BILL 56
An Act to Amend the
Credit Unions Act
Her Majesty, by and with the advice and
consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 Section
25 of the Credit Unions Act, chapter C-32.2 of the Acts of New Brunswick,
1992, is repealed and the following is substituted:
Approval of Superintendent
and federation
25 No credit union shall, without the approval of the Superintendent
and the federation of which the credit union is a member,
(a) establish or relocate a branch office
of the credit union or renovate or expand the premises of a branch
office of the credit union, or
(b) renovate or expand the premises
of the registered office of the credit union.
2 Section
39 of the Act is amended in the portion preceding paragraph (a) by
striking out “shall not pay” and substituting “shall not declare or pay”.
3 Section
40 of the Act is amended
(a) by repealing subsection
(1);
(b) by repealing subsection
(2);
(c) by adding before subsection
(3) the following:
40(1.1) If, but for paragraph 39(c),
a credit union would be able to make a payment of a dividend on shares
held by the stabilization board of which the credit union is a member,
the stabilization board may authorize the payment on such terms and
conditions as the stabilization board considers appropriate.
40(1.2) Liabilities of a credit union in relation to payments authorized
under subsection (1), as that subsection existed immediately before
its repeal, are not affected by the repeal.
40(1.3) Nothing in section 39 affects
the payment of a dividend on a share other than a membership or surplus
share if the dividend is required to be paid in accordance with the
terms of a share certificate and the share was issued before the commencement
of this subsection.
(d) in subsection (3) by
striking out “subsection (1)” and substituting “subsection (1.1)”.
4 The
Act is amended by adding after section 40 the following:
Restriction on accumulation
of dividends
40.1(1) A credit union shall not authorize or record in its books of
account an accumulation of dividends on shares of the credit union,
if the equity of the credit union would, if the dividends were declared,
be less than that required under section 55 and the regulations.
40.1(2) Subsection (1) does not apply in relation to shares of a credit
union that are held by a stabilization board.
40.1(3) Nothing in subsection (1) affects the rights, privileges, restrictions
and conditions attaching to shares issued before the commencement
of this subsection.
40.1(4) If, on the commencement of this section, the articles of a credit
union provide that dividends may accumulate on any of the shares issued
by the credit union,
(a) the articles shall be deemed to
include provisions that reflect the terms of subsections (1), (2)
and (3), and
(b) the credit union shall, within 12
months after the commencement of this section, send articles of amendment
in prescribed form reflecting the terms of subsections (1), (2) and
(3) to the Superintendent for filing.
5 Section
60 of the Act is amended
(a) in subsection (1) by
striking out “by the directors of the credit union in accordance
with this Act and the articles and by-laws of the credit union”
and substituting “by
the credit union”;
(b) by repealing subsection
(2).
6 Section 85 of the Act is amended by adding
after subsection (3) the following:
85(3.1) A person who has served as a director for a period of 9 consecutive
years, or, as a result of the application of subsection (6), for a
period of more than 9 consecutive years, is not eligible to be elected
for a further term unless at least one year has elapsed since the
end of that period.
7 Section
94 of the Act is repealed and the following is substituted:
Audit committee
94 The directors of a credit union shall establish, in accordance with
the regulations, an audit committee that performs such duties and
has such powers as may be provided for in the regulations.
8 Section
113 of the Act is amended
(a) in subsection (1) by
striking out “shall appoint, from a list of auditors prepared
by the stabilization board but subject to subsection (3), an auditor
for the credit union” and substituting “shall, subject to subsection (3),
appoint an auditor for the credit union”;
(b) by adding after subsection
(1) the following:
113(1.1) An appointment of an auditor made under subsection (1), on
or after the commencement of this subsection, is not effective until
approved by the Superintendent.
113(1.2) The Superintendent, in determining whether or not to approve
an appointment, shall take into account the qualifications referred
to in subsection (3) and any other matters that the Superintendent
considers relevant.
(c) in subsection (2.1)
by striking out “a stabilization board may, instead of preparing
a list of auditors in accordance with subsection (1), appoint”
and substituting “a
stabilization board may appoint”;
(d) in subsection (2.91)
by striking out the portion following paragraph (b) and substituting
the following:
an auditor shall be appointed in accordance
with section 116 to hold office
until an auditor is appointed by the members of the credit union in
accordance with subsection 113(1).
(e) in subparagraph
(3)(a)(ii) by striking out “sufficient to meet the requirements
of the stabilization board”;
(f) in subsection (6) by
striking out “stabilization board of which the credit union
is a member” and substituting “Superintendent”.
9 Subsection
114(2) of the Act is amended by striking out “may be filled
at the meeting at which the auditor is removed” and substituting “may be filled at the
meeting at which the auditor is removed, but the appointment of an
auditor under this section is not effective until approved by the
Superintendent”.
10 Section 116 of the Act is amended by adding
after subsection (3) the following:
116(3.1) Notwithstanding anything in this section, an appointment of
an auditor, on or after the commencement of this subsection, to fill
a vacancy is not effective until approved by the Superintendent.
11 Subsection 117(1) of the Act is amended
by striking out “until an auditor is appointed by the members”
and substituting “until
an auditor is appointed by the members and that appointment is approved
by the Superintendent”.
12 Section 191 of the Act is repealed and
the following is substituted:
Application of Part VII
191 Except where it is inconsistent with this Part, Part VII applies
with the necessary modifications in relation to the directors and
officers of a federation.
13 Paragraph
196(b) of the Act is repealed and the following is substituted:
(b) to provide financial assistance
to its member credit unions in accordance with paragraph 198(1)(c) or the regulations, and
14 Subsection
198(1) of the Act is amended
(a) by repealing paragraph
(c) and substituting the following:
(c) make available to a member credit
union whose level of equity has fallen below the amount required under
section 55 and the regulations for
reasons other than an increase in the total assets of the credit union,
subject to the regulations, any form of financial assistance for the
purposes of stabilization that the stabilization board considers appropriate
on such terms and conditions as it considers appropriate,
(b) by adding after
paragraph (j) the following:
(j.1) require its member credit unions
to take any measure or implement any procedure that it considers necessary
to assess the risk that a member credit union may require financial
assistance from the stabilization board or the risk of a claim against
the Corporation,
15 Section
199 of the Act is amended
(a) by adding after paragraph
(b) the following:
(b.1) pay into the deposit insurance fund,
out of its stabilization fund, in the case of a liquidation of a member
credit union, an amount equal to the amount required for the Corporation
to pay out claims of depositors of the credit union in accordance
with section 220,
(b) in paragraph (c) by
striking out “credit union” and substituting “member credit union”.
16 Section
201 of the Act is amended
(a) by repealing paragraph
(a) and substituting the following:
(a) to provide financial assistance
to credit unions in accordance with this Act and the regulations for
the purposes of stabilization;
(b) by adding after paragraph
(a) the following:
(a.1) to make payments into the deposit
insurance fund in accordance with paragraph 199(b.1); and
17 Section
202 of the Act is amended
(a) in subsection (1) by
striking out “in accordance with the regulations”;
(b) in subsection (3) by
striking out “the stabilization fund” and substituting “its stabilization
fund”;
(c) by repealing subsection (4).
18 The
Act is amended by adding after section 202 the following:
Excluded amounts
202.1 For the purposes of sections 202.2 to 202.4, the amounts prescribed are excluded in determining the total amount
of the stabilization fund of a stabilization board.
Transitional provision re
minimum amount of stabilization fund
202.2(1) A stabilization board shall maintain in its stabilization fund
an amount not less than the amount determined in accordance with the
regulations.
202.2(2) Subsection (1) applies between the date of the commencement of
this section and the date immediately preceding the date of the making
of an order under subsection 202.3(1) in relation to the stabilization board, both dates inclusive.
202.2(3) On or before May 31 of each year, beginning in the year 2009
and ending in the year 2011, the Corporation shall review a stabilization
board’s most recent financial statements referred to in subsection 211(2) for the previous fiscal year of
the stabilization board and give written notice to the stabilization
board with respect to the sufficiency or insufficiency of its stabilization
fund.
202.2(4) If, on a review under subsection (3),
the Corporation determines that the total amount of the stabilization
fund on December 31 of the previous fiscal year was less than the
minimum amount determined under subsection (1), the Corporation shall,
subject to subsections (5) and (7), make an order requiring the stabilization
board, within the time specified in the order, to submit to the Corporation
a plan, satisfactory to the Corporation, to replenish the stabilization
fund on or before December 31, 2011, to an amount equal to the amount
of the shortfall.
202.2(5) No more than one order under subsection (4) shall be made in
relation to a stabilization fund.
202.2(6) If the Corporation makes an order under subsection (4), a copy
of the order shall accompany the written notice given under subsection
(3).
202.2(7) An order shall not be made under subsection
(4) in respect of the stabilization fund of a stabilization board
that is under supervision in accordance with Part XV.
Order fixing minimum amount
to be maintained in stabilization fund
202.3(1) After December 31, 2011, but on or before May 31, 2012, the Corporation
shall, by order, fix the minimum amount that must be maintained by
a stabilization board in its stabilization fund.
202.3(2) On or before May 31, 2015 and on or before May 31 of every third
year after 2015, the Corporation shall review its existing order
made under this section in respect of a stabilization fund and make
a new order that continues, modifies or replaces the existing order.
202.3(3) A minimum amount fixed in an order under subsection (1) or (2)
may be
(a) a specified amount, or
(b) an amount expressed as a percentage
of the amount of the total assets of the member credit unions of the
stabilization board in relation to which the order is made.
202.3(4) Without delay after an order is made under subsection (1) or
(2) in respect of the stabilization fund of a stabilization board,
the Corporation shall give written notice of the order to the stabilization
board.
Minimum
amount of stabilization fund
202.4(1) On or before May 31 of each year, beginning in the year 2012,
the Corporation shall review a stabilization board’s most recent
financial statements referred to in subsection 211(2) for the previous fiscal year of the stabilization board
and give written notice to the stabilization board with respect to
the sufficiency or insufficiency of its stabilization fund.
202.4(2) In 2012, if the Corporation determines on a review under subsection
(1) that the total amount of the stabilization fund on December 31,
2011 was less than the minimum amount determined under subsection 202.2(1), the Corporation shall, subject
to subsection (6), make an order requiring the stabilization board,
within the time specified in the order, to submit to the Corporation
a plan, satisfactory to the Corporation, to replenish the stabilization
fund on or before December 31, 2012, to the minimum amount required
to be maintained in the stabilization fund by order of the Corporation
under subsection 202.3(1).
202.4(3) Beginning in the year 2013, if the Corporation determines on
a review under subsection (1) that the total amount of the stabilization
fund on December 31 of the previous fiscal year was less than the
minimum amount that was required to be maintained in the stabilization
fund on that date by order of the Corporation under section 202.3, the Corporation shall, subject
to subsection (6), make an order requiring the stabilization board,
within the time specified in the order, to submit to the Corporation
a plan, satisfactory to the Corporation, to replenish the stabilization
fund on or before December 31 of the year in which the order is made,
to the amount described in subsection (4).
202.4(4) The amount to which a stabilization fund must be replenished
under an order under subsection (3) is an amount equal to the minimum
amount that must be maintained in the stabilization fund, as required
by the most recent order of the Corporation made under section 202.3 in relation to that stabilization
fund.
202.4(5) If the Corporation makes an order under
subsection (2) or (3), a copy of the order shall accompany the written
notice given under subsection (1).
202.4(6) An order shall not be made under subsection (2) or (3) in respect
of the stabilization fund of a stabilization board that is under supervision
in accordance with Part XV.
202.4(7) If a stabilization board fails by December 31, 2012 to replenish
its stabilization fund, as required by an order made under subsection
(2), to the minimum amount required to be maintained in the stabilization
fund by order of the Corporation under subsection 202.3(1), the Corporation shall, on or
before May 31, 2013, provide financial assistance to the stabilization
board in an amount equal to the difference between the minimum amount
required to be maintained in the stabilization fund as required by
the order of the Corporation under subsection 202.3(1) and the total amount of the stabilization fund on
December 31, 2012.
202.4(8) If a stabilization board fails to replenish its stabilization
fund, as required by an order made under subsection (3), to the amount
described in subsection (4) by December 31 of the year in which the
order was made, the Corporation shall, on or before May 31 of the
following year, provide financial assistance to the stabilization
board in an amount equal to the difference between the amount described
in subsection (4) and the total amount of the stabilization fund on
December 31 of the year in which the order under subsection (3) was
made.
202.4(9) Financial assistance provided under
subsection (7) or (8) by the Corporation shall be subject to the terms
and conditions determined by the Corporation.
Revocation of plans and
orders
202.5 When a stabilization board is placed under
supervision in accordance with Part XV, any order of the Corporation
under subsection 202.2(4) or 202.4(2) or (3), or any plan made under
any such order, that is in effect in relation to the stabilization
board immediately before it is placed under supervision is revoked.
19 Section
203 of the Act is amended
(a) in subsection (1)
(i) by repealing paragraph
(b) and substituting the following:
(b) two persons with proven financial
ability to the satisfaction of the Superintendent who shall be appointed
by the Minister, on the recommendation of the Superintendent,
(ii)
in paragraph (c) by striking “the stabilization is established
who, notwithstanding paragraph 204(d), may be directors of a credit
union or a federation, and” and substituting “the stabilization board was established
who, notwithstanding paragraph 204(1)(d), may be directors of a credit union, other than a credit union
that is under supervision in accordance with Part XV, and”;
(b) by adding after subsection
(4) the following:
203(4.1) Notwithstanding subsection (2), a person who has served as
a director elected or appointed under subsection (1) for a period
of 9 consecutive years, or, as a result of the application of subsection
(4), for a period of more than 9 consecutive years, is not eligible
to be elected or appointed under subsection (1) for a further term
unless at least one year has elapsed since the end of that period.
(c) by repealing subsection (7) and substituting
the following:
203(7) Where a vacancy occurs during the term of office of a director
elected under paragraph (1)(a), a quorum of directors may fill the
vacancy until the next annual meeting of the federation in relation
to which the stabilization board was established.
(d) by adding after
subsection (7) the following:
203(8) Where a vacancy occurs during the term of office of a director
appointed under paragraph (1)(b) or (c), the vacancy may be filled
for the remainder of the term of the director by an appointment made
under that paragraph.
20 Section
204 of the Act is amended
(a) by renumbering the
section as subsection 204(1);
(b) by adding before subsection
(1) the following:
204(0.1) In this section, “officer” includes
(a) in respect of a credit union,
(i) a chairperson, vice-chairperson
or secretary of the credit union or a person who holds an equivalent
office in the credit union, or
(ii) a chairperson of the credit committee,
if any, of the credit union or of the audit committee of the credit
union, and
(b) in respect of a federation or stabilization
board, a chairperson, vice-chairperson or secretary of the federation
or stabilization board or a person who holds an equivalent office
in the federation or stabilization board.
(c) in subsection (1)
(i) by repealing paragraph
(d) and substituting the following:
(d) an employee, director or officer
of a credit union, a federation or another stabilization board or
an employee of the Corporation;
(ii) by adding after
paragraph (d) the following:
(d.1) a former employee of a credit union,
a stabilization board, a federation or the Corporation unless at least
2 years have passed since the person last ceased to be such an employee;
(d.2) a person who has a loan with a credit
union that is more than 3 months in arrears;
(iii) by repealing
paragraph (e) and substituting the following:
(e) an auditor of
(i) a credit union which is a member of
the stabilization board,
(ii) a stabilization board, or
(iii) a federation;
(iv) in paragraph
(f) by striking out “a stabilization board or a federation.”
and substituting “a
credit union, a stabilization board or a federation; or”;
(v) by adding after
paragraph (f) the following:
(g) any person who does not meet such
requirements as may be set out in the by-laws of the stabilization
board.
(d) by adding after subsection
(1) the following:
204(2) Subsection (1) does not apply to a director referred to in paragraph 203(1)(d).
21 Section
211 of the Act is amended by adding after subsection (3) the following:
211(4) At the same time as a stabilization
board submits a report to the Superintendent under subsection (2),
it shall submit a copy of the report to the Corporation.
22 Paragraph
216(b) of the Act is repealed and the following is substituted:
(b) in such circumstances as the Corporation
considers appropriate, to assist stabilization boards in providing
financial assistance to credit unions under paragraph 198(1)(c) or the regulations, and
23 The
Act is amended by adding after section 217 the following:
Information to be provided
to the Corporation
217.1(1) On the request of the Corporation, the Superintendent shall provide
to the Corporation such information concerning the exercise or performance
of his or her powers or duties under this Act or the regulations as
the Corporation may reasonably require to enable the Corporation to
carry out its purposes under this Act.
217.1(2) On the request of the Corporation, the Superintendent shall provide
to the Corporation such information concerning a credit union, a stabilization
board or a federation as the Corporation may reasonably require to
enable the Corporation to carry out its purposes under this Act.
217.1(3) On the request of the Corporation, a stabilization board shall
provide to the Corporation such information concerning the stabilization
board, the stabilization board’s member credit unions or the
federation in relation to which the stabilization board was established
as the Corporation may reasonably require to enable the Corporation
to carry out its purposes under this Act.
Assessment and analysis
by independent expert
217.2(1) On or before April 30, 2012 and on or before April 30 of every
third year after 2012, the Corporation shall cause an independent
expert to make an assessment and analysis of the sufficiency of each
stabilization fund.
217.2(2) An individual or firm is qualified to be an independent expert
for the purposes of subsection (1) if
(a) in the case of an individual, the
person is independent and
(i) is a member in good standing of an
institute or association of accountants incorporated under an Act
of the Legislature of a province or is a Fellow of the Canadian Institute
of Actuaries, and
(ii) has experience and expertise in performing
assessments and analyses in relation to financial institutions sufficient
to meet the requirements of the Corporation, and
(b) in the case of a firm, the member
of the firm designated by the firm to make the assessment and analysis
under subsection (1) on behalf of the firm is qualified in accordance
with paragraph (a).
217.2(3) For the purposes of this section,
(a) independence is a question of fact,
and
(b) a person shall be deemed not to
be independent if that person or that person’s business partner
(i) is a business partner, director,
officer or employee of a credit union, a federation or a stabilization
board or the Corporation, or
(ii) beneficially owns or controls, directly
or indirectly, a material interest in the shares of a credit union.
217.2(4) A person is not disqualified from being an independent expert
by reason only of the person’s membership in a credit union.
24 Paragraph
223(b) of the Act is repealed and the following is substituted:
(b) to assist stabilization boards in
providing financial assistance to credit unions under paragraph 198(1)(c) or the regulations; and
25 Section
227 of the Act is repealed.
26 The
Act is amended by adding before section 228 the following:
Deposit insurance
fund to be maintained as single account
227.1(1) The deposit insurance fund referred to in section 223 shall be maintained as a single account
held in the name of the Corporation and administered and invested
by the Corporation.
227.1(2) On the commencement of this subsection, each stabilization board
shall, under the direction of the Corporation, transfer the money
maintained in the separate account that was administered by the stabilization
board under section 227 immediately
before the repeal of that section to the single account referred to
in subsection (1).
27 Section
229 of the Act is amended
(a) in subsection (1)
(i) in the portion
preceding paragraph (a) by striking out “five” and substituting “7”;
(ii) by repealing
paragraph (a) and substituting the following:
(a) four persons who shall be appointed
in accordance with subsection (2),
(iii) by adding after
paragraph (a) the following:
(a.1) the Deputy Minister of Finance or
his or her designate,
(a.2) the Deputy Minister of Justice and
Consumer Affairs or his or her designate, and
(b) by repealing subsection
(2) and substituting the following:
229(2) The Minister shall appoint 4 persons to the board of directors
of the Corporation.
(c) in subsection (3) by
striking out “in accordance with subsection (2)” and substituting “under subsection (2)”;
(d) by adding after subsection
(3) the following:
229(3.1) Notwithstanding subsection (3), a director appointed under
subsection (2) is not eligible to serve as a director for more than
9 consecutive years.
(e) by repealing subsection
(4) and substituting the following:
229(4) Notwithstanding subsections (3) and (3.1) but subject to subsections
(5) and (5.1), a director appointed under subsection (2) shall remain
in office until the director dies, resigns or is reappointed or replaced.
(f) by adding after subsection (4) the following:
229(4.1) Notwithstanding subsection (3), a
person who has served as a director appointed under subsection (2)
for a period of 9 consecutive years, or, as a result of the application
of subsection (4), for a period of more than 9 consecutive years,
is not eligible to be appointed under subsection (2) for a further
term unless at least one year has elapsed since the end of that period.
(g) by repealing subsection (5) and substituting
the following:
229(5) A person shall cease to be a director on ceasing to be qualified
to serve as a director.
(h) by adding after subsection
(5) the following:
229(5.1) The Minister may at any time remove a director appointed under
subsection (2) from office.
(i) in subsection (6) by
striking out “an appointment made in accordance with subsection
(2) by the stabilization board” and substituting “an appointment made under
subsection (2) by the Minister”.
28 The
Act is amended by adding after section 229 the following:
Qualifications of directors
229.1(1) In this section, “officer” includes
(a) in respect of a credit union,
(i) a chairperson, vice-chairperson
or secretary of the credit union or a person who holds an equivalent
office in the credit union, or
(ii) a chairperson of the credit committee,
if any, of the credit union or of the audit committee of the credit
union, and
(b) in respect of a federation or stabilization
board, a chairperson, vice-chairperson or secretary of the federation
or stabilization board or a person who holds an equivalent office
in the federation or stabilization board.
229.1(2) The following persons are disqualified from being a director
of the Corporation:
(a) anyone who is less than 19 years
of age;
(b) anyone who is not an individual;
(c) a person who has the status of a
bankrupt;
(d) an employee, director or officer
of a credit union, a stabilization board or a federation or an employee
of the Corporation;
(e) an auditor of a credit union, a
stabilization board, a federation or the Corporation;
(f) a solicitor of a credit union, a
stabilization board, a federation or the Corporation;
(g) a former employee of a credit union,
a stabilization board, a federation or the Corporation unless at least
2 years have elapsed since the person last ceased to be such an employee;
or
(h) a person who has a loan with a credit
union that is more than 3 months in arrears.
229.1(3) Subsection (2) does not apply to a director referred to in paragraph 229(1)(a.1), (a.2) or (b).
29 Subsection
230(1) of the Act is repealed and the following is substituted:
230(1) The Minister shall appoint from among
the directors appointed by the Minister under subsection 229(2), a chairperson of the board of
directors of the Corporation.
30 Section
232 of the Act is amended by striking out “and in the case of
a tie vote the chairperson shall be entitled to cast a tie-breaking
vote”.
31 Section
233 of the Act is amended by striking out “a director appointed
in accordance with subsection 229(2) shall be paid such remuneration
and shall be reimbursed for such expenses as if the director were
acting as a director of the stabilization board” and substituting “a director appointed
under subsection 229(2) shall be
paid such remuneration and shall be reimbursed for such expenses as
the Corporation determines”.
32 Paragraph
244(c) of the Act is amended by striking out “Minister,”.
33 Section 246 of the Act is repealed and
the following is substituted:
Appeal to Court
246(1) In this section and section 247, “decision”, where used in relation to the Superintendent,
includes an order of the Superintendent.
246(2) A person may appeal a decision of the Minister or Superintendent
to the Court within 30 days after the making of the decision.
246(3) An appeal from a decision of the Minister or Superintendent does
not stay the operation of the decision unless a judge of the Court
orders otherwise, but the Minister or Superintendent may suspend the
operation of his or her decision until the Court has rendered its
decision.
34 Section 247 of the Act is repealed and
the following is substituted:
Questions of law or fact
247 An appeal under section 246 may
be made on a question of law or fact or both and the Court, after
hearing the appeal, may
(a) affirm or reverse the decision,
(b) direct the Minister or Superintendent
to make any other decision that the Minister or Superintendent is
authorized to make under this Act, or
(c) substitute its decision for that
of the Minister or Superintendent.
35 The
Act is amended by adding after section 247 the following:
No stay of decision or order
247.1 An application for judicial review does
not stay the operation of any decision or order made under this Act
or the regulations unless the judge hearing the application orders
otherwise, but the person who made the decision or order may suspend
its operation until the judge has rendered his or her decision.
36 Subsection
252(1) of the Act is amended in the portion preceding paragraph (a)
by striking out “A stabilization board shall make, or cause
to be made, inspections and examinations” and substituting “Subject to section 252.1, a stabilization board shall make,
or cause to be made, inspections and examinations”.
37 The
Act is amended by adding after section 252 the following:
Inspections and examinations
of credit unions under supervision of stabilization board
252.1(1) Where a credit union has, for one year or more, been under the
supervision of the stabilization board of which it is a member, the
Superintendent shall cause a person qualified under subsection (2)
to make an inspection or examination in relation to the business and
affairs of the credit union
(a) within 18 months after the date
the supervision commenced and within at least every 18 months after
that date, or at such shorter intervals as the Superintendent may
require, and
(b) at such other times as the Superintendent
may require.
252.1(2) An individual or firm of accountants is qualified for the purposes
of subsection (1) if
(a) in the case of an individual, the
person is an accountant who
(i) is a member in good standing of an
institute or association of accountants incorporated under an Act
of the Legislature of a province,
(ii) has experience at a senior level
in performing audits of a financial institution sufficient to meet
the requirements of the Superintendent, and
(iii) is independent of the credit union,
and
(b) in the case of a firm of accountants,
the member of the firm designated by the firm to conduct the inspection
or examination under subsection (1) on behalf of the firm is qualified
in accordance with paragraph (a).
252.1(3) For the purposes of this section,
(a) independence is a question of fact,
and
(b) a person shall be deemed not to
be independent of the credit union if that person or that person’s
business partner
(i) is a business partner, director, officer
or employee of the credit union, the federation or stabilization board
of which the credit union is a member or the Corporation, or
(ii) beneficially owns or controls,
directly or indirectly, a material interest in the shares of the credit
union.
252.1(4) A person is not disqualified under
subsection (2) by reason only of the person’s membership in
the credit union.
252.1(5) The costs of an inspection or examination made under subsection
(1) shall be borne by the stabilization board of which the credit
union is a member.
38 Section
253 of the Act is amended in the portion preceding paragraph (a) by
striking out “subsection 252(1)” and substituting “subsection 252(1) or 252.1(1)”.
39 Section
254 of the Act is amended in the portion preceding paragraph (a) by
striking out “subsection 252(1)” and substituting “subsection 252(1) or 252.1(1)”.
40 The
Act is amended by adding after section 254 the following:
Report in relation to inspection
or examination under section 252.1
254.1(1) Within 30 days after an inspection or examination is made under
subsection 252.1(1) or at such later
time as may be authorized by the Superintendent, the person who made
the inspection or examination shall prepare a report in relation to
the inspection or examination and shall send a copy of the report
to
(a) the directors of the credit union,
(b) the auditor of the credit union,
(c) the directors of the stabilization
board and federation of which the credit union is a member, and
(d) the Superintendent.
254.1(2) The report referred to in subsection (1) shall, if the Superintendent
directs, be presented to the members of the credit union at a meeting
called for that purpose.
41 Paragraph
257(d) of the Act is amended by striking out “or any order made
by the stabilization board or the Minister or Superintendent”
and substituting “or
any order made by the stabilization board, the Corporation or the
Superintendent”.
42 Section 265 of the Act is amended
(a) by repealing subsection
(3) and substituting the following:
265(3) The stabilization board shall give a credit union in respect
of which an order is made under subsection (1) or (2) notice of the
order, together with the reasons for it, and shall send a copy of
the order and reasons to the auditor of the credit union, the directors
of the federation of which the credit union is a member and the Superintendent.
(b) by adding after subsection (4) the following:
265(4.1) The Superintendent shall give a credit
union in respect of which an order is made under paragraph (4)(b)
notice of the order, together with the reasons for it, and shall send
a copy of the order and reasons to the auditor of the credit union
and to the directors of the stabilization board and federation of
which the credit union is a member.
(c) by repealing subsection
(5) and substituting the following:
265(5) A credit union in relation to which an order is made under subsection
(1) or (2) or paragraph (4)(b) may, within 15 days after notice of
the order is given to the credit union, make a request in writing
to the Superintendent that the Superintendent review the order.
(d) by adding after subsection (5) the following:
265(5.1) If a credit union requests, in accordance
with subsection (5), a review of an order, not later than 30 days
after notice of the order was given to the credit union or within
such longer period as the Superintendent may allow, the credit union
shall make a written submission to the Superintendent containing the
grounds for the request for review.
(e) in subsection (6)
(i) by striking out
the portion preceding paragraph (a) and substituting the following:
265(6) The Superintendent may, after considering the credit union’s
written submission under subsection (5.1),
(ii) in paragraph
a) of the French version by striking out “donner un order”
and substituting “donner
un ordre”;
(f) by adding after subsection
(6) the following:
265(7) The Superintendent shall give a credit union in respect of which
an order is made under subsection (6) notice of the order, together
with the reasons for it, and shall send a copy of the order and reasons
to the auditor of the credit union and to the directors of the stabilization
board and federation of which the credit union is a member.
265(8) On a review under this section, the Superintendent is not required
to hold an oral hearing or to afford to any person an opportunity
to make oral submissions.
265(9) An order made under subsection (1) or (2) or paragraph (4)(b)
is stayed until the earliest of the following dates:
(a) the date on which the time for requesting
a review has expired, if the credit union does not, in accordance
with subsection (5), request a review of the order;
(b) the date on which the time for making
a written submission under subsection (5.1) has expired, if a credit
union that has requested a review does not, in accordance with subsection
(5.1), make a written submission to the Superintendent;
(c) the date on which the Superintendent
makes a determination under subsection (6) with respect to the review.
43 Section 266 of the Act is amended
(a) by adding after subsection
(1) the following:
266(1.1) The Superintendent shall give a federation or stabilization
board in respect of which an order is made under subsection (1) notice
of the order, together with reasons for it.
(b) by repealing subsection
(2) and substituting the following:
266(2) A federation or stabilization board in relation to which an order
is made under subsection (1) may, within 15 days after notice of the
order is given to the federation or stabilization board, make a request
in writing to the Superintendent that the Superintendent review the
order.
(c) by adding after subsection
(2) the following:
266(2.1) If a federation or stabilization board requests, in accordance
with subsection (2), a review of an order, not later than 30 days
after notice of the order was given to the federation or stabilization
board or within such longer period as the Superintendent may allow,
the federation or stabilization board shall make a written submission
to the Superintendent containing the grounds for the request for review.
(d) by repealing subsection (3) and substituting
the following:
266(3) The Superintendent may, after considering the federation’s
or stabilization board’s written submission under subsection
(2.1),
(a) make an order confirming, revoking
or varying an order made under this section, or
(b) make such other or additional orders
as the Superintendent considers appropriate.
(e) by adding after subsection
(3) the following:
266(3.1) The Superintendent shall give a federation or stabilization
board in respect of which an order is made under subsection (3) notice
of the order, together with reasons for it.
266(3.2) On a review under this section, the Superintendent is not required
to hold an oral hearing or to afford to any person an opportunity
to make oral submissions.
266(3.3) An order made under subsection (1) is stayed until the earliest
of the following dates:
(a) the date on which the time for requesting
a review has expired, if the federation or stabilization board does
not, in accordance with subsection (2), request a review of the order;
(b) the date on which the time for making
a written submission under subsection (2.1) has expired, if a federation
or stabilization board that has requested a review, does not, in accordance
with subsection (2.1), make a written submission to the Superintendent;
(c) the date on which the Superintendent
makes a determination under subsection (3) with respect to the review.
(f) by repealing subsection
(4).
44 The
Act is amended by adding after section 266 the following:
Interim orders by stabilization
board in relation to credit unions
266.1(1) If a stabilization board is of the opinion that the interests
of the depositors of a credit union or the public could be prejudiced
or adversely affected by any delay in compliance with an order that
the stabilization board proposes to make under paragraph 265(1)(d) or (e) or subsection 265(2) in relation to the credit union,
the stabilization board may, instead of that order, make an interim
order under that provision.
266.1(2) An interim order takes effect immediately on its making and becomes
permanent on the fifteenth day after its making unless within that
time a written submission is made to the Superintendent in accordance
with paragraph (4)(b).
266.1(3) Subsections 265(3), (5), (5.1),
(6), (7) and (9) do not apply to an interim order.
266.1(4) If a stabilization board makes an interim order in respect of
a credit union, the stabilization board shall give the credit union,
together with a copy of the order, a notice in writing advising the
credit union
(a) of the reasons why the interim order
was made, and
(b) that the credit union may, within
15 days after the date of the making of the interim order, make a
written submission to the Superintendent requesting a review of the
interim order and specifying the grounds for the request.
266.1(5) The stabilization board shall send a copy of the interim order
and of the notice referred to in subsection (4) to the auditor of
the credit union, the directors of the federation of which the credit
union is a member and the Superintendent.
266.1(6) If, in accordance with paragraph (4)(b), the credit union makes
a written submission to the Superintendent, the interim order expires
15 days after the date it was made, but the Superintendent may extend
the interim order until he or she makes a determination under subsection
(7).
266.1(7) After considering the credit union’s
written submission, the Superintendent
(a) may, by order, make the interim
order permanent, with or without variation, as the Superintendent
considers appropriate,
(b) may, by order, revoke the interim
order, or
(c) may substitute his or her own order
for that of the stabilization board.
266.1(8) The Superintendent shall give a credit union in respect of which
an order is made under subsection (7) notice of the order, together
with the reasons for it, and shall send a copy of the order and reasons
to the auditor of the credit union and to the directors of the stabilization
board and federation of which the credit union is a member.
266.1(9) On a review under this section, the Superintendent is not required
to hold an oral hearing or to afford to any person an opportunity
to make oral submissions.
Interim orders by Superintendent
in relation to credit unions
266.2(1) If the Superintendent is of the opinion that the interests of
the depositors of a credit union or the public could be prejudiced
or adversely affected by any delay in compliance with an order that
the Superintendent proposes to make under paragraph 265(4)(b) in relation to the credit union,
the Superintendent may, instead of that order, make an interim order
under that paragraph.
266.2(2) An interim order takes effect immediately on its making and becomes
permanent on the fifteenth day after its making unless within that
time a written submission is made to the Superintendent in accordance
with paragraph (4)(b).
266.2(3) Subsections 265(4.1), (5),
(5.1), (6), (7) and (9) do not apply to an interim order.
266.2(4) If the Superintendent makes an interim order in respect of a
credit union, the Superintendent shall give the credit union, together
with a copy of the order, a notice in writing advising the credit
union
(a) of the reasons why the interim order
was made, and
(b) that the credit union may, within
15 days after the date of the making of the interim order, make a
written submission to the Superintendent requesting a review of the
interim order and specifying the grounds for the request.
266.2(5) The Superintendent shall send a copy of the interim order and
of the notice referred to in subsection (4) to the auditor of the
credit union and the directors of the stabilization board and federation
of which the credit union is a member.
266.2(6) If, in accordance with paragraph (4)(b), the credit union makes
a written submission to the Superintendent, the interim order expires
15 days after the date it was made, but the Superintendent may extend
the interim order until he or she makes a determination under subsection
(7).
266.2(7) After considering the credit union’s
written submission, the Superintendent
(a) may, by order, make the interim
order permanent, with or without variation, as the Superintendent
considers appropriate,
(b) may, by order, revoke the interim
order, or
(c) may make such other or additional
orders as the Superintendent considers appropriate.
266.2(8) The Superintendent shall give a credit union in respect of which
an order is made under subsection (7) notice of the order, together
with the reasons for it, and shall send a copy of the order and reasons
to the auditor of the credit union and to the directors of the stabilization
board and federation of which the credit union is a member.
266.2(9) On a review under this section, the Superintendent is not required
to hold an oral hearing or to afford to any person an opportunity
to make oral submissions.
Interim orders by Superintendent
in relation to federations or stabilization boards
266.3(1) If the Superintendent is of the opinion that the interests of
the depositors of any credit union or the public could be prejudiced
or adversely affected by any delay in compliance with an order that
the Superintendent proposes to make under paragraph 266(1)(c) or (d) in relation to a federation
or stabilization board, the Superintendent may, instead of that order,
make an interim order under that paragraph.
266.3(2) An interim order takes effect immediately on its making and becomes
permanent on the fifteenth day after its making unless within that
time a written submission is made to the Superintendent in accordance
with paragraph (4)(b).
266.3(3) Subsections 266(1.1), (2),
(2.1), (3), (3.1) and (3.3) do not apply to an interim order.
266.3(4) If the Superintendent makes an interim order in respect of a
federation or stabilization board, the Superintendent shall give the
federation or stabilization board, together with a copy of the order,
a notice in writing advising the federation or stabilization board
(a) of the reasons why the interim order
was made, and
(b) that the federation or stabilization
board may, within 15 days after the date of the making of the interim
order, make a written submission to the Superintendent requesting
a review of the interim order and specifying the grounds for the request.
266.3(5) If, in accordance with paragraph (4)(b), the federation or stabilization
board makes a written submission to the Superintendent, the interim
order expires 15 days after the date it was made, but the Superintendent
may extend the interim order until he or she makes a determination
under subsection (6).
266.3(6) After considering the federation’s or stabilization board’s
written submission, the Superintendent
(a) may, by order, make the interim
order permanent, with or without variation, as the Superintendent
considers appropriate,
(b) may, by order, revoke the interim
order, or
(c) may make such other or additional
orders as the Superintendent considers appropriate.
266.3(7) The Superintendent shall give a federation or stabilization board
in respect of which an order is made under subsection (6) notice of
the order, together with the reasons for it.
266.3(8) On a review under this section, the Superintendent is not required
to hold an oral hearing or to afford to any person an opportunity
to make oral submissions.
Offences in relation to
compliance orders
266.4(1) A person who violates or fails to comply with an order of the
Superintendent made under subsection 265(6), 266(3), 266.1(7), 266.2(7) or 266.3(6) commits an offence.
266.4(2) A person who violates or fails to comply with an order or an
interim order of the Superintendent made under paragraph 265(4)(b) commits an offence.
266.4(3) A person who violates or fails to comply with an order or an
interim order of the Superintendent made under subsection 266(1) commits an offence.
45 Section
269 of the Act is amended
(a) by renumbering the
section as subsection 269(1);
(b) in paragraph (1)(e)
by striking out “Minister or”;
(c) by adding after subsection
(1) the following:
269(2) An appointment of a supervisor under subsection (1) may be made
from within the Civil Service or from outside the Civil Service.
269(3) Except where the supervisor is a person employed within the Civil
Service, the costs of the supervision shall be borne by the federation
or stabilization board placed under supervision.
46 The
Act is amended by adding after section 269 the following:
Supervision of stabilization
board provided with financial assistance
269.1(1) If the Corporation has provided financial assistance to a stabilization
board under subsection 202.4(7)
or (8), the Superintendent shall place the stabilization board under
the supervision of a supervisor appointed by the Superintendent and
shall give notice to the stabilization board and to the auditor of
the stabilization board accordingly.
269.1(2) An appointment of a supervisor under subsection (1) may be made
from within the Civil Service or from outside the Civil Service.
269.1(3) Except where the supervisor is a person employed within the Civil
Service, the costs of the supervision shall be borne by the stabilization
board placed under supervision.
47 Section
270 of the Act is amended in the definition “supervisor”
(a) in paragraph (b) by
striking out “and” at the end of the paragraph;
(b) by adding after paragraph
(b) the following:
(b.1) a person appointed as supervisor
by the Superintendent under section 269.1, and
48 Section 271 of the Act is amended in the
portion preceding paragraph (a) by striking out “Where a credit
union, federation or stabilization board is placed under supervision”
and substituting “Subject
to section 271.1, if a credit union,
federation or stabilization board is placed under supervision”.
49 The
Act is amended by adding after section 271 the following:
Term of supervision under
section 269.1
271.1 If a stabilization board is placed under
the supervision of a supervisor referred to in paragraph (b.1) of
the definition “supervisor”, as defined in section 270, the stabilization board shall remain
subject to the supervision until
(a) the supervisor applies in writing
to the Superintendent to have the stabilization board released from
supervision, stating reasons in support of the application, and the
Superintendent and the Corporation approve the application,
(b) the stabilization board applies
in writing to the Superintendent, with notice to the supervisor, to
be released from supervision, stating reasons in support of its application,
and the Superintendent and the Corporation approve the application,
or
(c) the Superintendent, by notice to
the stabilization board and its supervisor and with the approval of
the Corporation, releases the stabilization board from supervision.
50 Section
272 of the Act is amended
(a) in subsection (1) in
the portion preceding paragraph (a) by striking out “paragraph
(a) or (b)” and substituting “paragraph (a), (b) or (b.1)”;
(b) in subsection (2) in
the portion preceding paragraph (a) by striking out “paragraph
(a) or (b)” and substituting “paragraph (a), (b) or (b.1)”;
(c) in subsection (3) by
striking out “paragraph (a) or (b)” and substituting “paragraph (a), (b)
or (b.1)”.
51 The Act is amended by adding after section
290 the following:
Review of Act
290.1(1) A review of the provisions and the operation of this Act shall
be completed by the Minister every 5 years after the commencement
of this section.
290.1(2) When the Minister has completed a review, the Minister shall
prepare a report on the review and shall
(a) if the Legislature is in session
when the report is completed, lay the report before the Legislative
Assembly; or
(b) if the Legislature is not in session
when the report is completed, lay the report before the Legislative
Assembly within 15 days after the commencement of the next ensuing
session.
52 Section 292 of the Act is amended
(a) by repealing paragraph
(k) and substituting the following:
(k) respecting the making of investments
by a credit union, including, without limiting the generality of the
foregoing,
(i) respecting prohibitions, conditions,
restrictions or limitations in relation to investments by a credit
union, and
(ii) providing that different investments
or classes of investments by a credit union are subject to different
prohibitions, conditions, restrictions or limitations;
(b) by repealing
paragraph (m) and substituting the following:
(m) respecting the equity to be maintained
by a credit union, including, without limiting the generality of the
foregoing,
(i) respecting exemptions from equity
requirements for certain classes of credit unions, and
(ii) authorizing the Superintendent to
approve any matter in relation to classes of credit unions referred
to in subparagraph (i);
(c) by repealing paragraph
(t);
(d) by repealing paragraph
(z) and substituting the following:
(z) respecting the making of investments
by a federation, including, without limiting the generality of the
foregoing,
(i) respecting prohibitions, conditions,
restrictions or limitations in relation to investments by a federation,
and
(ii) providing that different investments
or classes of investments by a federation are subject to different
prohibitions, conditions, restrictions or limitations;
(e) by repealing
paragraph (cc) and substituting the following:
(cc) respecting the making of investments
by a stabilization board, including, without limiting the generality
of the foregoing,
(i) respecting investments for the purposes
of providing financial assistance to credit unions and the approval
by the Superintendent of agreements in relation to such investments,
(ii) respecting prohibitions, conditions,
restrictions or limitations in relation to investments by a stabilization
board, and
(iii) providing that different investments
or classes of investments by a stabilization board are subject to
different prohibitions, conditions, restrictions or limitations;
(f) by repealing paragraph (dd);
(g) by repealing paragraph (ee) and substituting
the following:
(ee) respecting, for the purposes of
subsection 202.2(1), the determination
of the minimum amount to be maintained in a stabilization fund;
(h) by adding after paragraph (ee) the following:
(ee.1) for the purposes of sections 202.2 to 202.4, prescribing the amounts that are excluded in determining the total
amount of the stabilization fund of a stabilization board;
(i) by repealing paragraph (ii) and substituting
the following:
(ii) respecting the making of investments
by the Corporation, including, without limiting the generality of
the foregoing,
(i) respecting prohibitions, conditions,
restrictions or limitations in relation to investments by the Corporation,
and
(ii) providing that different investments
or classes of investments by the Corporation are subject to different
prohibitions, conditions, restrictions or limitations;
(j) by repealing
paragraph (jj) and substituting the following:
(jj) respecting the amount of deposit
insurance coverage for the purposes of subsection 220(1);
53 Schedule
A of the Act is amended by striking out
and
substituting the following:
266.4(1)............... |
H |
266.4(2)............... |
H |
266.4(3)............... |
H |
TRANSITIONAL PROVISIONS
54(1) In this section, “prior law”
means the law in force immediately before the commencement of this
section.
54(2) A director of the Brunswick Credit Union
Federation Stabilization Board Limited or the Office de Stabilisation
de la Fédération des Caisses Populaires Acadiennes Limitée
holding office immediately before the commencement of this section,
other than the Superintendent of Credit Unions, shall be deemed to
have been appointed in accordance with section 203 of the Credit Unions
Act, as amended by section 19 of this Act, and shall continue to serve
his or her term as director until he or she dies, resigns, is removed
from office, is re-elected, reappointed or replaced or, subject to
subsection (3), becomes disqualified.
54(3) Any circumstance existing immediately before
the commencement of this section in respect of a director referred
to in subsection (2) that under prior law would not have resulted
in his or her being disqualified from being a director of a stabilization
board, but would, if not for this subsection, result in such a disqualification
immediately after the commencement of this section, does not result
in the director being disqualified from serving the remainder of the
term referred to in subsection (2).
55(1) All appointments of the directors of the
board of directors of the New Brunswick Credit Union Deposit Insurance
Corporation appointed in accordance with subsection 229(2) of the
Credit Unions Act, as that subsection existed immediately before the
commencement of this section, and holding office immediately before
the commencement of this section are revoked.
55(2) No action, application or other proceeding
lies or shall be instituted against the Minister of Justice and Consumer
Affairs or the Crown in right of the Province as a result of the revocation
under subsection (1) of the appointments of directors of the New Brunswick
Credit Union Deposit Insurance Corporation.
COMMENCEMENT
56 This Act or any provision of it comes into
force on a day or days to be fixed by proclamation.