Cooperative Credit Associations Act

Marginal note:Acquisition of assets

• 418 (1) An association may purchase or otherwise acquire from a related party of the association

  • (a) securities of, or securities guaranteed by, the Government of Canada or the government of a province;

  • (b) assets fully secured by securities of, or securities guaranteed by, the Government of Canada or the government of a province; or

  • (c) goods for use in the ordinary course of business.

• Marginal note:Sale of assets

  (2) Subject to section 406, an association may sell any assets of the association to a related party of the association if

  • (a) the consideration for the assets is fully paid in money; and

  • (b) there is an active market for those assets.

• Marginal note:Asset transactions with financial institutions

  (3) Notwithstanding any of the provisions of subsections (1) and (2), an association may, in the normal course of business and pursuant to arrangements that have been approved by the Superintendent in writing, acquire or dispose of any assets, other than real property, from or to a related party of the association that is a financial institution.

• Marginal note:Asset transactions in restructuring

  (3.1) Despite any of the provisions of subsections (1) and (2), an association may acquire any assets from, or dispose of any assets to, a related party of the association as part of, or in the course of, a restructuring, if the acquisition or disposition has been approved in writing by the Superintendent.

• Marginal note:Goods or space for use in business

  (4) An association may lease assets

  • (a) from a related party of the association for use in the ordinary course of business of the association, or

  • (b) to a related party of the association,

  if the lease payments are made in money.

• Marginal note:Approval under section 233.5

  (5) An association may acquire any assets from, or dispose of any assets to, a related party of the association under a sale agreement that is approved by the Minister under section 233.5.