Marginal note:Definitions

1. The following definitions apply in these Regulations.

“Act”

« Loi »

“Act” means the Trust and Loan Companies Act.

“designated entity”

« entité désignée »

“designated entity” means

• (a) an entity referred to in any of paragraphs 453(1)(a) to (j) of the Act;

• (b) an entity whose business includes one or more of the activities referred to in paragraph 453(2)(a) of the Act and that engages, as part of its business, in any financial intermediary activity that exposes the entity to material market or credit risk, including a factoring entity, a finance entity or a financial leasing entity; or

• (c) an entity whose business includes an activity referred to in paragraph 453(2)(b) of the Act, including a specialized financing entity, other than an entity in which a company is permitted to acquire or increase a substantial investment under subparagraph 453(4)(c)(iii) of the Act.

“regulatory capital”

« capital réglementaire »

“regulatory capital” has the same meaning as in section 3 of the Regulatory Capital (Trust and Loan Companies) Regulations.

“value”

« valeur »

“value” means

• (a) in respect of a share, ownership interest or loan held by a company at a particular time, the book value of the share, ownership interest or loan that would be reported on the balance sheet of the company prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 313(4) of the Act; and

• (b) in respect of a guarantee, the face value of the guarantee.

Marginal note:Permitted substantial investments

2. Subject to section 3,

• (a) for the purposes of subparagraphs 453(4)(a)(ii), (b)(ii) and (c)(ii) of the Act, a company may acquire or increase a substantial investment in a designated entity; and

• (b) for the purpose of paragraph 453(10)(a) of the Act, if a company controls a designated entity, the company may give up control of the designated entity while keeping a substantial investment in it.