Cooperative Credit Associations Act

Marginal note:Superintendent may take control

• 442 (1) Subject to this Act, where any of the circumstances described in subsection (1.1) exist in respect of an association, the Superintendent may

  • (a) take control, for a period not exceeding sixteen days, of the assets of the association and the assets held under the administration of the association; or

  • (b) unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so,

    • (i) take control, for a period exceeding sixteen days, of the assets of the association and the assets held under the administration of the association,

    • (ii) where control of assets has been taken under paragraph (a), continue the control beyond the sixteen days referred to in that paragraph, or

    • (iii) take control of the association.

• Marginal note:Circumstances for taking control

  (1.1) Control by the Superintendent under subsection (1) may be taken in respect of an association where

  • (a) the association has failed to pay its liabilities or, in the opinion of the Superintendent, will not be able to pay its liabilities as they become due and payable;

  • (b) [Repealed, 2001, c. 9, s. 335]

  • (c) the assets of the association are not, in the opinion of the Superintendent, sufficient to give adequate protection to its depositors and creditors;

  • (d) any asset appearing on the books or records of the association or held under the administration of the association is not, in the opinion of the Superintendent, satisfactorily accounted for;

  • (e) the regulatory capital of the association has, in the opinion of the Superintendent, reached a level or is eroding in a manner that may detrimentally affect its depositors and creditors;

  • (f) the association has failed to comply with an order of the Superintendent under paragraph 409(3)(a);

  • (g) in the case of a retail association, the association’s deposit insurance has been terminated by the Canada Deposit Insurance Corporation; or

  • (h) in the opinion of the Superintendent, any other state of affairs exists in respect of the association that may be materially prejudicial to the interests of the depositors or creditors of the association or to those of the owners of any assets under the association’s administration.

• Marginal note:Notice of proposed action

  (1.2) The Superintendent must notify

  • (a) an association of any action proposed to be taken in respect of it under paragraph (1)(b) and of its right to make written representations to the Superintendent within the time specified in the notice, not exceeding ten days after it receives the notice; and

  • (b) where the action proposed to be taken under subsection (1) is in respect of a central, within the meaning of Part XVI, the minister of the Crown in right of the province in which the central is incorporated who is responsible for the supervision of the central.

• Marginal note:Objectives of Superintendent

  (2) If, pursuant to subsection (1), the Superintendent has control of the assets of an association referred to in that subsection, the Superintendent may do all things necessary or expedient to protect the rights and interests of the depositors and creditors of the association.

• Marginal note:Powers of Superintendent

  (3) Where, pursuant to subsection (1), the Superintendent has control of the assets of an association referred to in that subsection,

  • (a) the association shall not make, acquire or transfer any loan or make any purchase, sale or exchange of membership shares or securities or any disbursement or transfer of cash of any kind without the prior approval of the Superintendent or a representative designated by the Superintendent; and

  • (b) no director, officer or employee of the association shall have access to any cash or securities held by or under the administration of the association unless

    • (i) a representative of the Superintendent accompanies the director, officer or employee, or

    • (ii) the access is previously authorized by the Superintendent or the Superintendent’s representative.