O. Reg. 79/95: STABILIZATION FUNDS ESTABLISHED UNDER A PREDECESSOR ACTSkip to content
Credit Unions and Caisses Populaires Act, 1994
ONTARIO REGULATION 79/95
STABILIZATION FUNDS ESTABLISHED UNDER A PREDECESSOR ACT
Historical version for the period June 19, 2009 to September 30, 2009.
Note: This Regulation is revoked on the day section 163 of Schedule 7 to the Budget Measures and Interim Appropriation Act, 2007 comes into force. See: O. Reg. 237/09, ss. 119, 120 (1).
Last amendment: O. Reg. 237/09.
This is the English version of a bilingual regulation.
1. This Regulation applies with respect to stabilization funds established under a predecessor to the Act. O. Reg. 79/95, s. 1.
2. In this Regulation,
“former DICO assessments” means the funds constituting the balance of assessments held by the Ontario Share and Deposit Insurance Corporation under the predecessors to the Act and includes the accumulated net earnings on them that were paid out by the Corporation and placed in a stabilization fund. O. Reg. 79/95, s. 2.
3. Except in accordance with this Regulation, no person shall disburse from a stabilization fund established by a league former DICO assessments, as they existed on March 1, 1987, or the accumulated net earnings on them. O. Reg. 79/95, s. 3.
4. A league may disburse from the stabilization fund accumulated net earnings on former DICO assessments to meet the operating and administrative expenses incurred in operating the fund. O. Reg. 79/95, s. 4.
5. (1) A league may disburse former DICO assessments (and the accumulated net earnings on them) to a credit union from a stabilization fund in the circumstances described in this section.
(2) If the credit union was a member of the league on March 31, 1987 and was in a deficit position on that date, the league may disburse an amount equal to that deficit,
(a) if the deposit insurance of the credit union is in good standing; or
(b) if the deposit insurance of the credit union is not in good standing but will be restored to good standing if the league makes the disbursement.
(3) In subsection (2),
“deficit position” means a financial position in which the liabilities of the credit union, including the shares subscribed for as a condition of membership, exceed the total tangible assets of the credit union.
(4) Before the league may make the disbursement under subsection (2), the credit union must file a certificate with the league attesting to the facts set out in clause (2) (a) or (b), whichever applies.
(5) The league may make a disbursement in order to assist the credit union meet the standards of business and financial practices established by the Corporation.
(6) Before the league may make the disbursement under subsection (5), the credit union must file a certificate with the league stating that the disbursement will assist the credit union to meet the standards of business and financial practices established by the Corporation. O. Reg. 79/95, s. 5.
6. (1) A league may disburse from a stabilization fund all former DICO assessments (and the accumulated net earnings on them) in the following circumstances for the purposes described in this section:
1. The credit unions participating in the fund are in sound financial condition.
2. There are no further disbursements needed to finance the deficits of the participating credit unions.
3. There are no outstanding orders under subsection 294 (1) of the Act or similar orders under a predecessor of the Act respecting the participating credit unions.
(2) The money may be disbursed for a purpose approved by a special resolution of the members of the league. O. Reg. 79/95, s. 6 (1, 2).
(3) Revoked: O. Reg. 317/98, s. 1.
7. Despite section 6, a league may use the accumulated net earnings on the former DICO assessments to provide programs to assist its members to conduct their operations in accordance with sound business and financial practices and to maintain their sound financial condition. O. Reg. 317/98, s. 2.
8. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 79/95, s. 8.