (6) of the Act, a membership share certificate must include the following information and statements on its face: 1. The name of the credit union as it appears in the articles. 2. The name of each person to whom the certificate is issued. 3. A statement indicating that the credit union is governed by the Credit Unions and Caisses Populaires Act, 1994. 4. A statement indicating that the certificate represents membership shares in the credit union and indicating the number of shares. 5. A statement indicating that there may be a lien on the shares in favour of the credit union for indebtedness to it. 6. A statement indicating that the shares are not guaranteed or insured by the Authority or another public agency. 7. A statement indicating that the certificate is not transferable.  O. Reg. 237/09, s. 10; O. Reg. 181/19, s. 3.
Notice of offering
 12. (1) A credit union may give any person or entity a notice respecting an offering after the offering statement is filed and before the Chief Executive Officer issues a receipt.  O. Reg. 237/09, s. 12 (1); O. Reg. 181/19, s. 5 (1). (2) The notice must contain the following information: 1. A detailed description of the security that the credit union proposes to issue. 2. The price of the security, if the price has been determined. 3. The name and address of a person from whom the securities may be purchased.  O. Reg. 237/09, s. 12 (2). (3) The notice must include the following statements in conspicuous, bold type on the front cover, in the same language as is used in the offering statement: 1. This is not an offer to sell the securities described in this document. 2. The securities described in this document cannot be sold until after the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario issues a receipt for an offering statement.  You are advised to read the offering statement approved by the Chief Executive Officer, because the terms and conditions may be changed significantly. 3. The Chief Executive Officer may refuse to issue a receipt, in which case the securities described in this document will not be offered for sale.  O. Reg. 237/09, s. 12 (3); O. Reg. 181/19, s. 5 (2, 3).
Statement of material change
 13. The following information must be set out in a statement of material change respecting an offering statement by a credit union: 1. The name of the credit union. 2. The date on which the receipt for the offering statement was issued. 3. The date on which the material change occurred. 4. A description of the material change.  O. Reg. 237/09, s. 13.
Transfer of securities issued after receipt for an offering statement
 14. For the purposes of subsection 74.1 (1) of the Act, the Authority and a league are prescribed as persons to whom a security issued under circumstances described in clause 75 (1) (a) of the Act may be transferred.  O. Reg. 237/09, s. 14; O. Reg. 181/19, s. 6. PART V   CAPITAL AND LIQUIDITY
Adequate capital
 15. (1) This section sets out the criteria for determining if a credit union is maintaining adequate capital as required by section 84 of the Act.  O. Reg. 237/09, s. 15 (1). (2) Revoked: O. Reg. 68/17, s. 4 (1). (3) A credit union has adequate capital for a financial year if the following conditions are satisfied: 1. Its regulatory capital expressed as a percentage of its total assets is at least 4 per cent for a financial year ending on or after January 1, 2009. 2. Its regulatory capital, expressed as a percentage of its risk weighted assets, is at least 8 per cent.  O. Reg. 237/09, s. 15 (3); O. Reg. 68/17, s. 4 (2).
Total assets
 16. (1) The total assets of a credit union is the amount calculated using the formula, A – B in which, “A” is the amount of all the credit union’s assets, and “B” is the sum of the following amounts: 1. Goodwill. 2. The amount by which, i. identified intangible assets, other than goodwill, that have been purchased directly or acquired in conjunction with or arising from the acquisition of a business, including trademarks, core deposit intangibles, mortgage servicing rights and purchased credit card relationships, exceeds, ii. 5 per cent of the amount of the variable “E” in subsection 17 (2). 3. Investments in subsidiaries that are financial institutions. 4. Any other amounts set out in the Capital Adequacy Guideline for Ontario’s Credit Unions and Caisses Populaires. O. Reg. 237/09, s. 16 (1); O. Reg. 514/10, s. 2 (1). (2) For the purposes of subsection (1), the following rules apply: 1. The amount of an asset is its value as it would appear in the financial statements of the credit union, if the financial statements were prepared as of the date of the calculation. 2. Provisions or allowances for losses of a general nature must be deducted from the most closely applicable class of assets. 3. An investment in a subsidiary must be calculated using the equity method of accounting described in the Capital Adequacy Guideline for Ontario’s Credit Unions and Caisses Populaires. 4. Cash deposits in a financial institution must be offset against overdrafts with the same financial institution.  O. Reg. 237/09, s. 16 (2); O. Reg. 514/10, s. 2 (2).
Forming of groups relating to capital requirements
 19. (1) The following are requirements for an agreement under subsection 84 (3) of the Act for credit unions and a league to form a group for the purposes of assisting the credit unions in satisfying the requirements of section 84 of the Act relating to capital: 1. The agreement must provide that if an order is issued under clause 86 (1) (a) of the Act against a credit union that is in the group, the league will, within 45 days after the order is issued, invest sufficient monies in the credit union, by purchasing preferred shares or subordinated debt of the credit union, so that the credit union satisfies the requirements of section 84 of the Act relating to capital. 2. The agreement must provide that the credit unions that are in the group agree to jointly and severally indemnify the league for the amount invested under paragraph 1. 3. The agreement must provide that a credit union can withdraw from the group only on 18 months notice to the league and the other credit unions in the group and only if all the credit unions in the group have satisfied the requirements of section 84 of the Act relating to capital throughout the 12-month period preceding the withdrawal.  O. Reg. 237/09, s. 19 (1). (2) The following are prescribed grounds for the Chief Executive Officer to revoke its approval under subsection 84 (4) of the Act: 1. The league that is in the group fails to comply with the obligation set out in paragraph 1 of subsection (1). 2. The league that is in the group fails to comply with an order under subsection 85 (4), 86 (1), 187 (1), 189 (4), 191 (2), 197.0.1 (1), 200 (1), (2), (3), (4) or (5), 201.1 (2), 202.1 (1), 204 (7), 231 (2), 234 (1), 235 (1) or 240 (1) of the Act. 3. The league that is in the group is subject to an order under subsection 279 (1) or 294 (1) of the Act.  O. Reg. 237/09, s. 19 (2); O. Reg. 181/19, s. 8. 20. Revoked: O. Reg. 68/17, s. 7.
Adequate liquidity
 21. (1) This section sets out the requirements for adequate liquidity under section 84 of the Act.  O. Reg. 237/09, s. 21 (1); O. Reg. 68/17, s. 8 (1). (2) A credit union shall establish and maintain prudent levels and forms of liquidity that are sufficient to meet its cash flow needs, including depositor withdrawals and all other obligations as they come due.  O. Reg. 237/09, s. 21 (2); O. Reg. 68/17, s. 8 (2). (3) An asset shall not be used to satisfy the requirements for adequate liquidity for a credit union unless the asset is authorized for that purpose under the capital and liquidity policies of the credit union established under section 85 of the Act.  O. Reg. 237/09, s. 21 (3); O. Reg. 68/17, s. 8 (2).
Encumbered asset
 22. An encumbered asset shall not be used to satisfy the requirements for adequate liquidity unless the asset is encumbered only by a security interest in favour of the Authority.  O. Reg. 237/09, s. 22; O. Reg. 181/19, s. 9.
Failure to meet requirements for adequate liquidity
 23. (1) The following apply if, for a period of five consecutive days (excluding Saturdays, Sundays and holidays), a credit union does not meet the requirements for adequate liquidity under section 84 of the Act: 1. The credit union shall not make a loan or an investment until the credit union again meets the requirements for adequate liquidity. 2. The credit union shall immediately submit to the Chief Executive Officer a report addressing the following matters: i. the circumstances that led to the failure to meet the requirements for adequate liquidity, ii. the steps the credit union has taken to meet the requirements for adequate liquidity, and iii. when the credit union will again meet the requirements for adequate liquidity.  O. Reg. 237/09, s. 23 (1); O. Reg. 181/19, s. 10. (2) For the purposes of paragraph 1 of subsection (1), changing the terms and conditions of a loan or refinancing a loan in any other way shall be deemed to be making a loan.  O. Reg. 237/09, s. 23 (2). 24. Revoked: 2019, c. 7, Sched. 16, s. 52. PART VI   GOVERNING THE CREDIT UNION
PART VI GOVERNING THE CREDIT UNION
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Mandatory by-laws
 25. The following are prescribed for the purposes of subsection 105 (2) of the Act as matters required to be governed by the by-laws of every credit union, to the extent the matters are not provided for by the Act or the regulations or set out in the articles of the credit union: 1. Admission to membership in the credit union and any fees for admission. 2. Withdrawal, suspension or expulsion from membership in the credit union. 3. The allotment of shares, including the maximum number that may be allotted to a member, the payment for shares, the redemption or transfer of shares and the recording of information about these matters. 4. The procedure for deciding how to distribute the profits of the credit union. 5. If the credit union is a member of a league and assesses its own members to pay for the cost of membership in the league, the procedure for assessing credit union members’ annual assessment to be paid to the league. 6. The language or languages in which the credit union will carry on business. 7. Mandatory procedures governing the operation of the credit union. 8. The classes of loans that the credit union is authorized to make. 9. The time, place and notice to be given for a members’ meeting, the record date for determining who is entitled to vote at such a meeting, and the quorum for such a meeting. 10. The time, place and notice to be given for a board meeting. 11. The time for, and manner of, electing directors and committee members. 12. The term of office of directors and of committee members, and the procedure for setting their remuneration. 13. The appointment and removal of officers and employees of the credit union, any security that they are required to give the credit union and the procedures for establishing their remuneration.  O. Reg. 237/09, s. 25; O. Reg. 68/17, s. 9.
Frequency of board meetings
 26. The board of a credit union shall meet at least quarterly during each financial year of the credit union.  O. Reg. 237/09, s. 26.
Remuneration reported in financial statements
 28. (1) For the purposes of subsection 140 (5) of the Act, the prescribed information about the remuneration paid during a year to the officers and employees of a credit union that must be disclosed in the credit union’s annual audited financial statements is the following information with respect to each officer and employee of the credit union whose total remuneration for the year was over $150,000: 1. The name of the officer or employee. 2. The title of the officer or position of the employee. 3. The total amount of salary received. 4. The total amount of bonuses received. 5. The monetary value of benefits received.  O. Reg. 237/09, s. 28 (1). (2) Despite subsection (1), if there are more than five officers and employees of a credit union whose total remuneration for the year was over $150,000, subsection (1) only applies in respect of the five officers and employees with the highest total remuneration for the year.  O. Reg. 237/09, s. 28 (2). (3) In this section, “total remuneration” means, in respect of an officer or employee for a year, the total of the amounts described in paragraphs 3, 4 and 5 of subsection (1) for the year.  O. Reg. 237/09, s. 28 (3).
Bond for persons handling money
 29. (1) For the purposes of subsection 151 (2) of the Act, from the day this section comes into force, the minimum amount of the bond is the lesser of $1 million and the amount of the credit union’s total assets as shown on the audited financial statements of the credit union placed before the members at the most recent annual meeting.  O. Reg. 237/09, s. 29 (1). (2) After December 31, 2010, the minimum amount of the bond is the lesser of $5 million and the amount of the credit union’s total assets as shown on the audited financial statements of the credit union placed before the members at the most recent annual meeting.  O. Reg. 237/09, s. 29 (2).
Bond
 30. For the purposes of subsection 151 (2) of the Act, after December 31, 2010, the bond shall satisfy all of the following conditions: 1. The bond shall be issued by an insurer licensed under the Insurance Act to write surety and fidelity insurance to indemnify the credit union for any loss in respect of assets owned or held by the credit union arising out of a dishonest, fraudulent or criminal act of a director, officer or employee of the credit union. 2. The bond shall provide that the bond shall not be cancelled or terminated by the insurer or the insured until at least 30 days after the receipt by the Chief Executive Officer of a written notice from the insurer or the insured, as the case may be, of its intention to cancel or terminate the bond.  O. Reg. 237/09, s. 30; O. Reg. 181/19, s. 12. PART VII   RESTRICTIONS ON BUSINESS POWERS Ancillary Businesses
PART VII RESTRICTIONS ON BUSINESS POWERS
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Ancillary businesses
 31. For the purposes of subsection 174 (1) of the Act, a credit union may engage in the following trades or businesses: 1. Operating a post office. 2. Operating a motor vehicle licence bureau. 3. Acting as an agent to receive payments for utility bills, realty tax, personal income tax and for similar transactions. 4. Providing facsimile transmission facilities. 5. Promoting merchandise and services to its members or the holder of any payment, credit or charge card issued by the credit union, its subsidiaries or affiliates. 6. Engaging in the sale of, i. tickets, including lottery tickets, on a non-profit, public service basis in connection with special, temporary and infrequent non-commercial celebrations or projects that are of local, municipal, provincial or national interest, ii. transit fares, and iii. tickets in respect of a lottery sponsored by the federal government or a provincial or municipal government or an agency of any such government.  O. Reg. 237/09, s. 31. Financial Services
Prohibition re financial services
 32. For the purposes of subsection 174 (3) of the Act, a credit union shall not directly provide the following financial services: 1. Services provided by a factoring corporation described in subsection 68 (2). 2. Services provided by an investment counselling and portfolio management corporation described in subsection 68 (5). 3. Services provided by a mutual fund corporation described in subsection 68 (6). 4. Services provided by a mutual fund distribution corporation described in subsection 68 (7). 5. Services provided by a securities dealer described in subsection 68 (10).  O. Reg. 237/09, s. 32.
Financial lease agreements and conditional sales agreements
 33. (1) For the purposes of subsection 174 (3) of the Act, a credit union or subsidiary must not enter into a financial lease agreement or a conditional sales agreement unless the agreement meets the following requirements: 1. The agreement concerns personal property, i. selected by the lessee or purchaser and acquired by the credit union or subsidiary at the request of the lessee or purchaser, or ii. previously acquired by the credit union or subsidiary under another financial lease agreement or conditional sales agreement. 2. The primary purpose of the agreement is to extend credit to the lessee or purchaser. 3. The agreement is for a fixed term.  O. Reg. 237/09, s. 33 (1). (2) A credit union or subsidiary must not direct a customer or prospective customer to particular dealers for the sale of personal property under a conditional sales agreement.  O. Reg. 237/09, s. 33 (2). (3) A financial lease agreement or conditional sales agreement must yield, (a) a reasonable rate of return; and (b) a return that at least equals the investment by the subsidiary in the property that is the subject of the agreement, taking into account in the case of a financial lease agreement, (i) rental charges payable or paid by the lessee, (ii) tax benefits to the credit union or subsidiary, and (iii) the guaranteed purchase or resale price, if any, for the property at the expiry of the agreement or the lesser of the estimated residual value of the property and 25 per cent of the original acquisition cost to the credit union or subsidiary.  O. Reg. 237/09, s. 33 (3). (4) The financial lease agreement or conditional sales agreement must set out the responsibilities of the credit union or its subsidiary respecting the benefit of the warranties, guarantees and undertakings made by the manufacturer or supplier of the property.  O. Reg. 237/09, s. 33 (4). (5) The aggregate estimated residual value of all property held by a credit union and its subsidiaries under financial lease agreements must not exceed 10 per cent of the aggregate original acquisition cost.  O. Reg. 237/09, s. 33 (5). (6) This section does not apply with respect to agreements in which the credit union or its subsidiary is the lessee or conditional purchaser.  O. Reg. 237/09, s. 33 (6). Networking
Networking
 34. (1) Subject to sections 35 to 43, for the purposes of subsection 174 (4) of the Act, the following are the prescribed persons or entities in respect of which a credit union may act as agent: 1. A financial institution. 2. The Authority. 3.  Revoked: O. Reg. 68/17, s. 10 (1). 4. Central 1 Credit Union. 5. Fédération des caisses Desjardins du Québec. 6. A
financial leasing corporation described in subsection 68 (3), whether or not it is a subsidiary of the credit union. 7. A mutual fund corporation described in subsection 68 (6), whether or not it is a subsidiary of the credit union. 8. A mutual fund distribution corporation described in subsection 68 (7), whether or not it is a subsidiary of the credit union.  O. Reg. 237/09, s. 34 (1); O. Reg. 68/17, s. 10 (1, 2); O. Reg. 181/19, s. 13 (1, 2). (2) A credit union may act as agent for the Authority only with respect to the administration of deposits under a deposit administration agreement.  O. Reg. 237/09, s. 34 (2); O. Reg. 181/19, s. 13 (3). (3) For the purposes of subsection 174 (4) of the Act, a credit union may refer its members to a person or entity listed in paragraphs 1 to 8 of subsection (1) for the purpose of obtaining a syndicated loan within the meaning of section 56.  O. Reg. 237/09, s. 34 (3); O. Reg. 68/17, s. 10 (3); O. Reg. 489/18, s. 1. Authorized Types of Insurance
Authorized Types of Insurance
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Group insurance policy
 36. (1) A credit union may administer a group insurance policy described in section 35 only for its members, its employees or the employees of its subsidiaries.  O. Reg. 237/09, s. 36 (1). (2) A group insurance policy is a contract of insurance between an insurer and the credit union that provides insurance severally for a group of identifiable persons who individually hold certificates of insurance.  O. Reg. 237/09, s. 36 (2).
Advice about insurance
 37. (1) A credit union may provide advice about an authorized type of insurance.  O. Reg. 237/09, s. 37 (1). (2) A credit union may provide advice in respect of another type of insurance only if, (a) the advice is general in nature; and (b) the advice is not about a specific risk, a particular proposal respecting life insurance or a particular insurance policy, insurer, agent, broker or service.  O. Reg. 237/09, s. 37 (2). (3) A credit union may provide services in respect of an authorized type of insurance.  O. Reg. 237/09, s. 37 (3). (4) A credit union may provide services in respect of another type of insurance only if the credit union does not refer a person to a particular insurer, agent or broker.  O. Reg. 237/09, s. 37 (4). Restrictions on Insurance
Restrictions on Insurance
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Restriction on insurance
 38. A credit union shall not underwrite insurance.  O. Reg. 237/09, s. 38.
Restriction on agency and office space
 39. (1) A credit union shall not act as an agent for any person in the placing of insurance.  O. Reg. 237/09, s. 39 (1). (2) A credit union shall not lease or provide space in its head office or any other of its offices to a person placing insurance.  O. Reg. 237/09, s. 39 (2).
Separate and distinct premises
 40. (1) A credit union that carries on business in premises adjacent to an office of an insurer, agent or broker shall clearly indicate to its customers that the credit union’s premises are separate and distinct from the premises of the insurer, agent or broker.  O. Reg. 237/09, s. 40 (1). (2) The premises of the credit union must be separate and distinct from the premises of the insurer, agent or broker.  O. Reg. 237/09, s. 40 (2).
Telecommunications device
 41. A credit union shall not provide a telecommunications device that is primarily for the use of its customers to link a customer with an insurer, agent or broker.  O. Reg. 237/09, s. 41.
Promotion of insurer
 42. (1) A credit union shall not promote an insurer, agent or broker unless, (a) the insurer, agent or broker deals only in authorized types of insurance; or (b) the promotion takes place outside the head office and any other office of the credit union, and is directed to, (i) all of the holders of credit cards or charge cards issued by the credit union to whom statements of account are sent regularly, (ii) all of the credit union members who are individuals and to whom statements of account are sent regularly, or (iii) the general public.  O. Reg. 237/09, s. 42 (1). (2) A credit union shall not promote an insurance policy of an insurer, agent or broker, or a service provided in respect of such a policy, unless, (a) the policy is of an authorized type of insurance or the service is in respect of such a policy; (b) the policy is to be provided by a corporation without share capital (other than a mutual insurer or a fraternal benefit society) that carries on business without pecuniary gain to its members and the policy provides insurance to an individual in respect of the risks covered by travel insurance; (c) the service is in respect of a policy described in clause (b); or (d) the promotion takes place outside the head office of the credit union and any other office of the credit union, and is directed to, (i) all of the holders of credit cards or charge cards issued by the credit union to whom statements of account are sent regularly, (ii) all of the credit union members who are individuals and to whom statements of account are sent regularly, or (iii) the general public.  O. Reg. 237/09, s. 42 (2). (3) A credit union may exclude the following persons from a promotion described in clause (1) (b) or (2) (d): 1. Persons in respect of whom the promotion would contravene an Act of Parliament or of the legislature of a province. 2. Persons who have notified the credit union in writing that they do not wish to receive promotional material from the credit union. 3. Persons who hold a credit card or charge card issued by the credit union in respect of which the account is not in good standing.  O. Reg. 237/09, s. 42 (3).
Web promotion
 42.1 (1) A credit union shall not, on a credit union website, directly or indirectly promote, or provide access to another website that promotes, (a) an insurer, agent or broker that deals in a type of insurance that is not an authorized type of insurance; or (b) an insurance policy of an insurer, agent or broker, or a service in respect of such a policy, that provides a type of insurance that is not an authorized type of insurance. O. Reg. 277/15, s. 2. (2) A credit union shall not engage in a promotion described in clause 42 (1) (b) on a credit union website unless the promotion relates to an insurer, agent or broker that deals only in authorized types of insurance. O. Reg. 277/15, s. 2. (3) A credit union shall not engage in a promotion described in clause 42 (2) (d) on a credit union website unless the promotion relates to a policy of an authorized type of insurance. O. Reg. 277/15, s. 2.
Sharing of information with insurer
 43. (1) Except as permitted by this section, a credit union shall not directly or indirectly give an insurer, agent or broker information about, (a) a member of the credit union; (b) an employee of the member; (c) if the member is an entity with its own members, a member of the entity; or (d) if the member has partners, a partner of the member.  O. Reg. 237/09, s. 43 (1). (2) A credit union shall not permit its subsidiary to give directly or indirectly to an insurer, agent or broker information that the subsidiary receives from the credit union.  O. Reg. 237/09, s. 43 (2). (3) A credit union shall not permit a subsidiary that is a loan or trust corporation to give directly or indirectly to an insurer, agent or broker information about, (a) a customer of the subsidiary; (b) an employee of the customer; (c) if the customer is an entity with members, a member of the customer; or (d) if the customer has partners, a partner of the customer.  O. Reg. 237/09, s. 43 (3). (4) A credit union or a subsidiary that is a loan or trust corporation may give information to an insurer, agent or broker if, (a) the credit union or subsidiary has established procedures to ensure that the insurer, agent or broker does not use the information to promote himself, herself or itself or an insurance policy or services respecting an insurance policy; and (b) the insurer, agent or broker has given an undertaking to the credit union or subsidiary, in a form acceptable to the Chief Executive Officer, that he, she or it will not use the information for such a purpose.  O. Reg. 237/09, s. 43 (4); O. Reg. 181/19, s. 14. (5) In this section, “loan or trust corporation” means a loan or trust corporation incorporated under an Act of the legislature of a province.  O. Reg. 237/09, s. 43 (5). Fiduciary Activities
Fiduciary activities
 44. For the purposes of section 177 of the Act, the only fiduciary activity a credit union may undertake is acting as a trustee with respect to, (a) deposits under registered retirement savings plans, registered retirement income funds, registered education savings plans, registered disability savings plans and tax-free savings accounts under the Income Tax Act (Canada); (b) trust funds established under the Funeral, Burial and Cremation Services Act, 2002 or any other funds in respect of which a credit union is expressly permitted or required, under an Act or regulation, to act as a trustee; and (c) loan proceeds and security under loan participation agreements and syndication agreements.  O. Reg. 237/09, s. 44; O. Reg. 277/15, s. 3. Guarantees
Guarantees
 45. For the purposes of subsection 178 (3) of the Act, the following are the prescribed conditions and restrictions on a guarantee: 1. The guarantee must have a fixed term. 2. The credit union shall not guarantee an obligation, other than its own obligation or one of its subsidiary, unless the credit union has received security at least equal to the amount of the obligation guaranteed.  O. Reg. 237/09, s. 45.
Limit on amount of guarantee
 46. For the purposes of subsection 178 (4) of the Act, the prescribed percentage is 10 per cent.  O. Reg. 237/09, s. 46. Syndicated Loans
Syndicated loans
 46.1 For the purposes of clause 190 (1) (b) of the Act, a syndicated loan means a syndicated loan in Ontario within the meaning of section 56 of this Regulation, or a syndicated loan outside Ontario within the meaning of section 56.1 of this Regulation. O. Reg. 68/17, s. 11. PART VIII   INVESTMENT AND LENDING Interpretation
Interpretation
 47. For the purposes of this Part, regulatory capital shall be determined under section 17 using 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. 47. Security Interests in Credit Union Property
Classes of loans
 49. The following are prescribed as classes of loans: 1. Agricultural loans. 2. Bridge loans. 3. Commercial loans. 4. Institutional loans. 5. Personal loans. 6. Residential mortgage loans. 7. Syndicated loans in Ontario. 7.1 Syndicated loans outside Ontario. 8. Loans to unincorporated associations.  O. Reg. 237/09, s. 49; O. Reg. 68/17, s. 13.
Agricultural loan
 50. An agricultural loan is a loan that is made for the purposes of financing, (a) the production of cultivated or uncultivated field-grown crops; (b) the production of horticultural crops; (c) the raising of livestock, fish, poultry or fur-bearing animals; or (d) the production of eggs, milk, honey, maple syrup, tobacco, wood from woodlots or fibre or fodder crops.  O. Reg. 237/09, s. 50.
Bridge loan
 51. A bridge loan is a loan to an individual made under the following circumstances: 1. The loan is for the purchase of residential property in which the purchaser will reside. 2. The term of the loan is not greater than 120 days. 3. The funds from the sale of another residential property owned by the individual will be used to repay the loan. 4. The credit union must receive a copy of the executed purchase and sale agreement for both properties before the loan is made. 5. The conditions of each of the purchase and sale agreements must be satisfied before the loan is made. 6. The loan is fully secured by a mortgage on the residential property being sold or, before the loan is made, the borrower’s solicitor has given the credit union an irrevocable letter of direction from the borrower stating that the funds from the sale of the residential property being sold will be remitted to the credit union.  O. Reg. 237/09, s. 51.
Commercial loan
 52. (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, 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 or a municipality or by an agency of such a government or municipality. 10. An investment in a debt obligation issued by a league, 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 league, Central 1 Credit Union or Fédération des caisses Desjardins du Québec.  O. Reg. 237/09, s. 52 (1); O. Reg. 68/17, s. 14; O. Reg. 181/19, s. 16. (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.  O. Reg. 237/09, s. 52 (2).
Institutional loan
 53. 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.  O. Reg. 237/09, s. 53.
Personal loan
 54. 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 him, her or it and to connected persons does not exceed $25,000.  O. Reg. 237/09, s. 54.
Residential mortgage loan
 55. A residential mortgage loan is a loan that is secured by a mortgage on residential property that is occupied by the borrower 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.  O. Reg. 237/09, s. 55.
Syndicated loan in Ontario
 56. 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. ii. A league. iii. Central 1 Credit Union. iv. Fédération des caisses Desjardins du Québec. v. Revoked: O. Reg. 181/19, s. 17. vi. 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 league. C. Central 1 Credit Union. D. Fédération des caisses Desjardins du Québec. E. Revoked: O. Reg. 181/19, s. 17. F. A financial institution other than a securities dealer. G. An extra-provincial credit union registered under clause 332 (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. O. Reg. 68/17, s. 15; O. Reg. 489/18, s. 2; O. Reg. 181/19, s. 17.
Syndicated loan outside Ontario
 56.1 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 in a province or territory of Canada other than Ontario under legislation that is comparable to the Act. ii. Central 1 Credit Union. iii. Fédération des caisses Desjardins du Québec. iv. Revoked: O. Reg. 181/19, s. 18. v. 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 league. 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. O. Reg. 68/17, s. 15; O. Reg. 489/18, s. 3; O. Reg. 181/19, s. 18.
Loan to an unincorporated association
 57. 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.  O. Reg. 237/09, s. 57. Lending Limits
Limits on loans of same class to a person
 59. (1) Revoked: O. Reg. 68/17, s. 17 (1). (2) A credit union shall establish prudent lending limits for each class of loans that it is authorized by its by-laws to make.  O. Reg. 237/09, s. 59 (2); O. Reg. 68/17, s. 17 (2). (3) 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.  O. Reg. 237/09, s. 59 (3); O. Reg. 68/17, s. 17 (3). (4), (5) Revoked: O. Reg. 68/17, s. 17 (4). Table Revoked: O. Reg. 68/17, s. 17 (4). Eligible Investments 60. Revoked: O. Reg. 68/17, s. 18.
Eligible investments
 61. (1) For the purposes of section 198 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 and this Regulation. O. Reg. 68/17, s. 19 (1). (2) A credit union shall not invest in a derivative instrument unless it is purchased for the purposes of managing interest rate risk.  O. Reg. 237/09, s. 61 (2); O. Reg. 68/17, s. 19 (2). (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.  O. Reg. 237/09, s. 61 (3); O. Reg. 68/17, s. 19 (2). (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.  O. Reg. 237/09, s. 61 (4); O. Reg. 68/17, s. 19 (2). (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.  O. Reg. 237/09, s. 61 (5); O. Reg. 68/17, s. 19 (2). (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.  O. Reg. 237/09, s. 61 (6).