Interpretation

1   In this regulation:

"acquiring credit union", "amalgamation agreement", "amalgamated credit union" and "asset transfer agreement" each have the same meaning as in Division 2 of Part 2 of the Credit Union Incorporation Act;

"Act" means the Financial Institutions Act;

"credit union" does not include a central credit union;

"date of amalgamation" means the date of the amalgamation shown in a certificate of amalgamation issued under section 20 (7) (b) of the Credit Union Incorporation Act;

"date of business acquisition" means the effective date put in a certificate of business acquisition issued under section 16 (8) (b) of the Credit Union Incorporation Act;

"depositor", "deposits" and "guarantee" each have the same meaning as in Part 9 of the Act.

"pooled trust account" means an account that is

(a) shown in the records of the credit union as a separate account, and

(b) maintained by a trustee for the deposit of trust funds on behalf of beneficiaries generally,

whether or not the identity of each beneficiary is disclosed in the records of the credit union.

Separate deposit

2   (1) Subject to subsection (2), each of the following constitutes a separate deposit in a credit union for the purpose of applying the $100 000 limit in section 266 (2) of the Act:

(a) the aggregate of all deposits that

(i) are shown in the records of the credit union as trust accounts, and

(ii) deposited in trust for the benefit of the same beneficiary

whether or not the identity of the beneficiaries is disclosed in the records of the credit union;

(b) the aggregate of all deposits that are shown in the records of the credit union as joint accounts to the credit of the same joint depositors;

(c) the aggregate of all deposits that are shown in the records of the credit union as registered retirement savings plans under the Income Tax Act (Canada) to the credit of the same depositor;

(d) the aggregate of all deposits that are shown in the records of the credit union as registered retirement income funds under the Income Tax Act (Canada) to the credit of the same depositor;

(e) the aggregate of all deposits that are not referred to in paragraphs (a) to (d) that are credited to the same depositor in the records of the credit union.

(2) Where funds are deposited in trust for the benefit of the same beneficiary in more than one pooled trust account and the beneficiaries of each of those accounts are not identical, the funds deposited for that beneficiary in each of those accounts constitute a separate deposit in a credit union for the purpose referred to in subsection (1).

Separate deposits on business acquisition
or amalgamation

3   (1) Where, immediately before completion of an asset transfer agreement or amalgamation agreement, a person had separate deposits (the "pre-existing separate deposits") in any credit union that is a party to the agreement, then, in a determination under section 2 of what constitutes a separate deposit in the acquiring credit union or amalgamated credit union after completion of the agreement, each pre-existing separate deposit of that person shall, notwithstanding a requirement to the contrary in section 2, be considered independently from and without regard to any other pre-existing separate deposits of that person until but not after the first to occur of

(a) withdrawal of all money from that separate deposit, or

(b) the lapse of 5 years after

(i) the date of business acquisition, if the agreement is an asset transfer agreement, or

(ii) the date of amalgamation, if the agreement is an amalgamation agreement.

(2) Where, but for subsection (1), money in a depositor's separate deposit would not be guaranteed, the aggregate of all guarantees for all the depositor's separate deposits in the acquiring credit union or amalgamated credit union is reduced by the amount of any withdrawals from those deposits that are made after the date of business acquisition or the date of amalgamation, as the case may be, until the aggregate of all the guarantees for those deposits does not exceed the aggregate of all the maximum guarantees that would have applied to those deposits in the absence of subsection (1).

(3) Where, after the date of business acquisition or amalgamation, as the case may be, a depositor deposits money in a separate deposit that has been carried over to the acquiring credit union or amalgamated credit union, the depositor is not entitled to claim under section 266 (3) of the Act in respect of that money unless the depositor would have been entitled to claim under section 266 (3) of the Act in the absence of subsection (1).

(4) Where, after the date of business acquisition or amalgamation, as the case may be, a term deposit in the acquiring credit union or amalgamated credit union expires and is immediately reinvested in any other deposit of that depositor in that credit union, that transaction does not constitute a withdrawal for the purpose of subsection (1) or (2) and does not constitute a deposit for the purpose of subsection (3).