C-67.3, r. 2 - Regulation respecting investments of a security fund

Updated to 1 September 2012

This document has official status.

chapter C-67.3, r. 2

Regulation respecting investments of a security fund

Act respecting financial services cooperatives

(chapter C-67.3, ss. 517 and 599).

1. A security fund may invest in the following:

(1)  demand deposits;

(2)  day loans;

(3)  demand loans guaranteed by securities having a credit rating at least equivalent to an R-1L or A rating according to the criteria of the Dominion Bond Rating Service Limited;

(4)  deposit certificates whose term does not exceed five years;

(5)  guaranteed investment certificates issued by a bank or institution registered with the Régie de l’assurance-dépôts du Québec, other than a credit union that is a member of the fund, or with the Canada Deposit Insurance Corporation;

(6)  negotiable and insubordinate debt securities issued by a bank listed in Schedule 1 or Schedule 2 to the Bank Act (S.C. 1991, c. 46) and having a credit rating at least equivalent to an R-1L or A rating according to the criteria of the Dominion Bond Rating Service Limited;

(7)  securities issued or guaranteed irrevocably and unconditionally by the Gouvernement du Québec or the Government of Canada;

(8)  securities issued or guaranteed irrevocably and unconditionally by the Government or a hydroelectric corporation of a Canadian province other than Québec and having a credit rating at least equivalent to an R-1L or A rating according to the criteria of the Dominion Bond Rating Service Limited;

(9)  securities issued or guaranteed irrevocably and unconditionally by the Government of the United States of America;

(10)  securities issued by a legal person established in the public interest incorporated under the Statutes of Québec;

(11)  negotiable and subordinate debt securities, issued by a bank listed in Schedule 1 or Schedule 2 to the Bank Act and having a credit rating at least equivalent to an R-1L or A rating according to the criteria of the Dominion Bond Rating Service Limited;

(12)  negotiable debt securities issued by a legal person established in the private interest and having a credit rating at least equivalent to an R-1L or A rating according to the criteria of the Dominion Bond Rating Service Limited;

(13)  mutual funds of Canadian or American money markets;

(14)  mutual funds of Canadian or American bond or mortgage markets;

(15)  mutual funds of shares issued on the Canadian market or on the market of another country that is a member of the Organisation for Economic Co-operation and Development;

(16)  subordinate shares or debt securities issued by credit unions whose capital base does not reach the amount prescribed in the standards of the federation;

(17)  derivatives;

(18)  shares issued on the Canadian market or on the market of another country that is a member of the Organisation for Economic Co-operation and Development; and

(19)  hedge funds.

O.C. 692-2001, s. 1.

2. The security fund may not make investments that exceed a value representing 30% of its assets according to its most recent auditing in subordinate shares or debt securities issued by the credit unions of its group.

O.C. 692-2001, s. 2.

3. The security fund may not make investments that exceed a value representing 5% of its assets according to its most recent auditing in securities issued by the same legal person and referred to in paragraphs 11, 12 and 18 of section 1.

O.C. 692-2001, s. 3.

4. The security fund may not make investments that exceed a value representing 25% of its assets according to its most recent auditing in securities referred to in paragraphs 11, 12, 15 and 18 of section 1 and in securities of mutual funds of Canadian or American bond or mortgage markets.

For the purposes of this section, the mutual funds of bond markets are those made up of bonds issued by legal persons established in the private interest.

O.C. 692-2001, s. 4.

5. A security fund may not make investments in legal persons or corporations controlled by the federation or the credit unions of its group.

Notwithstanding the foregoing, the security fund may carry out the transactions referred to in paragraphs 1, 2 and 17 of section 1 with a bank, the Caisse centrale Desjardins or the Fédération des caisses Desjardins du Québec, where it is part of the same group as those credit unions.

O.C. 692-2001, s. 5.

6. (Omitted).

O.C. 692-2001, s. 6.

REFERENCES

O.C. 692-2001, 2001 G.O. 2, 2656