First

Session, 49th General Assembly

Elizabeth II, 2020

BILL 46

AN ACT TO AMEND THE

CREDIT UNION ACT, 2009

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE SARAH

STOODLEY

Minister of Digital

Government and Service Newfoundland and Labrador

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Credit Union Act, 2009 to

clarify the powers and duties of

the superintendent and the guarantee corporation;

remove the requirement for

directors to disclose their occupations when filing articles of incorporation,

annual returns and amalgamation agreements;

remove the authority for credit

unions that were continued under the Credit

Union Act and operating under the title or name of "Co-operative

Credit Society" to continue to use that title or name;

require a credit union to

obtain written authorization from a member before including the member's name

and address in the credit union's members' register and prohibiting a credit

union from disclosing the name and address of a member who does not provide

written authorization;

remove the requirements

relating to the issuance of shares other than equity shares and require that

the shares be issued in accordance with the regulations;

allow a credit union to approve

the issuance of dividends and patronage refunds in accordance with its by-laws;

remove the authority for a

credit union to require 90 days written notice from a member who intends to

withdraw money from the member's account;

prohibit a member from

withdrawing money from the member's account where there is a lien in place for

an amount borrowed from the credit union;

replace the requirements

prescribed in the Act regarding payment of money in the member's account upon

the death of the member with a requirement that credit unions establish

policies regarding deceased members in accordance with the regulations;

remove the requirements in

relation to the enactment, amendment and repeal of by-laws of a credit union

and require that the by-laws be enacted, amended and repealed in accordance

with the regulations;

allow a credit union, rather

than the directors of a credit union, to refuse to accept an application for

membership;

require that a member entitled

to vote at a meeting of members submit notice of a matter that the member

proposes to raise at the meeting to the board of directors of the credit union;

expand the by-law making

authority of a credit union to allow for by-laws relating to voting by

telephone or electronic means;

remove the requirement that

meetings of members of a credit union be held at a place within the province

provided in the by-laws and allow credit unions to determine the manner of

meetings of members of a credit union in accordance with the by-laws;

require that a member calling a

meeting of the members of a credit union give the guarantee corporation at

least 30 days notice of the meeting;

allow permanent residents of

Canada to be eligible to be directors of a credit union;

clarify that where there is a

vacancy in the board of directors of a credit union and a quorum of directors

appoints a person to fill the vacancy the person appointed to fill the vacancy

holds office until an election is held and require that the election be held no

later than the next annual general meeting;

allow the guarantee corporation

to extend the time period in which a credit union is required to send notice to

the superintendent and guarantee corporation of a change in the directors of a

credit union;

clarify that the directors may

specify the manner of meetings of the directors of a credit union;

require that a director of a

credit union immediately notify the guarantee corporation where the director

becomes aware that the credit union cannot make a payment;

require a director or an officer

of a credit union to disclose to the credit union any interest the director or an

officer has in a material contract or proposed material contract;

require that a director or an officer

of a credit union comply with the Act, the regulations and the articles and

by-laws of the credit union and clarify that a provision in a contract, the

articles, by-laws or a resolution does not relieve a director or an officer

from liability for a contravention of the Act or regulations;

require that a person applying

to the court for an order approving an indemnity notify the guarantee

corporation at least 15 days before the date set for the hearing of the

application;

remove the time period in which

a credit union is required to complete and file a return with the guarantee

corporation and require that returns be completed and filed in accordance with

the regulations;

replace all references to

"Canadian generally accepted accounting principles" with the

reference "International Financial Reporting Standards";

replace all references to

"19 years of age" with "age of majority";

require that where a meeting is

called for the purpose of removing an auditor from office notice of the meeting

is given to the guarantee corporation at least 30 days before the date of the

meeting;

require that a director or an officer

immediately notify the audit committee and auditor where the director or officer

becomes aware of an error or misstatement in a financial statement that the

auditor or former auditor reported on;

require that the auditor or

former auditor of a credit union immediately notify each director where the

auditor or former auditor becomes aware of a material error or misstatement in

a financial statement that the auditor or former auditor reported on;

require that where an auditor

or former auditor informs the directors of a credit union of an error or

misstatement in a financial statement the directors prepare a letter outlining

the error or misstatement and attach it to the revised financial statement;

require that where an auditor

prepares a management letter highlighting the weakness and deficiencies in the

financial affairs of the credit union that the auditor provide a copy of the

letter to the guarantee corporation within 14 days of completion of the audited

financial statements;

reduce the time period in which

notice is required to be given to the superintendent regarding amendment of the

credit union's articles;

remove the requirement that at

least 60% of the creditors of an amalgamating credit union consent to an

amalgamation;

remove the time period for

which the guarantee corporation is required to retain documents and records of

a dissolved credit union and require that the documents be retained in

accordance with the regulations;

allow credit unions

incorporated in the province to apply for federal continuance;

require a director or an officer

of the guarantee corporation to disclose to the credit union any interest the

director or an officer has in a material contract or proposed material

contract;

set the number of members of

the board of directors of the guarantee corporation at 8 and require that the

members of the board of directors be appointed in accordance with the

regulations;

remove the authority for the

chairperson of the board of directors of the guarantee corporation to have an

extra vote where there is a tied vote;

expand the offence provisions;

prescribe to whom the guarantee

corporation is required to give notice where the guarantee corporation places a

credit union under supervision;

clarify that where a credit

union has been placed under supervision, the supervisor may terminate the

directors, officers, committee members, employees and agents of the credit

union;

clarify when notice sent by

mail or electronic means is considered received;

remove the prescribed time

period after which the superintendent is not required to produce a document and

allow the time period to be prescribed in the regulations; and

add additional regulation

making authority.

A BILL

AN ACT TO AMEND THE CREDIT UNION ACT, 2009

Analysis

S.2 Amdt.

Definitions

S.4 R&S

Prohibition

S.5 Amdt.

Incorporation

S.6 Amdt.

Articles

S.11 Amdt.

Name

S.12 Amdt.

Prohibited names

S.16 Amdt.

Business of credit unions

S.24 Amdt.

Records

S.24.1 Added

Authorization

of members

S.25 Amdt.

Examination of records

S.26 Amdt.

Form of

records

S.28 R&S

Shares

other than members' equity shares

S.29 R&S

Dividend

or patronage refund

S.35 Amdt.

Member right to withdraw deposits

S.36 Amdt.

Trust funds

Ss.37 & 38 R&S

37. Deceased members and estate policy

38. Loans

S.45 R&S

Interest

rate risk

S.47.1 Added

Policy

relating to services provided by external parties

S.48 Amdt.

Membership

S.52 R&S

By-laws

S.54 R&S

Meetings

S.55 R&S

Calling

meetings

S.57 Amdt.

Notice

of meetings

S.59 Amdt.

Member notice

S.61 Amdt.

Voting

S.62 R&S

Corporate

representation

S.66 Rep.

Ballot

S.67 Amdt.

Requisition by members to call meeting

S.68 Amdt.

Meeting

called by guarantee corporation

S.70 R&S

Qualifications

S.71 Amdt.

Terms of office

S.73 Amdt.

Removal of directors

S.74 Amdt.

Reasons

S.75 Amdt.

Vacancy

S.76 R&S

Notice

of change of directors

S.77 Amdt.

Meetings

S.83 R&S

Duty to

report

S.83.1 Added

83.1 Disclosure

of interest in material contract

S.86 Amdt.

Duty of care

S.88 Amdt.

Indemnification

S.90 Amdt.

Annual

returns

S.91 Amdt.

Annual financial statements

S.95 Amdt.

Auditor removal

S.98 Amdt.

Duty to attend meetings

S.99 Amdt.

Examinations by auditor

S.100 Amdt.

Guarantee

corporation may enlarge scope

S.102 Amdt.

Auditor's report

S.103 Amdt.

Audit committee

S.104 Amdt.

Duty of auditor

S.109 Amdt.

Amendment

of articles

Ss.110 & 111 R&S

110. Approval

of articles

111. Certificate

of amendment

S.113 R&S

Restated

articles

S.115 Amdt.

Amalgamation agreement

S.117 Amdt.

Articles

of amalgamation

S.119 Amdt.

Certificate

and effect of amalgamation

S.121 Amdt.

Approval of guarantee corporation

S.126 Amdt.

Voluntary liquidation and dissolution

S.127 R&S

Articles

of dissolution and certificate

S.128 R&S

Custody

of records

Part IX.1 Added

PART

IX.1

FEDERAL CONTINUANCE

131.1

Statement of intent to apply for federal continuance

131.2

Authorization of application

131.3

Certificate of discontinuance

131.4

No reimbursement of levies paid

S.134 Amdt.

Duties

S.136 Amdt.

Powers

S.137 R&S

Board

S.138.1 Added.

Disclosure of interest in material contract

Ss. 139 & 140 R&S

139. Vacancy

140. Office

ceases

S.142 Amdt.

Quorum

S.144 Amdt.

Guaranteed deposit insurance

S.145 Amdt.

Prohibition

S.155 Amdt.

Report to minister

S.157 Amdt.

Derivative action

S.163 R&S

Application for direction

Ss. 165 & 166 R&S

165. Review

and examination

166. Examination

powers

S.169 Amdt.

Offence

S.170 R&S

General offence

S.172 R&S

Maintenance

of action

S.173 R&S

Supervision

of credit union

S.179 Amdt.

Notice

S.180 R&S

Service of notice

S.185 Amdt.

Verification

S.189 R&S

Examination of documents

S.190 Amdt.

Records

S.191 Amdt.

Superintendent

S.192 Amdt.

Register of credit unions

S.192.1 Added

Protection

from liability

S.193 Amdt.

Regulations

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2009 cC-37.2

as amended

(1) Paragraph 2(

d) of the Credit Union Act, 2009 is repealed and the following substituted:

(d) "court" means the Supreme Court of

Newfoundland and Labrador;

(2) Section 2 of the Act is amended by adding

immediately after paragraph (

e) the following:

(e.1) "credit union trade association"

means an association whose members are credit unions and which provides

services to credit unions;

(3) Paragraph 2(

f) of the Act is repealed and the

following substituted:

(f) "deposit" means money placed in an

account in a credit union by a member;

(4) Paragraph 2(

h) of the Act is repealed and the

following substituted:

(h) "equity" means in relation to a

credit union,

(

i) the value of the consideration paid for

membership shares and other shares issued by the credit union that are not

redeemable within one year or another period as approved by the guarantee

corporation,

(ii) the book value of surplus shares issued by the

credit union,

(iii) the retained earnings of the credit union, and

(iv) other capital items approved by the guarantee

corporation,

unless the credit union has an accumulated deficit, in which case it means the

amounts determined under subparagraphs (i), (ii) and (iv) minus the accumulated

deficit;

(5) Section 2 of the Act is amended by adding

immediately after paragraph (

h) the following:

(h.1) "federal continuance" means

continuance as a federal credit union under the Bank Act (Canada);

(h.2) "federal credit union" means a

federal credit union as defined in the Bank

Act (Canada);

(h.3) "financial central" means a body corporate

organized on cooperative principles by or under

an Act of a province or of Canada,

one of whose principal purposes is to receive deposits from and provide

liquidity support to credit unions, and whose

(

i) membership consists solely or primarily of

credit unions, and

(ii) directors are wholly or primarily persons

elected or appointed by credit unions;

(6) Section 2 of the Act is amended by adding

immediately after paragraph (

i) the following:

(i.1) "individual" means a natural person;

(i.2) "material contract" includes a contract

under which a credit union

(

i) employs a person as a full-time employee,

(ii) retains the services of a person otherwise

than as an employee, or

(iii) disposes of or acquires property whether by

sale, purchase, lease or otherwise, for consideration that exceeds $5,000 in

value;

(7) Section 2 of the Act is amended by adding

immediately after paragraph (

k) the following:

(k.1) "officer" in respect of a credit

union means

(

i) the president, vice-president, secretary or

treasurer,

(ii) a person who performs functions for the credit

union normally performed by a person mentioned in subparagraph (i), or

(iii) another person designated as an officer by the

by-laws or by a resolution of the directors;

Section 4 of the Act is repealed and the

following substituted:

Prohibition

4. A

person shall not carry on the business of a credit union in the province unless

the credit union is

(

a) incorporated under this Act;

(

b) continued under this Act; or

(

c) a federal credit union.

3. Subsection 5(1) of the Act is repealed and the

following substituted:

Incorporation

(1) Twenty

or more persons who are of the age of majority or older and are bondable may

incorporate as a credit union.

4. Paragraph 6(1)(

c) of the Act is repealed and

the following substituted:

(

c) the name and residence address of each

director;

5. (1) Subsection 11(4) of the Act is repealed and

the following substituted:

(4) A person or association of persons shall not

(

a) use the words "credit union" or

"caisse populaire" or a derivative or abbreviation of those words as

part of its name; or

(

b) conduct business in the province in a manner

that might lead to the belief that that person or association of persons is

carrying on business as a credit union,

unless the person or association of

persons is incorporated or continued under this Act or is a federal credit

union.

(2) Subsection 11(6) of the Act is repealed.

6. Paragraph 12(1)(

d) is repealed and the

following substituted:

(

d) which in the opinion of the superintendent is

contrary to public interest.

7. Paragraph 16(2)(

d) of the Act is amended by

deleting the word "and" and substituting the word "or".

(1) Paragraph 24(

c) of the Act is repealed and

the following substituted:

(

c) a register of directors, officers and

committee members setting out the names and residence addresses of all persons

who are or have been directors, officers or committee members of the credit

union with the dates on which each became or ceased to be a director, an officer

or a committee member;

(2) Paragraph 24(

e) of the Act is repealed and the

following substituted:

(

e) the accounting records and the minutes of the

meetings of the board and committees and resolutions of the directors and a

committee appointed by the directors.

9. The Act is amended by adding immediately after

section 24 the following:

Authorization of

members

24.1

(1) A

credit union shall obtain the written authorization of a member before

including the member's name and address in the members' register that is

available for examination in accordance with

section 25.

(2) A credit union shall not disclose the name or

address of a member who does not give the authorization referred to in

subsection (1).

10. Subsections 25(4) and (5) of the Act are

repealed and the following substituted:

(4) A person shall not use the register of members

for purposes not related to the affairs of the credit union.

(5) Subject to subsection 24.1(2), a credit union

shall make the members' register available at any meeting of members for

examination by the members.

11. Subsection 26(1) of the Act is repealed and the

following substituted:

Form of records

(1) All

registers and records required by this Act to be prepared and maintained by a

credit union shall be kept by the credit union in the form and manner

prescribed in the regulations.

Section 28 of the Act is repealed and the

following substituted:

Shares other than

members' equity shares

28. In

addition to member equity shares, the articles of a credit union may provide

for the issuing of surplus shares and other shares in accordance with the

regulations.

Section 29 of the Act is repealed and the

following substituted:

Dividend or

patronage refund

29. A

credit union that has met the capital requirement prescribed in the regulations

may, in accordance with its by-laws, issue a dividend or patronage refund provided

that the dividend or patronage refund does not reduce capital below that

prescribed in the regulations.

14. (1) Subsection 35(2) of the Act is repealed.

(2) Subsection 35(3) of the Act is repealed and

the following substituted:

(3) Subsection (1) does not apply to

(

a) deposits placed with a credit union for a

stated term;

(

b) an amount contained in a deposit account on

which a bill of exchange payable on demand may be drawn; or

(

c) deposits on which a lien is placed as

collateral for an amount borrowed from the credit union.

15. (1) Subsection 36(1) of the Act is repealed and

the following substituted:

Trust funds

(1) Except

where the credit union is the trustee, a credit union is not required to see to

the execution of a trust, whether express, implied or constructive, to which a

share or deposit is subject.

(2) Section 36 is amended by adding immediately

after subsection (1) the following:

(1.1) Where an account is subject to a trust of

which the credit union has notice, the cheque, bill of exchange, withdrawal

slip, copy of electronic transaction or receipt of the person

(

a) in whose name the account is held; or

(

b) who is, according to the document creating the

trust, entitled to deal with the trust,

is, notwithstanding the trust, sufficient

authorization to and a valid and binding discharge of the credit union and the

credit union is not required to see to the application of money paid in

relation to that cheque, bill of exchange, withdrawal slip, electronic

transaction or receipt.

16. Sections 37 and 38 of the Act are repealed and

the following substituted:

Deceased members

and estate policy

37. A

credit union shall establish a policy relating to deceased members and their

estates in accordance with the regulations.

Loans

38. A

credit union shall establish loan policies in relation to the lending

activities of the credit union in accordance with the regulations.

Section 45 of the Act is repealed and the

following substituted:

Interest rate

risk

45. A

credit union shall manage interest rate risk in accordance with the

regulations.

18. The Act is amended by adding immediately after

section 47 the following:

Policy relating

to services provided by external parties

47.1 A

credit union shall establish a policy relating to services provided by an

external party in accordance with the regulations.

19. Subsections 48(2) and (3) of the Act are repealed

and the following substituted:

(2) Subject to the by-laws of the credit union and

laws of general application, a credit union may refuse to accept an application

for membership if it is satisfied that it is not in the interest of the credit

union to accept the application.

(3) A

person under the age of majority may be accepted as a member of a credit union

and shares may be held and money may be received by the credit union in that

person's name or in the name of a trustee for that person if the trustee is a

member or is eligible to be a member of the credit union.

Section 52 of the Act is repealed and the

following substituted:

By-laws

(1) Subject

to the articles of a credit union, the members of a credit union may, in

accordance with the regulations, enact, amend or repeal by-laws in relation to

the matters authorized or required by this Act to be dealt with in the by-laws

of the credit union.

(2) Notwithstanding subsection (1), the enactment,

amendment or repeal of a by-law is not effective until it is approved by the

guarantee corporation.

Section 54 of the Act is repealed and the

following substituted:

Meetings

54. Meeting

of the members shall be held in accordance with the by-laws of the credit union.

Section 55 of the Act is repealed and the

following substituted:

Calling meetings

55. The

directors of a credit union

(

a) shall call an annual meeting of members to be

held within 4 months, or another time that is approved by the guarantee

corporation, after the end of the fiscal year of the credit union

(

i) to consider the annual report of the

directors, the financial statements of the credit union and the auditor's

report,

(ii) to appoint the auditor,

(iii) to elect directors, and

(iv) to deal with other matters that may properly

come before the meeting; and

(

b) may

call a special meeting of members.

23. Subsection 57(1) of the Act is repealed and the

following substituted:

Notice of

meetings

(1) Notice

of the time of a meeting of members and the manner in which the meeting is to

be held shall be given to each member entitled to vote at the meeting not less

than 14 days and not more than 30 days before the meeting.

24. (1) Paragraph 59(1)(

a) of the Act is repealed

and the following substituted:

(

a) submit to the board of directors of the credit

union notice of a matter that the member proposes to raise at the meeting,

afterwards referred to as a "proposal"; and

(2) Subsection 59(10) of the Act is repealed and

the following substituted:

(10) An applicant under subsection (8) or (9) shall

give the guarantee corporation notice of the application and the guarantee

corporation is entitled to appear, be represented and be heard in person or by

counsel.

25. (1) Subsection 61(1) of the Act is repealed and

the following substituted:

Voting

(1) A

member of a credit union who is the age of majority or older may vote at a

meeting of members.

(2) Section 61 of the Act is amended by adding immediately

after subsection (2) the following:

(3) The by-laws of a credit union may provide for

the manner of voting, including the right to vote by ballot, mail, telephone or

electronic means.

Section 62 of the Act is repealed and the

following substituted:

Corporate

representation

(1) Where

a corporation or association of persons is a member of a credit union, the

credit union shall recognize an individual authorized by a resolution of the

directors or governing body of the corporation or association of persons to

represent it at meetings of members of the credit union.

(2) Notwithstanding

section 63 , an individual authorized

under subsection (1) may exercise, on behalf of the corporation or association

that person represents, all the powers the corporation or association could

exercise if it were an individual.

Section 66 of the Act is repealed.

28. Subsection 67(7) of the Act is repealed and the

following substituted:

(7) A member calling a meeting under subsection

(4) shall give the guarantee corporation at least 30 days notice of the

application and the guarantee corporation is entitled to appear, to be

represented and be heard in person or by counsel.

29. Subsections 68(1) and (2) of the Act are

repealed and the following substituted:

Meeting called by

guarantee corporation

(1) Where

it is impractical to call a meeting of members of a credit union in the manner

in which meetings of members may be called or to conduct the meeting in the

manner required by this Act and the by-laws, or for another reason the guarantee

corporation considers appropriate, the guarantee corporation may order a

meeting to be called, held and conducted in a manner that it directs.

(2) The

guarantee corporation may order that the quorum required by this Act or the

by-laws be varied or dispensed with at a meeting called, held and conducted in

accordance with this section.

Section 70 of the Act is repealed and the

following substituted:

Qualifications

(1) An

individual who

(

a) is a citizen or permanent resident of Canada;

(

b) is of the age of majority or older;

(

c) is a member of the credit union; and

(

d) satisfies the requirements set out in the

by-laws of the credit union,

may be a director of a credit union.

(2) Notwithstanding subsection (1), the following

persons are disqualified from being a director of a credit union:

(

a) an undischarged bankrupt person;

(

b) an employee of a credit union or the guarantee

corporation;

(

c) an individual who is not bondable;

(

d) an auditor of the credit union or a member of

the auditor's firm;

(

e) a parent, child, grandchild, spouse, brother

or sister or an in-law of an employee of the credit union, not necessarily

living in the same residence of that employee;

(

f) the solicitor of the credit union;

(

g) a director or employee of a bargaining agent

for the employees of the credit union; or

(

h) a

public employee whose official duties are concerned with the affairs of credit

unions.

31. Subsection 71(3) of the Act is repealed.

32. Subsection 73(3) of the Act is repealed and the

following substituted:

(3) Where a vacancy is not filled under subsection

(2), the guarantee corporation may appoint a director to fill that vacancy.

33. Subsections 74(2) and (3) of the Act are

repealed and the following substituted:

(2) Where a director resigns under paragraph

(1)(a), he or she may request that the credit union send to members of the

credit union and the guarantee corporation, a copy of the statement referred to

in subsection (1) and where a request is made, the credit union shall

immediately comply with that request.

(3) Where a director receives a notice under

paragraphs (1)(

b) or (c), the credit union shall immediately send a copy of the

statement referred to in subsection (1) to members of that credit union and to

the guarantee corporation.

34. Subsection 75(5) of the Act is repealed and the

following substituted:

(5) Where a vacancy among the directors is filled

in accordance with subsection (1), the director shall hold office until an

election is held, which election shall be held no later than the next annual

general meeting.

Section 76 of the Act is repealed and the

following substituted:

Notice of change

of directors

(1) Where

there is a change in the directors of a credit union, the credit union shall

send to the superintendent and the guarantee corporation a notice setting out

the change and the superintendent shall file the notice.

(2) A credit union shall send the notice referred

to in subsection (1) to the superintendent and the guarantee corporation

(

a) within 30 days after the change of directors;

(

b) on or before the time specified by the

guarantee corporation where the guarantee corporation has approved an extension

of the 30 day period referred to in paragraph (a).

(3) A person, the superintendent or the guarantee

corporation may apply to the court for an order requiring a credit union to

comply with subsection (1), and on the application the court may make the order

and any further orders it thinks appropriate.

(4) A

director named in the articles or in a notice sent by the credit union to the

superintendent and the guarantee corporation under subsection (1) is presumed

for the purposes of this Act to be a director of the credit union.

36. Subsection 77(1) of the Act is repealed and the

following substituted:

Meetings

(1) Unless

the articles or by-laws otherwise provide, the directors of a credit union may

meet in a manner and on the notice that the directors may determine.

Section 83 of the Act is repealed and the

following substituted:

Duty to report

83. Where

a director becomes aware that the credit union is unable to make a payment that

it is required to make, the director shall immediately give written notice of

the matter to the guarantee corporation.

38. The Act is amended by adding immediately after

section 83 the following:

Disclosure of

interest in material contract

83.1 A

director or an officer of a credit union shall disclose to the credit union the

nature and extent of his or her interest in a material contract or proposed

material contract in accordance with the regulations.

39. (1) Subsection 86(2) of the Act is repealed and

the following substituted:

(2) A director and an officer of a credit union

shall comply with this Act, the regulations and the articles and by-laws of the

credit union.

(2) Section 86 of the Act is amended by adding

immediately after subsection (2) the following:

(2.1) A provision in a contract, the articles, the

by-laws or a resolution shall not relieve a director or an officer from

(

a) the duty to act in accordance with this Act or

the regulations; or

(

b) from liability for a contravention of this Act

or the regulations.

40. Subsection 88(5) of the Act is repealed and the

following substituted:

(5) An applicant under subsection (4) shall give

the guarantee corporation notice of the application at least 15 days before the

date set for the hearing of the application and the guarantee corporation is

entitled to appear, to be represented and be heard in person or by counsel.

41. Subsections 90(1) to (3) of the Act are

repealed and the following substituted:

Annual returns

(1) A

credit union shall, within the time period prescribed in the regulations, complete

and file a return with the guarantee corporation showing, as of the end of the

preceding fiscal year,

(

a) the name of the credit union;

(

b) the address of the registered office of the

credit union;

(

c) the date when the latest annual meeting of the

members of the credit union was held;

(

d) the names and residence addresses of the

directors of the credit union;

(

e) the names and residence addresses of officers

of the credit union and the most senior employee of the credit union; and

(

f) other

information in relation to the credit union that may be required by this Act or

the guarantee corporation.

(2) The return shall be on a form provided by the guarantee

corporation and shall be signed and the contents of it shall be certified to be

true by a director or an officer of the credit union.

(3) In

addition to the return required under subsection (1), the guarantee corporation

may require a credit union to file, within a time that it specifies, an

additional return containing other information that the guarantee corporation

may require.

42. Subsection 91(2) of the Act is repealed and the

following substituted:

(2) The financial statements required under

subsection (1) shall, except as otherwise required by this Act or the guarantee

corporation, be prepared in accordance with International Financial Reporting

Standards.

43. Subsection 95(3) of the Act is repealed and the

following substituted:

(3) Where a meeting is called for the purpose of

removing an auditor from office, notice of the meeting shall be given to the

guarantee corporation at least 30 days before the meeting and the guarantee

corporation is entitled to be represented and heard at the meeting.

44. Subsection 98(4) of the Act is repealed.

45. Subsection 99(2) of the Act is repealed and the

following substituted:

(2) The auditor's examination referred to in

subsection (1) shall, except as otherwise required by this Act or the guarantee

corporation, be conducted in accordance with International Financial Reporting

Standards.

46. Subsection 100(1) of the Act is repealed and

the following substituted:

Guarantee

corporation may enlarge scope

(1) The

guarantee corporation may enlarge or extend the scope of the audit or direct

that another or a particular examination be made or procedure be established in

a particular case where it is believed that the public interest or the interest

of the members requires.

47. Paragraph 102(2)(

b) of the Act is repealed and

the following substituted:

(

b) the examination has been made in accordance

with International Financial Reporting Standards; and

48. (1) Subsections 103(4) and (5) are repealed and

the following substituted:

(4) Where a director or an officer becomes aware

of an error or misstatement in a financial statement that the auditor or former

auditor reported on, the director or officer shall immediately notify the audit

committee and the auditor.

(5) Where an auditor or former auditor of a credit

union is notified or becomes aware of an error or misstatement in a financial

statement that the auditor reported on, the auditor or former auditor shall

immediately inform each director where, in the auditor's opinion, the error or

misstatement is material.

(2) Subsection 103(6) of the Act is amended by

deleting the word "and" at the end of paragraph (

a) and adding

immediately after paragraph (

a) the following:

(a.1) prepare a letter outlining the error or

misstatement and attach it to the revised financial statement referred to in

paragraph (a); and

(3) Subsection 103(7) is repealed.

49. Subsection 104(4) of the Act is repealed and

the following substituted:

(4) Where as a result of an audit an auditor

prepares a management letter highlighting weaknesses and deficiencies in the

financial affairs of the credit union and other matters which may affect the

well being of the credit union, he or she shall provide a copy to the guarantee

corporation within 14 days of completion of the audited financial statements.

50. Subsection 109(1) of the Act is repealed and

the following substituted:

Amendment of

articles

(1) Subject

to the approval of the guarantee corporation under

section 110, the articles of

a credit union may be amended by special resolution of the members.

51. Sections 110 and 111 of the Act are repealed

and the following substituted:

Approval of

articles

(1) Where a credit union amends its articles under

section 109, the articles of

amendment shall, within 3 months of the date of the resolution of the members

authorizing the amendment, be sent to the guarantee corporation for approval.

(2) T he

guarantee corporation shall refuse to accept articles of amendment that are not

submitted to the guarantee corporation within the 3 month period referred to in

subsection (1).

(3) Where the guarantee corporation is satisfied

that the articles of amendment are advisable, the guarantee corporation may

approve the articles of amendment and forward them to the superintendent for

filing.

Certificate of

amendment

111. On

receipt of the articles of amendment, the superintendent shall file the

articles of amendment and issue a certificate of amendment in accordance with

section 182.

Section 113 of the Act is repealed and the

following substituted:

Restated articles

(1) A

credit union may, and shall when directed by the guarantee corporation, restate

the articles of incorporation as amended.

(2) Restated articles of incorporation in the

required form shall be sent to the guarantee corporation for approval.

(3) Where the guarantee corporation approves the

restated articles of incorporation, the guarantee corporation shall forward the

restated articles of incorporation to the superintendent for filing.

(4) On receipt of the restated articles of

incorporation, the superintendent shall file the restated articles of

incorporation and issue a restated certificate of incorporation in accordance

with

section 182.

(5) Restated articles of incorporation are

effective on the date shown in the restated certificate of incorporation and

supersede the original articles of incorporation and all amendments to them.

(1) Paragraph 115(

c) of the Act is repealed and

the following substituted:

(

c) the name and residence address of each

proposed director of the amalgamated credit union;

(2) Paragraph 115(

d) of the Act is repealed.

54. (1) Subsections 117(1) and (2) of the Act are

repealed and the following substituted:

Articles of

amalgamation

(1) Subject

to subsection 116(4), after an amalgamation has been adopted under subsection

116(3), articles of amalgamation shall be sent to the guarantee corporation for

approval.

(2) The articles of amalgamation shall have

attached to them an affidavit made under oath or affirmation of a director or

an officer of each amalgamating credit union that establishes to the

satisfaction of the guarantee corporation that

(

a) there are reasonable grounds for believing

that

(

i) each amalgamating credit union is and the

amalgamated credit union will be able to pay its liabilities as they become

due, and

(ii) the realizable value of the assets of the

amalgamated credit union upon completion of the amalgamation will not be less

than the aggregate of its liabilities and its equity other than retained

earnings; and

(

b) there are reasonable grounds for believing

that

(

i) a creditor or member of the amalgamating

credit unions will not be prejudiced by the amalgamation, or

(ii) adequate notice has been given to all known

creditors of the amalgamating credit unions with a claim against the credit

union in an amount that exceeds $1,000.

(2) Paragraph 117(4)(

b) of the Act is repealed and

the following substituted:

(

b) each notice states that the credit union

proposes to amalgamate with one or more specified other credit unions in

accordance with this Act.

(3) Section 117 of the Act is amended by adding

immediately after subsection (4) the following:

(5) Where the guarantee corporation is satisfied

that the amalgamation is advisable, the guarantee corporation may approve the

articles of amalgamation and forward them to the superintendent for filing.

55. Subsection 119(1) of the Act is repealed and

the following substituted:

Certificate and

effect of amalgamation

(1) On

receipt of articles of amalgamation, the superintendent shall file the articles

of amalgamation and issue a certificate of amalgamation in accordance with

section 182.

56. Subsections 121(2) and (3) of the Act are

repealed and the following substituted:

(2) An approval shall not be granted under

subsection (1) unless the guarantee corporation has received an affidavit made

under oath or affirmation of a director or an officer from the credit union

proposing to sell, lease or exchange its property establishing, to the

satisfaction of the guarantee corporation, that there are reasonable grounds

for believing that

(

a) the sale, lease or exchange of the property

will not increase the likelihood of a claim upon the guarantee corporation; and

(

b) creditors, including shareholders of the

credit union who are not members, will not be prejudiced by the sale, lease or

exchange of the property.

(3) For the purpose of subsection (2), adequate

notice is given if

(

a) a notice is published once in the Gazette and once in a newspaper

published or distributed in the place where the credit union has its registered

office; and

(

b) each notice states that the credit union

proposed to sell, lease or exchange all, or substantially all of its property

under

section 120.

57. (1) Subsection 126(4) of the Act is repealed

and the following substituted:

(4) A statement of intent to dissolve in the

required form shall be sent to the guarantee corporation for approval.

(2) Section 126 of the Act is amended by adding

immediately after subsection (4) the following:

(4.1) Where the guarantee corporation is satisfied

that the credit union is able to discharge all of its obligations and

liabilities before dissolution, the guarantee corporation shall approve the

statement of intent to dissolve and forward it to the superintendent for

filing.

(3) Subsection 126(5) of the Act is repealed and

the following substituted:

(5) On receipt of a statement of intent to

dissolve, the superintendent shall file the statement of intent to dissolve and

issue a certificate of intent to dissolve in accordance with

section 182.

(4) Subsection 126(8) of the Act is repealed and

the following substituted:

(8) A certificate of intent to dissolve may be

revoked where

(

a) the revocation is approved in the same manner

as the resolution under subsection (3); and

(

b) the credit union sends a statement of

revocation of intent to dissolve in the required form to the guarantee

corporation for approval before a certificate of dissolution has been issued.

(5) Section 126 of the Act is amended by adding

immediately after subsection (8) the following:

(8.1) Where the guarantee corporation is satisfied

with the statement of revocation of intent to dissolve, the guarantee

corporation shall approve the statement of revocation of intent to dissolve and

forward it to the superintendent for filing.

Section 127 of the Act is repealed and the

following substituted:

Articles of

dissolution and certificate

(1) Articles

of dissolution shall be sent to the guarantee corporation for approval.

(2) Where the guarantee corporation is satisfied

with the articles of dissolution, the guarantee corporation shall approve the

articles of dissolution and forward them to the superintendent for filing.

(3) On receipt of articles of dissolution, the

superintendent shall file the articles of dissolution and issue a certificate

of dissolution in accordance with

section 182 .

(4) The

credit union ceases to exist on the date shown in the certificate of

dissolution.

Section 128 of the Act is repealed and the

following substituted:

Custody of

records

128. The

guarantee corporation shall retain the documents and records of a dissolved

credit union for the period prescribed in the regulations.

60. The Act is amended by adding immediately after

section 131 the following:

PART IX.1

FEDERAL CONTINUANCE

Statement of

intent to apply for federal continuance

131.1

(1) A

credit union that satisfies the requirements of this Part may apply to the

Minister of Finance of Canada for federal continuance.

(2) The directors of a credit union that is

proposing to apply for federal continuance shall provide to the guarantee

corporation a statement of intent to apply for federal continuance on a form

provided by the guarantee corporation at least 60 days before sending a notice

of a meeting of the members of the credit union for the purposes of seeking

their approval for federal continuance.

(3) A notice of meeting of members shall be sent

in accordance with

section 57 and shall include the information and documentation

prescribed in the regulations.

Authorization of

application

131.2

(1) An

application for federal continuance is not authorized until it is approved by

(

a) the members of the credit union by special

resolution; and

(

b) the guarantee corporation in writing.

(2) The guarantee corporation may approve an

application for federal continuance only where

(

a) the guarantee corporation is satisfied that

the federal continuance is advisable and will not adversely affect

(

i) the members, shareholders or creditors of the

credit union; or

(ii) other credit unions in the province; and

(

b) the credit union has filed a declaration

verifying compliance with the Bank Act

(Canada).

(3) Where the guarantee corporation is advised of

a material change in the circumstances that supported the approval of the

application for federal continuance, the guarantee corporation may revoke the

approval at any time before the issuance of letters patent continuing the

credit union as a federal credit union under the Bank Act (Canada).

(4) Where authorized by the members of the credit

union at the time they approved the application for federal continuance, the

directors of the credit union may abandon the application without further

approval of the members.

Certificate of

discontinuance

131.3

(1) On

receipt of a notice that establishes to the satisfaction of the guarantee

corporation that letters patent continuing a credit union as a federal credit

union under the Bank Act (Canada)

have been issued, the guarantee corporation shall notify the superintendent and

the superintendent shall file the notice and issue a certificate of dissolution

in accordance with

section 127.

(2) A notice referred to in subsection (1) shall

be considered to be articles of dissolution required to be filed with the

superintendent for the purposes of

section 127.

(3) A credit union is considered to have been dissolved

and this Act ceases to apply to it on the date set out in the certificate of

dissolution which, notwithstanding subsection 127(4), shall be the same date as

the effective date of the federal continuance of the credit union set out in

the letters patent issued to the credit union.

No reimbursement

of levies paid

131.4 A

credit union that is continued as a federal credit union is not entitled to

reimbursement of any levy or any portion of a levy paid under this Act.

Section 134 of the Act is amended by adding

immediately after paragraph (

c) the following:

(c.1) to ensure that credit union by-laws comply

with this Act and the regulations;

(c.2) to notify the superintendent of the matters

prescribed in the regulations that may impact credit unions, credit union

members or the guarantee corporation;

(1) Section 136 of the Act is amended by adding

immediately after paragraph (

i) the following:

(i.1) impose terms, conditions and restrictions on

approvals granted by it under this Act;

(2) Paragraph 136(

k) of the Act is repealed and

the following substituted:

(

k) issue directives in relation to sound business

practices and sound financial policies and procedures to be followed by credit

unions;

(3) Section 136 of the Act is amended by adding

immediately after paragraph (

p) the following:

(p.1) issue directives to credit unions with respect

to the

interpretation and clarification of this Act as it relates to the powers

and duties of the guarantee corporation;

Section 137 of the Act is repealed and the

following substituted:

Board

(1) The

affairs of the guarantee corporation shall be administered by a board of

directors consisting of 8 members who shall be appointed in accordance with the

regulations.

(2) A person who is a citizen or permanent

resident of Canada and at least the age of majority may be appointed as a

director of the guarantee corporation.

(3) Notwithstanding subsection (2), an employee, a

committee member or a director of a credit union trade association, a credit

union or a financial central shall not be appointed as a director of the guarantee

corporation.

64. The Act is amended by adding immediately after

section 138 the following:

Disclosure of

interest in material contract

138.1 A

director or an officer of the guarantee corporation shall disclose to the

guarantee corporation the nature and extent of the director's or officer's

interest in a material contract or proposed material contract in accordance

with the regulations.

65. Sections 139 and 140 of the Act are repealed

and the following substituted:

Vacancy

139. Where a vacancy occurs in the board of

directors of the guarantee corporation, the vacancy shall be filled in

accordance with the regulations.

Office ceases

140. A

member of the board of directors of a

guarantee corporation ceases to hold office upon

(

a) death or resignation;

(

b) becoming disqualified from holding the office;

(

c) being

removed from office in accordance with the regulations.

66. Subsection 142(3) of the Act is repealed.

67. (1) Subsection 144(2) of the Act is repealed

and the following substituted:

(2) Where the guarantee corporation is obligated

to make a payment in accordance with paragraph 146(a), the guarantee

corporation shall, as soon as possible after the obligation arises, make the

payment to the person who appears entitled to the payment according to the

records of the credit union holding the deposit.

(2) Section 144 of the Act is amended by adding

immediately after subsection (2) the following:

(2.1) A payment under this

section is limited to the

amount prescribed in the regulations.

68. Subsection 145(2) of the Act is repealed.

69. Subsection 155(2) of the Act is repealed and

the following substituted:

(2) The guarantee corporation shall, upon the

request of a credit union, provide a copy of its financial statements and auditor's

report to the credit union.

70. Subsection 157(2) of the Act is repealed and

the following substituted:

(2) A complainant who applies to the court under

subsection (1) shall give the superintendent and guarantee corporation 30 days

notice of the application and the superintendent and guarantee corporation are

entitled to appear and be heard in person or by counsel.

Section 163 of the Act is repealed and the

following substituted:

Application for

direction

163. The

superintendent or guarantee corporation may apply to the court for direction in

relation to a matter concerning the superintendent's or guarantee corporation's

duties and powers under this Act and, on that application, the court may give

direction and make another order it thinks appropriate.

72. Sections 165 and 166 of the Act are repealed

and the following substituted:

Review and

examination

165. The

guarantee corporation

(

a) shall review information and returns received

from credit unions and their directors, officers, committee members or

employees;

(

b) may examine the business and affairs of a

credit union;

(

c) shall be given access to all records, books,

accounts, vouchers and other documents; and

(

d) may make those inquiries that are necessary to

ascertain whether a credit union has complied with this Act, or an order or

direction.

Examination

powers

(1) For

the purpose of the examination referred to in

section 165 , a credit union shall prepare and submit to the guarantee

corporation, the information with respect to its business and affairs, in

addition to the returns required under

Part VII, that the guarantee corporation

may require.

(2) Upon

an examination, the guarantee corporation or a person that the guarantee

corporation may authorize has the powers of a commissioner appointed under the Public Inquiries Act, 2006 .

73. (1) Subsection 169(1) of the Act is repealed

and the following substituted:

Offence

(1) A

person who does, or assists in doing, any of the following commits an offence,

and is liable on conviction, for each offence, in the case of an individual, to

a fine of not less than $1,000 and not more than $25,000 or to imprisonment for

a term of not more than 6 months, or to both and in the case of a corporation,

to a fine of not less than $10,000 and not more than $50,000:

(

a) makes a statement in any information or

material submitted, sent, provided, produced, delivered or given to or filed

with the superintendent, the guarantee corporation or any person acting under

the authority of the superintendent or the guarantee corporation that is

misleading or untrue or does not state a fact that is required to be stated or

that is necessary to make the statement not misleading;

(

b) makes a statement in any information or

material required to be submitted, sent, provided, produced, delivered, given

or filed under this Act or the regulations that is misleading or untrue or does

not state a fact that is required to be stated or that is necessary to make the

statement not misleading; or

(

c) withholds, destroys, conceals, alters or

refuses to produce any information or thing reasonably required for the purpose

of an administrative action or proceeding under this Act or the regulations.

(2) Subsection 169(3) of the Act is repealed and

the following substituted:

(3) Without limiting the availability of other

defences, a person does not commit an offence under paragraph (1)(

a) or (

b) where

(

a) the person did not know and in the exercise of

due diligence could not have known that the statement was misleading or untrue

or that it omitted to state a fact that was required to be stated or that was

necessary to make the statement not misleading in light of the circumstances in

which it was made; and

(

b) on becoming aware that the statement was

misleading or untrue or that it omitted to state a fact that was required to be

stated or that was necessary to make the statement not misleading, the person

notified the superintendent or guarantee corporation.

Section 170 of the Act is repealed and the

following substituted:

General offence

170. A

person who does any of the following commits an offence, and is liable on

conviction, for each offence, in the case of an individual, to a fine of not

less than $1,000 and not more than $25,000 and in the case of a corporation, to

a fine of not less than $10,000 and not more than $50,000:

(

a) contravenes or fails to comply with provision

of this Act or the regulations;

(

b) contravenes or fails to comply with a

decision, ruling, interim order or direction of the superintendent or the

guarantee corporation made or given under this Act or the regulations; or

(

c) contravenes or fails to comply with a written

undertaking made by the person to the superintendent or the guarantee

corporation under this Act or the regulations.

Section 172 of the Act is repealed and the

following substituted:

Maintenance of

action

(1) Notwithstanding anything contained in this Part, where an action could be

brought against a person by a credit union for loss or damage suffered by or an

accounting due to the credit union by reason of the negligence of the person or

the failure of the person to comply with this Act, the regulations, the

articles or the by-laws of the credit union or orders, directions or notices of

the superintendent or the guarantee corporation, the superintendent or the

guarantee corporation may where

(

a) an action has not been brought, bring and

maintain an action without leave; or

(

b) where an action has been brought, apply to the

court to be added as a plaintiff and to be given conduct of the action.

(2) Money recovered by the superintendent or the

guarantee corporation under subsection (1) shall be held for the benefit of the

credit union or, where a grant, loan or advance has been made by the guarantee

corporation, the money shall be held for the benefit of the guarantee

corporation.

Section 173 of the Act is repealed and the

following substituted:

Supervision of

credit union

(1) Where

the guarantee corporation is satisfied that a credit union is carrying on its

business in a manner that contravenes this Act or the regulations, sound

business or financial practices or is financially unsound, including those

situations where

(

a) a credit union is unable to pay its

liabilities as they become due;

(

b) the realizable value of the assets of a credit

union is less than the aggregate of its liabilities and the capital account of

all classes of shares of the credit union, other than the equity of members;

(

c) a credit union has requested and the guarantee

corporation has determined to give it financial assistance;

(

d) a credit union fails to file a report or

document required to be filed by this Act within the time fixed for filing by

this Act; or

(

e) a credit union has failed to comply with an

order of the superintendent or of the guarantee corporation,

the guarantee corporation may place the credit union under the

supervision of the guarantee corporation or another person appointed by the

guarantee corporation.

(2) Where the guarantee corporation has placed a

credit union under supervision under subsection (1), the guarantee corporation

shall notify

(

a) the superintendent;

(

b) the auditor of the credit union;

(

c) the financial central; and

(

d) other entities the guarantee corporation

determines require notice of the supervision.

77. Paragraph 179(1)(

b) of the Act is repealed and

the following substituted:

(

b) in

the case of a director, at the latest residence address of the director, as

shown in the records of the credit union, or in the last notice filed under

section 76 .

Section 180 of the Act is repealed and the

following substituted:

Service of notice

A notice or document required to be sent to or served upon a credit union may

be sent to the registered office of the credit union shown in the last

prescribed notice filed with the superintendent,

(

a) by regular mail and, if so sent, it is considered to have been received or

served on the fifth business day from the date it was postmarked;

(

b) electronically, and if so sent, the notice is considered to have been received

on the day of transmission, if the document is transmitted on or before 4 p.m.,

or the next business day, if the document is transmitted after 4 p.m.; and

(

c) delivered personally or by courier, and if so sent, the notice is considered to

have been received upon delivery

unless the superintendent determines that there are

reasonable grounds to believe that the credit union did not receive the notice

or the document at that time or at all.

79. Subsection 185(1) of the Act is repealed and

the following substituted:

Verification

(1) The

superintendent or the guarantee corporation may require that a document or a

fact stated in a document required by this Act to be sent to the superintendent

or the guarantee corporation be verified in accordance with subsection (2).

Section 189 of the Act is repealed and the

following substituted:

Examination of

documents

(1) A

person who has paid the required fee is

entitled, during usual business hours, to examine

(

a) orders

of the superintendent and notices, articles and by-laws of a credit union filed

with the superintendent; and

(

b) orders

of the guarantee corporation and annual returns filed with the guarantee

corporation.

(2) The superintendent

shall provide a copy of a document referred to in paragraph (1)(

a) and the

guarantee corporation shall provide a copy of a document referred to in

paragraph (1)(

b) to a person where the person

(

a) requests

a copy of the document; and

(

b) pays

the required fee for the copying of the document.

81. Subsection 190(3) of the Act is repealed and

the following substituted:

(3) The superintendent is not required to produce

a document, other than a certificate and attached articles or statement filed

under

section 186 after the time period prescribed in the regulations.

82. Subsections 191(2) and (3) of the Act are

repealed and the following substituted:

(2) The superintendent shall

(

a) act under the instructions of the minister;

(

b) direct the board of the guarantee corporation

to complete an external review of the guarantee corporation activities

satisfactory to the superintendent at least every 5 years and provide the

report to the superintendent; and

(

c) carry out the duties that may be required or authorized

under this Act.

(3) The superintendent may

(

a) make inquiries and request documentation as

necessary to ensure that the guarantee corporation is in compliance with this

Act, the regulations or an order;

(

b) issue directives with respect to the

interpretation and clarification of this Act and the regulations as it relates

to the powers and duties referred to in this section; and

(

c) exercise the powers that may be required or

authorized under this Act.

83. Subsection 192(2) of the Act is repealed.

84. The Act is amended by adding immediately after

section 192 the following:

Protection from

liability

192.1 An

action for damages does not lie against the minister, the superintendent, the

guarantee corporation, the supervisor or a person directed by them, for anything

done or omitted to be done in good faith under this Act or the regulations.

(1) Section 193 of the Act is amended by adding

immediately after paragraph (

h) the following:

(h.1) prescribing the form and manner in which

records are to be kept;

(h.2) respecting the issuance of surplus shares and

other shares;

(2) Section 193 of the Act is amended by adding

immediately after paragraph (

k) the following:

(k.1) respecting policies to be established by a

credit union in relation to deceased members and their estates and the terms,

conditions, restrictions or limitations in relation to those policies;

(3) Paragraph 193(

r) of the Act is repealed and

the following substituted:

(

r) respecting interest rate risk under

section

45;

(4) Section 193 of the Act is amended by adding

immediately after paragraph (

r) the following:

(r.1) respecting policies to be established by a

credit union in relation to services provided by external parties and the

terms, conditions, restrictions or limitations in relation to those policies;

(r.2) respecting the enactment, amendment and repeal

of the by-laws of a credit union;

(5) Section 193 of the Act is amended by adding

immediately after paragraph (

w) the following:

(w.1) respecting the requirement that a director or

officer of a credit union disclose his or her interest in a material contract;

(6) Section 193 of the Act is amended by adding

immediately after paragraph (

x) the following:

(x.1) prescribing the time period in which a credit

union is required to file a return for the purpose of

section 90;

(7) Section 193 of the Act is amended by adding

immediately after paragraph (

z) the following:

(z.1) prescribing the information and documentation

to be included in a notice of meeting for the purposes of subsection 131.1(3);

(z.2) prescribing the time period for which the

guarantee corporation is required to retain the documents and records of a

dissolved credit union;

(8) The Act is amended by adding immediately after

paragraph (aa) the following:

(aa.1) prescribing matters for the purposes of

paragraph 134(c.2);

(9) The Act is amended by adding immediately after

paragraph (bb) the following:

(bb.1) respecting the requirement that a director or

officer of the guarantee corporation disclose his or her interest in a material

contract;

(10) The Act is amended by adding immediately after

paragraph (ff) the following:

(ff.1) respecting

vacancies in the board of directors of the guarantee corporation and removal of

directors from the board of directors of the guarantee corporation;

(11) Section 193 of the Act is amended by adding

immediately after paragraph (gg) the following:

(gg.1) prescribing

the amount that payments are limited for the purposes of subsection 144(2.1);

(gg.2) prescribing the time period for the purpose of

subsection 190(3);

Commencement

86. This Act, or a section, subsection, paragraph

or subparagraph of this Act, comes into force on a day or days to be proclaimed

by the Lieutenant-Governor in Council.

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