Exempt Debt Obligation Transactions (Banks and Bank Holding Companies) Regulations

SOR/2001-382

Registration 4 October, 2001

BANK ACT

Exempt Debt Obligation Transactions (Banks and Bank Holding Companies) Regulations

P.C. 2001-1753 4 October, 2001

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 978^a of the Bank Act^b, hereby makes the annexed Exempt Debt Obligation Transactions (Banks and Bank Holding Companies) Regulations.

^a S.C. 2001, c. 9, s. 183^b S.C. 1991, c. 46

EXEMPT DEBT OBLIGATION TRANSACTIONS (BANKS AND BANK HOLDING COMPANIES) REGULATIONS

INTERPRETATION

Definition of "Act"

1. In these Regulations, "Act" means the Bank Act.

INTERNATIONAL AGENCIES

Prescribed international agencies

2. For the purpose of subparagraphs 482(2)(b)(ii) and 944(2)(b)(ii) of the Act, the following are prescribed international agencies:

(a) the Asian Development Bank;

(b) the Inter-American Development Bank;

(c) the International Bank for Reconstruction and Development;

(d) the International Finance Corporation;

(e) the African Development Bank;

(f) the European Investment Bank;

(g) the Caribbean Development Bank;

(h) the Nordic Investment Bank;

(i) the European Bank for Reconstruction and Development; and

(j) the Council of Europe Development Bank.

DEFINITION OF "WIDELY DISTRIBUTED"

"widely distributed" in respect of a bank

3. (1) For the purpose of paragraphs 482(2)(d) and 944(2)(d) of the Act, "widely distributed" means

(a) in respect of debt obligations the distribution of which is exempt from the requirement to file a prospectus under the laws of Canada, a province or a jurisdiction outside Canada, that

(i) at least 90% of the maximum authorized principal, of the debt obligations, is held by one or more persons other than the bank or the bank holding company, as the case may be, and its subsidiaries, and

(A) the debt obligations were issued to at least 25 persons other than the bank or the bank holding company, as the case may be, and its subsidiaries within six months after the day on which the first of the debt obligations was issued, or

(B) if the debt obligations are issued on a continuous basis, there are on average at least 25 holders other than the bank or the bank holding company, as the case may be, and its subsidiaries, or

(ii) at the time of their initial distribution, the debt obligations met at least three of the following criteria, namely,

(A) their initial term was less than one year,

(B) they were rated by a rating agency,

(C) they were distributed through a person authorized to trade in securities, and

(D) they were distributed in accordance with an offering circular or memorandum, or a similar document relating to the distribution of securities; and

(b) in respect of any other debt obligations, that a prospectus relating to the issuance of the debt obligations was filed under the laws of Canada, a province or a jurisdiction outside Canada.

Definition of "maximum authorized principal"

(2) In subparagraph (1)(a)(i) "maximum authorized principal" means, in relation to any debt obligation, the maximum amount of debt that may be issued under the terms of the debt obligation or any agreement relating to it.

REPEAL

Repeal

4. The Exempt Debt Obligation Transactions (Banks) Regulations¹ are repealed.

¹ SOR/94-66

COMING INTO FORCE

Coming into force

5.* These Regulations come into force

(a) in relation to a Bank, on the date that section 482 of the Bank Act comes into force, as enacted by section 127 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001; and

(b) in relation to a bank holding company, on the date that section 944 of the Bank Act comes into force as enacted by section 183 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001.

*[Note: Regulations in force October 24, 2001, see SI/2001-102.]