Winding-up and Restructuring Act

Marginal note:Termination of certain contracts not precluded

• 22.1 (1) Nothing in this Act or an order made under this Act prevents or prohibits the termination of an eligible financial contract and the setting off of obligations between a company in respect of which winding-up proceedings under this Act are commenced and the other parties to the eligible financial contract in accordance with its provisions, and if the net termination values determined in accordance with the eligible financial contract are owed by the company to another party to the eligible financial contract, that other party shall be deemed to be a creditor of the company with a claim provable against the company in respect of the net termination values.

• Marginal note:Application to authorized foreign banks

  (1.1) In its application to authorized foreign banks, subsection (1) only applies to the eligible financial contracts and obligations between the authorized foreign bank, in respect of its business in Canada, and another party.

• Marginal note:Definitions

  (2) In subsection (1),

  eligible financial contract

  contrat financier admissible

  eligible financial contract means any of the following agreements, namely,

  • (a) a currency or interest rate swap agreement,

  • (b) a basis swap agreement,

  • (c) a spot, future, forward or other foreign exchange agreement,

  • (d) a cap, collar or floor transaction,

  • (e) a commodity swap,

  • (f) a forward rate agreement,

  • (g) a repurchase or reverse repurchase agreement,

  • (h) a spot, future, forward or other commodity contract,

  • (i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities,

  • (j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i),

  • (k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j),

  • (l) any master agreement in respect of a master agreement referred to in paragraph (k),

  • (m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l), and

  • (n) any agreement of a kind prescribed by the regulations; (contrat financier admissible)

  net termination value

  valeurs nettes dues à la date de résiliation

  net termination value means the net amount obtained after setting off the mutual obligations between the parties to an eligible financial contract in accordance with its provisions. (valeurs nettes dues à la date de résiliation)

• Marginal note:Regulations

  (3) The Governor in Council may make regulations prescribing kinds of agreements for the purposes of paragraph (n) of the definition eligible financial contract in subsection (2).