Marginal note:Transfer not voidable and not subject to remedies

21.64 Despite anything in any law of Canada or a province relating to bankruptcy or insolvency, or any order of a court made in relation to a reorganization, arrangement or receivership involving bankruptcy or insolvency, the transfer of loans or other assets to a guarantor entity — to be held as covered bond collateral — by a registered issuer, any of its affiliates or any prescribed entity

• (a) is effective against every person;

• (b) is not voidable or, in Quebec, annullable;

• (c) is not subject to any other remedies available to creditors of the registered issuer; and

• (d) does not constitute a fraudulent conveyance, unjust preference or other reviewable transaction.

Marginal note:Non-application

21.65 Sections 21.63 and 21.64 do not apply to contracts relating to covered bonds that are issued under a registered program, nor to the transfer of loans or other assets to a guarantor entity to be held as covered bond collateral for those covered bonds, if those covered bonds are issued by a registered issuer during the period in which its right to issue covered bonds has been suspended under section 21.62.

Marginal note:Regulations

21.66 The Minister of Finance may make regulations for carrying out the purposes and provisions of this Part, including regulations

• (a) excluding, from the definition “covered bond”, certain debt obligations;

• (b) excluding, from the definition “covered bond collateral”, certain payments from the guarantor entity to the registered issuer;

• (c) establishing requirements that an institution, or a program under which covered bonds are to be issued, must meet to be registered in the registry;

• (d) respecting applications made under section 21.52 or 21.54;

• (e) respecting cost recovery for the purposes of section 21.59;

• (f) establishing additional requirements with respect to the loans referred to in paragraph 21.6(1)(a);

• (g) respecting the circumstances in which guarantor entities may hold the assets described in subsection 21.6(2) and, according to each circumstance, the maximum ratio of the value of those assets relative to the total value of the loans or other assets being held as covered bond collateral; and

• (h) prescribing anything that is to be prescribed under this Part.

Marginal note:Contractual guarantee of return from rental housing project

• 22. (1) The Corporation may enter into contracts with builders of rental housing projects to guarantee in each contract a financial return from a rental housing project after its completion in an amount to be determined by the Corporation for a total period of not more than thirty years.

• Marginal note:Undertaking to enter into contract

  (2) The Corporation may give to a builder an undertaking that the Corporation will enter into a contract with the builder under subsection (1) if the builder builds a rental housing project.

• Marginal note:Terms and conditions

  (3) The Corporation may determine the terms and conditions on which it enters into a contract in respect of a rental housing project under subsection (1), including, without limiting the generality of the foregoing,

  • (a) fees with respect to any guarantee referred to in subsection (1);

  • (b) conditions with respect to the operation or occupancy of the project;

  • (c) restrictions on the disposal, leasing or charging of the project or any part of it or interest in it;

  • (d) limits on the amount of the financial return that may be made from the project; and

  • (e) provisions giving the Corporation the right to direct the use of any amount received in excess of any limits referred to in paragraph (d).

• Marginal note:Consent to assign

  (4) A contract referred to in subsection (1) is personal to the builder of the rental housing project to which the contract relates and may be assigned to a subsequent owner of the rental housing project only with the written consent of the Corporation.