C-4.1 - Savings and Credit Unions Act

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221. Every service contract between a credit union and a restricted party must be made on favourable terms for the credit union or at least on competitive terms.
Every such contract must be approved by the board of directors of the credit union after it has obtained the advice of the board of audit and ethics, unless it involves only minimal amounts.
In cases of contestation, the onus is on the credit union to show that the service contract to which it is a party meets the prescribed requirements.
The Minister may, after he has obtained the advice of the Inspector General, exempt a service contract between a credit union and a legal person belonging to the same group as the federation with which the credit union is affiliated from compliance with the first paragraph where the main activity of the legal person consists in offering services relating to the ordinary business of a credit union.
1988, c. 64, s. 221; 1996, c. 69, s. 73.
221. Every service contract between a credit union and a restricted party must be made on favourable terms for the credit union or at least on competitive terms.
Every such contract must be approved by the board of directors of the credit union after it has obtained the advice of the board of supervision, unless it involves only minimal amounts.
In cases of contestation, the onus is on the credit union to show that the service contract to which it is a party meets the prescribed requirements.
The Minister may, after he has obtained the advice of the Inspector General, exempt a service contract between a credit union and a legal person belonging to the same group as the federation with which the credit union is affiliated from compliance with the first paragraph where the main activity of the legal person consists in offering services relating to the ordinary business of a credit union.
1988, c. 64, s. 221.