Marginal note:Meaning of “transaction”
520 (1) For the purposes of this Part, entering into a transaction with a related party of a company includes
(a) making a guarantee on behalf of the related party;
(b) making an investment in any securities of the related party;
(c) taking an assignment of or otherwise acquiring a loan made by a third party to the related party;
(d) taking a security interest in the securities of the related party; and
(e) causing the company to be reinsured by the related party against any risk undertaken by the company.
Marginal note:Interpretation
(2) For the purposes of this Part, the fulfilment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit and the making of a payment or an advance under a policy, is part of the transaction, and not a separate transaction.
Marginal note:Meaning of “loan”
(3) For the purposes of this Part, loan includes a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit, but does not include investments in securities or the making of an acceptance, endorsement or other guarantee.
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