Specific Powers of the Bank (continued)
Financial Services (continued)
(a) acquire and hold security or a security interest, including, in Quebec, a right in a security, of any kind and in any form for the due discharge of obligations under a loan, investment, guarantee or agreement that it makes or gives;
(b) surrender the security, security interest or right in the security and acquire and hold, in exchange, security or a security interest, including, in Quebec, a right in a security, of any kind and in any form;
(c) realize the security, security interest or right in the security made, acquired or held by it on the loan, investment, guarantee or agreement; and
(d) exchange, lease, sell, assign, convey or otherwise dispose of the loan, investment, guarantee, agreement, security, security interest or right in a security.
Marginal note:Additional security
(2) Without limiting the generality of the powers of the Bank under this section, the Bank may, for the due discharge of the obligations referred to in paragraph (1)(a),
Marginal note:Warehouse receipts and bills of lading
(3) Where the Bank acquires and holds a warehouse receipt or bill of lading as security, subsections 428(1), (2), (7), (8), (9) and (12) and 435(2) and section 436 of the Bank Act apply, with any modifications that the circumstances require, as if the Bank were a bank under that Act.
Marginal note:Goods, wares and merchandise
(4) Where the Bank takes security on goods, wares and merchandise, section 427 and subsections 428(1), (2), (7), (8), (9) and (12) of the Bank Act apply, with any modifications that the circumstances require, as if the Bank were a bank under that Act.
Marginal note:Deemed loan or advance
(5) Where the Bank issues a guarantee or otherwise makes a promise to effect a payment, the Bank is deemed to lend money or make an advance for the purposes of subsections (3) and (4) and the provisions of the Bank Act that they refer to.
- 1995, c. 28, s. 15
- 2011, c. 21, s. 7
Marginal note:Acquisition of loans
16 The Bank may acquire and deal with as its own any loan, investment or guarantee made or given by another person if
(a) the loan, investment or guarantee would meet the Bank’s eligibility criteria in subsection 14(3); or
(b) it is part of a block of loans, investments or guarantees the majority of which meet those criteria.
Marginal note:Complementary to service providers
(2) The services are to fill out or complete services available from private sector service providers.
- 1995, c. 28, s. 17
- 2014, c. 39, s. 218
Marginal note:Borrowing powers
Marginal note:Debt obligations
(2) The debt obligations may, in accordance with their terms, be subordinated to secured or unsecured indebtedness of the Bank and liability under them may be limited to the remaining assets of the Bank, after payment of indebtedness ranking prior to the debt obligations.
Marginal note:Investment powers
(3) The Bank may invest any money administered by it
Marginal note:Financial management
(4) The Bank may enter into any transaction for the purpose of reducing risk in the financial management of the Bank, including any financial instrument or agreement whose object is the management of financial risks, such as interest rate or currency exchange agreements, options, futures contracts and any other similar agreements.
(5) The Bank may pledge or hypothecate any of its assets or give deposits as security for any debt obligations issued by the Bank or as security for the due performance of its obligations under any financial management agreement.
Marginal note:Non-application of certain provisions
- 1995, c. 28, s. 18
- 2011, c. 21, s. 8
Marginal note:Loans to the Bank from Consolidated Revenue Fund
19 At the request of the Bank, the Minister of Finance may, out of the Consolidated Revenue Fund, lend money to the Bank on any terms and conditions that the Minister of Finance may fix.
Agreements and Programs
20 The Bank may enter into agreements with, and act as agent or mandatary for, any department or agency of the government of Canada or a province, or any other body or person, for the provision of services or programs to, by, on behalf of or jointly with that body or person and, subject to subsection 14(3), may deliver financial assistance on their behalf under the agreement.
- 1995, c. 28, s. 20
- 2011, c. 21, s. 9(E)
- 2014, c. 39, s. 219
Marginal note:Entrepreneur-ship programs
21 The Bank may carry out duties or functions that may be assigned to it by the Designated Minister in relation to the administration of any program supporting Canadian entrepreneurship, to the extent that it is able to recover the costs of carrying out the duties or functions.
22 The Bank may
(a) accept deposits as security for the due performance of any arrangement or agreement with the Bank;
(b) determine and charge interest and any other form of compensation for services provided by the Bank in the exercise of its powers under this Act;
(c) procure the incorporation, dissolution or amalgamation of subsidiaries and acquire or dispose of any shares in them;
(d) acquire and dispose of any interest or right in any entity by any means;
(e) acquire, hold, exchange, lease, sell or otherwise dispose of any interest or right in real or personal property or immovables or movables and retain and use the proceeds of disposition; and
(f) generally, do all other things that are incidental or conducive to attaining the purpose of this Act and the exercise of the powers of the Bank.
- 1995, c. 28, s. 22
- 2011, c. 21, s. 10
Capital of the Bank
Marginal note:Authorized capital
23 (1) The authorized capital of the Bank consists of an unlimited number of common shares with a par value of $100 each and an unlimited number of preferred shares without par value, but the paid-in capital of the Bank, together with any contributed surplus relating to it and any proceeds referred to in paragraph 30(2)(d) that have been prescribed as equity, must not at any time exceed
(a) for the period beginning on the day on which this subsection comes into force and ending on September 30, 2020, the amount that the Minister of Finance determines during that period, or, if that Minister redetermines the amount during that period, the most recently determined amount; and
(b) on and after October 1, 2020, an amount equal to the amount determined by the Minister of Finance under paragraph (a), or, if that Minister redetermined the amount under that paragraph, an amount equal to the last amount so determined.
Marginal note:Publication in Canada Gazette
Marginal note:Issuance of shares
(2) The shares of the Bank may be issued only to the Designated Minister to be held in trust for the Crown.
Marginal note:Subscription by Designated Minister
(3) Where the Board recommends that the Designated Minister subscribe for unissued shares of the Bank, the Designated Minister may, if the Minister of Finance concurs, subscribe for the amount that the Designated Minister considers desirable.
Marginal note:Payment out of Consolidated Revenue Fund
(4) The amount of the subscription is to be paid to the Bank out of the Consolidated Revenue Fund at any time and in any amount that the Board may require.
- 1995, c. 28, s. 23
- 2009, c. 2, s. 264
- 2017, c. 33, s. 260
- 2020, c. 5, s. 55
- Date modified: