Commercial Loan (Cooperative Credit Associations) Regulations

Regulations Defining Certain Expressions and Prescribing Certain International Agencies in Respect of Commercial Loans His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to the definition commercial loan in subsection 386(1) and sections 398 to 400 and 463 of the Cooperative Credit Associations Act*, is pleased hereby to make the annexed Regulations defining certain expressions and prescribing certain international agencies in respect of commercial loans. S.C. 1991, c. 48 These Regulations may be cited as the Commercial Loan (Cooperative Credit Associations) Regulations. In these Regulations, Act means the Cooperative Credit Associations Act. (Loi) For the purpose of sections 398 and 399 of the Act, all of the subsidiaries of the association, other than those that are financial institutions, are prescribed subsidiaries. For the purpose of the definition commercial loan in subsection 386(1) of the Act, widely distributed means in respect of debt obligations the distribution of which is exempt from the requirement to file a prospectus under the laws of Canada, a province or a jurisdiction outside Canada, that at least 90% of the maximum authorized principal of the debt obligations is held by one or more persons other than the association and its subsidiaries, and the debt obligations were issued to at least 25 persons other than the association and its subsidiaries within six months after the day on which the first of the debt obligations was issued, or if the debt obligations are issued on a continuous basis, there are on average at least 25 holders other than the association and its subsidiaries, or at the time of their initial distribution, the debt obligations met at least three of the following criteria: their initial term was less than one year, they were rated by a rating agency, they were distributed through a person authorized to trade in securities, and they were distributed in accordance with an offering circular or memorandum, or a similar document relating to the distribution of securities; or in respect of any other securities, that they are listed and posted for trading on a recognized stock exchange, or a prospectus relating to the issuance of the securities was filed under the laws of Canada, a province or a jurisdiction outside Canada. For the purpose of subparagraph (1)(a)(i), maximum authorized principal means, in relation to any debt obligation, the maximum amount of debt that may be issued under the terms of the debt obligation or any agreement relating to it. For the purposes of the definition commercial loan in subsection 386(1) of the Act, the prescribed international agencies are the International Bank for Reconstruction and Development; the International Finance Corporation; the Inter-American Development Bank; the Asian Development Bank; the African Development Bank; the European Investment Bank; the Caribbean Development Bank; the Nordic Investment Bank; the European Bank for Reconstruction and Development; and the Council of Europe Development Bank. For the purposes of sections 398 and 399 of the Act, total assets, in respect of an association, at a particular time, means the amount determined by the formula is the total of the assets that would be reported on the balance sheet of the association prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 292(4) of the Act; and is the total of the assets included in the value of A that are assets of a subsidiary of the association that is a financial institution or that are assets of a subsidiary of a financial institution, other than where the subsidiary is a subsidiary of a financial institution only because it is a subsidiary of the association.