Section 1 definitions of "debt liability", "deposit taking institution", "prescribed liquid assets" and "specified borrowings" BEFORE repealed by BC Reg 279/2020, effective January 1, 2021.
"debt liability" means a bond, debenture, note, certificate of deposit or other similar instrument, but does not include a mortgage;
"deposit taking institution" means
(a) Repealed. [B.C. Reg. 572/2004, s. 1 (a).]
(d) a corporation that is a subsidiary of a bank and is a loan company to which the Loan Companies Act (Canada) applies,
(e) an extraprovincial trust corporation that is authorized to carry on deposit business,
(f) a cooperative credit society or an association as defined in the Cooperative Credit Associations Act (Canada), or
(g) an extraprovincial credit union;
"prescribed liquid assets" means those assets that under section 3 are prescribed as the liquid assets of a credit union;
"specified borrowings" of a credit union means the aggregate of
(a) overdrafts by the credit union, as shown in the accounting records, and
(b) debt obligations owed to savings institutions that
(i) are repayable to the lender on demand of the lender or have a term to maturity when issued of not more than 7 days, and
(ii) are borrowed to enable the credit union to meet its short term requirements for liquid funds
but does not include debt obligations payable to, or overdrafts with, the Bank of Canada in connection with clearing activities.
Section 1 definitions of "debt liabilities" and "unencumbered asset" were added by BC Reg 279/2020, effective January 1, 2021.
Section 3 BEFORE repealed by BC Reg 279/2020, effective January 1, 2021.
Prescribed types of liquid assets
3 For the purposes of section 67 (1) of the Act and of section 5 (4), (4.1) and (4.2) of this regulation, the assets of a credit union that are unencumbered and are of any of the following types, are prescribed as the liquid assets of the credit union:
(a) cash on hand and deposits in other deposit taking institutions that are repayable to the depositor on demand of the depositor, less specified borrowings;
(b) at book value, any term deposits, bearer deposit notes, deposit certificates and similar instruments, issued by another deposit taking institution, that are repayable to the depositor on demand of the depositor or after notice given by the lender of not more than 100 days, or have a term left to maturity of not more than 100 days;
(c) at book value, treasury bills of Canada or a province;
(d) at market value, any security instruments that are issued or guaranteed by the Government of Canada, a province or a municipality;
(e) at book value, banker's acceptances that have a term left to maturity of one year or less;
(i) are not loans to an individual,
(ii) are repayable to the lender on demand of the lender or after notice given by the lender of not more than 100 days, or have a term left to maturity of not more than 100 days, and
(iii) are fully secured by the types of assets specified in paragraphs (b) to (d);
(g) accrued interest on all liquid assets.
[am. B.C. Regs. 102/92, s. 2; 572/2004, s. 3.]
Section 5 (2) to (4.2) BEFORE repealed by BC Reg 279/2020, effective January 1, 2021.
(2) For the purpose of subsections (3), (3.1), (3.2), (4) (a), (4.1) (a) and (4.2) (a), a portion of a credit union's cash on hand that does not exceed 1% of its aggregate deposit and other debt liabilities may be counted as part of its deposits in Credit Union Central of British Columbia.
(3) If, during the period from December 31, 2004 to June 30, 2005, 10% of a credit union's aggregate deposit and other debt liabilities does not exceed 1.5% of the aggregate value of all credit union assets in British Columbia, then, for the purpose of section 67 (1) of the Act, the credit union has adequate liquid assets in relation to the business carried on by it if, but only if, the credit union has deposits, including accrued interest, in Credit Union Central of British Columbia that are at least equal to 10% of the depositor credit union's deposit and other debt liabilities.
(3.1) If, during the period from July 1, 2005, to December 31, 2005, 9% of a credit union's aggregate deposit and other debt liabilities does not exceed 1.5% of the aggregate value of all credit union assets in British Columbia, then, for the purpose of section 67 (1) of the Act, the credit union has adequate liquid assets in relation to the business carried on by it if, but only if, the credit union has deposits, including accrued interest, in Credit Union Central of British Columbia that are at least equal to 9% of the depositor credit union's deposit and other debt liabilities.
(3.2) If, on or after January 1, 2006, 8% of a credit union's aggregate deposit and other debt liabilities does not exceed 1.5% of the aggregate value of all credit union assets in British Columbia, then, for the purpose of section 67 (1) of the Act, the credit union has adequate liquid assets in relation to the business carried on by it if, but only if, the credit union has deposits, including accrued interest, in Credit Union Central of British Columbia that are at least equal to 8% of the depositor credit union's deposit and other debt liabilities.
(4) If, during the period from December 31, 2004 to June 30, 2005, 10% of a credit union's aggregate deposit and other debt liabilities exceeds 1.5% of the aggregate value of all credit union assets in British Columbia, then, for the purpose of section 67 (1) of the Act, the credit union has adequate liquid assets in relation to the business carried on by it if, but only if, the credit union
(a) has deposits, including accrued interest, in Credit Union Central of British Columbia in an amount that is at least equal to 1.5% of the aggregate value of all credit union assets in British Columbia, and
(b) has prescribed liquid assets, inclusive of the deposits referred to in paragraph (a), in an amount that is at least equal to 10% of the credit union's aggregate deposit and other debt liabilities.
(4.1) If, during the period from July 1, 2005 to December 31, 2005, 9% of a credit union's aggregate deposit and other debt liabilities exceeds 1.5% of the aggregate value of all credit union assets in British Columbia, then, for the purpose of section 67 (1) of the Act, the credit union has adequate liquid assets in relation to the business carried on by it if, but only if, the credit union has
(a) deposits, including accrued interest, in Credit Union Central of British Columbia in an amount that is at least equal to 1.5% of the aggregate value of all credit union assets in British Columbia, and
(b) prescribed liquid assets, inclusive of the deposits referred to in paragraph (a), in an amount that is at least equal to 9% of the credit union's aggregate deposit and other debt liabilities.
(4.2) If, on or after January 1, 2006, 8% of a credit union's aggregate deposit and other debt liabilities exceeds 1.5% of the aggregate value of all credit union assets in British Columbia, then, for the purpose of section 67 (1) of the Act, the credit union has adequate liquid assets in relation to the business carried on by it if, but only if, the credit union has
(a) deposits, including accrued interest, in Credit Union Central of British Columbia in an amount that is at least equal to 1.5% of the aggregate value of all credit union assets in British Columbia, and
(b) prescribed liquid assets, inclusive of the deposits referred to in paragraph (a), in an amount that is at least equal to 8% of the credit union's aggregate deposit and other debt liabilities.
Section 5 (5) to (12) were added by BC Reg 279/2020, effective January 1, 2021.
Section 5.01 BEFORE self-repealed by BC Reg 332/90, effective January 15, 2021
Transition — deposits in Central 1
5.01 (1) For the purposes of section 5 (5), a credit union's cash deposits in Central 1 Credit Union may be counted as part of the depositing credit union's unencumbered assets placed in trust.
(2) This section is repealed on January 15, 2021.
[en. B.C. Reg. 279/2020, s. 4.]