Insurance Companies Act
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.
(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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