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PACE CU to be folded into another CU
June 17, 2022
9:25 pm
AltaRed
BC Interior
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It appears there has been no (or little) recent updating of content on their website except for that pertaining to the Alterna takeover. Until the deal closes, I suppose nothing much should change which is kind of what is being said in https://www.pacecu.ca/SharedContent/documents/2022/PACEMemberFAQsFINALApril25UPDATED.pdf It also seems from that document that Alterna will operate Pace 'as is' until Pace member accounts can be folded into Alterna equivalents. That is likely a 3Q activity.

June 18, 2022
7:17 am
COIN
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According to their website, PACE is still offering GIC's. Anyone bought?

Question: Are PACE GIC's still guaranteed up to $250,000?

June 18, 2022
11:39 am
Norman1
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No changes to the deposit insurance coverage of the PACE deposits are expected.

The deposits remain insured while they are deposits of PACE Savings & Credit Union Limited.

The deposits will be insured should they later be exchanged for deposits of Alterna Savings and Credit Union Limited.

The transaction does not seem to be an amalgamation of two credit unions under section 220 of the Ontario Credit Unions and Caisses Populaires Act. So, the PACE deposits will be actually be insurable and not necessarily be insured after being exchanged for Altera Savings deposits later.

The deposits won't be insured, unless FSRA does something special, for those who end up over the $250,000 limit in combination with their existing Alterna Savings deposits.

June 18, 2022
1:26 pm
Norman1
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Actually, there is a deemed amalgamation provision in subsection 220 (4) that could be applied for separate deposit insurance coverage: sf-smile

Remain separate
220 (2) A deposit with an amalgamating credit union on the day on which the amalgamated credit union is formed, less any withdrawals from the deposit, is, for the purpose of deposit insurance with the Authority, separate from a deposit of the same person on that day with another amalgamating credit union that became part of the amalgamated credit union.

If undertaking acquired
220 (4) For the purpose of deposit insurance with the [Financial Services Regulatory] Authority, if one credit union acquires the undertaking and assets of another credit union, those credit unions are considered to be amalgamating credit unions.

June 23, 2022
10:12 am
COIN
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I called PACE and was advised that they are still carrying on business as Pace Credit Union until the year long process to integrate into Alterna is complete.

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