Hyperlawhypertext legal database Disclosure of Interest (Retail Associations) Regulations current to 2019-06-21

SOR-2003-298 Disclosure of Interest (Retail Associations) Regulations

Current to 2019-06-21 · last amended 2009-02-12

Contents
Provision

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 385.09 a, subsection 385.1(6) a and sections 385.28 a and 463 b of the Cooperative Credit Associations Act c, hereby makes the annexed Disclosure of Interest (Retail Associations) Regulations. S.C. 2001, c. 9, s. 313 S.C. 2001, c. 9, s. 339 S.C. 1991, c. 48

Interpretation

s. 1 — Definitions

The following definitions apply in these Regulations.

s. 1, definition “act”

Act means the Cooperative Credit Associations Act. (Loi)

s. 1, definition “deposit account”

deposit account means an interest-bearing deposit account. (compte de dépôt)

s. 1, definition “point of service”

point of service means a physical location to which the public has access and at which a retail association carries on business with the public and opens or initiates the opening of deposit accounts through natural persons in Canada. (point de service)

Deposit Accounts

s. 2 — Manner of disclosure
s. 2(1)

Subject to subsection (2), a retail association shall disclose to a person who requests the retail association to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated

s. 2(1)(a)

if a statement of account is provided in respect of the deposit account, by means of a written statement delivered to that person, at or before the time the deposit account is opened; or

s. 2(1)(b)

if no statement of account is provided in respect of the deposit account, by means of

s. 2(1)(b)(i)

a written statement, copies of which are available and displayed in each branch of the retail association where deposit accounts are kept, or

s. 2(1)(b)(ii)

a general notice that is displayed in each of the retail association’s branches where deposit accounts are kept, at each of the retail association’s points of service and on the retail association’s websites through which it offers deposit accounts in Canada.

s. 2(2) — Opening of account on telephone request

In the case of the opening of a deposit account on a telephone request as contemplated by subsection 385.1(3) of the Act, a retail association shall, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.

s. 2(3) — Required contents

A written statement and a general notice referred to in subsection (1) or a written statement referred to in subsection (2) shall include

s. 2(3)(a)

the annual rate of interest;

s. 2(3)(b)

the frequency of payment of interest;

s. 2(3)(c)

the manner, if any, in which the balance in the deposit account affects the rate of interest; and

s. 2(3)(d)

any other circumstance that affects the rate of interest.

s. 2(4) — Presumption

A written statement referred to in subsection (2) that is sent to a customer by mail is deemed to be provided to the customer on the fifth day after the postmark date on the statement.

s. 3 — Disclosure of changes

A retail association shall disclose any change in the rate of interest applicable to a deposit account or any change in the manner of calculating the amount of interest applicable to the deposit account, by means of

s. 3(a)

a written statement delivered to the person in whose name the account is kept;

s. 3(b)

a written statement copies of which are available and displayed in each branch of the retail association where deposit accounts are kept; or

s. 3(c)

a general notice that is displayed in each of the retail association’s branches where deposit accounts are kept, at each of the retail association’s points of service and on the retail association’s websites through which it offers deposit accounts in Canada.

s. 4

[Repealed]

Advertising

s. 5 — Manner of disclosure

A retail association shall, in all advertisements referred to in section 385.08 of the Act, disclose how the amount of interest is to be calculated by means of a statement in the advertisement that clearly sets out

s. 5(a)

in respect of interest-bearing deposits, the manner, if any, in which the balance of a deposit account will affect the rate of interest; and

s. 5(b)

all other circumstances that will affect the rate of interest.

Coming into Force

s. 6 — Coming into force

These Regulations come into force on the day on which they are registered.