Credit Union Act

BILL NO. 76

(as passed, with amendments)

2nd Session, 61st General Assembly
Nova Scotia
59 Elizabeth II, 2010



Government Bill



Credit Union Act
(amended)

CHAPTER 49 OF THE ACTS OF 2010



The Honourable Graham Steele
Minister responsible for the Credit Union Act



First Reading: November 1, 2010 (LINK TO BILL AS INTRODUCED)

Second Reading: November 2, 2010

Third Reading: November 26, 2010 (WITH COMMITTEE AMENDMENTS)

Royal Assent: December 10, 2010

An Act to Amend Chapter 4,
of the Acts of 1994,
the Credit Union Act

Be it enacted by the Governor and Assembly as follows:

1 Section 3 of Chapter 4 of the Acts of 1994, the Credit Union Act, as amended by Chapter 11 of the Acts of 2004, is further amended by

(a) striking out clause (h) and substituting the following clause:

(h) "Central" means the Atlantic Central continued by this Act;

(b) adding immediately after clause (l) the following clause:

(la) "credit union regulator" means the superintendent or chief officer of the government department, ministry or office that regulates credit unions in any jurisdiction in which members of the Central operate;

(c) adding immediately after clause (p) the following clause:

(pa) "deposit insurer" means any stabilization fund, stabilization board, deposit insurance corporation, or deposit guarantee corporation that monitors and regulates the performance of or protects the deposits in any member of the Central, and includes, as the context requires, the Corporation;

(d) striking out clause (v) and substituting the following clause:

(v) "Minister" means the member of the Executive Council assigned responsibility for this Act;

and

(e) adding ", in relation to a credit union," immediately before "means" in the first line of clause (af).

2 Subsection 82(1) of Chapter 4, as amended by Chapter 11 of the Acts of 2004, is further amended by

(a) striking out clause (b) and substituting the following clause:

(b) an employee of a member of the Central, the Central, the Corporation or a deposit insurer;

(b) striking out "that credit union" in the second line of clause (c) and substituting "any member of the Central";

(c) striking out "credit union" in the second line of clause (ca) and substituting "member of the Central"; and

(d) striking out "that credit union" in the second line of clause (d) and substituting "any member of the Central".

3 (1) Subsection 160(1) of Chapter 4, as amended by Chapter 11 of the Acts of 2004 and Chapter 36 of the Acts of 2007, is further amended by

(a) striking out "credit union" in clause (b) and substituting "member of the Central";

(b) striking out "credit union" in the first line of clause (ba) and substituting "member of the Central";

(c) striking out "the Corporation" in clause (c) and substituting "a deposit insurer";

(d) striking out "the Corporation" in subclause (d)(i) and substituting "a deposit insurer";

(e) striking out "credit union" in subclause (d)(ia) and substituting "member of the Central"; and

(f) striking out "the Corporation" in clause (e) and substituting "a deposit insurer".

(2) Subsection 160(4) is repealed and the following subsection substituted:

(4) Notwithstanding anything contained in this Section, a person referred to in clause (1)(b) or (c) may not be a board member of the Corporation unless at least two years has passed since the person ceased to be an employee of a member of the Central, the Central, the Corporation or a deposit insurer, as the case may be.

4 Chapter 4 is further amended by adding immediately before Section 181 the following Section:

180A In this Part, "special resolution" means a resolution

(a) passed by a majority of the votes cast and by not less than two thirds of the delegates who voted in respect of that resolution; or

(b) in writing signed by all of the members entitled to vote on that resolution.

5 (1) Section 182 of Chapter 4 is amended by adding immediately after subsection (1) the following subsection:

(1A) Notwithstanding subsection (1), the Credit Union Central of Nova Scotia continued by subsection (1) is renamed as the "Atlantic Central".

(2) Subsection 182(2) is repealed and the following subsection substituted:

(2) For greater certainty, the directors and officers of the Central referred to in subsection (1) who held office immediately before the commencement of subsection (1A) continue in office until their successors are appointed or elected in accordance with this Act.

6 Section 183 of Chapter 4 is repealed.

7 Section 184 of Chapter 4 is repealed and the following Sections substituted:

184 (1) Subject to the approval of the Superintendent pursuant to Section 184B, the articles of the Central may be amended by special resolution of the members.

(2) Notwithstanding subsection (1), the articles of the Central containing a clerical error may be amended by resolution of the directors of the Central or by ordinary resolution of the members of the Central to correct the error.

(3) Where the articles of the Central are amended pursuant to this Section, articles of amendment must be sent, within six months of the date of the resolution of the members of the Central authorizing the amendment, to the Superintendent for filing and the Superintendent shall refuse to file the articles if not so sent.

(4) Where authorized by the members of the Central in a resolution effecting an amendment pursuant to this Section, the directors of the Central may revoke the resolution before it is acted upon without further approval of the members the Central.

184A Subject to a revocation pursuant to subsection 184(4), after an amendment is adopted pursuant to subsection 184(1), articles of amendment in prescribed form must be sent to the Superintendent.

184B Upon receiving articles of amendment, the Superintendent may file the articles and issue a certificate of amendment in accordance with Section 258.

184C (1) An amendment becomes effective on the date shown on the certificate of amendment, and the articles are amended accordingly.

(2) No amendment to the articles of the Central affects an existing cause of action, claim or liability to prosecution in favour of or against the Central or any of its directors, committee members or officers or any civil, criminal or administrative action or proceeding to which the Central or any of its directors, committee members or officers is a party.

184D (1) The directors of the Central may, at any time, and shall when so directed by the Superintendent, restate the articles of incorporation as amended.

(2) Restated articles of incorporation, in prescribed form, must be sent to the Superintendent.

(3) Upon receipt of restated articles of incorporation, the Superintendent shall issue a restated certificate of incorporation in accordance with Section 258.

(4) Restated articles of incorporation are effective on, from and after the date shown in the restated certificate of incorporation and supersede the original articles of incorporation and all amendments thereto.

184E Section 139 applies mutatis mutandis in relation to the articles of the Central.

8 Section 185 of Chapter 4 is amended by

(a) striking out "credit unions" in the second line and striking out "member credit unions" in the third line of clause (a) and substituting in each case "members";

(b) striking out "member credit unions" in the second line of clause (b) and substituting "members";

(c) striking out "member credit unions" in the first and second lines of clause (c) and substituting "members";

(d) striking out "member credit unions" in the third and fourth lines and striking out "credit unions" in the fourth line of clause (d) and substituting in each case "members";

(e) striking out "credit unions in the Province" in the second line of clause (e) and substituting "its members"; and

(f) striking out "credit unions in the Province" in the second line of clause (f) and substituting "its members".

9 Subsection 186(2) of Chapter 4 is repealed and the following subsection substituted:

(2) The Central has the capacity to carry on its business, conduct its affairs and exercise its powers

(a) in the Province;

(b) in the provinces of New Brunswick, Prince Edward Island and Newfoundland and Labrador to the extent that the laws of those provinces permit; and

(c) subject to the approval of the Superintendent, in any other jurisdiction to the extent that the laws of that jurisdiction permits.

10 Section 188 of Chapter 4 is amended by

(a) striking out "credit unions" in the second line of clause (a) and substituting "its members";

(b) striking out "member credit unions" in the second and third lines of clause (a) and substituting "members";

(c) striking out "the Corporation" the first time it appears in the second line of clause (b) and substituting "a deposit insurer";

(d) striking out "the Corporation" the second time it appears in the second line of clause (b) and substituting "such deposit insurer";

(e) striking out clause (c) and substituting the following clauses:

(c) assist its members in carrying out any recommendations or orders made by a deposit insurer or credit union regulator in relation to its members;

(d) subject to subsection 186(2), accept and exercise all rights, powers, privileges and immunities conferred on it by the Cooperative Credit Associations Act (Canada) or successor legislation.

11 Clause 189(a) of Chapter 4 is amended by striking out "member credit unions" in the second and in the third lines and substituting in each case "members".

12 Section 190 of Chapter 4 is repealed and the following Section substituted:

190 The Central shall provide to any deposit insurer such information concerning the Central and its members as the deposit insurer may reasonably require to enable the deposit insurer to carry out its legislated purposes.

13 Section 191 of Chapter 4 is amended by striking out "member credit unions" in the third line and substituting "members".

14 Subsection 193(1) of Chapter 4 is repealed and the following subsection substituted:

(1) The Central is authorized to issue to its members an unlimited number of common shares and such other numbers and classes of shares that have the terms and conditions set out in the charter by-laws.

15 Section 201 of Chapter 4 is amended by adding "(1)" immediately after the Section number and adding the following subsection:

(2) The Central may have as members

(a) credit unions incorporated or otherwise existing in the provinces of New Brunswick, Prince Edward Island and Newfoundland and Labrador to the extent that the laws of. those provinces permit; and

(b) subject to the approval of the Superintendent, credit unions operating in any other jurisdiction to the extent that the laws of that jurisdiction permits.

16 Subsection 203(3) of Chapter 4 is repealed and the following subsection substituted:

(3) A delegate may only vote in the manner provided for in the charter by-laws of the Central on any question that may be voted on at a meeting of the Central.

17 Subsection 205(2) of Chapter 4 is repealed and the following subsection substituted:

(1) Subject to this Act and the articles of the Central, the members of the Central may, at any annual meeting or general meeting called for the purpose, enact, amend or repeal charter by-laws in respect of those matters authorized or required by this Act.

(2) A by-law may be enacted, amended or repealed by the members of the Central if

(a) approved by special resolution of the members of the Central; or

(b) written notice of the proposed enactment, amendment or repeal is forwarded to each member of the Central with the notice of the meeting at which the enactment, amendment or repeal is to be considered and the proposed enactment, amendment or repeal is approved by a majority of the votes cast at the meeting.

(3) A charter by-law, amendment or repeal is effective upon the approval of the Superintendent or, in the event that the charter by-laws have been approved pursuant to subsection (4), upon enactment of the charter by-law by the Central.

(4) At the option of the Central, a charter by-law and an amendment or repeal of a charter by-law may be submitted to the Superintendent for approval before its adoption by the members of the Central, in which case

(a) the charter by-law must be adopted by the members of the Central within thirty days of receipt of the approval of the Superintendent; and

(b) a certified copy of the adopted charter by-law must be filed with the Superintendent within thirty days of its adoption by the members of the Central.

(5) Where the Central fails to comply with the requirements of subsection (4), the charter by-law, amendment or repeal is void.

18 Subsection 210(1) of Chapter 4 is amended by

(a) striking out "credit union" in the second line and substituting "member of the Central";

(b) striking out "the Corporation" in the second line of clause (b) and substituting "a deposit insurer";

(c) striking out "the Corporation" in the first line of clause (c) and substituting "a deposit insurer"; and

(d) striking out "credit unions" in the second and third lines of clause (d) and substituting "its members".

19 Section 213 of Chapter 4 is repealed.

20 This Act comes into force on such day as the Governor in Council orders and declares by proclamation.

 

This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2010 Crown in right of Nova Scotia. Created December 20, 2010. Send comments to legc.office@novascotia.ca.

Renseignements

Glossaire
Types de projets de loi
Comment un projet de loi devient un loi
Décrets
Le Registre des règlements
Chronologie constitutionnelle