Credit Union Incorporation
The Credit Unions Act of New Brunswick regulates the incorporation of credit unions in the province. A credit union is created when an application is made to this Minister and upon approval of the Lieutenant-Governor in Council a certificate of incorporation is issued.
To incorporate a Credit Union an application must be submitted to this department. To incorporate a credit union 10 or more applicants, who are of the age of majority, may make an application to the Minister and upon approval of the Lieutenant-Governor in Council, a certificate of incorporation will be issued. Form 3 is used for the application. It includes a signed declaration that, to the best of their belief, each director named is qualified to be a director and that the proposed name is not in violation of the Act.
The applicants will have to provide a NUANS report (name search) to assure the name under which the incorporation is sought is not similar to that of another business. Applicants should check with the Department to make sure the proposed name is acceptable to the Superintendent of Credit Unions.
Applicants will have to make by-laws to provide for such matters as are applicable but are not set out in the articles:
(a) qualifications for, conditions of and method of applying for and terminating membership in the credit union;
(b) location of meetings, procedures and quorum, rights in relation to voting and the making, repealing or amending of by-laws, right of members to vote by ballot or mail or both, and the manner, form and effect of voting;
(c) election, term of office, removal of and filling of vacancies among directors, committee members and officers, their powers, duties and remuneration, and the procedure and quorum at meetings of the board of directors; and
(d) the division of the territory into districts for the purpose of holding district meetings during annual or other meetings of members, the business that may be conducted and procedures to be followed.
Applicants also have to submit with an application:
(a) a declaration, that subject to the Act and regulations, the purpose of the credit union is to provide a comprehensive range of financial services that meet the needs of its members and that it shall operate on a co-operative basis and in accordance with generally accepted co-operative principles;
(b) a declaration that they are qualified to establish and the proposed directors are qualified to establish and operate the proposed credit union;
a statement indicating which federation and stabilization board the credit union will become a member of;
(c) a written opinion from the federation and stabilization board indicating that the proposed credit union will be established and operated in a manner whereby the investments and deposits of the members will be safeguarded;
(d) a written statement that the proposed credit union will maintain such types and minimum levels of insurance and bonding as required by the stabilization board.
a business plan indicating the proposed credit union's strategic planning, marketing, human resources, operation, finance and accounting policies and procedures.
(e) a five year pro forma financial projection.
(f) a letter of commitment from the stabilization board to maintain the equity level as per the requirements of the Credit Unions Act and regulations.
The Commission will ensure the documents are in conformity with the Credit Unions Act.
Before it starts operations, the credit union has to provide to the Superintendent with:
(a) a copy of the stabilization board approval of the credit union's loan policy;
(b) a copy of the stabilization board approval, or denial, of the credit union's making commercial loans, real estate mortgage loans, loans on the security of propery other than residential property, and loans to corporations or other organized bodies operated on a not for profit basis;
(c) a copy of the stabilization board approval of the credit union's proposed investment policy, including the terms, conditions, restrictions and limitations;
(d) a copy of the investment policy approved by the stabilization board;
(e) copies of the proposed monitoring reports specifying the content, frequency and forms to be submitted to the stabilization board; and
(f) written confirmation that the credit untion is a bona fide memer of a federation listed in the Credit Unions Act.
A credit union must, each year after its annual meeting, send its annual return and audited financial statements to the Superintendent.
A credit union must, each year after its annual meeting, send its annual return and audited financial statements to the Superintendent. For more information on the requirements under the Credit Unions Act, please call the Credit Unions, Co-operatives & Trust Companies Branch at (506)453-2315.
Unless otherwise specified, Fees exclude the harmonized sales tax (HST).
|Fee Description||Rate in $||Effective Date|
|There is no fee for the incorporation of a credit union or for an amendment to a by-law or the articles. The credit union is charged an annual assessment to cover the costs and expenses in relation to the administration of the Act and regulations.|