BILL NO. 172

(as introduced)

1st Session, 64th General Assembly
Nova Scotia
71 Elizabeth II, 2022

 

Private Member's Bill

 

Credit Union Act
(amended)

 

Lisa Lachance
Halifax Citadel–Sable Island

First Reading: April 19, 2022

(Explanatory Notes)

Second Reading:

Third Reading:

Explanatory Notes

Clause 1 adds a definition of "micro-loan".

Clause 2 allows credit unions to make policies respecting micro-loans.

Clause 3 allows credit unions to exclude micro-loans, or the guaranteed portions of micro-loans, from their liquidity reserve calculations.

Clause 4 allows the Minister responsible for the Credit Union Act to guarantee or partially guarantee micro-loans made by credit unions.

Clause 5 allows the Governor in Council to make regulations respecting micro-loans.

An Act to Amend Chapter 4
of the Acts of 1994,
the Credit Union Act

Be it enacted by the Governor and Assembly as follows:

1 Section 3 of Chapter 4 of the Acts of 1994, the Credit Union Act, as amended by Chapter 11 of the Acts of 2004 and Chapter 49 of the Acts of 2010, is further amended by adding immediately after clause (u) the following clause:

(ua) "micro-loan" means a loan that is
(i) for an amount of two thousand five hundred dollars or less, and

(ii) for a term of two years or less;

2 Section 45 of Chapter 4 is amended by

(a) adding "(1)" immediately after the Section number; and

(b) adding immediately after subsection (1) the following subsections:

(2) Subject to the regulations, a loan policy adopted pursuant to subsection (1) may allow for the credit union to make micro-loans to its members, including directors and officers, and its employees.

(3) A credit union may adopt different policies for loans that are micro-loans and loans that are not micro-loans.

3 Section 49 of Chapter 4, as amended by Chapter 13 of the Acts of 2019, is further amended by adding immediately after subsection (3) the following subsection:

(4) A credit union may exclude micro-loans, or the guaranteed portions of micro-loans, from the calculation of any liquidity reserve requirement in accordance with, and where authorized by, the regulations.

4 Chapter 4 is further amended by adding immediately after Section 255 the following Section:

255A (1) Subject to subsection (2), the Minister may, in accordance with the regulations, guarantee or partially guarantee a micro-loan made by a credit union.

(2) The money required for the purpose of this Section must be paid out of money appropriated for that purpose by the Legislature.

5 Subsection 257(1) of Chapter 4, as amended by Chapter 13 of the Acts of 2019, is further amended by adding immediately after clause (j) the following clause:

(ja) respecting the making of micro-loans by credit unions, including
(i) the total amount of micro-loans that may be made by a credit union,

(ii) the guarantee of micro-loans by the Minister,

(iii) the locations from which credit unions may make or offer micro-loans in addition to their normal branches, and

(iv) the exclusion or partial exclusion of micro-loans, or the guaranteed portion of micro-loans, from any benchmark, control or liquidity reserve requirement;

 

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