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Insurance Companies Act

Version of section 470 from 2003-01-01 to 2003-12-31:

Marginal note:Restriction on security interests

  •  (1) Subject to subsection (3), a company shall not create a security interest in any property of the company to secure an obligation of the company, unless

    • (a) the security interest is created in relation to the reinsurance by the company of risks insured by another insurer; or

    • (b) the Superintendent has approved in writing the creation of the security interest.

  • Marginal note:Encumbered property

    (2) A company shall notify the Superintendent in writing of any beneficial interest in real and personal property acquired by the company, other than by way of realization, that is subject to a security interest.

  • Marginal note:Exceptions

    (3) Subsection (1) does not apply in respect of security interests created on

    • (a) such classes of personal property as the Superintendent may, by order, designate; or

    • (b) property having an aggregate value that is less than such amount as the Superintendent may, by order, specify.

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