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Volume 48, No. 7

B.C. Reg. 181/2005

The British Columbia Gazette,

Part II

April 5, 2005

B.C. Reg. 181/2005, deposited March 31, 2005, pursuant

to the FINANCIAL INSTITUTIONS ACT [Section 289]. Order in Council 381/2005,

approved and ordered March 30, 2005.

On the recommendation of the undersigned, the Administrator,

by and with the advice and consent of the Executive Council, orders that the

Capital Requirements Regulation, B.C. Reg. 315/90, is amended as set

out in the attached Schedule.

— C. HANSEN, Minister of Finance ;

J. LES, Presiding Member of the Executive Council .

Schedule

Section 3 (

j) of the Capital Requirements Regulation, B.C. Reg. 315/90,

is amended by striking out "deferred" in both places and substituting

"future".

Section 14 is amended

(

a) in the definition of "deposit taking institution" by striking

out "or" at the end of paragraph (f), by striking out "populaire;"

at the end of paragraph (

g) and substituting "populaire, or"

and by adding the following paragraph:

(

h) a deposit taking institution in a foreign jurisdiction

approved by the superintendent; , and

(

b) by repealing the definition of "O.E.C.D. Country" and substituting

the following:

"OECD country" means a country that is a signatory

to the Convention on the Organization for Economic Cooperation and Development

signed in Paris on December 14, 1960, as amended from time to time; .

3 The "Table of On Balance Sheet Items" is amended

(

a) by repealing item 9 and substituting the following:

Commercial paper that has one of the following Dominion

Bond Rating Service ratings or equivalent:

(

a) AAA to AA (low) or R1 (high)

0.2

(

b) A (high) to A (low) or R1 (middle)

0.5

(

c) BBB (high) to BB (low) or R1 (low) to R2 (low)

1.0

(

d) below BB (low) or below R2 (low)

1.5

(

e) unrated

1.0 ,

(

b) by adding the following item:

15.1

Loans secured by residential property where the

outstanding amount of the loan, together with any prior or equal ranking

encumbrances plus any accrued interest under the loan is less than or

equal to 75% of the fair market value of the property at the date of the

loan. ,

0.35

(

c) in item 14 by striking out "or insured by the Mortgage Insurance

Corporation of Canada,",

(

d) in item 15 by striking out "0.5" and substituting

"0.35",

(

e) in item 16 by striking out "1.0" and substituting

"0.75",

(

f) in item 17 by striking out "0.8" and substituting

"0.75",

(

g) in item 18 by adding ", other than those itemized in

item 15.1," after "Commercial loans", and

(

h) by adding the following items:

18.1

The unsecured portion of any loan (other than mortgages

described in items 14 and 15) that is past due for more than 90 days,

net of specific provisions, will be risk weighted at

(

a) when specific provisions are less than 20%

of the outstanding loan

1.5

(

b) when specific provisions are no less than 20%

of the outstanding amount of the loan.

1.0

18.2

A mortgage described in item 15 that is past due

for more than 90 days, net of specific provisions, will be risk weighted

(

a) when specific provisions are less than 20%

of the outstanding mortgage

1.0

(

b) when specific provisions are no less than 20%

of the outstanding mortgage.

0.5

Section 16 is amended by striking out "item 23" and substituting

"item 24".

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