I-13.2.2, r. 3 - Regulation respecting the classes of negotiable and transferable unsecured debts and the issuance of such debts and of shares

Section 6 Disposition versions

2021-12-08

6. The prospectus, information circular, other offering document or similar document related to a prescribed debt or a share, other than a qualifying share, issued by a deposit institution belonging to a cooperative group must, as applicable:

(1)  expressly state that the share issued is subject to the powers of the Authority under the first paragraph of section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2) and set out a description of those powers; or

(2)  expressly state that the prescribed debt issued is subject to the powers of the Authority under the second paragraph of that section and set out a description of those powers.

In addition to the information provided for in the first paragraph, such a document must include the following statement, by reproducing it in full or incorporating it by reference:

“Conversion Measures

In the event of the resolution of a cooperative group, the Autorité des marchés financiers may exercise several powers, including those conferred upon it under section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2).

The Autorité des marchés financiers is responsible for resolution operations. In accordance with section 40.9 of that Act, the objective of such operations is to ensure the sustainability of a cooperative group’s deposit institution activities despite its failure and without recourse to public funds.

Based on the circumstances and the situation, the Autorité des marchés financiers will use its best efforts, when it exercises the powers conferred upon it under section 40.50 of that Act, to ensure fair treatment among the holders of debts and shares referred to in that section. In this regard, measures such as the following may be implemented by the Autorité des marchés financiers, as applicable:

(1) respect the respective ranks of the debts and shares referred to in section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2) that are still in existence, which ranks may be determined as if the cooperative group were the subject of an amalgamation/winding-up in accordance with the provisions of Chapter XIII.1 of the Act respecting financial services cooperatives (chapter C-67.3);

(2) ensure that such debts and shares are treated on a pro rata basis when they are of the same rank;

(3) ensure that an instrument subject to the powers set out in section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2) is treated more advantageously than another instrument subject to those powers that is subordinated to it.”.

M.O. 2019-03, s. 6; S.Q. 2021, c. 34, s. 136.

2019-06-13

6. The prospectus, information circular, other offering document or similar document related to a prescribed debt or a share, other than a qualifying share, issued by a deposit institution belonging to a cooperative group must, as applicable:

(1)  expressly state that the share issued is subject to the powers of the Authority under the first paragraph of section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2) and set out a description of those powers; or

(2)  expressly state that the prescribed debt issued is subject to the powers of the Authority under the second paragraph of that section and set out a description of those powers.

In addition to the information provided for in the first paragraph, such a document must include the following statement, by reproducing it in full or incorporating it by reference:

“Cancellation, Write-off and Conversion Measures

In the event of the resolution of a cooperative group, the Autorité des marchés financiers may exercise several powers, including those conferred upon it under section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2).

The Autorité des marchés financiers is responsible for resolution operations. In accordance with section 40.9 of that Act, the objective of such operations is to ensure the sustainability of a cooperative group’s deposit institution activities despite its failure and without recourse to public funds.

Based on the circumstances and the situation, the Autorité des marchés financiers will use its best efforts, when it exercises the powers conferred upon it under section 40.50 of that Act, to ensure fair treatment among the holders of debts and shares referred to in that section. In this regard, measures such as the following may be implemented by the Autorité des marchés financiers, as applicable:

(1) respect the respective ranks of the debts and shares referred to in section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2) that are still in existence, which ranks may be determined as if the cooperative group were the subject of an amalgamation/winding-up in accordance with the provisions of Chapter XIII.1 of the Act respecting financial services cooperatives (chapter C-67.3);

(2) ensure that such debts and shares are treated on a pro rata basis when they are of the same rank;

(3) ensure that an instrument subject to the powers set out in section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2) is treated more advantageously than another instrument subject to those powers that is subordinated to it.”.

M.O. 2019-03, s. 6.

2019-03-31

6. The prospectus, information circular, other offering document or similar document related to a prescribed debt or a share, other than a qualifying share, issued by a deposit institution belonging to a cooperative group must, as applicable:

(1)  expressly state that the share issued is subject to the powers of the Authority under the first paragraph of section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter A-26) and set out a description of those powers; or

(2)  expressly state that the prescribed debt issued is subject to the powers of the Authority under the second paragraph of that section and set out a description of those powers.

In addition to the information provided for in the first paragraph, such a document must include the following statement, by reproducing it in full or incorporating it by reference:

“Cancellation, Write-off and Conversion Measures

In the event of the resolution of a cooperative group, the Autorité des marchés financiers may exercise several powers, including those conferred upon it under section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter A-26).

The Autorité des marchés financiers is responsible for resolution operations. In accordance with section 40.9 of that Act, the objective of such operations is to ensure the sustainability of a cooperative group’s deposit institution activities despite its failure and without recourse to public funds.

Based on the circumstances and the situation, the Autorité des marchés financiers will use its best efforts, when it exercises the powers conferred upon it under section 40.50 of that Act, to ensure fair treatment among the holders of debts and shares referred to in that section. In this regard, measures such as the following may be implemented by the Autorité des marchés financiers, as applicable:

(1) respect the respective ranks of the debts and shares referred to in section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter A-26) that are still in existence, which ranks may be determined as if the cooperative group were the subject of an amalgamation/winding-up in accordance with the provisions of Chapter XIII.1 of the Act respecting financial services cooperatives (chapter C-67.3);

(2) ensure that such debts and shares are treated on a pro rata basis when they are of the same rank;

(3) ensure that an instrument subject to the powers set out in section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter A-26) is treated more advantageously than another instrument subject to those powers that is subordinated to it.”.

M.O. 2019-03, s. 6.

Not in force

In force: 2019-03-31

6. The prospectus, information circular, other offering document or similar document related to a prescribed debt or a share, other than a qualifying share, issued by a deposit institution belonging to a cooperative group must, as applicable:

(1)  expressly state that the share issued is subject to the powers of the Authority under the first paragraph of section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter A-26) and set out a description of those powers; or

(2)  expressly state that the prescribed debt issued is subject to the powers of the Authority under the second paragraph of that section and set out a description of those powers.

In addition to the information provided for in the first paragraph, such a document must include the following statement, by reproducing it in full or incorporating it by reference:

“Cancellation, Write-off and Conversion Measures

In the event of the resolution of a cooperative group, the Autorité des marchés financiers may exercise several powers, including those conferred upon it under section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter A-26).

The Autorité des marchés financiers is responsible for resolution operations. In accordance with section 40.9 of that Act, the objective of such operations is to ensure the sustainability of a cooperative group’s deposit institution activities despite its failure and without recourse to public funds.

Based on the circumstances and the situation, the Autorité des marchés financiers will use its best efforts, when it exercises the powers conferred upon it under section 40.50 of that Act, to ensure fair treatment among the holders of debts and shares referred to in that section. In this regard, measures such as the following may be implemented by the Autorité des marchés financiers, as applicable:

(1) respect the respective ranks of the debts and shares referred to in section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter A-26) that are still in existence, which ranks may be determined as if the cooperative group were the subject of an amalgamation/winding-up in accordance with the provisions of Chapter XIII.1 of the Act respecting financial services cooperatives (chapter C-67.3);

(2) ensure that such debts and shares are treated on a pro rata basis when they are of the same rank;

(3) ensure that an instrument subject to the powers set out in section 40.50 of the Deposit Institutions and Deposit Protection Act (chapter A-26) is treated more advantageously than another instrument subject to those powers that is subordinated to it.”.

M.O. 2019-03, s. 6.