Canada Gazette, Part I, Volume 159, Number 24: MISCELLANEOUS NOTICES

June 14, 2025

ABCU CREDIT UNION LTD.

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

Date: May 24, 2025

To: Members of ABCU Credit Union Ltd.

On June 25, 2025, the members of ABCU Credit Union Ltd. (“ABCU”) will vote on a special resolution to authorize ABCU to make an application to become a federal credit union under the Bank Act, followed by an immediate amalgamation with Innovation Federal Credit Union (“Innovation”). Members of ABCU are invited to consider the information in this Notice before voting. Votes will be submitted electronically at a special meeting on June 25, 2025.

In accordance with the Disclosure on Continuance Regulations (Federal Credit Unions) [the “Regulations”], this Notice is provided to inform ABCU members of changes to deposit insurance coverage that would apply to their eligible deposits held with ABCU in the event that ABCU becomes a federal credit union and, on that same day, a member of the Canada Deposit Insurance Corporation (“CDIC”).

Deposit insurance automatically applies to eligible deposits held at financial institutions that are members of deposit insurance protection agencies. It is designed to protect certain deposits in case the financial institution holding them fails.

Deposits held with ABCU are currently insured by the Credit Union Deposit Guarantee Corporation (“CUDGC”), which insures deposits held at credit unions incorporated in Alberta. If ABCU obtains the necessary member and regulatory approvals and becomes a federal credit union, it will automatically become a member of the CDIC and CUDGC deposit insurance coverage will cease to apply. The CDIC insures deposits held by its member institutions, which include banks, federal credit unions, and trust and loan companies.

What is covered in this Notice

In accordance with the Regulations, this Notice provides information regarding certain changes that will come into effect if ABCU becomes a federal credit union. Specifically, this Notice includes the following:

• Continuation day: information about the day on which current CUDGC deposit insurance coverage for deposits held with ABCU would end and CDIC deposit insurance coverage would begin;
• Current CUDGC deposit insurance coverage: a description of the CUDGC coverage that currently applies to deposits held with ABCU;
• Transitional CDIC coverage: a description of the CDIC coverage that would apply during the transition period to pre-existing deposits held with ABCU; and
• Standard CDIC coverage: a description of the CDIC coverage that would apply after the transition period to deposits held with ABCU and how this coverage differs from the pre-continuance CUDGC deposit insurance coverage applicable to ABCU.

Additional information will be provided to ABCU members regarding the special resolution to authorize an application to become a federal credit union followed by an immediate amalgamation with Innovation.

This information is also available at any ABCU branch and by visiting the merger information web page.

The information includes examples to help members understand the changes to deposit insurance coverage.

Important qualifications

The information included in this Notice is current as of the date of this Notice. Deposit insurance coverage offered by CUDGC and/or the CDIC may change in the future. If there are material changes to deposit insurance coverage offered by CUDGC and/or the CDIC before and if ABCU becomes a federal credit union and amalgamates with Innovation, ABCU may revise this Notice accordingly.

The publication of this Notice and a positive vote by the members of ABCU to apply to become a federal credit union and immediately amalgamate with Innovation do not guarantee that approval will be granted by Canada’s Minister of Finance and other regulatory bodies or that becoming a federal credit union will occur on the dates referenced in this Notice or in any other document or that it will occur under the conditions stated in this Notice or in any other document.

Continuation day

The continuation day is the date that ABCU would become a federal credit union and amalgamate with Innovation. This date would be indicated in the letters patent of continuance and letters patent of amalgamation issued by Canada’s Minister of Finance. On the continuation day, ABCU will become a member of CDIC and on the same day, CUDGC deposit insurance will no longer apply to deposits held by ABCU, including to those deposits not eligible for CDIC coverage. Instead, CDIC deposit insurance will apply to deposits held by ABCU that are eligible for CDIC coverage.

As of the publication date of this Notice, ABCU has not submitted an application to continue as a federal credit union followed by an immediate amalgamation with Innovation, and the federal Minister of Finance has not rendered a decision on ABCU’s continuation as a federal credit union followed by an immediate amalgamation with Innovation, nor has there been any indication of approval to occur in the future.

Current Credit Union Deposit Guarantee Corporation (CUDGC) deposit insurance coverage

Until the continuation day, the full amount of deposits held with ABCU, including accrued interest, is insured by CUDGC as described in Table 1. The insurance applies to all forms of personal, business and trust deposits held in Alberta credit unions. The insurance covers all deposits in Alberta credit unions regardless of membership, citizenship, or residence of the depositor.

Table 1: Credit Union Deposit Guarantee Corporation (CUDGC) deposit insurance coverage

	Deposits held in one name	Deposits held in more than one name (joint Accounts)	Deposits in a Trust Account	Deposits in an RRSP	Deposits in an RRIF	Deposits in a TFSA	Deposits in an FHSA
Savings accounts table 1 note a	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Chequing accounts table 1 note a	Yes	Yes	Yes	Not applicable	Not applicable	Not applicable	Not applicable
GIC and other terms regardless of length to maturity table 1 note a table 1 note †	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Money orders, certified cheques, traveller’s cheques, drafts, and prepaid letters of credit in respect of which a credit union is primarily liable	Yes	Yes	Yes	Not applicable	Not applicable	Not applicable	Not applicable
Table 1 note(s) Table 1 note a Including the Canadian dollar equivalent of foreign currency deposits. Return to table 1 note a referrer Table 1 note † Including the principal on index-linked term deposits and the return once the credit union is holding it. Return to table 1 note † referrer

Note: Deposits fully insured

What is not covered by CUDGC deposit insurance

• (1) membership shares issued by a credit union;
• (2) investment shares issued by a credit union;
• (3) securities and shares issued by other corporations;
• (4) mutual funds;
• (5) bonds, notes, treasury bills, and debentures issued by governments or corporations;
• (6) money orders, certified cheques, traveller’s cheques, debentures, drafts, and prepaid letters of credit in respect of which a credit union is not primarily liable; and
• (7) the return on index-linked term deposits before it is paid to the credit union, safety deposit box contents and other securities held for safekeeping.

Transitional CDIC Coverage

Starting on the continuation day, deposit insurance coverage for deposits previously held with ABCU would be covered by the CDIC so long as deposits are eligible for CDIC coverage. CUDGC deposit insurance would no longer apply, including to those deposits not eligible for CDIC coverage.

A transition period would begin on the continuation day. During this transition period, any “pre-existing deposits” — deposits that were made with ABCU before it became a federal credit union and amalgamated with Innovation and that remain outstanding on the continuation day — would be insured by the CDIC to the same extent as the current CUDGC deposit insurance coverage described above. During this period, CDIC deposit insurance coverage would not apply to

• deposits that are payable outside Canada;
• deposits in respect of which the Government of Canada is a preferred claimant;
• traveller’s cheques; and
• investments in non-equity shares and declared but unpaid dividends on those shares.

The transition period for pre-existing demand deposits would end 180 days after the continuation day. In the case of a pre-existing deposit that is to be repaid on a fixed day (i.e. a term deposit or a GIC), the transition period would end on the maturity date or when it is cashed out. For example, and bearing in mind the above-noted exceptions to CDIC coverage, if the continuation day were January 1, 2026, any eligible pre-existing deposit that is not for a fixed period would have unlimited coverage until June 29, 2026, inclusive, minus any amount withdrawn from the eligible pre-existing deposits during this period. Any eligible pre-existing deposit that is for a fixed term, bearing in mind the above-noted exceptions to CDIC coverage, would have unlimited coverage until the end of that fixed term.

The CDIC transitional coverage does not apply to deposits that are made with ABCU/Innovation on or after the continuation day. During the transition period, these deposits would be treated as separate deposits from any pre-existing deposits and would be covered in accordance with the CDIC standard deposit insurance coverage that is described in the next section.

Once the transition period ends, the CDIC standard deposit insurance coverage that is described in the next section would apply to all eligible deposits with ABCU/Innovation. For the purpose of determining deposit insurance coverage per insurance category, eligible pre-existing deposits would be combined with eligible deposits made on or after the continuation day.

Standard CDIC coverage

The CDIC’s standard deposit insurance coverage would apply to all eligible deposits that are made with ABCU/Innovation after the continuation day. This is the same deposit insurance coverage that applies to all CDIC member institutions.

There are certain differences between the deposit insurance coverage provided by the CDIC and CUDGC:

• Coverage limit: The CDIC provides deposit insurance coverage for all eligible deposits up to a maximum amount of $100,000 for each of the categories, in each of its member institutions (please refer to Table 2). This means that, if you have deposits in more than one category, you will be insured for up to $100,000 in each of those categories, for each CDIC member institution. CUDGC provides deposit insurance for the full amount of the deposits.
• Investments in non-equity shares: CDIC does not provide deposit insurance coverage for money invested in non-equity shares.
• Traveller’s cheques: CDIC does not provide deposit insurance coverage for traveller’s cheques.
• Government of Canada as a preferred claimant: The CDIC does not provide deposit insurance coverage for deposits in respect of which the Government of Canada is a preferred claimant. No such restriction is expressed in respect of CUDGC deposit insurance.

Table 2: CDIC standard deposit coverage

	Deposits held in one name	Deposits held in Joint Accounts	Deposits in a Trust Account	Deposits in an RRSP	Deposits in an RRIF	Deposits in a TFSA	Deposits in an FHSA	Deposits in RESP	Deposits in RDSP
Savings accounts (including foreign currency deposits)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Chequing accounts (including foreign currency deposits)	Yes	Yes	Yes	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable
GIC and other term deposits table 2 note a (regardless of term to maturity)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Money orders, certified cheques, bank drafts, and prepaid letters of credit in respect of which a CDIC member institution is primarily liable	Yes	Yes	Yes	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable
Debentures issued as proof of deposit for CDIC member institutions (other than banks)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Table 2 note(s) Table 2 note a An index-linked deposit would be insurable only if the principal is fully repayable (at maturity or otherwise). Return to table 2 note a referrer

Note: Deposits insured up to $100,000 (principal and interest combined) per category listed above. Must be payable in Canada.

What is not covered by standard CDIC deposit insurance coverage

• (1) membership shares issued by a federal credit union;
• (2) any shares issued by a federal credit union;
• (3) debentures issued by a federal credit union;
• (4) deposits not payable in Canada;
• (5) shares issued by other corporations;
• (6) mutual funds;
• (7) traveller’s cheques;
• (8) bonds, notes, treasury bills, and debentures issued by governments or corporations;
• (9) money orders, certified cheques, drafts, and prepaid letters of credit in respect of which a federal credit union is not primarily liable;
• (10) principal protected notes (with some exceptions);
• (11) safety deposit box contents; and
• (12) securities held for safekeeping.

Questions

Specific examples of how transitional coverage works are available on the ABCU Credit Union Ltd. website.

If you have any questions on deposit insurance, you can also visit the following websites:

• Canada Deposit Insurance Corporation
• Credit Union Deposit Guarantee Corporation — Alberta