Important Notice!

Dear Members:

On July 5, 2010 the Deposit Insurance Corporation of Ontario (DICO) exercised it's powers under Section 295 of the Credit Union's and Caisses Populaires Act 1994, requiring the credit unions be wound up. DICO has been appointed liquidator.

Your deposits are 100% insured by DICO.

Over the past year, Canal City Savings & Credit Union Limited with Deposit Insurance Corporation of Ontario reviewed the options available to the credit union to address the capital deficiency. We are pleased to announce that FirstOntario Credit Union Limited has entered into an agreement with DICO to assume substantially all of the assets of Canal City Savings and assume all deposit liabilities. The transaction is scheduled to close on July 24, 2010.

All members of Canal City Savings will have an opportunity to become members of FirstOntario, and provided they continue their membership for two years, the cost of becoming a member will be forgiven. Former Canal City Savings members who cease to belong to FirstOntario for the two year period will forfeit their membership shares in FirstOntario.

Canal City Savings shareholders, will continue to be shareholders and at the end of the liquidation process, if there are sufficient funds available, will be entitled to share equally in such funds.

Canal City Savings & Credit Union will open normal hours at 815 Ontario Rd. Welland, until 5:00 p.m. on July 23rd, at which time the remaining assets will be transferred to DICO's Toronto office.

For those members who have loans outstanding with Canal City savings, you will be receiving notification in the mail as to how this process will affect your future loan payments, if at all.

Should you have any questions concerning this transaction, please contact: 

Canal City Savings & Credit Union Limited 905.732.4439 or FirstOntario Credit Union Limited 840 Niagara St. Welland, ON 905.685.5555, 1.800.616.8878, www.firstontariocu.com

posted on behalf of:

Keith Lowe
General Manager/Treasurer
Canal City Savings & Credit Union Limited

J Michael White, CGA, CFE, CIA.CFI
Manager, Asset Management and Recoveries
Deposit Insurance Corporation of Ontario

Key Dates:

July 5, 2010
- Members' Meeting
- CCS&CU was placed in liquidation by DICO
- DICO appointed liquidator

July 15, 2010
- Touch Tone Banking to go off-line

July 22, 2010
- CCS&CU to stop accepting Utility Bill Payments
- MemberDirect internet banking to go off-line

July 23, 2010
- CCS&CU Ontario Road branch closes at 5:00 p.m.

July 24, 2010
- CCS&CU issued MemberCards will be discontinued/deactivated
- Specific loans and all deposit accounts to be electronically transferred to FirstOntario
- CCS&CU members will automatically become members of FirstOntario
- Note: CCS&CU personal cheques may continue to be used after July 24th

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