BILL 44

An Act to Amend the Credit Unions Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 217 of the Credit Unions Act, chapter C-32.2 of the Acts of New Brunswick, 1992, is amended

(a)  by repealing paragraph (d) and substituting the following:

(d)  apply to the Minister for grants, loans or guarantees of loans to assist it in carrying out its purposes,

(b)  by adding after paragraph (f) the following:

(f.1)  make grants to stabilization boards and credit unions,

(c)  by adding after paragraph (g) the following:

(g.1)  guarantee loans made by credit unions to third parties,

(d)  by adding after paragraph (h) the following:

(h.1)  assume, in whole or in part, the liabilities, including contingent liabilities, of a credit union,

2 Paragraph 228(1)(a) of the Act is repealed and the following is substituted:

(a)  make loans, advances or grants to the Corporation, and

3 Subsection 242(1) of the Act is amended by striking out “On the application of a credit union made in accordance with the regulations” and substituting “Where a credit union, other than a credit union that is under supervision in accordance with Part XV, makes an application in accordance with the regulations”.

4 The Act is amended by adding after section 242 the following:

Transfer by Superintendent of membership in federation

242.1(1) The Superintendent may transfer a credit union that is under supervision in accordance with Part XV from one federation and the stabilization board established in relation to that federation to the other federation and the stabilization board established in relation to that federation if

(a)  the Superintendent is of the opinion that the transfer is in the best interests of all the affected parties, and

(b)  the federation to which the credit union is to be transferred agrees to the transfer.

242.1(2) The Superintendent shall give notice of the transfer to the credit union and to both federations and stabilization boards if the Superintendent transfers a credit union under subsection (1).

242.1(3) In transferring a credit union under subsection (1), the Superintendent may impose such terms and conditions on the credit union, the federations or the stabilization boards as the Superintendent considers appropriate to ensure that the interests of all affected parties are properly protected.

COMMENCEMENT

5 This Act shall be deemed to have come into force on February 15, 2007.

EXPLANATORY NOTES

Section 1

(a)  The existing provision is as follows:

217 The Corporation may ...

(d)  apply to the Minister for loans or guarantees of loans to assist it in carrying out its purposes,

(b)  New provision.

(c)  New provision.

(d)  New provision.

Section 2

The existing provision is as follows:

228(1) On the application of the Corporation, the Minister may, with the approval of the Lieutenant-Governor in Council and subject to such terms and conditions as the Minister considers appropriate,

(a)  make loans or advances to the Corporation, and

Section 3

Consequential amendment.

Section 4

New provision.

Section 5

Commencement provision.