Bill 66 (Legislature 15, Session 2)

L15 S2 1506

Alberta — Bills

No. 66 II 2nd Session, 15th Legislature Albe ta 13 Elizaheth II' r BILL 66 A Bill to amend The Credit Union Act HON. MR. REIERSON Printed by L. S. WALL, Printer to the Queen's Most Excellent Majesty, Edmonton, Alberta, 1965

Explanatory Nota I. The Credit Union Act which is

chapter 67 of the Revised Statutes is amended by this Bill.

Section 10, subsection (1) reads in part: " ... the words "Savings and Credit Union, Limited" shall form part of the name of every credit union registered under this Act.". The amendment is similar to a provision in The Companies Act. 3. Prohibition against overdrawing.

Section 29, subsection (1) presently reads: 29.

(1) Subject to sections 32, 33 and 34, the credit committee shall have the general supervision of a;1I loans to members and, subject to a general order of the board and the provIsions of this Act, shall fix the amount of the rate of interest on eac.h loan.

BILL No. 66 of 19'65

An Act to amend The Credit Union Act (Assented to , 1965) HER MAJE.ST~, by and with the advice and consent of the LegIslatIve Assembly of the Province of Alberta enacts as follows: ' 1. The Credit Union Act is hereby amended.

Section 10 is amended (

a) by adding the following subsection after subsection (1) : (la) Notwithstanding subsection (1), a credit union may be registered with a name that uses the abbreviation "Ltd". instead of the word "Limited" and (

a) a credit union with the word "Limited" in the name thereof may use the ,abbreviation "Ltd.", and (

b) a credit union with the abbreviation "Ltd." in the name thereof may use the word "Limited", and reference thereto may be made in the same manner. (

b) by adding the following subsection after subsection (6) :

(7) Every credit union shall provide itself with a corporate seal on which the full name of the credit union shall appear in legible characters.

Section 19 lis amended by adding the following sub section:

(4) No credit union shall allow any member to overdraw his account. 4. ISection 29 is amended by striking out subsection (1) and by substituting the following: 29.

(1) Subject to sections 32, 33 and 34, the credit com mittee has the general supervision of all loans to ~e!llbers, subject to a general order of the board and the prOVISIons of this Act.

Section 32 presently reads: 32. The cndit committee shall not grant a loan of more than four hundred dollars in excess of the unencumbered portion of the shares of the borrower without requiring security.

Section 36, subsection (2) presently reads:

(2) Interest on loans shall not be compounded at any time.

Section 39, subsection (1), clause (

b) and subsection (3) presently read: 2 39.

(1) Subject to the consent o.f the Supervisor, a credit union from time to time (

b) may borrow moneys not exceeding in the aggregate fifty per cent of its combined capital, surp,lus and deposits upon a vote of three-fourths of the membe'rs present, or one,·third of the total membership, whichever is the greater, taken at an annual meeting of the credit union or at a special meeting called for the purpose.

(3) No credit union shall incur overdrafts.

Section 41, subsections (1), (3) and (4) presently read: 41.

(1) Subject to subsection (2) the board of directors shall set aside as a reserve fund all entrance fees, fines collected from members and, at the end of each fiscal year before the declaration of a dividend, at least twenty per cent of the net earnings of the credit union.

(3) The reserve fund sqall be held as a reserve against bad loans or losses and shall not be distributed except on general liquidation of assets of the cred:it union.

(4) Where a credit union ds participating in a stabilization fund established pursuant to

section 79, a sum not ex,ceeding five per cent of the net earnings may be paid into the stablization fund and the allocation to the reserve fund under subsection (1) may be reduced by a like amount. 9. Validity of acts of directors.

Section '32 is struck out and the foHowing is sub stituted: 32.

(1) The credit committee shall not grant a loan of more than four hundred dQllars in excess of the unen cumbered PQrtiQn of the shares of the borrower without re quiring security. (2) 'The security to he taken in each case shall be de termined by the credit comm,ittee.

(3) The security taken on a loan may be an assignment of tangible !assets or deposits 'Or may be by the endQrsement of a note.

Section 36, subsection (2) is amended by adding im mediately at the end thereof the words "except in the manner authQrized hy the Interest Act (Canada)". 7. SectiQn 39 is amended (

a) as to Isubsection (1), clause (

b) by striking out the words ", or 'One-third of the total membership, whichever is the greater,", (

b) by adding the foHowing subsection after subsection (1) : (la) A resolution passed pursuant to clause (

b) of subsection (1) is effective only until the next annual meeting of the credit union. (

c) by striking ,out subsection (3) and by substituting the follow,ing:

(3) NQcredit union shall allow its account with a bank or other depository to becQme overdrawn.

Section 41 is amended (

a) as to subsection (1) by striking out the wQrd "twenty" and by substituting the wQrd "fifteen", (

b) as to subsection (3) by striking 'Out the words "or losses" and by substituting the word "only", (

c) by striking out subsection (4) and by substituting the follQwing:

(4) Every credit union shall invest five per cent of its net earnings in the credit union stabilization fund established pursuant to sectiQn 79. 9. The following

section is added after

section 55: 55a.

An act dQne by a director 'Or by any officer is not invalid by reason 'only of any defect that is thereafter dis covered in hiselection,appointment 'Or qualifications. 2

Section 63, subsection (2) presently reads: (~) The 'credit union has a lien on ,the shares and deposits of a member for any sum due from him to the credit union and for any loan made by the credit union and endorsed Iby him. II. Commencement of Act. 3

Section ,63 is amended by striking. out subsection (2) and hy substituting the following:

(2) A credit union has a lien on the shares and deposits of a member (

a) for any debt due to the credit union by him, or (

b) for any loan endorsed by him, and may set off any amount credited to the member thereon in or toward payment of the debt. 11. This Act comes into force on the day upon which it is assented to. 3

No. 66 SECOND SESSION FIFTEENTH LEGISLATURE 13 ELIZABETH II 1965 BILL

An Act to amend 'The Credit Union A,ct Received and read the First time ......................................... . Second time ....................................... . Third time. HON. MR. REIERSON Title: 1965 (15th, 2nd) Bill 66,

An Act to amend The Credit Union Act

Document details

Collection	Alberta — Bills
Citation	L15 S2 1506
Type	bill
Volume / chapter	L15 S2 1506
Language	en
Format	json
Source	PROVINCIAL
Identifier	25a1af3abf11de79d52b064f4abd9268d4bcf474

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