I-3 - Taxation Act

Section 797 Disposition versions

2006-03-01

797. (1)  A savings and credit union, hereinafter called a “credit union”, is a corporation, association or federation constituted, organized or registered as a savings and credit union, as a financial services cooperative or as a cooperative credit society that conforms to the requirements of subsection 2, 3 or 4.

(2)  All or substantially all of the revenues of a credit union must derive from:

(a)  loans made to, or cashing cheques for, members;

(b)  debt obligations or securities of the Gouvernement du Québec, of the Government of Canada, of another province or of a Canadian municipality, a municipal or public body performing a function of government in Canada or an agency of such a government or body, or debt obligations or securities guaranteed by such a government or by an agency of such a government;

(c)  debt obligations of a corporation, commission or association not less than 90% of the shares or capital of which is owned by the Gouvernement du Québec, the Government of Canada or another province or by a Canadian municipality, deposits with such a corporation, commission or association or debt obligations or deposits guaranteed by such a corporation, commission or association;

(d)  debt obligations of a bank, another credit union or a corporation licensed or otherwise authorized under the laws of Canada or of a province to offer in Canada its services as trustee, deposits with a bank or such a credit union or corporation, or debt obligations or deposits guaranteed by a bank or such a credit union or corporation;

(e)  charges, fees and dues levied directly or indirectly from its members;

(f)  loans made to a cooperative credit society of which the credit union is a member or deposits with such a society; or

(g)  any other prescribed revenue source.

(3)  All or substantially all the members of a credit union having full voting rights must be corporations, associations, federations or confederations

(a)  incorporated as credit unions or cooperative credit societies which derive all or substantially all of their revenues from sources described in subsection 2 or whose members are all or substantially all credit unions, cooperatives or a combination thereof;

(b)  incorporated, organized or registered under, or governed by a law of Québec, Canada or another province with respect to cooperatives;

(c)  incorporated or organized for charitable purposes; or

(d)  no part of the income of which may be distributed to, or be available for the benefit of, any shareholder or member.

(4)  A corporation, association, federation or confederation would be a credit union by virtue of subsection 3 if all the members, other than individuals, having full voting rights in each credit union which is a member of that corporation, association, federation or confederation were members having full voting rights in the corporation, association, federation or confederation.

1972, c. 23, s. 605; 1975, c. 22, s. 214; 1977, c. 5, s. 14; 1982, c. 5, s. 146; 1988, c. 64, s. 587; 1993, c. 16, s. 294; 1995, c. 49, s. 236; 1997, c. 3, s. 40; 2000, c. 29, s. 656.