Financial Administration Act

Marginal note:Definitions

• 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

  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)

  security

  security means

  • (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)

• Marginal note:Contracts and payments

  (2) Subject to subsection (3), the Minister may, taking into account the interests of taxpayers,

  • (a) 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

    • (i) purchase, acquire, hold, lend or sell or otherwise dispose of securities of an entity,

    • (ii) create a charge on, or right or interest in, securities of an entity held by the Minister,

    • (iii) make a loan to an entity,

    • (iv) provide a line of credit to an entity,

    • (v) guarantee any debt, obligation or financial asset of an entity, or

    • (vi) provide loan insurance or credit insurance for the benefit of an entity in respect of any debt, obligation or financial asset of the entity; and

  • (b) make payments to a province or territory — or, after consultation with a province or territory, to an entity — for the purposes of responding to a situation of significant and systemic economic and financial distress.

• Marginal note:Contract with Her Majesty

  (2.1) The Minister may enter into a contract under paragraph (2)(a) with Her Majesty in right of Canada.

• Marginal note:Without Governor in Council’s authorization

  (2.2) The Minister may enter into a contract under paragraph (2)(a) without the Governor in Council’s authorization until September 30, 2020.

• Marginal note:Accountability to Parliament

  (2.3) The Minister is to exercise his or her powers under subsection (2) within the framework of the Minister’s accountability to Parliament.

• Marginal note:Non-application to certain entities

  (3) Subparagraph (2)(a)(i) 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 subparagraph (2)(a)(i), 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 subparagraph (2)(a)(i).

• Marginal note:Payments out of C.R.F.

  (6) Any amount payable under or in connection with a contract entered into under this section or any payment made under paragraph (2)(b) 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.