Protection of Assets (Cooperative Credit Associations) Regulations (SOR/92-354)

Regulations are current to 2013-05-20 and last amended on 2010-12-03. Previous Versions

Protection of Assets (Cooperative Credit Associations) Regulations

SOR/92-354

COOPERATIVE CREDIT ASSOCIATIONS ACT

Registration 1992-06-04

Regulations Respecting the Protection and Maintenance of Assets of Associations

P.C. 1992-1183  1992-06-04

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to paragraph 463(g) of the Cooperative Credit Associations ActFootnote *, is pleased hereby to revoke the Protection of Securities (Cooperative Credit Associations) Regulations, C.R.C., c. 420, and to make the annexed Regulations respecting the protection and maintenance of assets of associations in substitution therefor.

SHORT TITLE

1. These Regulations may be cited as the Protection of Assets (Cooperative Credit Associations) Regulations.

INTERPRETATION

2. In these Regulations,

“bond”

“bond” means a contract of insurance by which one party agrees to indemnify another party for loss arising out of the act of a third party; (caution)

“security”

“security”, in respect of an association, means a negotiable security owned or held by the association or held by the association in trust, but does not include a security issued by the association; (titre)

“security transaction”

“security transaction” means a purchase, sale, redemption, exchange, transfer or assignment of, or other transaction in respect of, a security. (opération sur titres)

  • SOR/92-527, s. 1(F).

APPLICATION

3. These Regulations do not apply to an association

  • (a) that is carrying on business in a jurisdiction in compliance with a law of that jurisdiction, to the extent that that law is inconsistent with these Regulations; or

  • (b) to the extent that they are inconsistent with

    • (i) a power conferred or a duty imposed on the association in respect of the administration of an estate or trust, or

    • (ii) the discharge of the association’s responsibilities in acting as an agent.

SAFEGUARDING OF ASSETS

4. An association shall

  • (a) maintain a record in writing of procedures to be followed in the handling and safeguarding of assets owned or held by the association; and

  • (b) inform every director, officer, employee and agent of the association who has access to, or is involved in the handling and safeguarding of, assets owned or held by the association of those procedures.

SAFEGUARDING OF SECURITIES

5. An association shall maintain an up-to-date record that identifies every security.

  • 6. (1) Subject to subsection (2) and section 7, an association shall ensure that every security is kept securely, in a manner that prevents unauthorized access to the security, in the custody of

    • (a) the association; or

    • (b) an entity that is authorized to act as a custodian of securities or as a depository or clearing agency for securities by a law of the jurisdiction in which the entity is carrying on business.

  • (2) Subsection (1) does not apply in respect of a security that is

    • (a) under the control of the government of a jurisdiction in which the association is carrying on business;

    • (b) pledged as collateral for the indebtedness or potential indebtedness of the association;

    • (c) loaned to a person pursuant to a written agreement; or

    • (d) in transit.