Cooperative Credit Associations Act

Marginal note:Meaning of “transaction”

• 412 (1) For the purposes of this Part, entering into a transaction with a related party of an association includes

  • (a) making a guarantee on behalf of the related party;

  • (b) making an investment in any securities of the related party;

  • (c) taking an assignment of or otherwise acquiring a loan made by a third party to the related party; and

  • (d) taking a security interest in the securities of the related party.

• Marginal note:Interpretation

  (2) For the purposes of this Part, the fulfilment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit, is part of the transaction, and not a separate transaction.

• Marginal note:Meaning of “loan”

  (3) For the purposes of this Part, loan includes a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit, but does not include investments in securities or the making of an acceptance, endorsement or other guarantee.