Trust and Loan Companies Act

Marginal note:Restriction on security interests

• 419 (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 obligation is to the Bank of Canada or the Canada Deposit Insurance Corporation; 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.