Business Development Bank of Canada Act

Marginal note:Loans, investments, etc.

• 14 (1) The Bank may

  • (a) make loans to, or investments in, any person;

  • (b) give guarantees in relation to any person; or

  • (c) extend credit or provide liquidity to, or in relation to, any person through a category of transactions that is prescribed by the regulations.

• Marginal note:How services may be provided

  (2) The services referred to in subsection (1) may be

  • (a) provided directly;

  • (b) provided through arrangements with other persons; or

  • (c) provided by the Bank as a member of a financing syndicate.

• Marginal note:Criteria for making loans, etc.

  (3) The loans, investments and guarantees may be made or given only where, in the opinion of the Board or any committee or officer designated by the Board,

  • (a) the person is engaged, or is about to engage, in an enterprise in Canada;

  • (b) the amount invested, or to be invested, in the enterprise by persons other than the Bank and the character of the investment are such that the Bank may reasonably expect that those persons will have a continuing commitment to the enterprise; and

  • (c) the enterprise may reasonably be expected to prove successful.

• Marginal note:Enterprises outside Canada  — loans and guarantees

  (4) Despite paragraph (3)(a), loans may be made to, or guarantees given in relation to, a person that is engaged or about to be engaged in an enterprise outside Canada if

  • (a) the person is a corporation, trust, partnership or joint venture in which at least one third of the voting interests are held by Canadians or is an association of natural persons or corporations of which at least half the members are Canadians; and

  • (b) at least one of the Canadians referred to in paragraph (a) is also engaged or about to be engaged in an enterprise in Canada.

• Marginal note:Enterprises outside Canada — investments

  (5) Despite paragraph (3)(a), investments may be made in a person that is engaged or about to be engaged in an enterprise outside Canada if

  • (a) the person meets the requirements set out in paragraphs (4)(a) and (b); and

  • (b) the investment is of a category prescribed by the regulations.

• Marginal note:Funds outside Canada — investments

  (6) Despite paragraph (3)(a), investments may be made in a person outside Canada if, in the opinion of the Board or any committee or officer designated by the Board,

  • (a) the person is an investment fund or other investment vehicle of which at least one half of the investment managers reside in Canada; and

  • (b) that fund or vehicle has an investment strategy that reflects an ongoing commitment to invest in Canada.

• Marginal note:Limitation

  (7) Paragraph (3)(b) does not apply

  • (a) to a person that is a trust, a corporation as defined in subsection 2(1) of the Canada Not-for-profit Corporations Act or a corporation incorporated under a provincial statute equivalent to that Act; or

  • (b) in the case where a loan, investment or guarantee is made or given through an arrangement referred to in paragraph (2)(b).

• Marginal note:Complementary to other services

  (8) The services referred to in subsection (1) are to fill out or complete services available from commercial financial institutions.

• Marginal note:Acquiring and dealing with property

  (9) In any circumstances in which the Bank may provide a service to a person under this section, the Bank may

  • (a) purchase or otherwise acquire real or personal property or immovables or movables including accounts receivable; and

  • (b) subject to any right of redemption that may exist, hold, lease to the person or subsequently sell, dispose of or otherwise deal with the property or immovables or movables.

• Marginal note:Definitions

  (10) The following definitions apply in this section.

  Canadian

  Canadian has the same meaning as in paragraph (a), (b) or (d) of the definition Canadian in section 3 of the Investment Canada Act. (Canadien)

  voting interest

  voting interest

  • (a) with respect to a corporation with share capital, means a voting share;

  • (b) with respect to a corporation without share capital, means an ownership interest in the assets of the corporation that entitles the owner to rights similar to those enjoyed by the owner of a voting share; and

  • (c) with respect to a partnership, trust or joint venture, means an ownership interest in the assets of the partnership, trust or joint venture that entitles the owner to receive a share of the profits and to share in the assets on dissolution. (intérêt avec droit de vote)