Regulatory Capital (Cooperative Credit Associations) Regulations
Regulations Defining the Regulatory Capital of an Association
P.C. 1992-1847 1992-08-27
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to the definition “regulatory capital” in section 2 and section 463 of the Cooperative Credit Associations ActFootnote *, is pleased hereby to make the annexed Regulations defining the regulatory capital of an association.
Return to footnote *S.C. 1991, c. 48
1. These Regulations may be cited as the Regulatory Capital (Cooperative Credit Associations) Regulations.
2. In these Regulations,
“Act” means the Cooperative Credit Associations Act; (Loi)
- “designated entity”
“designated entity” means an entity other than
(a) an insurance company,
(b) a securities dealer, or
(c) an entity controlled by an insurance company or securities dealer; (entité désignée)
- “insurance company”
“insurance company” means an insurance company that is incorporated by or under the laws of Canada or of a province; (société d’assurances)
- “minority interest”
“minority interest” means an equity interest, in an entity that is controlled by an association, that is held by a person other than
(a) the association, or
(b) an entity controlled by the association; (participation minoritaire)
- “securities dealer”
“securities dealer” means an entity described in paragraph (g) of the definition “financial institution” in section 2 of the Act. (négociant en valeurs mobilières)
- SOR/2001-422, s. 1.
3. (1) Subject to subsection (2) and section 4, the regulatory capital of an association, at a particular time, is the aggregate of the amounts of
(a) members’ equity and shareholders’ equity,
(b) minority interests, and
(c) subordinated indebtedness
that would be reported in the financial statements of the association prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 292(4) of the Act, less the amount of goodwill that would be included in those financial statements.
(2) In calculating the amount of regulatory capital under subsection (1), an amount may be included in respect of a security only if
(a) the security is, by its terms, subordinate in right of payment to all deposit liabilities and all other liabilities of the entity that issued the security other than liabilities that, by their terms, rank equally with, or are subordinate to, that security;
(b) the security is issued and fully paidup; and
(c) in respect of subordinated indebtedness or a preferred share, the security
(i) has an initial minimum term of five years or more or has no term, and
(ii) cannot be redeemed or purchased for cancellation in the first five years after it is issued.
- SOR/94-63, s. 2.
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