PART IVPublic Debt (continued)
Marginal note:Registrars and fiscal agents
51 (1) The Governor in Council may
(a) appoint one or more registrars to perform such services in respect of the registration of loans as the Governor in Council may prescribe;
(b) appoint one or more fiscal agents to perform such services in respect of loans as the Governor in Council may prescribe; and
(c) fix the remuneration or compensation of any registrar or fiscal agent appointed under this section.
Marginal note:Delegation to Minister
(2) The Governor in Council may authorize the Minister to do anything referred to in paragraphs (1)(a) to (c) for any period that the Governor in Council considers appropriate.
- R.S., 1985, c. F-11, s. 51
- 1999, c. 26, s. 23.1
Marginal note:Records of money borrowed
52 (1) The Minister shall cause to be maintained a system of books and records
(a) showing all money authorized by Parliament to be borrowed by the issue and sale of securities;
(b) containing a description and record of all money so borrowed and securities issued; and
(c) showing all amounts paid in respect of the principal of or interest on all money so borrowed.
Marginal note:Accounting by fiscal agents and registrars
(2) Every fiscal agent and registrar shall annually, and as often as required by the Minister, give to the Minister an accounting, in such form and terms and containing such information as the Minister prescribes, of all his transactions as fiscal agent or registrar.
- R.S., c. F-10, s. 43
Marginal note:Sinking fund
53 The Governor in Council may provide for the creation and management of a sinking fund with respect to any issue of securities or with respect to all securities issued.
- R.S., c. F-10, s. 44
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.
- R.S., 1985, c. F-11, s. 54
- 2007, c. 29, s. 88
Marginal note:Payment of loan expenses
55 With the authority of the Governor in Council, there may be paid out of the Consolidated Revenue Fund
(a) all money required under section 53 to provide a sinking fund or other means of securing repayment of securities;
(b) the remuneration and compensation of registrars and fiscal agents appointed under section 51;
(c) all costs, expenses and charges incurred in the negotiation or raising of loans or in the issue, redemption, servicing, payment and management of any loan and any securities issued in respect thereof;
(d) all money required to be paid under contracts and agreements entered into under this Part, either before or after the coming into force of this paragraph; and
(e) all money that the Minister considers appropriate to pay in the exercise of his or her power to do any other thing relating to the borrowing of money under subsection 44(3).
- R.S., 1985, c. F-11, s. 55
- 1991, c. 24, s. 50(F)
- 1999, c. 26, s. 23.2
- 2016, c. 12, s. 122
Marginal note:Payment for securities to agent or by salary deduction in trust money
56 (1) Where it is provided by a prospectus or other official notice issued by or under the authority of the Minister that a subscriber may purchase securities by payments to an authorized agent or by deductions from the remuneration of the subscriber by his employer, the amount of any such payment or deduction that has not been accounted for by the delivery of securities to the subscriber or repaid to the subscriber shall be deemed to be money received in trust for Her Majesty by the agent or employer for which the agent or employer is accountable to Her Majesty under section 76.
Marginal note:Amount deemed segregated in trust
(2) Where money paid or deducted pursuant to subsection (1) cannot be identified among the assets of the employer or agent, a portion of those assets equal in value to the amount of the payment or deduction shall be deemed to be segregated and held in trust for Her Majesty.
- R.S., 1985, c. F-11, s. 56
- 1991, c. 24, s. 50(F)
Marginal note:Investors’ Indemnity Account
57 There shall be established in the accounts of Canada an account to be known as the Investors’ Indemnity Account to which shall be credited the sum of twenty-five thousand dollars, such further amounts as are appropriated by Parliament for the purposes of this section and any recoveries of the losses referred to in section 58.
- R.S., c. F-10, s. 48
Marginal note:Payment of losses
58 The Minister may, in accordance with and subject to the regulations, pay out of the Investors’ Indemnity Account any losses sustained by subscribers for securities who have paid all or part of the purchase price for those securities but have not received the security or repayment of the amount so paid, and losses sustained by any person in the redemption of securities.
- R.S., c. F-10, s. 49
Marginal note:Not bound to execute trusts
59 Her Majesty and a fiscal agent or registrar acting as such are not bound to see to the execution of any express or implied trust to which any securities are subject.
- R.S., c. F-10, s. 50
60 (1) The Governor in Council may make such regulations as he deems necessary to provide for the management of the public debt of Canada and the payment of interest thereon and, without limiting the generality of the foregoing, may make regulations
(a) for the inscription of security certificates and the registration of securities and prescribing the effect of the inscription or registration;
(b) for the transmission, transfer, redemption and cancellation of securities and the exchange and destruction of any security certificates, and, without limiting the generality of the foregoing,
(i) for the transmission, transfer or redemption of securities pursuant to a judgment or as the result of the death, dissolution or bankruptcy of the registered owner of the securities, and
(ii) prescribing the conditions on which the transfer and redemption of securities or the exchange of security certificates registered in the names of infants, minors or other persons not of full capacity to enter into ordinary contracts may be made;
(c) for the issue of security certificates or making of payments in respect of damaged, lost, stolen or destroyed security certificates or interest coupons, and of the cheques pertaining thereto and prescribing conditions to the issue or payment;
(c.1) respecting the issuance and holding of non-certificated securities;
(c.2) respecting the circumstances under which the beneficial owner of a non-certificated security can obtain a security certificate or under which the beneficial owner of a security certificate can obtain a non-certificated security;
(d) requiring guarantees to be given to the registrar in such manner and by such persons as the regulations may prescribe, before the registrar is authorized to make any entry in the register;
(e) authorizing the correction by the registrar, in such circumstances as may be prescribed by the regulations, of errors in the register and otherwise authorizing rectification of the register;
(f) providing for the payment of losses out of the Investors’ Indemnity Account;
(g) deeming a specified transaction or a transaction of a specified class, including the issuance of securities, to be a transaction to borrow money for the purposes of subsection 43(1); and
(h) notwithstanding any right provided by or under any other Act of Parliament to borrow money without the Minister’s authorization, requiring the Minister’s authorization in respect of a specified transaction to borrow money or a transaction of a specified class to borrow money.
Marginal note:Form of register
(2) The register maintained pursuant to subsection (1) may be in a bound or loose-leaf form or in a photographic film form or may be maintained by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time.
Marginal note:Canada Evidence Act
(3) The register maintained pursuant to subsection (1) is deemed to be a record for the purposes of the Canada Evidence Act and every employee of the Bank of Canada who supervises the inscription or registration of securities in the register is deemed to be a manager of the Bank of Canada for the purposes of that Act.
Marginal note:Minister’s authorization
(4) If a regulation is made under paragraph (1)(g) or (h), the Minister may authorize, subject to any terms and conditions that the Minister considers appropriate,
(a) the specified transaction;
(b) a particular transaction named by the Minister within the specified class;
(c) transactions of a particular subclass described by the Minister within the specified class; or
(d) transactions of the specified class.
- R.S., 1985, c. F-11, s. 60
- 1995, c. 17, s. 60
- 2001, c. 11, s. 5
60.1 The Minister may delegate to any officer of the Department of Finance any of the powers, duties and functions of the Minister under this Part, except the power to delegate under this section.
- 1999, c. 26, s. 24
PART IV.1Stability and Efficiency of the Financial System
60.2 (1) The following definitions apply in this Part.
- debt obligation
debt obligation means a bond, debenture, note or other evidence of indebtedness of an entity, whether secured or unsecured. (titre de créance)
entity means an entity, including a trust, that, in the Minister’s opinion, is operating in Canada. (entité)
- financial markets
financial markets includes markets for money, bonds, equities, derivatives, foreign exchange and commodities. (marchés financiers)
- financial system
financial system includes financial institutions, financial markets and payment systems as defined in section 36 of the Canadian Payments Act. (système financier)
(a) in relation to a corporation, a share, a class of shares or a debt obligation of the corporation, and includes any conversion or exchange privilege, option or other right to acquire a share of the corporation; and
(b) in relation to any other entity, any ownership interest in or debt obligation of the entity. (titre)
(2) Subject to subsection (3), the Minister may, with the Governor in Council’s authorization, enter into, on behalf of Her Majesty in right of Canada, any contract that in the Minister’s opinion is necessary to promote the stability or maintain the efficiency of the financial system in Canada, including such a contract to
(a) purchase, acquire, hold, lend or sell or otherwise dispose of securities of an entity;
(b) create a charge on, or right or interest in, securities of an entity held by the Minister;
(c) make a loan to an entity;
(d) provide a line of credit to an entity;
(e) guarantee any debt, obligation or financial asset of an entity; or
(f) provide loan insurance or credit insurance for the benefit of an entity in respect of any debt, obligation or financial asset of the entity.
(2.1) [Repealed, 2020, c. 6, s. 8]
(2.2) [Repealed, 2020, c. 6, s. 8]
(2.3) [Repealed, 2020, c. 6, s. 8]
Marginal note:Non-application to certain entities
(3) Paragraph (2)(a) does not apply to
(a) shares, as defined in subsection 973.2(15) of the Bank Act, of a bank or bank holding company, as defined in section 2 of that Act;
(b) shares, as defined in subsection 459.9(14) of the Cooperative Credit Associations Act, of an association as defined in section 2 of that Act;
(c) shares, as defined in subsection 1016.7(15) of the Insurance Companies Act, of a company or insurance holding company, as defined in subsection 2(1) of that Act; or
(d) shares, as defined in subsection 527.9(15) of the Trust and Loan Companies Act, of a company as defined in section 2 of that Act.
Marginal note:Section 90 does not apply
(4) Section 90 does not apply if the Minister purchases, acquires or sells or otherwise disposes, under paragraph (2)(a), of shares within the meaning of that section.
Marginal note:Section 61 and Surplus Crown Assets Act do not apply
(5) Section 61 and the Surplus Crown Assets Act do not apply if the Minister holds, loans or sells or otherwise disposes of securities under paragraph (2)(a).
Marginal note:Payments out of C.R.F.
(6) Any amount payable under or in connection with a contract entered into under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, at the times and in the manner that the Minister considers appropriate.
Marginal note:Retroactive effect
(7) This section applies to any contract entered into on or after November 30, 2008.
60.3 (1) If, in the Minister’s opinion, it is necessary to promote the stability or maintain the efficiency of the financial system in Canada, the Minister may, during the period beginning on the day on which this subsection comes into force and ending on September 30, 2020, with the Governor in Council’s authorization, procure the incorporation of a corporation, all of the shares of which are held by the Minister on behalf of Her Majesty in right of Canada.
Marginal note:Not agent of Her Majesty
(2) The corporation is not an agent of Her Majesty in right of Canada unless it is declared to be an agent of Her Majesty under an Act of Parliament.
Marginal note:Application of Part X
(3) Subject to any regulations made under subsection (4), Part X does not apply to the corporation.
(4) The Minister may make regulations respecting the governance of the corporation, including regulations that adapt any provisions of this Act or the Canada Business Corporations Act and any regulations made under those Acts for the purpose of applying those provisions as adapted to the corporation.
(5) The Minister may give a directive to the corporation.
(6) The directors of the corporation shall ensure that a directive is implemented in a prompt and efficient manner.
Marginal note:Best interests
(7) Compliance by the corporation with a directive is deemed to be in the best interests of the corporation.
Marginal note:Terms and conditions
(8) The Minister may, by order, establish terms and conditions in accordance with which the corporation shall enter into financial transactions.
Marginal note:Contract with Her Majesty
(9) The corporation may enter into a contract with Her Majesty in right of Canada.
Marginal note:Payments out of C.R.F.
(10) The Minister may make payments to the corporation out of the Consolidated Revenue Fund, at the times and in the manner that the Minister considers appropriate.
Marginal note:Loans to corporation
(11) The Minister may, out of the Consolidated Revenue Fund, lend money to the corporation on any terms and conditions that the Minister may fix.
Marginal note:Powers of Minister
(12) The Minister may merge, sell, wind-up or dissolve the corporation, dispose of any or all shares of the corporation or take other similar measures in respect of the corporation.
Marginal note:Statutory Instruments Act
(13) The Statutory Instruments Act does not apply to a directive given under subsection (5) or to an order made under subsection (8).
Marginal note:Publication in Canada Gazette
(14) The Minister shall publish a directive given under subsection (5) or an order made under subsection (8) in the Canada Gazette.
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