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The Credit Unions and Caisses Populaires Amendment Act

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If you need an official copy, contact Statutory Publications.

S.M. 1996, c. 28

THE CREDIT UNIONS AND CAISSES POPULAIRES AMENDMENT ACT


 

(Assented to November 19, 1996)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. C301 amended

1         The Credit Unions and Caisses Populaires Act is amended by this Act.

2         Section 1 is amended

(a) in the definition "associate", by striking out "as set out in the charter by-laws" and substituting "under the by-laws of a credit union or central";

(b) in the definition "charter by-law", by striking out "credit union or";

(c) by repealing the definition "credit union";

(d) in the definition "delegate", by striking out "charter";

(e) by repealing the definition "fund";

(f) by adding the following definition in alphabetical order:

"guarantee corporation" means The Credit Union Deposit Guarantee Corporation or the Société d'assurance-dépôts des caisses populaires, as the context may require; (« compagnie de garantie »)

(g) in the definition "guarantee fund", by striking out "a fund" and substituting "a guarantee corporation";

(h) in the definition "member", by striking out "charter";

(i) in the definition "officer", by striking out "fund" and substituting "guarantee corporation";

(j) by repealing the definition "ordinary by-law";

(k) in the definition "security interest", by striking out "fund" wherever it occurs and substituting "guarantee corporation"; and

(l) by renumbering the section as subsection 1(1) and adding the following as subsection 1(2):

Interpretation

1(2)      For the purposes of this Act and the regulations,

(a) a reference in the English version to a credit union includes, unless the context otherwise requires, a caisse populaire;  and

(b) a reference in the French version to a caisse populaire includes, unless the context otherwise requires, a credit union.

3         Clause 3(1)(d) is repealed and the following is substituted:

(d) every guarantee corporation.

4(1)      Subsection 5(1) is amended in the part following clause (b) by striking out everything after "articles of incorporation" and substituting "and a notice of registered office in prescribed form".

4(2)      Subsection 5(2) is amended by striking out "and charter by-laws".

5(1)      Subsection 6(2) is amended by striking out "charter".

5(2)      Subsection 6(4) is amended

(a) by repealing the section heading and substituting "By-laws";

(b) by striking out "charter" wherever it occurs in the subsection; and

(c) by repealing clause (f).

6         Section 7 is amended

(a) by striking out "and charter by-laws" in the section heading and in the part of the section preceding clause (a);

(b) in subclause (a)(iii), by striking out "fund" and substituting "guarantee corporation"; and

(c) by adding "and" at the end of subclause (a)(iv), striking out "and" at the end of clause (b) and repealing clause (c).

7         Section 8 is amended by striking out "and charter by-laws".

8         Clause 10(8)(c) is amended by striking out "fund" and substituting "guarantee corporation".

9         Subsection 16(2) is amended

(a) in the section heading of the English version, by striking out "charter"; and

(b) in the subsection, by striking out "charter".

10        Clause 17(a) is amended by striking out ", charter by-laws or ordinary by-laws" and substituting "or by-laws".

11(1)     Subsections 18(2) and (3) are repealed and the following is substituted:

Change of address

18(2)     A credit union may change the address or location of its registered office within Manitoba as prescribed.

11(2)     Subsection 18(4) is amended by striking out "clause 114(1)(b)" and substituting "subsection (2)".

12        Subsection 23(3) is amended by striking out everything after "shall purchase" and substituting "at least one fully paid common share."

13        Clause 25(3)(c) is amended by striking out "fund" and substituting "guarantee corporation".

14        Subsection 26(2) is repealed.

15        Subsection 28(1) is amended by striking out "prescribed by them and approved by the members of the credit union at a general meeting thereof" and substituting "approved by a resolution of the directors".

16(1)     Subsection 29(1) is amended by striking out "charter" wherever it occurs.

16(2)     Subsections 29(2) and (3) are repealed.

17(1)     Subsection 30(1) is amended

(a) in the section heading, by striking out "or repayment"; and

(b) in the part preceding clause (a) by striking out "or repay any loan of patronage refunds, or common or surplus shares dividends,".

17(2)     Subsection 30(2) is amended by striking out everything after "a credit union" and substituting "may be redeemed or purchased at a price exceeding the issue price."

18        Section 31 is amended by striking out everything after "established by" and substituting "a resolution of the directors."

19(1)     Clauses 32(1)(b) and (c) of the English version are amended by striking out "equity" and substituting "capital".

19(2)     Subsection 32(2) is amended by striking out everything after "subsection (1)," and substituting "the guarantee corporation may authorize any payments referred to in that subsection on such terms and conditions as it considers appropriate."

20        Section 33 is amended

(a) by striking out "charter by-laws" and substituting "by-laws of a credit union"; and

(b) in the English version, by striking out everything after "class" and substituting "of the credit union's capital stock.".

21        Sections 34 and 38 are repealed.

22(1)     Subsection 42(1) is amended by striking out everything after "regulations," and substituting the following:

(a) make loans to its members, including directors, officers and employees;

(b) participate in a loan to a member of another credit union incorporated in Manitoba where it has entered into a written agreement for that purpose with each other credit union participating in the loan; and

(c) acquire from another credit union incorporated in Manitoba its interest in a loan made to a member of the other credit union.

22(2)     Subsection 42(2) is amended by striking out ", in its charter by-laws," and substituting "by by-law".

23        Section 43 is repealed.

24(1)     Subsection 48(1) of the English version is amended

(a) by repealing the section heading and substituting "Capital"; and

(b) in the subsection, by striking out "equity" and substituting "capital".

24(2)     Subsection 48(2) is repealed.

25        Section 50 is amended by striking out "fund" and substituting "guarantee corporation".

26        Subsection 51(2) of the English version is amended by striking out "equity" and substituting "capital".

27        The following is added after section 51:

PART V.1

SECURITY ISSUES

Offering statement

51.1(1)   Before issuing any shares or other securities, a credit union shall send to the Registrar an offering statement in accordance with this Act and the regulations, and obtain a receipt for the offering statement.

Exception

51.1(2)   Subsection (1) does not apply to

(a) surplus shares issued by a credit union;

(b) deposits in a credit union; or

(c) any other shares or securities exempted by the regulations or by order of the Registrar.

Application of Securities Act

51.1(3)   The Securities Act does not apply to an issue of shares or other securities by a credit union unless the issue is made subject to that Act by order of the Registrar.

Standard of disclosure

51.2(1)   An offering statement shall provide full, true and plain disclosure of all material facts relating to the shares or other securities proposed to be issued.

Form and content

51.2(2)   An offering statement shall comply as to form and content with the requirements of this Act and the regulations.

Supporting documents

51.2(3)   A credit union shall send to the Registrar with an offering statement such documents, reports and other materials as are required by this Act and the regulations.

Material changes

51.2(4)   Where there is a material change in the facts set forth in an offering statement, whether before or after a receipt is obtained from the Registrar for the statement, the credit union shall, within 30 days after the change, send to the Registrar a statement of the change.

Further statements

51.2(5)   A credit union may, and shall if required by the Registrar, send to the Registrar, instead of a statement of change under subsection (4), a revised offering statement that reflects all material changes.

Receipt

51.3(1)   The Registrar may in his or her discretion file, and issue a receipt for, any offering statement sent under section 51.1 or subsection 51.2(4) or (5), unless the Registrar determines that

(a) the offering statement or any document required to be sent with it,

(i) fails to comply in any substantial respect with any of the requirements of this Act or the regulations,

(ii) contains any statement, promise, estimate or forecast that is misleading, false or deceptive, or

(iii) conceals or omits to state any material fact necessary in order to prevent any statement made in the offering statement or other document from being misleading in the light of the circumstances in which it was made; or

(b) the proceeds from the sale of the shares or other securities to which the statement relates that are to be paid into the treasury of the credit union, together with other resources of the credit union, are insufficient to accomplish the purpose of the issue as set out in the offering statement.

Opportunity to be heard

51.3(2)   The Registrar shall not refuse to file an offering statement on any of the grounds set out in clause (1)(a) or (b) without

(a) first giving the credit union that filed the statement an opportunity to be heard; and

(b) issuing a written ruling setting out the grounds for the refusal.

Inspection of statement

51.4(1)   A copy of a statement for which the Registrar has issued a receipt under section 51.3 shall be open to inspection by any person

(a) at the offices of the Registrar; and

(b) during normal business hours, at the registered office of the credit union.

Extracts

51.4(2)   Any person may take extracts from any statement open to inspection under subsection (1).

PART V.2

SHARE CERTIFICATES, MEMBERSHIPS AND TRANSFERS

Personal estate

51.5      Shares in the capital stock of a credit union and memberships in a credit union are personal estate and are transferable in such manner and subject to such conditions and restrictions as are contained in this Act and the regulations and in the articles and by-laws of the credit union.

Allotment of shares

51.6      Subject to this Act and in the absence of any provision to the contrary in the articles or by-laws of a credit union, shares in the capital stock of the credit union may be allotted at such times, in such manner and to such persons or class of persons as the directors may from time to time by resolution determine.

Share certificates

51.7(1)   Subject to subsection (6), every shareholder of a credit union is, upon request and without payment, entitled to a certificate, signed by the proper officer or officers of the credit union, stating the number of shares held by him and the amount paid up thereon; but, in respect of a share or shares held jointly by two or more persons, the credit union is not bound to issue more than one certificate, and delivery of a certificate for a share to one of two or more joint shareholders is sufficient delivery to all.

Signatures

51.7(2)   A credit union may by by-law provide that the signatures of the officer or officers designated to sign share certificates may be engraved, lithographed or otherwise mechanically reproduced on the certificates, and in that event, subject to the by-law, share certificates so signed are deemed to have been manually signed by that officer or officers and are as valid to all intents and purposes as if they had been manually signed.

Certificates as evidence of title

51.7(3)   A share certificate is evidence of the title of the shareholder to the shares mentioned in it.

Particulars of issue on share certificate

51.7(4)   Where a credit union has more than one class of shares,

(a) the preferences, rights, conditions, restrictions, limitations or prohibitions attaching to any class of shares shall be stated in legible characters

(i) on every share certificate representing that class of shares, or

(ii) by a writing permanently attached to the share certificate; or

(b) there shall be inscribed on each share certificate representing a particular class of shares, in legible characters, a statement that there are preferences, rights, conditions, restrictions, limitations or prohibitions attached to the class of shares and that the full text thereof is obtainable on request and without fee from the secretary of the credit union.

Furnishing text of particulars

51.7(5)   Where the statement referred to in clause (4)(b) is inscribed on share certificates of a credit union, the secretary of the credit union shall furnish to any shareholder, on request and without fee, the full text of any preferences, rights, conditions, restrictions, limitations or prohibitions attached to the class of shares mentioned.

Waiver of share certificate

51.7(6)   The by-laws may provide that a credit union is not required to issue share certificates, and in that case

(a) the shareholders register kept by the credit union under clause 19(1)(e)  is prima facie proof of the number of shares held by each shareholder; and

(b) the credit union shall, if requested in writing by a shareholder, provide a statement to the member showing the interest of the shareholder in the credit union.

Transfers of shares or memberships

51.8      No transfer of a share or membership in a credit union is valid for any purpose

(a) unless a written application for membership by the transferee has been approved and the transfer has been authorized by a resolution of the directors of the credit union or by a person authorized by a resolution of the directors to approve applications and transfers of that kind; and

(b) until notification of any approval given under clause (a) has been sent to the transferee and the transferee's name has been entered on the members register;

save only as exhibiting the rights of the parties thereto towards each other.

Dealings with registered holder

51.9(1)   Before the presentment for registration of the transfer of a share or other security in registered form, a credit union or a trustee under a trust indenture may treat as the absolute owner of the security the registered holder in whose name the security is registered in a members or securities register, as if that person had full legal capacity and authority to exercise all rights of ownership irrespective of

(a) any knowledge or notice to the contrary, except that obtained by virtue of documents demanded by the credit union or trustee; or

(b) any description in its records or on the security certificate indicating

(i) a pledge, a representative or a fiduciary relationship, or

(ii) a reference to any other instrument, or

(iii) the rights of any other person.

Constructive registered holder

51.9(2)   Notwithstanding subsection (1), a credit union shall treat a person as a registered holder entitled to exercise all the rights of the security holder he or she represents, if the person furnishes evidence satisfactory to the credit union that he or she is

(a) the executor, administrator, heir or legal representative of the heirs of the estate of a deceased registered holder; or

(b) a guardian, committee or trustee representing a registered holder who is an infant, an incompetent person or a missing person; or

(c) a liquidator of, or a trustee in bankruptcy for, a registered holder.

Permissible registered holder

51.9(3)   If a person upon whom the ownership of a security devolves by operation of law, other than a person described in subsection (2), furnishes proof of his or her authority to exercise rights or privileges in respect of a security of the credit union that is not registered in his or her name, the credit union shall treat the person as entitled to exercise those rights or privileges.

Immunity of credit union

51.9(4)   A credit union is not required to inquire into the existence of, or see to the performance or observance of, any duty owed to a third person by a registered holder of any of its securities or by anyone whom it treats, as permitted or required by this section, as the owner or registered holder thereof.

Infants

51.9(5)   If an infant exercises any rights of ownership in the securities of a credit union, no subsequent repudiation or avoidance of that exercise is effective against the credit union.

Joint holders

51.9(6)   A credit union may treat as the owners of a security the survivors of the joint holders of the security if it receives proof satisfactory to it of the death of any of the joint holders.

Transmission of securities

51.9(7)   Subject to any applicable law relating to the collection of taxes, a person referred to in clause (2)(a) is entitled to become a registered holder, or to designate a registered holder, if he or she deposits with the credit union or its transfer agent

(a) the original grant of probate or of letters of administration, or a copy thereof certified to be a true copy by

(i) the court that granted the probate or letters of administration, or

(ii) a trust company incorporated under the laws of Canada or a province, or

(iii) a lawyer or notary acting on behalf of the person; or

(b) in the case of transmission by notarial will in the Province of Quebec, a copy authenticated pursuant to the laws of that Province;

together with

(c) an affidavit or declaration of transmission made by the person, stating particulars of the transmission; and

(d) the security certificate that was owned by the deceased holder, endorsed by the person and accompanied by any assurance the credit union may require that the endorsement is genuine and effective.

Excepted transmissions

51.9(8)   Notwithstanding subsection (7), if the laws of the jurisdiction governing the transmission of a security of a deceased holder do not require a grant of probate or of letters of administration in respect of the transmission, the legal representative of the deceased holder is entitled, subject to any applicable law relating to the collection of taxes, to become a registered holder or to designate a registered holder if he or she deposits with the credit union or its transfer agent

(a) the security certificate that was owned by the deceased holder; and

(b) reasonable proof of the governing laws, of the interest of the deceased holder in the security and of the right of the legal representative or the person he or she designates to become the registered holder.

Right of credit union

51.9(9)   Deposit of the documents required by subsection (7) or (8) empowers a credit union or its transfer agent to record in a members or shareholders securities register the transmission of a security from the deceased holder to a person referred to in clause (2)(a) or to such person as the person referred to in that clause may designate and, thereafter, to treat the person who thus becomes a registered holder as the owner of that security.

28(1)     Subsection 52(1) is amended

(a) in the French version, by striking out "caisse populaires" and substituting "caisse populaire"; and

(b) by striking out "charter".

28(2)     Subsection 52(4) is amended by adding "or caisse populaire" after "another credit union".

29        Subsection 54(1) is amended

(a) in the French version, by striking out "Nul" and substituting "Aucune"; and

(b) in clause (b), by striking out "charter".

30(1)     Subsection 55(1) is amended by striking out "charter".

30(2)     The following is added after subsection 55(4):

No right of appeal under subsection (4)

55(4.1)   Subsection (4) does not apply to a person whose membership is terminated under subsection (1) if the grounds for termination include causing financial loss to a credit union through fraud or by

(a) issuing illegal negotiable instruments; or

(b) breaching a term or condition of an agreement for the use of electronic services provided by the credit union.

30(3)     Subsections 55(7) and (8) are repealed.

30(4)     Subsection 55(9) is amended

(a) by striking out "or (7)"; and

(b) by striking out everything after "subsection (5)".

30(5)     The following is added after subsection 55(11):

Suspension of services to member

55(12)    A credit union may at any time suspend its services to a member who has caused financial loss to the credit union through fraud or by

(a) issuing illegal negotiable instruments; or

(b) breaching a term or condition of an agreement for the use of electronic services provided by the credit union.

31        In the following provisions, "charter" is struck out wherever it occurs in the section heading and in the provision: 56(1), 59, 60, 66(1) and (2), 69(1) and (2), 70, 73(1), 74(1) and (5), 75(1) and (2), 78(2) and (3), 82(4), 84(1), (2), (3) and (6), 91(5), 92, 94(2), 105(3), 120 and 219(1), (4) and (5) and in the English version of subsection 223(1).

32(1)     Subsection 58(1) is amended by striking out "ordinary by-laws or charter".

32(2)     Subsection 58(3) is repealed.

32(3)     Subsection 58(4) is amended

(a) in the section heading, by striking out "ordinary"; and

(b) in the subsection, by striking out "an ordinary" and substituting "a".

32(4)      Subsection 58(5) is repealed and the following is substituted:

Registrar's order re by-law

58(5)     The Registrar may order a credit union to enact a by-law consistent with, or to amend or repeal a by-law that is inconsistent with, the provisions of this Act, the regulations or the credit union's articles or other provisions of the credit union's by-laws, and the credit union shall enact, amend or repeal the by-law accordingly.

32(5)     Subsection 58(6) is repealed.

33(1)     Subsections 63(1) and (4) are amended by striking out "charter".

33(2)     Subsection 63(2) is amended

(a) by striking out "charter"; and

(b) by striking out "less than 7 days" and substituting "seven days or less".

34(1)     Subsection 65(4) is amended by striking out "charter".

34(2)     Clause 65(5)(a) is amended by striking out everything after "credit union" and substituting "at least 90 days before the first anniversary date of the previous annual meeting of members; or".

35        Section 71 and subsection 76(2) are amended by striking out "charter".

36        Section 77 is amended

(a) in the part preceding clause (a), by striking out "charter";

(b) in clause (b), by striking out "fund" and substituting "guarantee corporation";

(c) by repealing clauses (c) and (d) and substituting:

(c) the credit union's auditor or a professional employee or member of the auditor's firm; or

(d) the credit union's solicitor or a professional employee or member of the solicitor's firm; or

(d) by adding "; or" at the end of clause (e) and adding the following after clause (e):

(f) a real estate appraiser used by the credit union or a professional employee or member of the appraiser's firm; or

(g) a member who is in arrears for more than 180 days under a debt obligation to the credit union;

37        Clause 79(1)(c) is repealed and the following is substituted:

(c) ceases to meet the qualifications set out in section 77 or the by-laws of the credit union for being a director.

38        Clause 90(b) is amended by striking out "fund" and substituting "guarantee corporation".

39        Subsections 96(1) and (5) are amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

40(1)     Clause 98(1)(c) is amended by striking out "charter".

40(2)     Subsection 98(2) is amended

(a) by adding "in a form satisfactory to the Registrar" at the end of the part preceding clause (a); and

(b) by repealing clause (c) and substituting the following:

(c) a summary of all loans, deposits or fees that

(i) are made, received from, or charged to directors or officers or persons in whom any of them has a material interest, and

(ii) do not conform to the credit union's ordinary practices for members who are not directors or officers.

41(1)     Subsection 101(1) is amended in the section heading and in the subsection by striking out "fund" and substituting "guarantee corporation".

41(2)     Subsection 101(2) is amended

(a) in the section heading, by striking out "fund" and substituting "guarantee corporation"; and

(b) in the subsection, by striking out everything after "provide to the" and substituting "guarantee corporation such other information as the corporation may reasonably require to enable it to discharge its responsibilities under this Act."

42        Subsection 102(1) is amended by striking out "fund" and substituting "guarantee corporation".

43        Subsection 104(2) is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

44        Subsection 108(2) is amended by striking out "fund" and substituting "guarantee corporation".

45(1)     Subsection 109(1) is amended in the section heading and in the subsection by striking out "fund" and substituting "guarantee corporation".

45(2)     Subsection 109(2) is amended by striking out "fund" and substituting "guarantee corporation".

46(1)     Subsection 111(1) is repealed and the following is substituted:

Audit committee

111(1)    The directors of a credit union shall establish an audit committee having at least three members

(a) each of whom is a member or director of the credit union;

(b) a majority of whom are not officers of the credit union or of any of its subsidiaries; and

(c) none of whom is

(i) the chair of the board of directors, or

(ii) an employee of a credit union.

46(2)     Subsection 111(2) is repealed.

46(3)     Subsection 111(3) is repealed and the following is substituted:

Duties of audit committee

111(3)    The audit committee of a credit union shall perform such duties and functions as may be prescribed.

46(4)     Clause 111(7)(b) is amended by striking out "fund" and substituting "guarantee corporation".

47        Subsection 112(2) is amended by striking out "fund" and substituting "guarantee corporation".

48        Subsection 122(3) is amended by striking out "fund" and substituting "guarantee corporation".

49        Clause 126(2)(a) is amended by striking out "fund" and substituting "guarantee corporation".

50        Section 129 is amended by striking out everything after "authorized" and substituting "by an agreement providing for reciprocal rights for credit unions from that jurisdiction, and upon filing with the Register such documents as the Registrar requires, become registered in Manitoba for such purposes as are specified in the agreement."

51        Section 136 is amended by striking out "fund" and substituting "guarantee corporation".

52(1)     Subsection 138(1) is amended by striking out "fund" and substituting "guarantee corporation".

52(2)     Subsection 138(3) is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

52(3)     Subsections 138(4) is amended by striking out "fund" and substituting "guarantee corporation".

52(4)     Subsection 138(5) is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

52(5)     Subsection 138(6) is amended in the section heading and in the subsection by striking out "fund" and substituting "guarantee corporation".

53        Section 141 is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation";.

54        The heading for PART XI is amended by striking out "FUNDS" and substituting "GUARANTEE CORPORATIONS".

55(1)     Subsection 142(1) is amended by striking out "funds" and substituting "guarantee corporations".

55(2)     Subsection 142(2) is amended

(a) by striking out "funds" and substituting "guarantee corporations"; and

(b) by striking out "fund" and substituting "guarantee corporation".

55(3)     Subsection 142(3) is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

56        Section 143 and the section heading are amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

57        Section 144 is amended

(a) in the part preceding clause (a), by striking out "fund" and substituting "guarantee corporation";

(b) in the English version of clauses (b), (c) and (d), by striking out "fund" wherever it occurs and substituting "guarantee corporation";

(c) by repealing clause (h) and substituting the following:

(h) subject to the approval of the Registrar, invest moneys of the guarantee corporation in reasonable and proper investments including, without limiting the generality of the foregoing, shares and other securities of a central;

(d) by repealing clause (j) and substituting the following:

(j) establish insurance requirements and arrange group or blanket insurance coverage to be carried by credit unions in amounts that the guarantee corporation considers adequate;

(e) in the French version of clause (k), by striking out "qu'il puisse" and substituting "qu'elle puisse";

(f) in clause (l), by striking out "fund" wherever it occurs and substituting "guarantee corporation"; and

(g) by adding the following after clause 144(o):

(o.1) determine and levy fees on credit unions for its services;

58        Sections 145 and 146 are repealed and the following is substituted:

Board of a guarantee corporation

145       The affairs of a guarantee corporation shall be administered by a board of five members, or seven members if the board so determines, who shall be selected in prescribed manner and appointed by the Lieutenant Governor in Council.

Chair and other officers

146       The chair of the board of a guarantee corporation shall be selected in prescribed manner and appointed by the Lieutenant Governor in Council, and the board may appoint such other officers as it considers advisable.

59        Section 147 is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

60        Sections 149 and 150 are amended by striking out "fund" and substituting "guarantee corporation".

61        Sections 151, 153 and 154 are amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

62        Section 155 is amended by striking out "fund" and substituting "guarantee corporation".

63        Section 156 is amended by striking out "fund" and substituting "guarantee corporation".

64        Section 157 is amended

(a) by striking out "fund" and substituting "guarantee corporation"; and

(b) by striking out "99, 101 to 103" and substituting "99 and 101, subsections 102(2) to (7), sections 103".

65        Section 159 is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

66(1)     Subsection 160(1) is amended

(a) by striking out "fund" and substituting "guarantee corporation"; and

(b) by striking out everything after "assigned to it," and substituting the following:

and the levy shall not exceed the prescribed percentage of the average of the month end totals in the quarter of

(a) the deposits with the credit union; and

(b) the accrued interest on the deposits.

66(2)     Subsection 160(2) is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

66(3)     Subsections 160(3) and (6) are amended by striking out "fund" and substituting "guarantee corporation".

66(4)     Subsection 160(4) is repealed and the following is substituted:

Special assessment

160(4)    If in the opinion of the board of a guarantee corporation the guarantee fund of the corporation is, or is about to be, impaired, the corporation may by written notice require each credit union assigned to it to pay, in addition to amounts levied under subsection (1), a special assessment not to exceed the prescribed percentage of the total, as of the end of the fiscal year of the corporation immediately preceding the date the assessment is made, of

(a) the deposits with the credit union; and

(b) the accrued interest on the deposits.

66(5)     Subsection 160(5) is amended by striking out "fund" and substituting "guarantee corporation".

67(1)     Subsections 161(1) and (3) are amended by striking out "fund" and substituting "guarantee corporation".

67(2)     Subsection 161(4) is amended

(a) by striking out "a fund" and substituting "a guarantee corporation"; and

(b) by striking out "the fund" wherever it occurs and substituting "the corporation".

68        Subsections 162(1) and (2) are amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

69        Section 163 is amended

(a) by striking out "fund's" and substituting "guarantee corporation's"; and

(b) by striking out "fund" and substituting "guarantee corporation".

70        Section 171 is amended by striking out "VI of The Cooperatives Act" and substituting "V.2".

71        Section 175 is amended by striking out "Section 34" and substituting "Part V.1".

72        Section 177 is amended by striking out "38, 44 and 48," and substituting "38 and 44".

73        The following is added after section 177:

Capital of central

177.1     A central shall establish and maintain a level of capital as prescribed.

74        Subsection 180(3) is repealed and the following is substituted:

Voting by delegates

180(3)    Except as otherwise provided in a by-law of a central, a delegate has only one vote on any question that may be voted at a meeting of members of the central.

75        Section 182 is repealed and the following is substituted:

Power to make by-laws

182(1)    The members of a central may, subject to this Act and the articles of the central, at any annual meeting or general meeting called for the purpose, enact, amend, or repeal ordinary by-laws or charter by-laws in respect of those matters authorized or required by any provision of this Act.

Enactment

182(2)    Any by-law may be enacted, amended or repealed by the members of a central

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

(b) if 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 proposal is to be considered, by a majority of the votes cast at the meeting.

Effective date of charter by-laws

182(3)    A charter by-law and any amendment or repeal of a charter by-law is not effective until it is

(a) approved by the members in accordance with subsection (1); and

(b) approved by the Registrar.

Effective date of ordinary by-laws

182(4)    The enactment, amendment or repeal of a by-law other than a charter by-law is effective on and after the date of the members' approval.

Preclearance of charter by-laws

182(5)    A central may submit a proposed charter by-law or any amendment or repeal of a charter by-law to the Registrar for approval before submitting it to its members for their adoption and, if it is approved by the Registrar,

(a) the by-law must be submitted for adoption by the members at a members' meeting within 30 days after receipt of the Registrar's approval; and

(b) a certified copy of the adopted by-law must be filed with the Registrar within 30 days after its adoption by the members.

Failure to file on a timely basis

182(6)    If a central fails to comply with the requirements of subsection (5), the charter by-law, amendment or repeal is void.

76        Clause 187(b) is amended by striking out "fund" and substituting "guarantee corporation".

77        Section 189 is amended

(a) by striking out "fund" in the section heading and wherever it occurs in the section and substituting "guarantee corporation"; and

(b) by adding "or a subsidiary of a central" after "A central".

78        The definition "complainant" in section 191 is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

79(1)     Subsection 194(2) is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

79(2)     Subsection 194(3) is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

80        Subsection 195(4) is amended by striking out "fund" and substituting "guarantee corporation".

81        Section 196 is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

82(1)     Subsection 197(2) is amended by striking out "fund" and substituting "guarantee corporation".

82(2)     Subsection 197(3) is amended by striking out "funds" and substituting "guarantee corporations".

82(3)     Subsection 197(4) is amended by striking out "fund" and substituting "guarantee corporation".

83        Section 199 is amended by striking out "fund" and substituting "guarantee corporation".

84        Section 203 is amended

(a) in clause (a), by striking out "funds" and substituting "guarantee corporations"; and

(b) in clauses (b) and (d), by striking out "fund" and substituting "guarantee corporation".

85        Section 208 and the section heading are amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

86        Clause 209(c) is amended by striking out "fund" and substituting "guarantee corporation".

87        Sections 211 and 212 are amended by striking out "fund" and substituting "guarantee corporation".

88(1)     Subsections 218(1) is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

88(2)     Subsection 218(2) is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

88(3)     Subsection 218(3) is amended by striking out "fund" and substituting "guarantee corporation".

88(4)     Subsection 218(4) is amended

(a) in the part preceding clause (a), by striking out "14" and substituting "30"; and

(b) in clause (a), by striking out "fund" and substituting "guarantee corporation".

89(1)     Subsection 227(1) is amended

(a) by adding "of a central" at the end of clause (b);

(b) by adding the following after clause (d):

(d.1) respecting changes in the address or location of a credit union's registered office;

(c) by repealing clause (s) and substituting the following:

(s) defining "capital" for the purposes of this Act and prescribing the level of capital to be established and maintained by a credit union or a central;

(d) in clause (z), by striking out "fund" and substituting "guarantee corporation"; and

(e) by adding the following after clause (cc):

(cc.1) respecting the incorporation and ownership of a subsidiary by a credit union;

89(2)     Subsection 227(2) is repealed.

90        Subsection 231(1) is amended by striking out "notices, articles or charter by-laws of a credit union or central" and substituting "notices or articles of a credit union or central, the charter by-laws of a central".

91(1)     Subsections 233(2)and (5) are amended by striking out "fund" and substituting "guarantee corporation".

91(2)     Subsection 233(4) is amended by striking out "fund" wherever it occurs and substituting "guarantee corporation".

Coming into force

92        This Act comes into force on a day fixed by proclamation.