O. Reg. 514/10: GENERAL

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ontario regulation 514/10

made under the

credit unions and caisses populaires act, 1994

Made: December 15, 2010
Filed: December 17, 2010
Published on e-Laws: December 20, 2010
Printed in The Ontario Gazette: January 1, 2011

Amending O. Reg. 237/09

(General)

1. Section 6 of Ontario Regulation 237/09 is revoked.

2. (1) The definition of “B” in subsection 16 (1) of the Regulation is revoked and the following substituted:

  “B” is the sum of the following amounts:

1. Goodwill.

2. The amount by which,

i. identified intangible assets, other than goodwill, that have been purchased directly or acquired in conjunction with or arising from the acquisition of a business, including trademarks, core deposit intangibles, mortgage servicing rights and purchased credit card relationships,

exceeds,

ii. 5 per cent of the amount of the variable “E” in subsection 17 (2).

3. Investments in subsidiaries that are financial institutions.

4. Any other amounts set out in the Capital Adequacy Guideline for Ontario’s Credit Unions and Caisses Populaires.

(2) Paragraph 1 of subsection 16 (2) of the Regulation is revoked and the following substituted:

1. The amount of an asset is its value as it would appear in the financial statements of the credit union, if the financial statements were prepared as of the date of the calculation.

3. (1) The definition of “E” in subsection 17 (2) of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:

“E” is the sum of the following amounts as they would appear in the financial statements of the credit union, if the financial statements were prepared as of the date of the calculation:

. . . . .

(2) Subsection 17 (3) of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:

(3) The Tier 2 Capital of a credit union is the lesser of the Tier 1 Capital amount determined under subsection (2) and the sum of the following amounts as they would appear in the financial statements of the credit union, if the financial statements were prepared as of the date of the calculation:

. . . .

(3) Paragraph 2 of subsection 17 (3) of the Regulation is revoked and the following substituted:

2. Fully paid shares issued by the credit union, excluding membership shares, patronage shares and the qualifying shares that are included in the definition of “E” in subsection (2).

(4) Paragraph 4 of subsection 17 (3) of the Regulation is revoked and the following substituted:

4. The amount of any loan loss allowance, not including an individual loan loss allowance, up to a maximum of 0.75 per cent of total assets for a class 1 credit union and 1.25 per cent of risk weighted assets for a class 2 credit union.

(5) Subsection 17 (4) of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:

(4) For the purposes of paragraph 5 of the definition of “E” in subsection (2), qualifying shares are fully paid shares other than membership shares and patronage shares issued by the credit union, but only if all of the following conditions are met:

. . . . .

4. (1) Subsection 105 (4) of the Regulation is amended by adding “for a financial year that begins before January 1, 2011” after “payable by a credit union or league”.

(2) The heading of the Table to subsection 105 (4) of the Regulation is revoked and the following substituted:

TAble
Annual Premium for Financial Years beginning before January 1, 2011

(3) Section 105 of the Regulation is amended by adding the following subsection:

(4.1) The annual premium payable by a credit union or league for a financial year that begins on or after January 1, 2011 is calculated at the rate set out in Column 3 of the Table to this subsection opposite the category of risk rating set out in Column 2 within which the credit union’s or league’s risk rating falls.

table
Annual Premium for Financial Years beginning on or after January 1, 2011

 

Column 1	Column 2	Column 3
Premium Class	Risk Rating	Premium Rate
1	85 points or more	$1.00 per $1,000 of the funds described in subsection (5) for a credit union and in subsection (6) for a league
2	At least 70 points and less than 85 points	$1.15 per $1,000 of those funds
3	At least 55 points and less than 70 points	$1.40 per $1,000 of those funds
4	At least 40 points and less than 55 points	$1.75 per $1,000 of those funds
5	Less than 40 points	$3.00 per $1,000 of those funds

 

(4) Subsection 105 (9) of the Regulation is amended by striking out “Despite subsections (4) and (8)” at the beginning and substituting “Despite subsections (4), (4.1) and (8)”.

5. This Regulation comes into force on the later of January 1, 2011 and the day it is filed.

 

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