NEWFOUNDLAND REGULATION 109/96

Co‑operative Societies Regulations (Amendment)
under the
Co‑operative Societies Act

(Filed December 17, 1996)

Under the authority of section 72 of the Co‑operative Societies Act, I make the following regulations.

Dated at St. John's, December 16, 1996.

Ernest McLean
Minister of Government Services and Lands

REGULATIONS

Analysis

        1.   S.11 R&S
Credit Union Central

        2.   S.48 Amdt.
Liquidity

CNR 956/96

        1. Section 11 of the Co‑operative Societies Regulations is repealed and the following substituted:

Credit Union Central

      11. (1) Membership in the Credit Union Central of Newfoundland and Labrador, established under paragraph 5(c) of the Act, shall be open to all credit unions on a voluntary basis.

             (2)  The purpose of central shall be to act as a trade association to provide services consistent with that of a trade association as members may provide for in the constitution of central and the registrar may approve, and the powers of central are so limited.

             (3)  Central shall not have the capacity to carry out services which may be considered by the registrar to be those associated with a financial central and specifically shall not have the power to provide the services or carry out the activities including

             (a)  clearing and settlement services;

             (b)  the acceptance from members of deposits or investments of any type;

             (c)  electronic financial services;

             (d)  the lending of money or granting of credit facilities to members;

             (e)  holding investments in members;

              (f)  financial intermediary services, including those which would be usually carried out by a financial central; and

             (g)  other services which in the opinion of the registrar are of a financial nature.

             (4)  All credit unions shall be members of or affiliated with a financial central established under the laws of a province or the Government of Canada and which is a member of the Credit Union Central of Canada.

        2. Subsection 48(2) of the regulations is repealed and the following substituted:

             (2)  Qualifying investments for the purpose of this section are:

             (a)  cash;

             (b)  unencumbered deposits in a financial central, under subsection 11(4), with a maturity of one year or less; and

             (c)  common shares issued by a financial central, under subsection 11(4) to a maximum of 2% of the liabilities of a credit union.

©Earl G. Tucker, Queen's Printer