jswizzle3737/ontario_laws_and_regs huggingface dataset:
Lending Limits
61. (1) A class 1 credit union whose total assets are described in a row in Column 1 of the Table to this section shall not make a loan to a person if, as a result of making the loan, the total amount of all outstanding loans made by the credit union to the person and any connected persons would exceed the amount of the total lending limit set out in the same row of Column 2 of the Table. O. Reg. 560/06, s. 14. (2) A class 2 credit union shall not make a loan to a person if, as a result of making the loan, the total amount of all outstanding loans made to the person and any connected persons would exceed 25 per cent of the credit union’s regulatory capital. O. Reg. 560/06, s. 14. (3) For the purposes of this section, the total amount of all outstanding loans made by a credit union to a person and any connected persons excludes the portion, if any, of a loan that, (a) is insured under the National Housing Act (Canada), guaranteed by a government agency or insured by an insurer approved by the Superintendent; or (b) is secured by deposits of the borrower with the credit union. O. Reg. 560/06, s. 14. (4) For the purposes of this section, 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. 560/06, s. 14. TABLE   TOTAL LENDING LIMITS — CLASS 1 CREDIT UNIONS  Column 1

Column 2


Total assets of credit union

Total lending limit


Less than $500,000

Greater of 100% of regulatory capital and $60,000


$500,000 or more but less than $1 million 

Greater of 100% of regulatory capital and $100,000


$1 million or more but less than $2 million

Greater of 80% of regulatory capital and $125,000


$2 million or more but less than $3 million

Greater of 80% of regulatory capital and $155,000


$3 million or more but less than $5 million

Greater of 70% or regulatory capital and $185,000


$5 million or more but less than $10 million

Greater of 60% of regulatory capital and $235,000


$10 million or more but less than $20 million

Greater of 50% of regulatory capital and $295,000


$20 million or more but less than $50 million

Greater of 30% of regulatory capital and $400,000 O. Reg. 560/06, s. 14. limits on loans of same class to individuals
Lending Limits
62. (1) A class 1 credit union shall not make a loan to a person if, as a result of making the loan, the total amount of all outstanding loans of the same class, as set out in Column 1 of the Table to this section, made by the credit union to the same person and any connected persons would exceed the amount calculated by multiplying the percentage set out in the same row of Column 2 of the Table by the credit union’s total lending limit as determined under section 61. O. Reg. 560/06, s. 14. (2) A class 2 credit union shall establish prudent lending limits for each class of loans that it is authorized by its lending licence and by-laws to make. O. Reg. 560/06, s. 14. (3) For the purposes of this section and for the purposes of the lending limits established by a class 2 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. 560/06, s. 14. (4) For the purposes of this section, the total amount of outstanding loans to a person and any connected persons does not include the portion, if any, of a loan that, (a) is insured under the National Housing Act (Canada), guaranteed by a government agency or insured by an insurer approved by the Superintendent; or (b) is secured by the borrower’s deposits with the credit union. O. Reg. 560/06, s. 14. (5) For the purposes of this section, 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. 560/06, s. 14. TABLE   CLASS 1 CREDIT UNION LENDING LIMITS  Column 1

Column 2


Class of loan

Percentage of total lending limit 


Agricultural loan

0%


Bridge loan

100%


Institutional loan

50%


Loan to unincorporated association or organization

5%


Personal loan, fully secured

20%


Personal loan, unsecured or under-secured

6%


Residential mortgage loan

100%


Loan under a syndicated loan agreement

0% O. Reg. 560/06, s. 14. refinancing of loans
Lending Limits
63. For the purposes of subsection 195 (1) of the Act, “make loans” includes to change the terms and conditions of a loan or refinance a loan in any other way. O. Reg. 560/06, s. 14.
Lending Limits
64. Revoked: O. Reg. 314/98, s. 19.
Lending Limits
65. Revoked: O. Reg. 560/06, s. 14. Eligible Investments
Eligible Investments
67. A credit union may hold as investments the following types of loans: 1. Loans that consist of deposits made by the credit union with a financial institution or Credit Union Central of British Columbia. 2. Loans that are fully secured by a deposit with a financial institution or Credit Union Central of British Columbia. 3. Loans that are fully secured by debt obligations that are guaranteed by, i. a financial institution other than the credit union holding the loan, or ii. Credit Union Central of British Columbia. 4. Loans that are fully secured by a guarantee of, i. a financial institution other than the credit union holding the loan, or ii. Credit Union Central of British Columbia. O. Reg. 76/95, s. 67; O. Reg. 298/07, s. 13.
Eligible Investments
68. (1) 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, the amount of the investment is subject to the following restrictions: 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 a policy of mortgage insurance issued by an insurance company licensed or registered under the Insurance Companies Act (Canada), the Insurance Act or similar legislation of another province or territory of Canada. O. Reg. 76/95, s. 68 (1). (2) If a credit union or a subsidiary acquires real estate, (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, 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). O. Reg. 76/95, s. 68 (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. 76/95, s. 68 (3). (4) For the purposes of subsection (1), “lending value” means the amount represented by “A” in the formula,  in which, “B” equals the market value of the real estate, “C” equals the amount, if any, by which the market value has been increased by contingencies or assumptions whose occurrence is remote, and “D” is the lesser of 80 per cent or such other percentage as the credit union considers appropriate in the circumstances under its prudent investment standards. O. Reg. 76/95, s. 68 (4); O. Reg. 297/07, s. 2.
Eligible Investments
69. (1) A credit union shall 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. 76/95, s. 69 (1). (1.1) Subsection (1) does not apply to a credit union in respect of an investment in the shares of a body corporate described in paragraphs 1 to 14 of subsection 74 (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 Superintendent approves the credit union’s investment before the investment is made. O. Reg. 560/06, s. 15. (2) A credit union shall 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. 76/95, s. 69 (2). Open Basket
Open Basket
70. For the purposes of subsection 198 (2) of the Act, the prescribed amount (of the total book value of investments) is 5 per cent of the credit union’s regulatory capital and deposits. O. Reg. 76/95, s. 70. Restriction on Single Investments
Restriction on Single Investments
71. For the purposes of subsection 199 (1) of the Act, the prescribed percentage of a credit union’s regulatory capital and deposits is 1.25 per cent. O. Reg. 76/95, s. 71.
Restriction on Single Investments
72. For the purposes of subsection 199 (2) of the Act (exceptions to the restriction on single investments), the following are the prescribed persons or entities: 1. Credit Union Central of Canada. 2. Caisse Centrale Desjardins. 2.1 Credit Union Central of British Columbia. 3. Subsidiaries of the credit union. O. Reg. 76/95, s. 72; O. Reg. 298/07, s. 14. Definition of “Connected Person”
Definition of “Connected Person”
73. (1) For the purposes of subsection 199 (3) of the Act,  “connected person” means, in relation to a person or entity, another person or entity who is one of the following: 1. 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. 2. An affiliate of a body corporate described in paragraph 1. 3. 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. 4. A partnership in which the person or entity is a partner. 5. A trust or estate in which the person or entity has a substantial beneficial interest. 6. A trust or estate in respect of which the person or entity serves as a trustee or in a similar capacity. 7. A person or entity on whose financial resources the person or entity depends to repay a loan to the credit union. 8. A person or entity who provides security to the credit union for a loan to the person or entity. O. Reg. 314/98, s. 20; O. Reg. 560/06, s. 16. (2) For the purposes of subsection 199 (3) of the Act, “connected person” also means, in relation to an individual, another individual who is one of the following: 1. A spouse who is financially dependent on the individual. 2. 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. 314/98, s. 20; O. Reg. 110/00, s. 2; O. Reg. 309/05, s. 2. Investment in Subsidiaries
Investment in Subsidiaries
75. A factoring corporation or a financial leasing corporation that is a subsidiary of a credit union may provide services to only the credit union’s members and subsidiaries and co-operative corporations established under an Act of Parliament or of a provincial legislature and the members of such corporations. O. Reg. 76/95, s. 75.
Investment in Subsidiaries
76. For the purpose of subsection 200 (7) of the Act (restriction on investment in subsidiaries), the prescribed percentage of the credit union’s regulatory capital and deposits is 5 per cent. O. Reg. 76/95, s. 76. PART IX   INTEREST RATE RISK MANAGEMENT Interpretation
Interpretation
77. A credit union’s exposure to interest rate risk refers to the potential 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. 76/95, s. 77; O. Reg. 560/06, s. 17. Policies and Procedures
Policies and Procedures
78. (1) A credit union shall establish policies and procedures to manage its exposure to interest rate risk, and they must 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. 560/06, s. 18. (2) The limits must take into account fluctuations in interest rates that might reasonably be expected to occur. O. Reg. 560/06, s. 18. (3) For a class 1 credit union, the limits must limit changes in net income to changes that do not exceed 0.15 per cent of the credit union’s total assets. O. Reg. 560/06, s. 18. (4) The policies and procedures must require the management of the credit union to submit a report to the board of directors and the Superintendent 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 takes steps to bring the amount of its exposure within the limits. O. Reg. 560/06, s. 18. (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. 560/06, s. 18. (6) The policies and procedures must be approved by the board of directors of the credit union. O. Reg. 560/06, s. 18.
Policies and Procedures
79. (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. 560/06, s. 18. (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 Superintendent and to the Corporation 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. 560/06, s. 18.
Policies and Procedures
80. (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. 76/95, s. 80 (1); O. Reg. 560/06, s. 19. (2) The report must include all information about the management of interest rate risk that the credit union has filed with the deposit insurer. O. Reg. 76/95, s. 80 (2). (3) The report must be presented at the next board meeting immediately after it is prepared and the board shall review it. O. Reg. 76/95, s. 80 (3). PART X   RESTRICTED PARTY TRANSACTIONS Application
Application
81. This Part applies with respect to transactions entered into, renewed, extended or modified after March 1, 1995. O. Reg. 76/95, s. 81. Definition of “Restricted Party”
Definition of “Restricted Party”
82. (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, officer or member of a committee of the credit union, (b) a spouse of a director, officer or committee member, (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, officer or committee member 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. 314/98, s. 22; O. Reg. 110/00, s. 3; O. Reg. 309/05, s. 3. (2) For the purposes of subsection (1), “officer” includes a person who has not yet assumed the office. O. Reg. 76/95, s. 82 (2). Definition of “Transaction”
Definition of “Transaction”
83. (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. 76/95, s. 83 (1); O. Reg. 314/98, s. 23. (2) The performance of a condition of a transaction forms a part of the transaction and does not constitute a separate transaction. (3) The payment of dividends to a restricted party does not constitute a transaction between a credit union and the restricted party. O. Reg. 76/95, s. 83 (2, 3). Permitted Transactions
Permitted Transactions
84. 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. 76/95, s. 84.
Permitted Transactions
85. (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. 76/95, s. 85 (1). (2) A credit union may issue shares under clause (1) (e) or (f) only with the prior written approval of the Superintendent. O. Reg. 76/95, s. 85 (2); O. Reg. 314/98, s. 24.
Permitted Transactions
87. (1) A credit union shall establish procedures to ensure that it complies with the restrictions governing restricted party transactions. (2) The procedures form part of the investment and lending policies and procedures of the credit union for the purposes of section 191 of the Act. (3) The procedures must include review and approval procedures to be followed by directors, officers and employees. (4) The procedures must require that a restricted party disclose to the credit union, in writing, the party’s interest in a transaction or a proposed transaction with the credit union or its subsidiary. (5) The disclosure to be made by a director, officer or committee member must be made in the manner set out in sections 146 and 147 of the Act, with necessary modifications. O. Reg. 76/95, s. 87. PART XI   MEETINGS First Meeting
First Meeting
88. (1) The first meeting of a credit union must be convened by a majority of the incorporators. (2) Written notice of the meeting must be mailed to each incorporator at least seven days before the date of the meeting. (3) The notice must state the date, time, place and purpose of the meeting. O. Reg. 76/95, s. 88.
First Meeting
89. At the first meeting of a credit union, a majority of the incorporators constitutes a quorum. O. Reg. 76/95, s. 89.
First Meeting
90. 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 members of the audit committee must be elected, if the articles require an election. 4. The members of the credit committee, if any, must be elected. 5. The auditor must be appointed. O. Reg. 76/95, s. 90. PART XII   FINANCIAL STATEMENTS Financial Statements
Financial Statements
91. A credit union’s financial statements shall contain the information required by the Guideline for Financial Statements for Ontario’s Credit Unions and Caisses Populaires, published in The Ontario Gazette by the Superintendent, as it may be amended from time to time. O. Reg. 314/98, s. 25.
Financial Statements
92.-94. Revoked: O. Reg. 314/98, s. 25. PART XIII   RETURNS AND INSPECTIONS Document Retention
Document Retention
95. (1) A credit union shall retain the following documents permanently: 1. Minutes of board meetings. 2. Minutes of general meetings of members and shareholders. 3. The general ledger containing summaries of year-to-year transactions. 4. All special agreements necessary to understand the entries in the general ledger or other book of final entry. (2) A credit union shall retain the following documents until six years have passed after the end of the most recent fiscal year to which the documents relate: 1. All records and books of account, other than those described in subsection (1), and all vouchers necessary to verify the information contained in those records and books. 2. Minutes of committee meetings. 3. Resolutions, including special resolutions. O. Reg. 76/95, s. 95. Maximum Fee for By-laws
Maximum Fee for By-laws
96. For the purpose of subsection 233 (2) of the Act, the prescribed amount is $10. O. Reg. 76/95, s. 96. PART XIV (s. 97) Revoked: O. Reg. 314/98, s. 26. PART XV   CONSUMER PROTECTION Disclosure Re Interest Rates, etc.
Disclosure Re Interest Rates, etc.
98. (1) A credit union shall disclose to a prospective depositor the applicable rate of interest for the person’s account and the manner of calculating the interest payable. (2) If the rate of interest or the manner of calculating interest on the account changes, the credit union shall inform the depositor of the change. O. Reg. 76/95, s. 98.
Disclosure Re Interest Rates, etc.
99. 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. 76/95, s. 99.
Disclosure Re Interest Rates, etc.
100. (1) In an advertisement about an interest-bearing deposit or a debt obligation, a credit union shall disclose how the interest is to be calculated and any circumstances that will affect the rate of interest. (2) An advertisement about an interest-bearing deposit must state how the balance of a deposit account will affect the rate of interest. O. Reg. 76/95, s. 100. Consumer Complaints
Consumer Complaints
101. (1) If, as a result of receiving a complaint, the Superintendent 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. 76/95, s. 101 (1); O. Reg. 314/98, s. 27 (1). (2) If requested to do so by the Superintendent, the credit union shall give a copy of the Superintendent’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. 76/95, s. 101 (2); O. Reg. 314/98, s. 27 (2).
Consumer Complaints
102. Omitted (revokes other Regulations). O. Reg. 76/95, s. 102.
Consumer Complaints
103. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 76/95, s. 103. FORMS 1-4 Revoked: O. Reg. 314/98, s. 28. Français