Financial Administration Act

Marginal note:Security interests

• 100 (1) Subject to subsection (2), no agent corporation, for the purposes of securing payment of a debt or performance of an obligation, shall charge, mortgage, hypothecate, cede and transfer, pledge or otherwise create an interest in or charge on any property held by the corporation.

• Marginal note:Exception

  (2) Subject to any terms and conditions set out in the designation, an agent corporation designated by the Minister may pledge any securities or cash that it holds, or give deposits, as security for the payment or performance of any obligation of the corporation arising out of any derivative that it enters into or guarantees for the management of financial risks.