4 Restricted parties
Registration
5 Prescribed
capital accounts
6 Information to
be included in register
Directors and Officers
7 Eligibility of
unaffiliated directors
Auditor’s Reports
8 Auditor’s duty to report changes
Restricted Party
Transactions
9 Prescribed securities
for purposes of s167(e) of Act
10 Prescribed
conditions for purposes of s167(g) of Act
11 Loan to
prescribed employee
12 Prescribed
matters re restricted party financial institutions
13 Restricted
party transactions prescribed limits
Capacity and Powers
14 Exception re
carrying on fiduciary activities
15 Capital
adequacy rules
16 Disclosure of
information re subordinated notes
Investments
17 Commercial loan
18 Liquidity
requirement
19 Commercial
loans
20 Personal loans
21 Loans and
investments re connected persons
22 Minimum
investment limit
23 Maximum
investment limit re 3rd and subsequent mortgages
24 Investment
limits re real estate
25 Investment
limits re securities
26 Investments in
subsidiaries
27 Hedging
agreements
28 Duty to comply
34 Notice of
passing of accounts
Application of Parts
9, 10 and 11 of the Act to
Special Purpose Trust Corporations
35 Application of
Part 9 of Act
36 Application of
Part 10 of Act
37 Application of
Part 11 of Act
Other Matters
38 Exemption from
s127 of Act
39 Leasing and
related agreements
40 Subsidiary
financial leasing corporation
41 Communication
to professional body
42 Penalty for
late filing
43 Maximum deposit
transferable on death
44 Application
45 Unclaimed
balances - significant amounts
46 Unclaimed
balances - minor amounts
47 Notice of
unpaid amount
48 Designation of
unclaimed amounts
49 Extinguishment
of rights
50 Appraisals of
real estate
51 Duties of audit
committee
52 Duties of
investment committee
53 Meeting between
Minister and auditor
54 Auditor’s right to information from Minister
55 Minister’s access to audit papers
Schedule
Interpretation and
Application
Interpretation
1(1) For
the purposes of the Act and the regulations,
(a) “commodity
sales agreement” means an agreement in which a financial institution undertakes
to advance funds in exchange for the future delivery of a commodity in an
amount equating to the value of the commodity as determined by the market price
of that commodity at the time of future delivery, but does not include a
financial future;
(b) “factoring
corporation” means a body corporate whose activities are limited to acting as a
factor in relation to accounts receivable, including the lending of money and
the raising of money for the purpose of financing those activities;
(c) “financial
future” means a contract to buy or sell a standard quantity of a specified
financial instrument on or before a specified future date at an agreed price;
(d) “financial
leasing corporation” means a body corporate that enters into or acquires
agreements as defined in section 39(1)(a);
(e) “financial
services” means, for the purposes of section 168(1)(b)(ii) of the Act,
(i) money orders,
(ii) travellers’ cheques,
(iii) automatic teller machines or point of sale systems,
(iv) Canada Savings Bonds, Alberta Capital Bonds or similar bonds
issued by the Government of Canada, the government of a province or an agent of
any such government, and
(v) the collection of fees or similar charges payable in respect of a
service or product provided by a restricted party;
(f) “forward
contract” means a contract to buy or sell currency or a specified financial
instrument on or before a specified future date at an agreed price;
(g) “held”
or “hold” in relation to shares or to an interest in an entity other than a
body corporate means direct legal ownership or holding by way of proxy wherein
the grantor of the proxy allows the proxy holder unlimited discretion in voting
the shares or the interest;
(h) “information
management corporation” means a body corporate that carries on the business of
(i) the collection, manipulation and transmission of information of a
financial or economic nature, and
(ii) the sale of related software;
(i) “investment
counselling corporation” means, for the purposes of section 194 of the Act, a
body corporate that carries on the activities of an investment counsel under
the Securities Act;
(j) “management
services” means services of an administrative nature, including personnel,
accounting, computer and building maintenance services, treasury activities and
mortgage and real estate administration;
(k) “mutual
fund distribution corporation” means, for the purposes of section 194 of the
Act, a body corporate that carries on the activities of a mutual fund dealer
under the Securities Act;
(l) “networking
arrangement” means an arrangement between a registered corporation and a party
contracting with the corporation, where the corporation
(i) as agent for the contracting party, sells or offers to sell
products or services to the public,
(ii) co-operates with the contracting party in the sale or offering
for sale of products or services to the public,
(iii) receives from the contracting party a commission as consideration
for referring to the contracting party a customer to whom the contracting party
sells or offers to sell products or services, or
(iv) being the owner or the lessor of premises, enters into an
arrangement for the sharing of common premises with the contracting party, who
sells or offers for sale products or services to the public;
(m) “option”
means a contract under which a person acquires the right to buy or sell a
particular security at a specified future date at an agreed price;
(n) “portfolio
management corporation” means, for the purposes of section 194 of the Act, a
body corporate that carries on the activities of a portfolio manager under the Securities
Act;
(o) “real
property brokerage corporation” means a body corporate whose activities are
limited to acting as an agent for vendors or purchasers of real estate;
(p) “real
property corporation” means a body corporate whose activities are limited to
the acquisition, holding, maintenance, improvement, development, repair,
servicing, leasing or disposition of, or other dealing with, real estate;
(q) “service
corporation” means a body corporate whose activities are limited to the
provision of management services to
(i) a provincial corporation,
(ii) a financial institution that is affiliated with the provincial
corporation, or
(iii) a body corporate in which the provincial corporation or
affiliated financial institution holds or beneficially owns, separately or in
the aggregate, more than 50% of the issued and outstanding voting shares;
(r) “short
selling” means in respect of a sale of securities, a sale of securities that
the seller does not own or have the right to acquire at the time of making the
sale;
(s) “special
purpose trust corporation” means a provincial trust corporation whose
registration is subject to a term, condition or restriction prohibiting it from
carrying on the deposit-taking business;
(t) “swap”
means an agreement between two parties whereby one party offers to pay
specified obligations of another party and in exchange the other party agrees
to pay specified obligations of the first party.
(2) For
the purposes of the Act and this Regulation a security is widely distributed if
(a) it
was issued by a body corporate pursuant to a prospectus,
(b) it
was issued to at least 25 investors over a period of not more than 6 months,
(c) no
single investor beneficially owns more than 10% of the securities of the same
class, and
(d) at least 90% of the principal amount of the
aggregate issue price of the class is beneficially owned by persons other than
the body corporate that issued the securities.
AR 171/92 s1
Calculation of total
assets
2(1) A provincial corporation’s total assets shall
be calculated by adding the book value of all assets of the corporation on an
unconsolidated basis.
(2) Book value for the purposes of
subsection (1) must be calculated in accordance with the principles, policies
and rules referred to in or adopted pursuant to section 157 of the Act in
respect of the preparation of financial statements.
AR 171/92 s2
Deposits
3 For the purposes of section 1(1)(j) of
the Act, “deposit” does not include the following payments:
(a) money
paid for an investment contract within the meaning of that term for the
purposes of the Securities Act;
(b) money
paid in respect of a contract of insurance so made as authorized by the Insurance
Act or a similar statute of another jurisdiction in Canada;
(c) cash and margin accounts with a dealer
within the meaning of section 16(a), (b), (c), (d) or (e) of the Securities
Regulation (Alta. Reg. 46/87), or with a similar person who is registered
under the securities legislation of another jurisdiction in Canada, for the
purpose of carrying out or facilitating investment transactions.
AR 171/92 s3;251/2001
Restricted parties
4(1) The prescribed class of employees for the
purposes of section 2(7)(b) of the Act is the following employees of the
provincial corporation:
(a) chief
financial officers;
(b) branch
managers;
(c) chief
credit officers;
(d) other
persons who perform for the corporation functions that are normally performed
by any of the persons referred to in clause (a), (b) or (c).
(2) Notwithstanding
section 2(9) of the Act, a financial institution referred to in section 2(9)(a)
of the Act and a wholly owned subsidiary of a provincial corporation are
restricted parties with respect to the corporation in respect of
(a) transfers
of real estate or securities, and
(b) any transaction, guarantee or investment
that is not at fair market rate.
AR 171/92 s4
Registration
Prescribed capital
accounts
5 The following are prescribed as capital
accounts for the purposes of section 35(b) of the Act:
(a) capital
accounts consisting of non-cumulative shares, non-retractable shares,
non-redeemable shares and non-convertible shares;
(b) contributed
surplus accounts;
(c) retained earnings accounts.
AR 171/92 s5
Information to be
included in register
6 The Minister shall record the following
information in the appropriate register referred to in section 28 of the Act:
(a) particulars
of the registered corporation’s instruments of incorporation;
(b) notice
of the issuance of letters patent dissolving a provincial corporation or of the
issuance of a certificate of intent to dissolve, a certificate of revocation of
intent to dissolve or a certificate of revival in respect of a provincial
corporation;
(c) particulars
of any orders or exemptions issued under the Act with respect to the
corporation, where the order or exemption so provides;
(d) particulars
of any consents issued under Part 5 of the Act with respect to a provincial
corporation;
(e) particulars
respecting the registration of the corporation, including the certificate of
registration referred to in section 37(1) of the Act;
(f) particulars
of any power of attorney, consent or change of address referred to in section
32(1)(a) or (b) or 32(4) of the Act;
(g) the
annual return referred to in section 46(1) of the Act, together with the
financial statements and auditor’s report referred to in section 46(2)(a) or
(3);
(h) a notice of change of directors referred to
in section 113(1) of the Act.
AR 171/92 s6
Directors and Officers
Eligibility of
unaffiliated directors
7(1) The prescribed amount of an entity’s
indebtedness for the purposes of section 103(1)(a) of the Act is an amount
equal to 25% of the equity of the entity.
(2) The
prescribed amount of an individual’s indebtedness for the purposes of section
103(1)(b) of the Act is an amount equal to 25% of the individual’s net worth.
(3) For the purposes of section 103(4)(e) of the
Act the prescribed number of days that a loan may be in arrears is 60.
AR 171/92 s7;68/93
Auditor’s Reports
Auditor’s duty to report changes
8(1) For the purposes of section 155(1) of the Act,
and without limiting that section, a change in circumstances to which that
section applies shall be deemed to have occurred where
(a) reporting
by the provincial corporation to the Minister as required by the Act or the
regulations is misleading or misrepresents a particular issue,
(b) the
provincial corporation has failed to report or does not intend to report a
matter that it is required to report, and that non-reporting is or would be
materially misleading,
(c) conditions
exist that cast doubt on the ability of a provincial corporation to continue as
a going concern, including, without limitation, any situation where there is or
are, with respect to the corporation,
(i) recurring losses,
(ii) serious deficiencies in liquidity,
(iii) inability to obtain financing sufficient for continued operations,
(iv) insufficient funds to meet liabilities, or
(v) a plan to significantly curtail or to liquidate operations,
or
(d) there
are circumstances which suggest that the directors or officers are acting
imprudently, negligently, fraudulently or incompetently and that their actions
may represent a significant risk to the provincial corporation.
(2) The
auditor shall report circumstances which fall within subsection (1)(d) to the
Minister only.
(3) The
auditor is not required to report to the Minister a matter under this section,
other than under subsection (1)(d), if he satisfies himself that the provincial
corporation has already reported or is required within the next reporting
period to report that matter to the Minister.
(4) Nothing in this section is to be construed as
expanding the scope of an audit.
AR 171/92 s8
Restricted Party
Transactions
Prescribed securities
for purposes of s167(e) of Act
9 For the purposes of section 167(e) of the
Act a provincial corporation or its subsidiary may
(a) sell
to or redeem from a restricted party other than a subsidiary the provincial
corporation’s or subsidiary’s own subordinated notes, debentures or shares, and
(b) acquire
from or sell to a restricted party the following securities:
(i) securities that are investments referred to in section 22;
(ii) bonds, debentures or commercial paper issued
by a body corporate incorporated in Canada that have, at the date of
acquisition or sale, a rating in accordance with the table in the Schedule.
AR 171/92 s9
Prescribed conditions
for purposes of s167(g) of Act
10 A loan or guarantee under section 167(g)
of the Act must be fully secured by one or more of the following:
(a) real
estate valued at fair market rate at the time of the loan or guarantee, or
securities that have a rating in accordance with the table in the Schedule at
the time of the loan or guarantee;
(b) securities
issued or fully guaranteed by the Government of Canada or of a province or by a
municipality;
(c) securities
evidencing deposits with an eligible financial institution other than one that
is a restricted party;
(d) bonds, debentures or commercial paper issued
by a body corporate incorporated in Canada, other than a financial institution
that is a restricted party, that have, at the date of acquisition, a rating in
accordance with the table in the Schedule.
AR 171/92 s10
Loan to prescribed
employee
11(1) The prescribed employees for the purposes of
section 169 of the Act are the following employees of the provincial
corporation:
(a) chief
financial officers;
(b) branch
managers;
(c) chief
credit officers;
(d) other
persons who perform for the corporation functions that are normally performed
by any of the persons referred to in clause (a), (b) or (c).
(2) The
prescribed amount of a loan for the purposes of section 169(3) of the Act is
(a) in
the case of a loan secured by a mortgage on the prescribed employee’s principal
residence, $150 000, and
(b) in the case of any other loan, the amount
that would cause the aggregate amount owing in principal and interest under all
such other loans made by the provincial corporation or subsidiary to the
prescribed employee to exceed $50 000.
AR 171/92 s11;251/2001
Prescribed matters re
restricted party financial institutions
12(1) The prescribed purpose of a loan referred to in
section 170(1)(a) of the Act is the support of the short-term liquidity needs
of the restricted party to whom the loan is made.
(2) The
following securities are prescribed for the purposes of section 170(1)(a) of the
Act:
(a) securities
that are issued or fully guaranteed by the Government of Canada or of a
province or by a municipality;
(b) securities
evidencing deposits with an eligible financial institution other than one that
is a restricted party;
(c) bonds,
debentures or commercial paper issued by a body corporate incorporated in
Canada, other than a financial institution that is a restricted party, that
have, at the date of acquisition, a rating in accordance with the table in the
Schedule.
(3) For
the purposes of section 170(1)(d) of the Act, a provincial corporation may,
subject to section 27(2), enter into
(a) a
swap or a similar agreement, or
(b) an
agreement for the purchase or sale of financial futures, options or forward
contracts
with a securities
dealer that is a restricted party if the securities dealer is acting as agent,
not as principal, and the transaction is at fair market rate.
(4) Subject
to the Securities Act and any similar applicable legislation of another
jurisdiction, a provincial corporation may enter into a transaction with a
securities dealer that is a restricted party involving the underwriting of the
corporation’s securities or the provision of other services associated with a
primary distribution of the corporation’s securities.
(5) The
prescribed purposes for a transaction referred to in section 170(2)(a) of the
Act are
(a) the
support of the short-term liquidity needs of the provincial corporation or
subsidiary or the restricted party, and
(b) to
enable the clearance of cheques.
(6) The securities prescribed for the purposes of a
transaction referred to in section 170(2)(b) of the Act are any securities in
which the provincial corporation or subsidiary could invest under Part 11 of
the Act, other than securities issued by a restricted party.
AR 171/92 s12
Restricted party
transactions prescribed limits
13 For the purposes of section 171 of the
Act,
(a) the
aggregate of
(i) the outstanding principal and interest owing on all loans to
restricted parties,
(ii) the book value of all current investments in the securities of
restricted parties, and
(iii) the contracted amount of all outstanding guarantees on behalf of
restricted parties
made or entered into by a
provincial corporation shall not exceed 10% of the provincial corporation’s
total assets, and
(b) a provincial corporation shall not allow the
aggregate amount of its liability in respect of deposits received by it from
financial institutions that are its restricted parties to exceed 2% of the
provincial corporation’s total assets.
AR 171/92 s13
Capacity and Powers
Exception re carrying
on fiduciary activities
14 Section 183(1) of the Act does not apply
to the following:
(a) a
loan corporation, in respect of its acting as a trustee of
(i) a self‑directed registered retirement income fund,
(ii) a self‑directed registered education savings plan, or
(iii) a self‑directed registered retirement savings plan,
under the Income Tax Act (Canada);
(b) a
body corporate, in respect of its acting as a trustee of a mutual fund trust
that it manages and for which a prospectus or simplified prospectus has been
filed and a final receipt has been issued under the Securities Act;
(c) Alberta Treasury Branches in respect of its
acting as trustee in accordance with the Alberta Treasury Branches Act
and regulations.
AR 171/92
s14;180/96;187/97
Capital adequacy
rules
15(1) In this section,
(a) “capital”
means the sum of permanent capital and non-permanent capital;
(b) “capital
base” means capital less deductions;
(c) “deductions”
means the aggregate of the amounts obtained in subclauses (i) to (ix):
(i) goodwill and other intangible assets of the provincial
corporation;
(ii) the aggregate of
(A) the equity investments of the provincial
corporation in a body corporate referred to in section 207(4)(a) of the Act, to
the extent necessary to meet that body corporate’s capital base requirement,
and
(B) the book value of any other investments of
the provincial corporation in that body corporate
less the provincial
corporation’s proportionate ownership of the unused capital base of that body
corporate;
(iii) the aggregate of the equity investments of the provincial
corporation in a body corporate referred to in section 207(4)(c), (d), (g),
(h), (i) or (l) of the Act, plus the book value of any other investments of the
provincial corporation in that body corporate;
(iv) the aggregate of
(A) the equity investments of the provincial
corporation in a body corporate referred to in section 207(4) of the Act, other
than one referred to in subclause (ii) or (iii), and
(B) the book value of any other investments of
the provincial corporation in that body corporate
that exceed 2% of
the provincial corporation’s total assets;
(v) the market value deficiency of securities owned by the provincial
corporation, except securities issued or guaranteed by the Government of Canada
or the government of a province;
(vi) the market value deficiency of real estate owned by the
provincial corporation, except real estate that is occupied by the corporation
for its own purposes;
(vii) the amount of the provincial corporation’s income tax recoverable
account;
(viii) the amount of any deferred foreign currency translation losses of
the provincial corporation, after having deducted the impact of hedging
transactions with respect to those foreign currency translations;
(ix) the book value of investments of the provincial corporation to
the extent that they exceed the amounts that are permitted under the Act;
(d) “non-permanent
capital” means
(i) the aggregate of
(A) share capital that is cumulative, has
purchase or redemption privileges or is convertible into a form other than
permanent capital,
(B) the amount owing in the form of subordinated
notes, subordinated bonds, subordinated debentures and other subordinated debt
instruments, and
(C) the amount owing under subordinated
shareholders’ loans,
up to a maximum of
50% of the corporation’s permanent capital, plus
(ii) deferred income taxes;
(e) “permanent
capital” means the aggregate of
(i) share capital that is non-cumulative, has no purchase or
redemption privileges and is either not convertible or is convertible only into
other shares that are non‑cumulative or have no purchase or redemption
privileges,
(ii) contributed surplus, and
(iii) retained earnings;
(f) “unused
capital base” means the amount obtained in the formula
a - b
c
where “a” is the aggregate
of the authorized borrowings of the body corporate referred to in section
207(4)(a) of the Act, “b” is the actual borrowings of that body corporate and
“c” is the capital base of the provincial corporation.
(2) The
equity method of accounting shall be used in the calculation of equity
investments for the purposes of subsection (1)(c)(ii), (iii) and (iv).
(3) Subject
to this section, the total amount owing by a provincial corporation in the form
of
(a) deposits
with the corporation, investment certificates issued by the corporation and
debentures that are effectively deposits that are issued by the corporation,
(b) borrowings,
including overdrafts,
(c) subordinated
bonds, subordinated notes, subordinated debentures and other subordinated debt
instruments, and subordinated shareholders’ loans, to the extent that they are
not used in the calculation of non‑permanent capital,
(d) accrued
interest on amounts referred to in clauses (a) to (c), and
(e) unsecured
letters of credit, calculated at full face value,
shall not exceed an
amount equal to 10 times the provincial corporation’s capital base.
(4) On
application by a provincial corporation the Minister may, subject to any terms
and conditions the Minister considers appropriate, increase the corporation’s
borrowing multiple limit referred to in subsection (3) to an amount not
exceeding 25 times its capital base.
(5) An
application under subsection (4) must be accompanied by a certified copy of a
special resolution of the provincial corporation approving the increase.
(6) A
provincial corporation may exceed its borrowing multiple limit authorized under
subsection (3) or (4) if
(a) the
Minister approves the exceeding of the limit,
(b) the
board of directors approves the exceeding of the limit by resolution passed on
an annual basis,
(c) an
amount equal to the amount by which the limit is exceeded is invested in
accordance with subsection (10), and
(d) the
limit is not exceeded for a period of longer than 3 months.
(7) At
least once every calendar year the Minister shall review each provincial
corporation’s borrowing multiple limit.
(8) Subject
to subsection (9), if a provincial company is continued as a provincial trust
corporation under the Act and immediately before the effective date of the
continuance the company was in compliance with its ratio determined under
section 108 of the Trust Companies Act,
(a) that
ratio is deemed to be the trust corporation’s borrowing multiple limit for the
purposes of this section, and
(b) if
that ratio exceeds the permitted borrowing multiple limit for the corporation
calculated under this section, the Minister is deemed to have increased the
corporation’s borrowing multiple limit under subsection (4) to an amount equal
to that ratio.
(9) Where
subsection (8)(b) applies, the Minister may by notice in writing direct the
corporation to comply with subsection (3) within the time specified in the
notice, and the corporation shall comply with the notice.
(10) The permitted investments for the purposes of
subsection (6)(c) are the investments referred to in section 18(1)(c)(i)(A) to
(F).
AR 171/92 s15
Disclosure of
information re subordinated notes
16 Every subordinated note issued by a
provincial corporation shall state on its face the following information:
(a) the
fixed maturity term;
(b) the
terms of the subordination of the note;
(c) all
restrictions applicable on redemption or payment of the note;
(d) that
the note is neither guaranteed nor insured.
AR 171/92 s16
Investments
Commercial loan
17 For the purposes of the Act,
an oil and gas loan is classified as a commercial loan.
AR 171/92 s17
Liquidity requirement
18(1) In this section,
(a) “applicable
date” means the date on which the calculation of liquid assets under this
section is being made;
(b) “book
value” of assets means the book value of those assets as determined in
accordance with generally accepted accounting principles;
(c) “liquid
assets” means
(i) the aggregate of
(A) at book value, cash and demand deposits in
an eligible financial institution,
(B) at book value, Treasury Bills of the
Government of Canada or of a province,
(C) at book value, term deposits, bearer deposit
notes or other similar instruments issued by an eligible financial institution
that mature within 100 days after the applicable date,
(D) at book value, banker’s acceptances that
mature within one year from the date of issue,
(E) at market value, securities, other than
securities referred to paragraph (B), that are issued or guaranteed by the
Government of Canada, the government of a province or a municipality,
(F) at book value, demand loans, other than
loans to an individual, that are fully secured by securities referred to in any
of paragraphs (B) to (E), and
(G) accrued interest on the assets referred to
in paragraphs (A) to (E),
less
(ii) specified borrowings of the corporation;
(d) “short
term liabilities” means
(i) the aggregate of
(A) deposits with the corporation that are
payable on demand, within 100 days after the applicable date or on 100 days’
notice or less,
(B) bonds, debentures, notes, loans or other
similar liabilities payable within 100 days after the applicable date or on 100
days’ notice or less,
(C) loans or securities that are guaranteed by
the corporation and are payable within 100 days after the applicable date or on
100 days’ notice or less, and
(D) accrued interest that is payable by the
corporation on the liabilities referred to in paragraphs (A) to (C),
less
(ii) specified borrowings of the corporation;
(e) “specified
borrowings” means demand loans and loans having an original term to maturity of
7 days or less, including the accrued interest owing on such loans.
(2) A provincial corporation shall have and keep
available unencumbered liquid assets in an amount that is equal to 20% of its
short term liabilities.
AR 171/92 s18
Commercial loans
19(1) The following instruments are prescribed as
commercial loans for the purposes of section 200 of the Act:
(a) revolving
term credit accounts;
(b) commodity
sales agreements;
(c) leases;
(d) letters
of guarantee;
(e) security
agreements within the meaning of the Personal Property Security Act;
(f) lines
of credit;
(g) advances;
(h) promissory
notes.
(2) The
following are prescribed instruments for the purposes of section 200(1)(g) of
the Act:
(a) securities
on which payment is ensured by rates or by the levy of a tax by a school or
municipal corporation under a law of Canada or a province on property situated
in the territory of the school or municipal corporation;
(b) first
mortgages of the type permitted by section 201(2) of the Act.
(3) The
following are prescribed financial institutions for the purposes of section
200(1)(h) of the Act:
(a) a
bank;
(b) a
credit union within the meaning of the Credit Union Act or a similar
body created under another law of Canada or a province;
(c) a
loan or trust corporation wherever incorporated;
(d) an
insurer wherever incorporated in Canada.
(4) The
prescribed aggregate amount for the purposes of section 200(1)(k) of the Act is
$250 000.
(5) The
following forms of financing are prescribed for the purposes of section
200(1)(l) of the Act:
(a) the
making of a loan to
(i) a county or municipal district,
(ii) an improvement district,
(iii) a drainage district, or
(iv) an irrigation district
in Alberta or to a similar
entity in another jurisdiction in Canada;
(b) the
making of investments in bodies corporate referred to in section 207(4) of the
Act (including shares in the bodies corporate that are beneficially owned by
the provincial corporation) that are subordinated to the unsecured debt of
those bodies corporate;
(c) the
acquisition of securities on which payment is ensured by rates or by the levy
of a tax by a school or municipal corporation under a law of Canada or a
province on property situated in the territory of the school or municipal
corporation;
(d) the
acquisition of securities on which payment of principal and interest is
guaranteed by the grant of a subsidy by the Government of Canada or the
government of a province that is payable out of the sums voted each year for
that purpose;
(e) leasing property to the Government of Canada
or the government of a province, or any of their agencies, or the leasing of
property to any other person where the lease is guaranteed by the Government of
Canada or the government of a province, or any of their agencies.
AR 171/92 s19
Personal loans
20(1) Financing to individuals by way of promissory
note, advance, line of credit, revolving term credit or a security agreement
within the meaning of the Personal Property Security Act is a personal
loan for the purposes of the Act.
(2) For the purposes of section 199(1) of the Act,
the prescribed amount for all unsecured loans made by a provincial corporation
is, in the aggregate, an outstanding balance of principal and interest equal to
the lesser of $100 000 and 1/10 of 1% of the provincial corporation’s total
assets.
AR 171/92 s20
Loans and investments
re connected persons
21(1) Where a provincial corporation makes a loan to
or investments in 2 or more persons, those persons are connected for the
purpose of section 204 of the Act if
(a) one
person is the spouse or adult interdependent partner or child of the other
person,
(b) one
person is a relative (other than a spouse or adult interdependent partner or
child) of the other person or of the other person’s spouse or adult
interdependent partner and has the same home as that other person,
(c) one
person is a body corporate controlled by the other person, or is an affiliate
of such a body corporate,
(d) one
person is a partner of the other person whether or not the partnership relates
to the business to which the loan or investment relates, or
(e) one
person is a trust or estate in which the other person has a beneficial interest
or in respect of which the other person serves as trustee or in a similar
capacity.
(2) The
prescribed amount for the purposes of section 204(1) of the Act is the
aggregate of
(a) the
outstanding balance of principal and interest, in the case of loans, and
(b) the
book value of investments
in an amount equal to
the greater of $500 000 and 1% of the provincial corporation’s total
assets.
(3) The
following are prescribed as investment vehicles for the purpose of section
204(2)(c) of the Act:
(a) loans
to or investments in subsidiaries;
(b) an
investment that is authorized under section 207(4) of the Act;
(c) an investment referred to in section 22.
AR 171/92 s21;109/2003
Minimum investment
limit
22 A provincial corporation shall maintain
at least 45% of its total assets in one or more of the following investments:
(a) securities
that are issued or guaranteed by the Government of Canada or the government of
a province or by any of their agencies, or issued by a university, a
municipality or a hospital or school board in Canada;
(b) loans
to the Government of Canada or the government of a province or to any of their
agencies, or to a university, a municipality or a hospital or school board in
Canada;
(c) loans
that are guaranteed by the Government of Canada or the government of a
province;
(d) securities
on which payment is ensured by rates or by the levy of a tax by a school or municipal
corporation under a law of Canada or a province on property situated in the
territory of the school or municipal corporation;
(e) a
residential mortgage loan referred to in section 201(2) of the Act;
(f) a
mortgage loan referred to in section 200(1)(b) of the Act;
(g) securities
on which payment of principal and interest is guaranteed by the grant of a
subsidy by the Government of Canada or the government of a province that is
payable out of sums voted each year for that purpose;
(h) debt
securities including banker’s acceptances, (other than subordinated debt
securities) that are issued or guaranteed by a financial institution duly
authorized to take deposits in Canada;
(i) deposits
with financial institutions duly authorized to take deposits in Canada;
(j) cash.
AR 171/92 s22
Maximum investment
limit re 3rd and subsequent mortgages
23(1) A provincial corporation shall ensure that the
aggregate amount owing in principal and interest under all 3rd and subsequent
mortgages held by the corporation is not more than 2% of the corporation’s
total assets.
(2) A 3rd or subsequent mortgage that is taken as
security in addition to a first or 2nd mortgage is not to be considered for the
purposes of subsection (1).
AR 171/92 s23
Investment limits re
real estate
24(1) A provincial corporation shall not acquire real
estate if as a result of the acquisition the aggregate outstanding balance of
principal and interest owing on all real estate acquired by the provincial
corporation would exceed 10% of the sum of
(a) the
total assets of the provincial corporation, and
(b) the
assets of all subsidiaries of the provincial corporation, other than financial
institutions.
(2) Where
a provincial corporation acquires a single parcel of real estate the purchase
price shall not exceed 1% of the total assets of the corporation.
(3) Where
a subsidiary of a provincial corporation, other than a financial institution,
acquires a single parcel of real estate, the purchase price shall not exceed 1%
of the total assets of the subsidiary.
(4) Section
2 applies to the calculation of the total assets of a subsidiary for the
purposes of subsection (3) as if the subsidiary were a provincial corporation.
(5) Subsections
(2) and (3) do not apply where the parcel is or is to be used by the provincial
corporation or the subsidiary, as the case may be, for its own use.
(6) The acquisition of a leasehold estate by a
provincial corporation or its subsidiary shall not be considered to be an
acquisition of real estate for the purposes of this section, but where the
provincial corporation or subsidiary as lessee makes leasehold improvements to
the leased property, the corporation or subsidiary shall, for the purposes of
this section, be deemed to have acquired real estate in an amount equal to the
book value of the improvements.
AR 171/92 s24
Investment limits re
securities
25(1) A provincial corporation shall not make an
investment in shares of a body corporate if, after the investment, its holdings
of shares in all bodies corporate, other than shares in subsidiaries of the
provincial corporation and other than shares that qualify as a commercial loan
within the meaning of section 200 of the Act, would exceed 10% of the
provincial corporation’s total assets.
(2) Shares acquired by way of realization of
security are not to be considered for the purposes of calculating the
investment limits under subsection (1) but a provincial corporation shall
dispose of all shares acquired in that manner within 2 years after acquiring
them.
AR 171/92 s25
Investment in
subsidiaries
26(1) A provincial corporation shall ensure that the
aggregate book value of its investments in bodies corporate referred to in
section 207(4) of the Act (including shares in the bodies corporate that are
beneficially owned by the provincial corporation) that are subordinated to the
unsecured debt of those bodies corporate does not exceed an amount equal to 5%
of the total assets of the provincial corporation.
(2) For the purposes of subsection (1), “bodies
corporate” does not include trust or loan corporations that are subsidiaries of
the provincial corporation.
AR 171/92 s26
Hedging agreements
27(1) A provincial corporation may
(a) enter
into a swap or forward contract,
(b) purchase
financial futures or options, and
(c) engage
in short selling
only where the purpose
of the transaction is to hedge against interest rates, exchange rates or
similar risks associated with specific assets or liabilities or groups of
assets or liabilities of the provincial corporation.
(2) Where a provincial corporation enters into a
swap with another party (referred to as the counter-party), the counter-party
must be an issuer of and have issued debt securities that are outstanding and
have a rating in accordance with the table in the Schedule.
AR 171/92 s27
Duty to comply
28(1) In this section and section 34,
(a) “fund”
means a common trust fund, but does not include a master trust or pooled fund
trust within the meaning of the Income Tax Act (Canada) and regulations
whose beneficiaries are restricted to trusts governed by pension plan funds or
plans;
(b) “participant”
means any trust or estate, the moneys of which have been invested in a fund.
(2) A
trust corporation that establishes or maintains a fund shall ensure
(a) that
a written plan of operation setting out the particulars of how the fund
operates is prepared and maintained,
(b) that
the trust corporation discloses in the financial statements the fees for
managing the fund,
(c) that
annual financial statements for the fund are prepared and audited, and
(d) that a current plan of operation and the
latest annual audited financial statements are provided, on request, to the
Minister, any participant in the fund and any beneficiary.
AR 171/92 s28;180/96
29 to 33 Repealed AR 180/96 s3.
Notice of passing of
accounts
34 The notice referred to in section
212(4)(b) of the Act shall
(a) contain
the following information:
(i) a statement that an account in respect of the fund has been filed
in the Court;
(ii) the time and place at which the appointment for the passing of
the account will be heard;
(iii) a statement as to the nature and purpose of the appointment and
the effect of the approval of the account by the Court;
(iv) a statement that any person having an interest in the money
invested in the fund has a right, at that person’s own expense, to appear
personally or by counsel at the appointment;
(b) be
(i) published in a daily newspaper in Alberta having general
circulation in the area in which the beneficiaries or their authorized
representatives reside,
(ii) published in The Alberta Gazette, or
(iii) given or sent to each beneficiary or
authorized representative in the manner provided in section 321 of the Act for
giving a notice to a shareholder.
AR 171/92 s34;180/96;251/2001
Application of Parts 9,
10 and 11 of the Act
to Special Purpose Trust Corporations
Application of Part 9
of Act
35(1) Section 163 of the Act applies in respect of a
provincial corporation that is a special purpose trust corporation.
(2) Section 175 of the Act applies in
respect of a provincial corporation that is a special purpose trust corporation
except that section 175(1) shall be read as if “and approval” were deleted.
(3) Section
176 of the Act applies in respect of a provincial corporation that is a special
purpose trust corporation except that in section 176(1) “that involves a
material consideration or is entered into with the provincial corporation in
its fiduciary capacity” shall be substituted for “for which the approval of the
board of directors of the corporation is required”.
(4) Section
177 of the Act applies in respect of a provincial corporation that is a special
purpose trust corporation except that
(a) references
to “this Part” shall be read as references to “section 175 or 176”, and
(b) section
177(5) shall be read as if it did not contain clause (b).
(5) Section 162(2) and (3) of the Act apply in
respect of a provincial corporation that is a special purpose trust
corporation, to the extent necessary to make the provisions adopted in
subsections (1) to (4) of this section operative.
AR 171/92 s35
Application of Part
10 of Act
36(1) Sections 181(1) and (2)(a), 185, 186, 189(2)
and 194 of the Act apply in respect of a registered corporation that is a
special purpose trust corporation.
(2) A
special purpose trust corporation may borrow only
(a) by
means of a loan from an eligible financial institution, or
(b) by
any other means that is approved by the Minister.
(3) Section
191(3) to (6) of the Act apply to borrowings of a special purpose trust
corporation that are authorized under subsection (2) of this section, except
that a reference in those subsections to “corporation’s own assets” shall be
read as a reference to “corporation’s own funds” within the meaning of section
191(1)(b).
(4) No
special purpose trust corporation shall
(a) enter
into or acquire agreements as defined in section 39(1)(a), or
(b) provide or write guarantees, letters of
credit or other similar instruments.
AR 171/92 s36
Application of Part
11 of Act
37(1) In this section, “corporation’s own funds” and
“corporation’s own assets” have the same meanings as in section 191(1) of the
Act.
(2) A
special purpose trust corporation may invest the corporation’s own funds in
only the following investments:
(a) the
acquisition of real estate to be occupied by the corporation for its own use,
and other fixed assets necessary for the corporation to carry on its business;
(b) the
acquisition of securities that are issued or guaranteed by the Government of
Canada or the government of a province, or any of their agencies;
(c) the
acquisition of debt securities, including banker’s acceptances but excluding
subordinated debt securities, that are issued or guaranteed by a financial
institution that is authorized to take deposits in Canada;
(d) deposits
in a financial institution referred to in clause (c);
(e) the
acquisition of bonds, debentures or commercial paper issued by a body corporate
incorporated in Canada, other than a restricted party of the special purpose
trust corporation, that at the time of acquisition have a rating in accordance
with the table in the Schedule.
(3) A
special purpose trust corporation shall not acquire real estate under
subsection (2)(a) if as a result of the purchase the aggregate outstanding
balance of principal and interest owing on all real estate so purchased would
exceed 10% of the corporation’s own assets.
(4) A
special purpose trust corporation shall not acquire bonds, debentures or
commercial paper under subsection (2)(e) if as a result of the acquisition, the
total book value of such bonds, debentures and commercial paper so acquired
would exceed 10% of the corporation’s own assets.
(5) Where,
on the date specified in letters patent issued under section 327 of the Act
(SA 1991 cL‑26.5) in respect of a special purpose trust
corporation, the corporation has an equity investment that would not be
permitted under the Act and this Regulation if it were acquired after the
coming into force of this Regulation, the corporation shall bring itself into
compliance with the Act and this Regulation in that regard within 5 years after
that date.
(6) Where,
on the date specified in letters patent issued under section 327 of the Act
(SA 1991 cL‑26.5) in respect of a special purpose trust corporation,
the corporation has an investment, other than an investment referred to in
subsection (5), that would not be permitted under the Act and this Regulation
if it were acquired after the coming into force of this Regulation, the
corporation may, subject to subsection (7), retain the investment but may not
increase the amount of the investment without the prior consent of the
Minister.
(7) Where
an investment referred to in subsection (6) was made after August 9, 1991, the
corporation may not retain the investment unless it obtains the consent of the
Minister.
(8) Sections 211 and 212 of the Act apply in
respect of a provincial corporation that is a special purpose trust
corporation.
AR 171/92
s37;251/2001;196/2006
Other Matters
Exemption from s127 of
Act
38 Section 127 of the Act does not apply in
respect of a provincial corporation where
(a) all
of the voting shares of the corporation are beneficially owned by a financial
institution within the meaning of section 1(1)(r)(ii) or (iii) of the Act, and
(b) the
financial institution
(i) gives an undertaking acceptable to the Minister regarding the
provision by the financial institution to the Minister of records and
information respecting the functions and duties for which the committees would
be responsible had they been appointed, and
(ii) gives an undertaking to the Minister that it
will take all reasonable steps to ensure that those functions and duties are
carried out as required by the Act and the regulations.
AR 171/92 s38
Leasing and related
agreements
39(1) In this section and section 40,
(a) “agreement”
means a financial lease agreement or a security agreement within the meaning of
the Personal Property Security Act;
(b) “property”
means the personal property to which an agreement relates.
(2) A
provincial corporation may enter into or acquire agreements only if the
following requirements are met:
(a) the
corporation must not direct its customers or potential customers to particular
dealers in the property;
(b) the
aggregate of the estimated residual values of all property must not exceed 10%
of the aggregate of the costs of acquisition of that property to the
corporation;
(c) the
estimated residual value of a particular property must not be greater than 20%
of the cost of acquisition of that property to the corporation;
(d) the
agreement must be entered into or acquired for the purpose of extending credit
to the lessee or purchaser;
(e) the
property that is the subject of the agreement must be selected by the lessee or
buyer and
(i) must be acquired by the corporation at his request, or
(ii) must have been acquired by the corporation through the operation
of an earlier agreement;
(f) the
agreement must yield a return that
(i) will compensate the corporation for not less than its full
investment in the property,
(ii) is reasonable, taking into account
(A) the term of the agreement and the other
terms and conditions of it,
(B) the technological obsolescence of the
property, and
(C) the rate of return sought by other lessors
in respect of similar agreements in respect of similar property and under the
same terms and conditions,
and
(iii) is calculated by taking into account
(A) rental charges paid by the lessee or
purchaser,
(B) estimated tax benefits of the agreement to
the corporation, including tax credits and capital cost allowance claims, and
(C) the amount of,
(I) where the lessee or purchaser or a third
party who is dealing at arm’s length with the corporation has, on or before the
commencement of the agreement, contracted to purchase the property or
unconditionally guaranteed the resale value of the property at the date of
expiry of the agreement, the purchase price or the resale value so guaranteed,
or
(II) in any other case, but subject to clause (c),
the estimated residual value of the property;
(g) the
agreement must contain a provision
(i) assigning and conveying to the lessee or purchaser the benefit of
all warranties, guarantees or other undertakings made by a manufacturer or
supplier relating to the property, or
(ii) setting out the responsibilities of the corporation with regard
to the warranties, guarantees or other undertakings referred to in subclause
(i);
(h) the
agreement must substantially transfer to the lessee or purchaser the benefits
and risks incidental to the operation of the property and must not place
responsibility on the part of the corporation to install, promote, service,
clean, maintain or repair the property;
(i) where
the lessee or purchaser defaults in the manner set out in the agreement and the
default is not waived or the agreement, including any renewals or extensions of
it, expires, the corporation must
(i) liquidate its interest in the property, or
(ii) enter into a new agreement in respect of that property within 2
years of that default or expiry or, where proceedings in respect of that
property have prevented the corporation from complying with that requirement
within that period, within 2 years of the completion of those proceedings;
(j) an agreement may be renewed on its expiry
and may be extended during its term.
AR 171/92 s39
Subsidiary financial
leasing corporation
40 A provincial corporation shall not
beneficially own shares in a financial leasing corporation as permitted under
section 207(4) of the Act unless
(a) the
aggregate of
(i) the book value of all of the property that is subject to
agreements held by the financial leasing corporation, and
(ii) all amounts owing as receivables in respect of such agreements
is equal to at least 80% of
the assets of the subsidiary, and
(b) the financial leasing corporation meets the
requirements of section 39 in respect of the agreements.
AR 171/92 s40
Communication to
professional body
41 Where the Minister has reasonable grounds
to believe that the auditor of a registered corporation
(a) has
failed to perform the duties of auditor as required by the Act or the
regulations,
(b) has
contravened the Act or the regulations,
(c) has
been a party to the preparation of or has expressed an opinion on a financial
statement that does not fairly present the financial position of the registered
corporation,
(d) is
incompetent, or
(e) has
engaged in what may be unprofessional conduct within the meaning of any of the
Acts applicable in clauses (f) to (h),
the Minister may
communicate any information he has received that is relevant to any of the
matters described in clauses (a) to (e) to,
(f) in
the case of a chartered accountant, the Executive Director of the Institute of
Chartered Accountants of Alberta,
(g) in
the case of a certified management accountant, the Registrar of the Society of
Management Accountants of Alberta, or
(h) in the case of a certified general
accountant, the Registrar of the Certified General Accountants’ Association of
Alberta.
AR 171/92 s41
Penalty for late
filing
42(1) The amount of the penalty for the purposes of
section 312(1) of the Act is $100 per day.
(2) Interest for the purposes of section 312(2) of
the Act is payable at the rate of 2% per annum plus the rate that is the
average of the Bank of Canada rates applicable on the last Thursday of each
month for the 12 completed months prior to the notice date.
AR 171/92
s42;251/2001;196/2006
Maximum deposit
transferable on death
43 The prescribed amount of deposits for the
purposes of section 324(1) of the Act is the greater of
(a) $5000,
and
(b) 50% of the aggregate of all of the
deceased’s deposits with the registered corporation, the 50% figure not to
exceed $10 000.
AR 171/92 s43;251/2001
Application
44(1) Sections 45 to 49 apply only in respect of
deposits held by a provincial corporation in its branches in Alberta.
(2) Sections
45 to 49 apply,
(a) in
respect of cheques, drafts or bills of exchange issued by a provincial
corporation, only to a cheque, draft or bill of exchange that is issued,
certified or accepted after the date specified in letters patent issued in
respect of the corporation under section 327 of the Act (SA 1991 cL‑26.5),
and
(b) in
respect of deposits with a provincial corporation, only to
(i) a deposit that is made after the date specified in letters patent
issued in respect of the corporation under section 327 of the Act
(SA 1991 cL‑26.5), and
(ii) a deposit that is made before that date and that
(A) is made for a fixed period that expires
after that date, or
(B) is not made for a fixed period, but on which
a transaction takes place or a statement of account is requested or
acknowledged within one year after that date by the depositor.
AR 171/92
s44;251/2001;196/2006
Unclaimed balances -
significant amounts
45(1) Where
(a) a
deposit has been made that is payable in Canada in Canadian currency and no
transaction has taken place and no statement of account has been requested or
acknowledged by the depositor with respect to the deposit during a period of 10
years,
(i) in the case of a deposit made for a fixed period, from the day on
which the fixed period terminated,
(ii) in the case of a deposit referred to in section 44(2)(b)(ii)(B),
from the last day in the one‑year period referred to in that provision on
which a transaction took place or a statement of account was requested or
acknowledged by the depositor, whichever it later, and
(iii) in the case of any other deposit, from the day on which the last
transaction took place or a statement of account was last requested or
acknowledged by the depositor, whichever is later,
or
(b) a
cheque, draft or bill of exchange (including any such instrument drawn by one
branch of the corporation on another branch of the corporation but not
including such an instrument issued in payment of a dividend on the capital of
the corporation) payable in Canada in Canadian currency has been issued,
certified or accepted by the corporation and no payment has been made in
respect of the cheque, draft or bill of exchange for a period of 10 years after
the date of issue, certification, acceptance or maturity, whichever is later,
and the principal
amount of the deposit or instrument, plus interest, if any, calculated in
accordance with the terms of the deposit or instrument exceeds $100, the
corporation shall transfer the amount to the Minister of Finance.
(2) The
transfer of an amount under subsection (1) discharges the corporation from all
liability in respect of the deposit or instrument.
(3) A
corporation that makes a transfer under subsection (1) shall provide the
following information to the Minister of Finance with the transfer:
(a) the
name and last known address of the depositor or the person entitled to receive
payment on the deposit or instrument;
(b) the
amount transferred;
(c) the
type of account or the particulars of the instrument, as the case may be;
(d) the
date of the transfer;
(e) the
branch location of the corporation;
(f) the
date of the last transaction or acknowledgment referred to in subsection (1).
(4) The
maturing of a deposit constitutes the transaction of business for the purposes
of subsection (1), but the application of earnings or a service charge to an
account by the corporation does not constitute the transaction of business.
(5) Before
the end of each fiscal year the corporation shall identify all amounts that
should be transferred to the Minister of Finance under subsection (1).
(6) The
Minister of Finance may pay an amount transferred under subsection (1) to a person
claiming to be entitled to it on being furnished with satisfactory proof of the
person’s entitlement.
(7) The
Minister of Finance is not liable for the payment of any interest on any amount
paid under subsection (6).
(8) This
section does not apply to any money that is
(a) lawfully
retained by the corporation under any lien, right of set‑off or specific
charge, or
(b) retained in a registered savings plan under
the Income Tax Act (Canada).
AR 171/92 s45;27/2002
Unclaimed balances -
minor amounts
46(1) Where
(a) a
deposit has been made that is payable in Canada in Canadian currency and no
transaction has taken place and no statement of account has been requested or
acknowledged by the depositor with respect to the deposit during a period of 2
years,
(i) in the case of a deposit made for a fixed period, from the day on
which the fixed period terminated,
(ii) in the case of a deposit referred to in section 44(2)(b)(ii)(B),
from the last day in the one‑year period referred to in that provision on
which a transaction took place or a statement of account was requested or
acknowledged by the depositor, whichever is later, and
(iii) in the case of any other deposit, from the day on which the last
transaction took place or a statement of account was last requested or
acknowledged by the depositor, whichever is later,
or
(b) a
cheque, draft or bill of exchange (including any such instrument drawn by one
branch of the corporation on another branch of the corporation but not
including such an instrument issued in payment of a dividend on the capital of
the corporation) payable in Canada in Canadian currency has been issued,
certified or accepted by the corporation and no payment has been made in
respect of the cheque, draft or bill of exchange for a period of 2 years after
the date of issue, certification, acceptance or maturity, whichever is later,
and the principal
amount of the deposit or instrument, plus interest, if any, calculated in
accordance with the terms of the deposit or instrument is $100 or less, the
corporation shall
(c) comply
with section 45 in respect of the amount,
(d) hold
the amount for the depositor or the person entitled to receive payment on the
instrument, or
(e) transfer
the amount to income of the corporation.
(2) Section
45(4) and (8) apply to an amount transferred to income under subsection (1)(e)
of this section.
(3) Where
an amount that is transferred to income under subsection (1)(e) is subsequently
claimed by the person entitled to it, the corporation shall pay to the claimant
the amounts transferred, plus interest, if any, calculated in accordance with
the terms of the deposit or instrument.
(4) If an amount transferred to income under
subsection (1)(e) is not claimed by the person entitled to it within 5 years
after the corporation became entitled to act under subsection (1), the
corporation may retain the money and is not liable for any claims for the money
made after the expiration of that period.
AR 171/92 s46
Notice of unpaid
amount
47(1) A corporation shall mail to each person, in so
far as that person is known to the corporation,
(a) to
whom a deposit referred to in section 45(1)(a) is payable, or
(b) to
whom or at whose request an instrument referred to in section 45(1)(b) was
issued, certified or accepted
at that person’s last
known address with the corporation, a notice stating that the deposit or
instrument remains unpaid.
(2) A
notice required by subsection (1) shall be given during the month of January
next following the end of the first 2‑year period, and also during the
month of January next following the end of the first 5‑year period,
(a) in
the case of a deposit made for a fixed period, after the fixed period has
terminated,
(b) in
the case of any other deposit, in respect of which no transaction has taken
place and no statement of account has been requested or acknowledged by the
depositor with respect to the deposit, and
(c) in
the case of a cheque, draft or bill of exchange, in respect of which the
instrument has remained unpaid.
(3) For the purposes of subsection (2)(b) as it
applies to a deposit referred to in section 44(2)(b)(ii)(B), the calculation of
the time periods commences on the last day in the one‑year period
referred to in that provision on which a transaction takes place or a statement
of account is requested or acknowledged by the depositor.
AR 171/92 s47
Designation of
unclaimed accounts
48 Where a corporation gives a
notice following the expiry of the 2‑year period under section 47, the
corporation shall forthwith designate the amount of the deposit or instrument
as an unclaimed balance, or use a similar term, to indicate its special status.
AR 171/92 s48
Extinguishment of
rights
49 Where a period of 20 years has elapsed
since an amount was transferred to the Minister of Finance under section 45
without any valid claim having been made,
(a) that
money vests in the Government,
(b) all
rights relating to that money by the person entitled to it are extinguished,
and
(c) the Government and the corporation have no
further obligations to any person in relation to the amount transferred to the
Government.
AR 171/92 s49;27/2002
Appraisals of real
estate
50(1) In this section, “appraiser” means a person
whose experience and training in the appraisal of real estate is current and
who,
(a) in
a case where the real estate to be appraised is located in Canada, is a member
in good standing of the Appraisal Institute of Canada or another appraisal
institute recognized by the Minister and is designated as an “Accredited
Appraiser Canadian Institute” or a “Canadian Residential Appraiser” or by an
equivalent designation recognized by the Appraisal Institute of Canada, or
(b) in
a case where the real estate to be appraised is located outside Canada, has
qualifications satisfactory to the Minister.
(2) An appraisal under section 278 of the Act must
be conducted by an appraiser in accordance with the standards of the appraisal
institute of which the appraiser is a member.
AR 171/92 s50;251/2001
Duties of audit
committee
51 The audit committee of a provincial
corporation shall do the following:
(a) review
the financial position and reported results of the corporation in the financial
statements of the corporation for the purpose of making any financial report
under the Act;
(b) review
and make recommendations to the board on
(i) the appointment and remuneration of the auditor, and
(ii) the methods to be adopted by the corporation’s internal auditor
in conducting audits and the scope of those audits;
(c) discuss
with the auditor the audit findings, any restrictions on the scope of the
auditor’s work and any problems that the auditor experienced in performing the
audit;
(d) review
the nature and extent of the auditor’s evaluation of the internal control
systems of the corporation;
(e) review
the recommendations made by the auditor to the management of the corporation
and the response made by management to the recommendations;
(f) review
the organization and independence of the internal auditor of the corporation,
including the internal auditor’s goals and work plans and any problems that the
internal auditor experienced in performing the audit, and meet with the head of
the internal audit department at least once annually to discuss the scope of
its activities and assess its performance;
(g) review
the recommendations respecting the improvement of accounting and internal
control practices made by the internal auditors to the management of the
corporation and the response made by management to the recommendations;
(h) review
the adequacy of the corporation’s complement of employees to perform its
accounting and financial responsibilities;
(i) review
the financial information included in any prospectus issued by the corporation;
(j) review
audit fees;
(k) report
and make such recommendations to the board of directors of the corporation
arising from the duties of the audit committee under clauses (a) to (j) as the
committee considers appropriate in the circumstances and ensure that any
recommendations of the auditor receive the attention of the board;
(l) report to the board of directors of the
corporation any conflict between the auditor and the management of the
corporation that the committee has been unable to resolve within a reasonable
period of time.
AR 171/92 s51
Duties of investment
committee
52(1) A report or recommendation required under this
section must be made to the board of directors of the provincial corporation.
(2) The
investment committee of a provincial corporation shall recommend an investment
policy to the board of directors.
(3) The
investment policy shall set out the objectives of the provincial corporation’s
investment programs and shall provide for the following:
(a) the
establishment of internal operating procedures describing the responsibility
and accountability of the investment committee, the board and management;
(b) the
establishment of procedures for recommending and approving investment
decisions;
(c) the
establishment of methods for adopting and implementing investment decisions;
(d) the
classification of investments;
(e) the
establishment of reporting procedures;
(f) the
establishment of asset-liability management programs including matching of
maturities and interest rate sensitivities to mitigate risk factors;
(g) the
setting of acceptable ranges for aggregate investments;
(h) the
setting of minimum quality requirements for assets to be invested in;
(i) the
setting of specific positioning limits and control arrangements with respect to
the use of hedging instruments such as futures and options;
(j) the
setting of limits on aggregate outstanding loans by reference to the type of
loan, the industry, the geographic location of the loan portfolio, the credit
rating of the borrower, and individual and related borrowers and position
limits.
(4) The
investment committee shall
(a) recommend
any changes to the investment policy of the corporation that the committee
considers necessary to meet changes in the investment climate,
(b) recommend
policies concerning security lending arrangements, and
(c) monitor investment policies as approved by
the board and report material deviations in such policies to the board at the
next meeting of the board after having become aware of the deviation.
AR 171/92 s52
Meeting between
Minister and auditor
53 At the request of and on being
given reasonable written notice by the auditor of a provincial corporation, the
Minister shall meet the auditor to discuss the financial business and affairs
of the provincial corporation relating to the audit of its business and
affairs.
AR 171/92 s53
Auditor’s right to information from Minister
54 The Minister shall, on the written
request of the auditor of a provincial corporation, permit the auditor, during
normal business hours, to inspect the following documents insofar as they
relate to the corporation and are in the Minister’s possession:
(a) any
completed reports sent to the corporation that relate to examinations conducted
under section 273 or 274 of the Act;
(b) copies
of orders or directions made by the Minister under the Act;
(c) any appraisals or information relating to
appraisals made under section 278 of the Act.
AR 171/92
s54;251/2001;196/2006
Minister’s access to audit papers
55 The auditor of a provincial
corporation shall, on the written request of a person conducting an examination
under section 273 or 274 of the Act, permit that person, during normal business
hours, to inspect working papers maintained by the auditor in respect of any
audit of the provincial corporation’s business.
AR 171/92 s55;251/2001