Vol. 149, No. 15 — April 11, 2015

MISCELLANEOUS NOTICES

CAISSE POPULAIRE ACADIE LTÉE

NOTICE PURSUANT TO THE DISCLOSURE ON CONTINUANCE REGULATIONS (FEDERAL CREDIT UNIONS)

Date: October 8, 2014

To: Members of Caisse populaire Acadie Ltée, Caisse populaire Beauséjour Ltée, Caisse populaire Chaleur Ltée, Caisse populaire de Néguac Ltée, Caisse populaire des Fondateurs Ltée, Caisse populaire des Iles Ltée, Caisse populaire Dieppe-Memramcook Ltée, Caisse populaire La Vallée de l’Érable Ltée, Caisse populaire le Lien des deux Rivières Ltée, Caisse populaire Madawaska Ltée, Caisse populaire Restigouche Ltée, Caisse populaire Sud-Est Ltée, Caisse populaire Trois Rives Ltée, La Caisse Populaire de Beresford Ltee. and La Caisse Populaire de Shippagan Limitée.

On November 12, 2014, the aforementioned caisses populaires will present to their members, for approval, a provincial amalgamation proposal for the 15 caisses populaires.

At the same time, pursuant to the federal legislation, the caisses populaires will also request from their members an authorization, to be adopted by special resolution, allowing it to make an application to be continued as a federal credit union.

In accordance with the Disclosure on Continuance Regulations (Federal Credit Unions) [the Regulations], the caisses populaires must inform their members, at least four weeks before the vote of the members on the special resolution, of all changes to the deposit insurance coverage that would apply to their deposits in the event that an application for continuance is approved.

As of the date of the potential continuance under federal legislation the members’ eligible deposits would be insured by the Canada Deposit Insurance Corporation (CDIC) instead of the New Brunswick Credit Union Deposit Insurance Corporation (NBCUDIC) as is currently the case. This Notice is being sent to you in compliance with regulatory requirements which set out the content of the Notice to be sent where the caisses populaires will request your authorization to make an application to be continued as a federal credit union.

As required by the Regulations, this Notice contains information about the day on which provincial deposit insurance coverage for deposits held by the caisses populaires would end, a description of the CDIC coverage that would apply during the transition period to the pre-existing deposits of members of caisses populaires that are continued as a federal credit union, and a description of how this coverage differs from the pre-continuance provincial deposit insurance coverage applicable to the caisses populaires deposits.

The tables included in this Notice will help you understand how your deposit insurance coverage would change should your caisse populaire continue as a federal credit union. The issue of deposit insurance coverage will also be discussed during the information sessions held for all caisses populaires in October and during special meetings to be held on November 12, 2014, during which members will be invited to share their views on this provincial amalgamation project and subsequent application to be continued as a federal credit union. Notices for these meetings will be posted in all caisses populaires.

It should also be noted that the information included in this Notice is the information that is in force on the date of the Notice and that this Notice sets out the deposit insurance coverage rules of CDIC and of NBCUDIC on the date of the Notice.

Also please take note that the federal government has announced changes to the legislative framework applicable to federal credit unions. These changes, if they are brought into effect, could modify the deposit insurance coverage after the issuance of the Notice. For more information on these proposed changes, please visit the following Web sites: www.fin.gc.ca/n14/14-010-eng.asp and www.budget.gc.ca/2014/docs/plan/pdf/budget2014-eng.pdf. You can also visit your caisse populaire to get a copy of these documents.

This Notice, as required by the Regulations, will also be posted on the caisses populaires’ Web site, www.acadie.com, and will be published for four (4) consecutive weeks in the Canada Gazette and in one or more general circulation provincial newspapers. It is also available at your caisse populaire if you wish to get additional copies. As required, the Notice will also be readily visible in all caisses populaires business locations, and provide information on how to obtain copies.

The publication of this Notice and the positive vote of the members of the caisses populaires at the special meetings to be held on November 12, 2014, do not in any way guarantee that the provincial amalgamation and continuance as a federal credit union will be approved by the regulatory bodies, or that either event will occur on the dates indicated or that they will occur under the conditions stated in this Notice or in any other document.

I. Current deposit insurance coverage

Until the continuance date, your deposits will be insured by NBCUDIC as follows:

  Personal Savings Savings in a Trust Account Savings in a RRSP Savings in a RRIF Savings in a TFSA Savings in the Name of Several People (Joint Deposits)
Deposits insured from $1 to $250,000 (per category)
Savings accounts Check mark Check mark Check mark Check mark Check mark Check mark
Chequing accounts Check mark Check mark N/A N/A N/A Check mark
GIC and other term deposits (5 years or less) Check mark Check mark Check mark Check mark Check mark Check mark
Money orders, certified cheques, traveller’s cheques, debentures, bank drafts, prepaid letters of credit in respect of which the caisse is primarily liable Check mark Check mark N/A N/A N/A Check mark

The following are not insured by NBCUDIC: mutual funds and shares; guaranteed investment certificates (GICs) and other term deposits (greater than 5 years); money orders, certified cheques, traveller’s cheques, debentures, bank drafts, prepaid letters of credit in respect of which caisse populaire is not primarily liable; bonds, notes and debentures issued by governments or corporations; membership shares and other shares issued by a caisse populaire; principal protected notes; treasury bills and deposits in American dollars or other currencies.

For the purposes of deposit insurance, amounts in savings accounts, chequing accounts, GICs and other term deposits of 5 years or less, money orders, traveller’s cheques, certified cheques, debentures, bank drafts and prepaid letters of credit in respect of which the caisse populaire is primarily liable are combined and eligible for coverage up to a combined amount of $250,000.

Separate coverage applies to each category indicated in the upper section of the table (i.e. TFSA, RRSP, RRIF, etc.). Consequently, you are insured up to the eligible maximum for each category in the above table.

Here are a few examples related to the current deposit insurance coverage:

II. Deposit insurance coverage during the transition period

During the transition period, deposit insurance coverage would be provided by CDIC as follows:

Coverage offered by CIDC during the transition period for pre-existing deposits

  Savings Held in One Name Saving Held in Trust Savings held in RRSP Savings Held in RRIF Savings Held in TFSA Savings Held in more than one Name (Joint Deposits)
Deposits insured from $1 to $250,000 (per category)
Savings accounts Check mark Check mark Check mark Check mark Check mark Check mark
Chequing accounts Check mark Check mark N/A N/A N/A Check mark
GIC and other term deposits (5 years or less) Check mark Check mark Check mark Check mark Check mark Check mark
Money orders, certified cheques, traveller’s cheques, debentures, bank drafts, prepaid letters of credit in respect of which the caisse is primarily liable Check mark Check mark N/A N/A N/A Check mark

The following are not covered by CDIC during the transition period: mutual funds and shares; GIC and other term deposits (greater than 5 years); money orders, certified cheques, traveller’s cheques, debentures, bank drafts, prepaid letters of credit in respect of which the caisse populaire is primarily liable; bonds, notes and debentures issued by governments or corporations; membership shares and other shares issued by a caisse populaire; principal protected notes; treasury bills and deposits in American dollars or other foreign currencies.

For the purposes of deposit insurance, amounts included in each category in chequing and savings accounts, GICs and other fixed-term investments of 5 years or less, money orders, certified cheques, traveller’s cheques, debentures, bank drafts and prepaid letters of credit under which the caisse populaire is the principal would be combined and eligible for combined deposit insurance coverage up to $250,000.

III. Coverage offered by CDIC after the transition period

Deposit insurance coverage provided by CDIC following the transition period

It is important to understand that subject to regulatory approval, the continuation date would be the date indicated in the letters patent continuing your caisse populaire as a federal credit union.

After the date of the continuance, including the transitional period defined above in this Notice, all caisses populaires’ members’ eligible savings would be protected by CDIC in compliance with CDIC’s established deposit insurance coverage.

Any new eligible deposit made in your caisse populaire following the continuance date would also be insured separately up to $100,000, in accordance with the insurance coverage stated in the table on deposit insurance coverage offered by the CDIC following the transition period (please see table below related to the coverage offered by the CDIC following the transition period).

As at the date of this Notice, following the transition period, CDIC coverage would be as follows:

  Savings held in One Name Savings held in Trust Savings Held in RRSP Savings Held in RRIF Savings Held in a TFSA Savings Held for Paying Realty Taxes on Mortgages Payments Savings Held in More Than One Name (Joint Deposits)
Deposits insured from $1 to $100,000 (per category)
Savings accounts Check mark Check mark Check mark Check mark Check mark Check mark Check mark
Chequing accounts Check mark Check mark         Check mark
GIC and other term deposits (5 years or less) Check mark Check mark Check mark Check mark Check mark   Check mark
Money orders, certified cheques, traveller’s cheques and bank drafts issued by institutions member of the CDIC Check mark Check mark         Check mark
Debentures issued as proof of deposit for CDIC member institutions (other than banks) Check mark Check mark Check mark Check mark Check mark   Check mark

The following are not insured by CDIC: mutual funds and shares; GIC and other term deposits (greater than 5 years); money orders, certified cheques, traveller’s cheques and bank drafts issued by institutions who are not members of the CDIC; bonds, notes and debentures issued by governments or corporations, including banks and other CDIC members (except for certain debentures issued by CDIC members other than banks); principal protected notes (with some exceptions); treasury bills and deposits in American dollars or other foreign currencies.

As noted above, there would be differences between the deposit insurance coverage currently offered by NBCUDIC and the CDIC deposit insurance coverage. The main differences can be summarized as follows:

(1) Coverage Limit

The deposit insurance coverage offered by NBCUDIC covers all eligible deposits up to a maximum amount of $250,000 for each of the categories stated in the table describing the deposit insurance coverage available through NBCUDIC at the time of this Notice.

CDIC provides deposit insurance coverage for all eligible deposits up to a maximum amount of $100,000 for each of the categories stated in the table in Section III.

(2) Separate coverage category

CDIC also provides deposit insurance coverage for money held for paying realty property taxes on mortgaged properties.

Deposit insurance coverage offered by NBCUDIC does not provide separate coverage for money held for paying realty property taxes on mortgaged properties.

Here are some examples of how your deposits would be covered by CDIC following the transition period:

If you have any questions on deposit insurance, please visit the following Web sites:

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