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 8 Disposition versions

2019-03-31

8. This Regulation is to be read, for the period from 31 March 2019 to 12 June 2019, by making the following amendments:

(1)  in section 1, by replacing, in the text preceding subparagraph 1, “deposit institution” by “registered institution”;

(2)  in sections 1, 2 and 3, by replacing “Deposit Institutions and Deposit Protection Act” by “Deposit Insurance Act”;

(3)  by replacing, in subparagraph 4 of section 3 and in subparagraph 1 of the second paragraph of section 4, “deposit institution” by “registered institution”;

(4)  in section 5:

(a)  by replacing, in the text preceding subparagraph 1, “deposit institution” by “registered institution”;

(b)  by replacing, in subparagraphs 1 and 2, “Deposit Institutions and Deposit Protection Act” by “Deposit Insurance Act”;

(5)  in section 6:

(a)  by replacing, in the text preceding subparagraph 1, “deposit institution” by “registered institution”;

(b)  by replacing, in subparagraph 1, “Deposit Institutions and Deposit Protection Act” by “Deposit Insurance Act”; and

(c)  by replacing the statement set out in the second paragraph by the following:

“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 on it under section 40.50 of the Deposit Insurance Act (chapter A-26), the title of which will be amended to read Deposit Institutions and Deposit Protection Act (chapter A-26) as of 13 June 2019.

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 Insurance 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 Insurance Act (chapter A-26) is treated more advantageously than another instrument subject to those powers that is subordinated to it.”;

(6)  by replacing, in section 7, “deposit institution” by “registered institution”.

M.O. 2019-03, s. 8.

Not in force

In force: 2019-03-31

8. This Regulation is to be read, for the period from 31 March 2019 to 12 June 2019, by making the following amendments:

(1)  in section 1, by replacing, in the text preceding subparagraph 1, “deposit institution” by “registered institution”;

(2)  in sections 1, 2 and 3, by replacing “Deposit Institutions and Deposit Protection Act” by “Deposit Insurance Act”;

(3)  by replacing, in subparagraph 4 of section 3 and in subparagraph 1 of the second paragraph of section 4, “deposit institution” by “registered institution”;

(4)  in section 5:

(a)  by replacing, in the text preceding subparagraph 1, “deposit institution” by “registered institution”;

(b)  by replacing, in subparagraphs 1 and 2, “Deposit Institutions and Deposit Protection Act” by “Deposit Insurance Act”;

(5)  in section 6:

(a)  by replacing, in the text preceding subparagraph 1, “deposit institution” by “registered institution”;

(b)  by replacing, in subparagraph 1, “Deposit Institutions and Deposit Protection Act” by “Deposit Insurance Act”; and

(c)  by replacing the statement set out in the second paragraph by the following:

“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 on it under section 40.50 of the Deposit Insurance Act (chapter A-26), the title of which will be amended to read Deposit Institutions and Deposit Protection Act (chapter A-26) as of 13 June 2019.

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 Insurance 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 Insurance Act (chapter A-26) is treated more advantageously than another instrument subject to those powers that is subordinated to it.”;

(6)  by replacing, in section 7, “deposit institution” by “registered institution”.

M.O. 2019-03, s. 8.