Bill No. 18 of 1954 A BILL TO AMEND THE CREDIT UNION ACT NoTE This Bill amends The Credit Union Act, being

chapter 257 of the Revised Statutes of Alberta,

Section 10 is amended by adding a subsection (2a). This subsection authorizes a credit union to use the word "co­ operatives '' or any abbreviations thereof. Use of the word "co-operatives" and its abbreviations is prohibited, for ex­ ample, by

section 9 of The Co-operative Associations Act, 1946; and this amendment is for the purpose of permitting credit unions to use the word and its abbreviations.

Section 19 is amended with respect to clause (

j) of sub­ section (1). This clause authorized a credit union upon the death of a member to pay, ·after the expiration of two months, any moneys not exceeding two hundred dollars Rtanding to the credit of the deceased member to his executor or administrator. Where there was no executor or ad­ ministrator the moneys could be paid to the member's widow, or if no widow then the credit union was authorized to distribute such moneys "to the children in equal shares". This payment released the credit union from further liability with regard to the moneys so distributed.

However, where there was no executor, administrator, widow or children, no authority existed to pay to anyone the small sum that might be standing to the deceased member's credit. The effect of the amendment to clause (

j) is to authorize the payment of these moneys to the Public Trustee for the benefit of the beneficiaries of the deceased member in the ordinary line of succession as if the member had died intestate and without a widow surviving him, when there is no exe.cutor, administrator or widow intervening.

Section 25 is amended by adding a subsection (2) which designates who is to act as chairman of the board of directors of a credit union.

Section 39 is amended. Subsection (1) contains the pro­ visions of the present

section 39 rearranged to set out more clearly the different powers and duties of a credit union with respect to borrowing. Subsection (2) is new and authorizes a credit union borrowing against the pledge of capital investments to do so without the consent of the Supervisor if the borrowin~ does not ex.ceed one-half the capital in­ vestments,

Section 42 is amended by striking out the present

section and substituting a new section. The new

section in addition to permitting an investment by deposit in a chartered bank or other institution approved by the Supervisor, which was previously permitted under the former section, now authorizes a credit union to invest its reserve fund in in­ vestments authorized by The Trustee Act. This Bill comes into force on the 1st day of July, 1954. J. W. RYAN, Acting Legislative Counsel. (This note does not form any part of the Bill but is offered in explanation of its provisions.)

BILL No. 18 of 1954

An Act to amend The Credit Union Act. (Assented to ' 195.1,) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, ena~ts as follows : 1. The Credit Union Act, being

chapter 257 of the Re­ vised Statutes of Alberta, 1942, is hereby amended. I '

Section 10 is amended by adding immediately after

section 10 subsection (2) the following new subsection: amended "(2a) The word 'co-operative' or any abbreviation or de- use ot word rivative thereof may be used in the name of a credit union.". ~~r.;~.¥er-

Section 19, subsection (1) is amended by striking out secu~~u clause (

j) and by substituting the following: amen "(

j) after the expiration of two months from the death of a member, pay a sum not exceeding two hundred dollars out of the moneys standing to the deceased member's credit, whether as payment on shares or as deposit, "(

i) to the executor or administrator of the estate of the deceased member, or "(ii) if there is then no executor or administrator, to the widow of the deceased member, or "(iii) if there is no such executor, administrator or widow, to the Public Trustee for the benefit of the person or persons who would be bene­ ficiaries of the estate of the deceased member under The Intestate Succession Act if the mem­ ber had died intestate and without a widow, and a payment made under this clause releases the credit union from any further liability with respect to the moneys so paid ;".

Section 25 is amended (

a) by renumbering the

section as subsection {1), (

b) by adding immediately after subsection (1) the following new subsection: "

(2) The president, or in his absence the vice­ president, shall be chairman of the board of directors.". SeoUon Ill amended

BecUon 18 amended Borrawlng pow en SeoUon 4Z amended Investment of reserve fund 2

Section 39 is struck out and the following is sub­ stituted: "39.

(1) Subject to the consent of the Supervisor, a credit union from time to time "(

a) may borrow moneys not exceeding in the aggregate twenty-five per cent of its combined capital, surplus and deposits, upon a vote of at least three-fourths of the members of the board of directors, and " (

b) may borrow moneys not exceeding in the aggregate fifty per cent of its combined capital, surplus and deposits upon a vote of three-fourths of the mem­ bers 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, if those voting represent a majority of the shares issued. ' "

(2) Where a credit union is borrowing upon the security of its capital investments, the credit union without the con­ sent of the Supervisor " (

a) may borrow moneys not exceeding in the aggregate twenty-five per cent of its capital investments upon a vote of at least three-fourths of the members of the board of directors, " (

b) may borrow moneys not exceeding in the aggregate fifty per cent of its capital investments upon a vote of three-fourths of the members 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 if those voting represent a majority of the shares issued.".

Section 42 is struck out and the following is sub­ stituted: "4.2. The reserve fund shall be invested by the board of directors "(

a) by deposit in a chartered bank or in any other in­ stitution approved by the Supervisor, or " (

b) in any investment authorized for investments by

section 8 of The Tru8tee Act.". ~~ Into 7. This Act comes into force on the first day of July, 1954.

No. 18 SECOND SESSION TWELFTH LECISLAruRE 3 ELIZABETH II 1954 BILL

An Act to amend The Credit Union Act Received and read the First time ............ . Second time .......... ..................... ..... .. Third time ......... ............................ . HON. MR. WILLMORE Title: 1954 (12th, 2nd) Bill 18,

An Act to amend The Credit Union Act