Vol. 47 No. 25 — 572/2004

Volume 47, No. 25
B.C. Reg. 572/2004

The British Columbia Gazette, Part II
December 14, 2004

B.C. Reg. 572/2004, deposited December 13, 2004, pursuant to the FINANCIAL INSTITUTIONS ACT [Section 289]. Order in Council 1234/2004, approved and ordered December 11, 2004.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, effective December 31, 2004, the Liquidity Requirement Regulation, B.C. Reg. 332/90, is amended as set out in the attached schedule.

— G. M. COLLINS, Minister of Finance; S. BOND, Presiding Member of the Executive Council.

Schedule

1 Section 1 of the Liquidity Requirement Regulation, B.C. Reg. 332/90, is amended

(a) by repealing paragraph (a) in the definition of "deposit taking institution",

(b) by adding "that is authorized to carry on deposit business" at the end of paragraph (e) in the definition of "deposit taking institution",

(c) by repealing paragraphs (f) and (g) of the definition of "deposit taking institution" and substituting the following:

(f) a cooperative credit society or an association as defined in the Cooperative Credit Associations Act (Canada), or

(g) an extraprovincial credit union; , and

(d) in the definitions of "specified borrowings" and "prescribed liquid assets" by striking out "trust company or" wherever it appears.

2 Section 2 is repealed and the following substituted:

Application

2 This regulation does not apply to a trust company or extraprovincial trust corporation authorized to carry on trust business only.

3 Section 3 is amended by repealing everything before paragraph (a) and substituting the following:

For the purposes of section 67 (1) of the Act and of section 5 (4), (4.1) and (4.2) of this regulation, the assets of a credit union that are unencumbered and are of any of the following types, are prescribed as the liquid assets of the credit union:

4 Section 4 is repealed.

5 Section 5 is amended

(a) in subsection (2) by striking out "subsections (3) and (4) (a)" and substituting "subsections (3), (3.1), (3.2), (4) (a), (4.1) (a) and (4.2) (a)",

(b) in subsections (2), (3) and (4) (a) by striking out "B.C. Central Credit Union" and substituting "Credit Union Central of British Columbia",

(c) in subsections (3) and (4) by striking out "Where" and substituting "If, during the period from December 31, 2004 to June 30, 2005,",

(d) in subsections (3) and (4) by striking out "section 67 (2) (a)" and substituting "section 67 (1)",

(e) in subsections (3) and (4) by striking out "sufficient" and substituting "adequate", and

(f) by adding the following subsections:

(3.1) If, during the period from July 1, 2005, to December 31, 2005, 9% of a credit union's aggregate deposit and other debt liabilities does not exceed 1.5% of the aggregate value of all credit union assets in British Columbia, then, for the purpose of section 67 (1) of the Act, the credit union has adequate liquid assets in relation to the business carried on by it if, but only if, the credit union has deposits, including accrued interest, in Credit Union Central of British Columbia that are at least equal to 9% of the depositor credit union's deposit and other debt liabilities.

(3.2) If, on or after January 1, 2006, 8% of a credit union's aggregate deposit and other debt liabilities does not exceed 1.5% of the aggregate value of all credit union assets in British Columbia, then, for the purpose of section 67 (1) of the Act, the credit union has adequate liquid assets in relation to the business carried on by it if, but only if, the credit union has deposits, including accrued interest, in Credit Union Central of British Columbia that are at least equal to 8% of the depositor credit union's deposit and other debt liabilities.

(4.1) If, during the period from July 1, 2005 to December 31, 2005, 9% of a credit union's aggregate deposit and other debt liabilities exceeds 1.5% of the aggregate value of all credit union assets in British Columbia, then, for the purpose of section 67 (1) of the Act, the credit union has adequate liquid assets in relation to the business carried on by it if, but only if, the credit union has

(a) deposits, including accrued interest, in Credit Union Central of British Columbia in an amount that is at least equal to 1.5% of the aggregate value of all credit union assets in British Columbia, and

(b) prescribed liquid assets, inclusive of the deposits referred to in paragraph (a), in an amount that is at least equal to 9% of the credit union's aggregate deposit and other debt liabilities.

(4.2) If, on or after January 1, 2006, 8% of a credit union's aggregate deposit and other debt liabilities exceeds 1.5% of the aggregate value of all credit union assets in British Columbia, then, for the purpose of section 67 (1) of the Act, the credit union has adequate liquid assets in relation to the business carried on by it if, but only if, the credit union has

(b) prescribed liquid assets, inclusive of the deposits referred to in paragraph (a), in an amount that is at least equal to 8% of the credit union's aggregate deposit and other debt liabilities.

6 The following section is added:

Liquidity requirement — extraprovincial corporations

5.1 For the purposes of section 67 (1) of the Act, an extraprovincial trust corporation authorized to carry on deposit business, an extraprovincial credit union and an extraprovincial insurance corporation have the minimum adequate liquid assets if the amount of each one's liquid assets constitutes adequate liquid assets for that trust corporation, credit union or insurance corporation under the laws of its primary jurisdiction as defined in section 157 of the Act.

7 Section 6 is repealed and the following substituted:

Liquid assets report — credit unions

6 Within 90 days after the end of its financial year in each year, a credit union must file with the superintendent a report in the form established by the superintendent, made up to the financial year end, on the liquid assets of the credit union.