Budget Implementation Act, 2007 (S.C. 2007, c. 29)
Full Document:
Assented to 2007-06-22
PART 7AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT
R.S., c. F-11Financial Administration Act
85. The Financial Administration Act is amended by adding the following after section 43:
Marginal note:Power to borrow
43.1 The Governor in Council may authorize the Minister to borrow money on behalf of Her Majesty in right of Canada.
Marginal note:1999, c. 26, s. 22
86. Sections 46.1 and 47 of the Act are repealed.
Marginal note:1999, c. 26, s. 23
87. Section 49 of the Act is replaced by the following:
Marginal note:Report on debt management
49. (1) After the Public Accounts are tabled in the House of Commons, the Minister shall cause to be tabled in each House of Parliament, within the first 30 days on which that House is sitting after the Public Accounts are tabled in the House of Commons, a report on the activities of the Minister in relation to the following:
(a) the money borrowed under section 43.1 in the fiscal year to which the Public Accounts relate; and
(b) the management of the public debt in the fiscal year to which the Public Accounts relate.
Marginal note:Report next fiscal year
(2) In every fiscal year, the Minister shall cause to be tabled in each House of Parliament a report on the Minister’s plans in relation to the following:
(a) the money to be borrowed under section 43.1 in the next fiscal year and the purposes for which the moneys will be borrowed; and
(b) the management of the public debt in the next fiscal year.
88. Section 54 of the Act is replaced by the following:
Marginal note:Borrowed money and interest
54. The repayment of all money borrowed and interest on that money, including the principal of and interest on all securities issued by or on behalf of Her Majesty with the authority of Parliament, is a charge on and payable out of the Consolidated Revenue Fund.
Coming into Force
Marginal note:Order in council
89. This Part comes into force on a day to be fixed by order of the Governor in Council.
PART 8R.S., c. C-7AMENDMENTS TO THE CANADA MORTGAGE AND HOUSING CORPORATION ACT
Marginal note:1992, c. 32, s. 1
90. (1) Subsection 21(1) of the Canada Mortgage and Housing Corporation Act is replaced by the following:
Marginal note:Loans to the Corporation
21. (1) At the request of the Corporation, the Minister of Finance may, out of the Consolidated Revenue Fund, lend money to the Corporation on any terms and conditions that that Minister may fix.
Marginal note:1992, c. 32, s. 1
(2) The portion of subsection 21(2) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Autres prêts
(2) La Société peut contracter des emprunts auprès de personnes autres que Sa Majesté, la présente loi l’autorisant à emprunter ainsi des sommes de façon que le total de ses dettes à ce chapitre n’excède pas le total des montants suivants :
PART 9AMENDMENTS RELATING TO ELIGIBLE FINANCIAL CONTRACTS
R.S., c. B-3; 1992, c. 27, s. 2Bankruptcy and Insolvency Act
91. (1) Section 2 of the Bankruptcy and Insolvency Act is amended by adding the following in alphabetical order:
“eligible financial contract”
« contrat financier admissible »
“eligible financial contract” means
(a) a currency or interest rate swap agreement,
(b) a basis swap agreement,
(c) a spot, future, forward or other foreign exchange agreement,
(d) a cap, collar or floor transaction,
(e) a commodity swap,
(f) a forward rate agreement,
(g) a repurchase or reverse repurchase agreement,
(h) a spot, future, forward or other commodity contract,
(i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities,
(j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i),
(k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j),
(l) any master agreement in respect of a master agreement referred to in paragraph (k),
(m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l), or
(n) any agreement of a kind prescribed;
“financial collateral”
« garantie financière »
“financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement:
(a) cash or cash equivalents, including negotiable instruments and demand deposits,
(b) securities, a securities account, a securities entitlement or a right to acquire securities, or
(c) a futures agreement or a futures account;
“net termination value”
« valeurs nettes dues à la date de résiliation »
“net termination value” means the net amount obtained after netting or setting off or compensating the mutual obligations between the parties to an eligible financial contract in accordance with its provisions;
“title transfer credit support agreement”
« accord de transfert de titres pour obtention de crédit »
“title transfer credit support agreement” means an agreement under which an insolvent person or a bankrupt has provided title to property for the purpose of securing the payment or performance of an obligation of the insolvent person or bankrupt in respect of an eligible financial contract;
(2) The definition “eligible financial contract” in section 2 of the Act, as enacted by subsection (1), is replaced by the following:
“eligible financial contract”
« contrat financier admissible »
“eligible financial contract” means an agreement of a prescribed kind;
Marginal note:1992, c. 27, s. 30; 1997, c. 12, s. 41(2)
92. (1) Subsection 65.1(8) of the Act is repealed.
Marginal note:1997, c. 12, s. 41(3)
(2) Subsection 65.1(9) of the Act is replaced by the following:
Marginal note:Permitted actions
(9) Despite subsections 69(1) and 69.1(1), the following actions are permitted in respect of an eligible financial contract that is entered into before the filing, in respect of an insolvent person of a notice of intention or, where no notice of intention is filed, a proposal, and that is terminated on or after that filing, but only in accordance with the provisions of that contract:
(a) the netting or setting off or compensation of obligations between the insolvent person and the other parties to the eligible financial contract; and
(b) any dealing with financial collateral including
(i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and
(ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.
Marginal note:Net termination values
(10) If net termination values determined in accordance with an eligible financial contract referred to in subsection (9) are owed by the insolvent person to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the insolvent person with a claim provable in bankruptcy in respect of those net termination values.
93. Paragraph 65.11(2)(a) of the Act, as enacted by section 44 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:
(a) an eligible financial contract;
94. Section 66.34 of the Act is amended by adding the following after subsection (6):
Marginal note:Eligible financial contracts
(7) Subsection (1) does not apply in respect of an eligible financial contract.
Marginal note:Permitted actions
(8) Despite section 69.2, the following actions are permitted in respect of an eligible financial contract that is entered into before the filing of a consumer proposal and is terminated on or after that filing, but only in accordance with the provisions of that contract:
(a) the netting or setting off or compensation of obligations between the consumer debtor and the other parties to the eligible financial contract; and
(b) any dealing with financial collateral including
(i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and
(ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.
Marginal note:Net termination values
(9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the consumer debtor to another party to the eligible financial contract, that other party is deemed, for the purposes of subsection 69.2(1), to be a creditor of the consumer debtor with a claim provable in bankruptcy in respect of those net termination values.
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