Notice of Branch Closure (Cooperative Credit Associations) Regulations

Marginal note:Circumstances for exemption from notice requirement

7 A member association is not required to give notice under subsection 385.27(1) of the Act before closing a branch or having a branch cease to carry on an activity referred to in that subsection in the following circumstances:

• (a) the closure or cessation is temporary and is caused by events beyond the control of the member association;

• (b) the closure or cessation is not expected to continue for more than 15 business days;

• (c) the closure or cessation results from the sale by the member association of the branch’s assets and liabilities to another financial institution, that other financial institution proposes to operate a retail deposit-taking branch at the same site and the financial services that have been provided to the public from that site are not expected to be interrupted as a result of the sale for more than 15 business days;

• (d) the closure or cessation results from a relocation of the branch or a consolidation of the branch with one or more branches into another branch, and the travelling distance from the site of the relocated or consolidated branch to the site of the closed branch is less than 500 m;

• (e) the closure or cessation is required in order to comply with

  • (i) a prudential agreement entered into between the member association and the Superintendent under section 438.1 of the Act,

  • (ii) a direction of the Superintendent under subsection 439(1) of the Act, or

  • (iii) an order of a court under section 441 of the Act;

• (f) the closure or cessation results from a decision of the Superintendent under subsection 442(2) of the Act after the Superintendent has taken control of the member association under subparagraph 442(1)(b)(iii) of the Act;

• (g) the closure or cessation results from actions directed towards the voluntary liquidation of the member association

  • (i) after the Minister has approved an application under section 328 of the Act for letters patent dissolving the member association, or

  • (ii) under the supervision of a court under an order made by the court under subsection 331(1) of the Act;

• (h) the closure or cessation results from a winding-up order in respect of the member association made under section 10 or 10.1 of the Winding-up and Restructuring Act;

• (i) the closure or cessation results from the termination or cancellation of the policy of deposit insurance of the member association under the Canada Deposit Insurance Corporation Act;

• (j) the closure or cessation results from the making of an order under subsection 39.13(1) of the Canada Deposit Insurance Corporation Act in respect of the member association;

• (k) the closure or cessation is part of a restructuring transaction carried out under subsection 39.2(1) of the Canada Deposit Insurance Corporation Act;

• (l) the branch was acquired within the preceding year by a purchaser in a restructuring transaction carried out under subsection 39.2(1) of the Canada Deposit Insurance Corporation Act; or

• (m) the member association has posted in a conspicuous place in a public area of the branch a notification of the closure or cessation before the coming into force of these Regulations and the closure or cessation occurs within

  • (i) six months after the coming into force of these Regulations, if the branch is in a rural area where there is no retail deposit-taking branch within a travelling distance of 10 km from the branch,

  • (ii) four months after the coming into force of these Regulations, in any other cases.