News Release Archive
HOUSING AND CONSUMER AFFAIRS---INTERPRETATION ACT AMENDMENTS ------------------------------------------------------------ Legislation allowing the use of credit unions and trust companies, in addition to banks, for the depositing of funds was introduced in the Legislature today by Housing and Consumer Affairs Minister Eleanor Norrie. The minister said there are many examples in provincial statutes of requirements for depositing funds, including trust funds held by law firms, real estate companies, insurance agencies and funeral directors; reserve funds held by municipalities; and, payments into the court. "The amendments to the Interpretation Act will give those responsible for depositing these funds the option of using credit unions and trust companies in addition to the banks," Mrs. Norrie said. "We are responding to requests from credit unions to broaden the provisions of the statutes concerning the depositing of funds," she said. Deposits in Nova Scotia credit unions are now insured on a similar basis to deposits in trust companies and banks. Deposit insurance was extended to credit unions in legislation that became effective Jan.1, 1995, with the establishment of the Nova Scotia Credit Union Insurance Corporation. "These amendments will put all deposit taking financial institutions in Nova Scotia on a level playing field, when considering ability to hold deposits under the provision of the statutes," Mrs. Norrie said. The minister said that instead of amending each act that includes provisions for depositing funds in a bank, it is more efficient to amend the definition of the word "bank" in the Interpretation Act. Unless the word "bank" is specifically defined in a statute, the amendments extend the meaning of "bank" to include credit unions, subject to the Credit Union Act, and trust and loan companies, licensed under the Trust and Loan Companies Act, she said. -30- Contact: Laurel Russell 902-424-4988 trp Nov. 07, 1995