Crown Corporation General Regulations, 1995

10 The following classes of transactions are deemed, for the purposes of Part X of the Act, to be transactions to borrow money:

• (a) the issuance and sale of a term preferred share of a Crown corporation to a person, partnership or association;

• (b) a capital lease, as defined in The Canadian Institute of Chartered Accountants Handbook, as amended from time to time, to a Crown corporation by a person, partnership or association, where the capital lease exceeds the lesser of 1 per cent of the total assets of the Crown corporation and $100,000;

• (c) the entering into a supplier credit arrangement that matures after a period of more than 12 consecutive months by a Crown corporation with a person, partnership or association, where the person, partnership or association is extending credit to the Crown corporation and the supplier credit arrangement exceeds the lesser of 1 per cent of the total assets of the Crown corporation and $100,000; and

• (d) a guarantee by a Crown corporation, other than the Canada Deposit Insurance Corporation, in respect of

  • (i) a note, bond or debenture,

  • (ii) term preferred shares,

  • (iii) a loan,

  • (iv) a banker’s acceptance,

  • (v) a capital lease, or

  • (vi) a supplier credit arrangement.