Affiliated Persons (Insurance Companies) Regulations (SOR/92-326)

2 In these Regulations,

Act

Act means the Insurance Companies Act; (Loi)

indebtedness

indebtedness includes indebtedness in respect of commercial paper, acceptances, lines of credit to the extent drawn on and margin loans made to a director or officer of a company; (dette)

not in good standing

not in good standing, in respect of a loan, means a loan in respect of which

• (a) any payment of principal or interest is 90 days or more overdue,

• (b) interest is not being accrued on the books of the lender because it is doubtful whether the principal or interest will be paid or recovered, or

• (c) the rate of interest is reduced by the lender because the borrower is financially weak; (en souffrance)

significant borrower

significant borrower, in respect of a company, means

• (a) a natural person who has indebtedness for money borrowed from the company or from an affiliate of the company, other than a loan secured by a mortgage on the principal residence of that person, the total principal of which exceeds the greater of

  • (i) $200,000, and

  • (ii) one fiftieth of one per cent of the regulatory capital of the company, or

• (b) an entity that has indebtedness for money borrowed from the company or from an affiliate of the company the total principal of which exceeds the greatest of

  • (i) $500,000,

  • (ii) one twentieth of one per cent of the regulatory capital of the company, and

  • (iii) twenty-five per cent of the value of the assets of the entity. (emprunteur important)