Cooperative Credit Associations Act

Marginal note:Order

• 459.9 (1) On the recommendation of the Minister, the Governor in Council may, by order,

  • (a) provide that any provision of this Act or the regulations shall not apply to an association, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and

  • (b) provide that any provision of this Act or the regulations applies to an association, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.

• Marginal note:Minister’s recommendation

  (2) The Minister may make a recommendation under subsection (1) only if the Minister

  • (a) is of the opinion that the order would relate to

    • (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of an association by, or the transfer or issue of shares of an association to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or

    • (ii) the management of the business and affairs or the regulation and supervision of an association during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the association, or during the time that shares of the association are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and

  • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chief Executive Officer of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

• Marginal note:Terms and conditions

  (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of an association by, or transfer or issue of shares of an association to, Her Majesty in right of Canada or Her Majesty’s agent or agency.

• Marginal note:Repeal of order under subsection (1)

  (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).

• Marginal note:Terms, conditions and undertakings

  (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of an association to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the association that the Minister considers appropriate, including any terms and conditions or undertakings relating to

  • (a) the remuneration of the association’s senior officers, as defined in section 441.01, and directors;

  • (b) the appointment or removal of the association’s senior officers, as defined in section 441.01, and directors;

  • (c) the payment of dividends by the association; and

  • (d) the association’s lending policies and practices.

• Marginal note:Acquisition

  (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of an association on behalf of or in trust for Her Majesty if an order is made under subsection (1).

• Marginal note:Payment out of C.R.F.

  (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares.

• Marginal note:Registration of shares

  (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the association’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.

• Marginal note:Disposition by Minister

  (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

• Marginal note:Disposition by agent or agency

  (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

• Marginal note:Consideration by Minister

  (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of an association on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.

• Marginal note:Mandatory disposition

  (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

• Marginal note:Statutory Instruments Act

  (13) The Statutory Instruments Act does not apply to an order made under this section.

• Definition of shares

  (14) For the purposes of this section, shares includes membership shares and any conversion or exchange privilege, option or right to acquire shares or membership shares.