The Credit Unions Act
of New Brunswick regulates the incorporation of credit unions in the province.
To incorporate a credit union, 10 or more applicants, who are of the age of majority, may make an application to the Superintendent and upon approval of the Lieutenant-Governor in Council, a certificate of incorporation will be issued. The application is made using Form 3. It includes a signed declaration that, to the best of their knowledge, 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 conduct a name search and provide a NUANS report to ensure the name under which the incorporation is sought is not similar to that of another business. Applicants should check with the Commission’s Financial Institutions Division to verify that the proposed name is acceptable to the Superintendent of Credit Unions. This approval must be done prior to making any investment in the name (i.e., logo, brand, website, etc.).
Applicants are required to provide by-laws to address matters that are applicable but are not set out in the articles of incorporation, such as:
- qualifications for, conditions of and method of applying for and terminating membership in the credit union;
- 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, mail, telephone or other communication facilities and the manner, form and effect of voting;
- 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;
- 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 their application:
- 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;
- 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 that the credit union will become a member of Atlantic Central and the Brunswick Credit Union Stabilization Board Limited (RMA);
- a written opinion from the Atlantic Central and the Brunswick Credit Union Stabilization Board Limited (RMA) 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;
- a written statement that the proposed credit union will maintain such types and minimum levels of insurance and bonding as required by the Brunswick Credit Union Stabilization Board Limited (RMA);
- a business plan indicating the proposed credit union's strategic planning, marketing, human resources, operation, finance and accounting policies and procedures.
- a five year pro forma financial projection.
- a letter of commitment from the Brunswick Credit Union Stabilization Board Limited (RMA) 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:
- a copy of the Brunswick Credit Union Stabilization Board Limited (RMA) approval of the credit union's loan policy;
- a copy of the Brunswick Credit Union Stabilization Board Limited (RMA) approval, or denial, of the credit union's making commercial loans, real estate mortgage loans, loans on the security of property other than residential property, and loans to corporations or other organized bodies operated on a not for profit basis;
- a copy of the Brunswick Credit Union Stabilization Board Limited (RMA) approval of the credit union's proposed investment policy, including the terms, conditions, restrictions and limitations;
- a copy of the investment policy approved by the Brunswick Credit Union Stabilization Board Limited (RMA);
- copies of the proposed monitoring reports specifying the content, frequency and forms to be submitted to the Brunswick Credit Union Stabilization Board Limited (RMA); and
- written confirmation that the credit union is a bona fide member of Atlantic Central.
A credit union must, each year after its annual meeting, send its annual return and audited financial statements to the Superintendent.