Insurance Companies Act

Marginal note:Acquisition of assets

• 527 (1) A company may purchase or otherwise acquire from a related party of the company

  • (a) securities of or guaranteed by the Government of Canada or the government of a province;

  • (b) assets fully secured by securities of or guaranteed by the Government of Canada or the government of a province; or

  • (c) goods for use in the ordinary course of business.

• Marginal note:Sale of assets

  (2) Subject to section 512, a company may sell any assets of the company to a related party of the company if

  • (a) the consideration for the assets is fully paid in money; and

  • (b) there is an active market for those assets.

• Marginal note:Asset transactions with financial institutions

  (3) Notwithstanding any of the provisions of subsections (1) and (2), a company may, in the normal course of business and pursuant to arrangements that have been approved by the Superintendent in writing, acquire or dispose of any assets, other than real property, from or to a related party of the company that is a financial institution.

• Marginal note:Asset transactions in restructuring

  (4) Notwithstanding any of the provisions of subsections (1) and (2), a company may acquire any assets from, or dispose of any assets to, a related party of the company as part of, or in the course of, a restructuring, if the acquisition or disposition has been approved in writing by the Superintendent.

• Marginal note:Idem

  (5) A company may lease assets

  • (a) from a related party of the company for use in the ordinary course of business of the company, or

  • (b) to a related party of the company,

  if the lease payments are made in money.

• Marginal note:Approval under subsection 254(2) or (2.01)

  (6) A company or society may acquire any assets from, or dispose of any assets to, a related party of the company under a transaction that is approved by the Minister or the Superintendent under subsection 254(2) or (2.01).