Eligible Investments
66. (1) A credit union may purchase as investments the following types of assets, subject to the conditions indicated: 1. Debt obligations that are fully guaranteed by, i. a financial institution other than the credit union, ii. a stabilization authority, or iii. Credit Union Central of British Columbia. 2. Debt obligations that are fully secured by deposits with a financial institution or Credit Union Central of British Columbia. 3. Debt obligations that are fully secured by other debt obligations that are fully guaranteed by, i. a financial institution other than the credit union, or ii. Credit Union Central of British Columbia. 4. Debt obligations issued by the Government of Canada, the government of a province or territory of Canada, a municipality or an agency of such a government or municipality. 5. Debt obligations that are guaranteed by, or fully secured by securities issued by, the Government of Canada, the government of a province or territory of Canada, a municipality or an agency of such a government or municipality. 6. Debt obligations issued by a school board or debentures issued by a municipal council to obtain money for a school board pursuant to an application by the school board to the municipal council under any Act. 7. Debt obligations that are widely-distributed. 8. Interests in a loan participation. 9. Derivative instruments that are being purchased for hedging purposes and to manage interest rate risk. 10. Debt obligations of a league or Credit Union Central of British Columbia. 11. Mortgages upon improved real estate in Canada. 12. Improved real estate in Canada. The investment must be made for the purpose of producing income. 13. Improved real estate in Canada. The credit union must occupy, or intend to occupy, the real estate for its own use. 14. Securities that are secured by mortgages. 15. Shares of a body corporate or ownership interests in an unincorporated association that are widely-distributed. 16. Participating shares of a body corporate. 17. Shares of a league or Credit Union Central of British Columbia. 18. Fully-paid shares or units of a mutual fund or corporation incorporated to offer participation in an investment portfolio. O. Reg. 76/95, s. 66 (1); O. Reg. 298/07, s. 12. (2) The total book value of all investments by the credit union and its subsidiaries in improved real estate in Canada must not exceed 10 per cent of the credit union’s regulatory capital and deposits. O. Reg. 76/95, s. 66 (2). (3) For the purposes of subsection (2), the total book value does not include the book value of real estate acquired by the credit union or a subsidiary, (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. 76/95, s. 66 (3). (4) If a credit union’s subsidiary has an investment in improved real estate in Canada and the subsidiary occupies and uses the real estate for its own purposes or the purposes of the credit union, the credit union shall be deemed to hold the investment. O. Reg. 76/95, s. 66 (4). (5) The total book value of all investments by the credit union in shares and ownership interests described in paragraphs 15 and 16 of subsection (1), other than shares in its subsidiaries, must not exceed 5 per cent of the credit union’s regulatory capital and deposits. O. Reg. 76/95, s. 66 (5). (6) In this section, “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. 76/95, s. 66 (6).