Export Development Canada Exercise of Certain Powers Regulations

6 (1) Subject to subsections (2) and (3), the Corporation may enter into a domestic insurance transaction.

(2) A domestic insurance transaction to be entered into by the Corporation requires the approval of the Minister and the Minister of Finance where:

• (a) the domestic insurance transaction is entered into with or in respect of a person whose annual export transaction business volume, at the time the application is made to the Corporation for insurance, reinsurance, indemnity or guarantee is:

  • (i) less than 15 per cent of that person's total annual business volume; and

  • (ii) less than $5,000,000 or the equivalent thereof in the currency of another country as calculated at the rate of exchange between the Canadian dollar and the other currency as quoted by the Bank of Canada at noon on the day immediately preceding the day on which application is made to the Corporation; and

• (b) the maximum contingent liability of the Corporation with respect to all domestic insurance transactions will be or will continue to be more than 40 per cent of the aggregate maximum contingent liability of the corporation under all outstanding insurance, reinsurance, indemnity or guarantee transactions entered into by the Corporation.

(3) A domestic insurance transaction to be entered into by the Corporation requires the approval of the Minister and the Minister of Finance where the domestic insurance transaction is an insurance arrangement that is of a class defined in the schedule to the Insurance Companies Act and that is set out in column II of an item of the schedule to these Regulations.