C-67.3 - Act respecting financial services cooperatives

Section 402.1 Disposition versions

2018-07-13

402.1. If the federation considers that a credit union is not adhering to sound and prudent management practices or sound commercial practices, has contravened this Act or an instrument adopted under this Act, has failed to resolve a conflict of interest or has failed to maintain a satisfactory financial position, it may

(1)  give written instructions to the credit union respecting the measures it considers appropriate to remedy the situation, and specify the time within which the credit union is required to comply with those instructions;

(2)  order the credit union to adopt and implement a compliance program in accordance with its directives, within the time it prescribes and for the reasons it specifies.

In addition, the federation may give written instructions to a credit union at the request of the credit union’s board of supervision.

Before giving written instructions or issuing an order, the federation must notify the credit union and give it an opportunity to present observations.

2018, c. 23, s. 240.