C-4.1 - Savings and Credit Unions Act

Section 504 Disposition versions

1997-02-15

504. The Minister may, after obtaining the advice of the Inspector General, suspend the powers of the board of directors or the board of audit and ethics of a credit union, federation or confederation, as the case may be, and appoint a provisional administrator to exercise the powers thereof for such period as the Minister may determine if he has grounds to believe

(1)  that the credit union has failed to maintain a capital base meeting the requirements of the standards of the federation with which it is affiliated or, if it is not affiliated, of this Act;

(2)  that the federation has failed to maintain a capital base meeting the requirements of this Act;

(3)  that the assets of the credit union or the federation are inadequate to ensure efficient protection of the depositors, creditors and members;

(4)  that the credit union, the federation or the confederation, as the case may be, does not adhere to sound and prudent financial or management practices;

(5)  that the credit union or the federation has failed to comply with the Inspector General’s written instructions concerning a compliance program;

(6)  that there has been misappropriation of property;

(7)  that there has been gross negligence, in particular, embezzlement or breach of trust by one or more members of the board of directors or the board of audit and ethics, or that such members have been seriously remiss in the performance of the obligations imposed on them by this Act or a government regulation thereunder.

The person appointed by the Minister may authorize any person to exercise the powers set out in the first paragraph.

1988, c. 64, s. 504; 1996, c. 69, s. 167.

1989-03-15

504. The Minister may, after obtaining the advice of the Inspector General, suspend the powers of the board of directors, the credit committee or the board of supervision of a credit union, federation or confederation, as the case may be, and appoint a provisional administrator to exercise the powers thereof for such period as the Minister may determine if he has grounds to believe

(1)  that the credit union has failed to maintain a capital base meeting the requirements of the by-laws of the federation with which it is affiliated or, if it is not affiliated, of this Act;

(2)  that the federation has failed to maintain a capital base meeting the requirements of this Act;

(3)  that the assets of the credit union or the federation are inadequate to ensure efficient protection of the depositors, creditors and members;

(4)  that the credit union, the federation or the confederation, as the case may be, does not adhere to sound financial or administrative practices;

(5)  that the credit union or the federation has failed to comply with the Inspector General’s written instructions concerning a compliance program;

(6)  that there has been misappropriation of property;

(7)  that there has been gross negligence, in particular, embezzlement or breach of trust by one or more members of the board of directors, of the credit committee or of the board of supervision, or that such members have been seriously remiss in the performance of the obligations imposed on them by this Act or a government regulation thereunder.

The person appointed by the Minister may authorize any person to exercise the powers set out in the first paragraph.

1988, c. 64, s. 504.