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Insurance Companies Act

Version of section 991 from 2007-04-20 to 2024-02-06:


Marginal note:Disclosure of status

  •  (1) A non-insurance entity that carries on as part of its business the provision of financial services shall not borrow money in Canada from the public without disclosing that the non-insurance entity is not regulated as a financial institution in Canada.

  • Marginal note:Manner of disclosure

    (2) The disclosure shall be

    • (a) in a prospectus, information circular or other offering document related to the borrowing or in a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender; or

    • (b) in any other manner that may be prescribed.

  • Marginal note:Exception for certain borrowings

    (3) Subsection (1) does not apply

    • (a) to a borrowing of a prescribed class or type or to a borrowing in prescribed circumstances or in a prescribed manner; or

    • (b) except as may be provided in any regulations, to a borrowing

      • (i) from a person in an amount of $150,000 or more, or

      • (ii) through the issue of instruments in denominations of $150,000 or more.

  • Marginal note:Exception

    (4) Subsection (1) does not apply if the non-insurance entity is

    • (a) an insurance holding company or a bank holding company;

    • (b) a bank;

    • (c) an entity that is controlled by a bank holding company or in which a bank holding company has a substantial investment;

    • (d) a trust, loan or insurance corporation incorporated under an Act of Parliament or of the legislature of a province;

    • (e) a financial institution that is described in paragraph (g) of the definition financial institution in section 2;

    • (f) an entity referred to in paragraph 971(1)(f) or (h); or

    • (g) a prescribed entity.

  • 2001, c. 9, s. 465
  • 2007, c. 6, s. 329(F)

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