ARCHIVED — Vol. 146, No. 27 — July 7, 2012

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Disclosure on Continuance Regulations (Federal Credit Unions)

Statutory authority

Bank Act

Sponsoring department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see Prospectus (Federal Credit Unions) Regulations.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsection 35.1(3) (see footnote a) of the Bank Act (see footnote b), proposes to make the annexed Disclosure on Continuance Regulations (Federal Credit Unions).

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part Ⅰ, and the date of publication of this notice, and be addressed to Jane Pearse, Director, Financial Institutions Division, Department of Finance, L’Esplanade Laurier, East Tower, 15th Floor, 140 O’Connor Street, Ottawa, Ontario K1A 0G5 (tel.: 613-992-1631; fax: 613-943-1334; email: finlegis@fin.gc.ca).

Ottawa, June 19, 2012

JURICA ČAPKUN
Assistant Clerk of the Privy Council

DISCLOSURE ON CONTINUANCE REGULATIONS (FEDERAL CREDIT UNIONS)

NOTICE AND DISCLOSURE

1. (1) A local cooperative credit society that intends to make an application to the Minister for letters patent continuing it as a federal credit union (the “local cooperative credit society”) must send a notice approved by the Superintendent in consultation with the Canada Deposit Insurance Corporation to the last known mailing address of every member of the local cooperative credit society at least four weeks before the members vote on a special resolution authorizing that application.

(2) If a person applies to become a member of the local cooperative credit society after the notice has been sent to members in accordance with subsection (1) and before the day on which the members vote against the special resolution or the day that the Minister issues letters patent continuing the local cooperative credit society as a federal credit union, the local cooperative credit society must provide that person with the notice at the time they apply to become a member.

(3) The notice must include the following information:

  • (a) the day on which provincial deposit insurance coverage for the local cooperative credit society would end;

  • (b) a description of the Canada Deposit Insurance Corporation coverage that would apply during the transitional period to the deposits of the local cooperative credit society that is continued as a federal credit union; and

  • (c) a description of the Canada Deposit Insurance Corporation coverage that would apply after the transitional period to the deposits of the local cooperative credit society that is continued as a federal credit union and how it differs from the pre-continuance provincial deposit insurance coverage applicable to the local cooperative credit society.

2. The local cooperative credit society must make the notice available by way of a hyperlink on its main page and on any other pages of its website that reference deposit products four weeks before its members vote on the special resolution until the day of a negative vote or the date of continuance.

3. The local cooperative credit society must prominently display a sign that refers customers to the notice, and indicates how customers can obtain a copy of the notice, in each branch and office where customers are served four weeks before its members vote on the special resolution until the day of a negative vote or the date of continuance.

4. The local cooperative credit society must publish the information contained in the notice once a week in the Canada Gazette for the four weeks before its members vote on the special resolution.

5. The local cooperative credit society must publish the information contained in the notice once a week in a newspaper with general circulation in the province or territory in which the local cooperative credit society transacts business for the four weeks before its members vote on the special resolution.

6. The local cooperative credit society must make a copy of the notice available to any customer conducting deposit-taking business with staff at a branch of the local cooperative credit society during the period beginning four weeks before its members vote on the special resolution and ending on the day of a negative vote or on the date of continuance.

COMING INTO FORCE

7. These Regulations come into force on the day on which section 1911 of the Jobs and Economic Growth Act, chapter 12 of the Statutes of Canada, 2010, comes into force or, if later, on the day on which they are registered.

[27-1-o]

Footnote a
S.C. 2010, c. 12, s. 1911

Footnote b
S.C. 1991, c. 46