Financial Administration Act

Marginal note:Intended borrowing

• 127 (1) Where a parent Crown corporation or a wholly-owned subsidiary of a parent Crown corporation intends to borrow money, the corporation shall so indicate in its corporate plan or an amendment thereto under section 122 for the period in which the corporation or subsidiary intends to borrow and shall give a general indication therein of the borrowing plans and strategy of the corporation or subsidiary for that period.

• Marginal note:Recommendation of Minister of Finance

  (2) Where a parent Crown corporation indicates in a corporate plan or an amendment to a corporate plan an intention to borrow money, the Minister of Finance may require that his recommendation, in addition to that of the appropriate Minister, be obtained before the plan or amendment is submitted to the Governor in Council for approval.

• Marginal note:Particular borrowing

  (3) No Crown corporation shall enter into any particular transaction to borrow money without the approval of the Minister of Finance with respect to the time and the terms and conditions of the transaction.

• Marginal note:Regulations

  (4) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations

  • (a) exempting a specified Crown corporation or a Crown corporation of a specified class from the application of subsection (3), either generally or in respect of any specified borrowing or any borrowing of a specified class;

  • (b) deeming a specified transaction or a transaction of a specified class to be, for the purposes of this Part, a transaction to borrow money; and

  • (c) specifying the manner of granting approvals under subsection (3) and the circumstances in which an approval under that subsection is deemed to have been granted in respect of borrowing by Crown corporations.

• Marginal note:Limitations preserved

  (5) Nothing in this section shall be construed as authorizing a Crown corporation to borrow money in excess of any limit established by any other Act of Parliament on the amount of money the corporation may borrow.

• Marginal note:Leases entered into by Crown corporation

  (6) Despite any regulations made under paragraph (4)(b), leases — as defined in the Handbook of the Chartered Professional Accountants of Canada, as amended from time to time — that are entered into by a Crown corporation, are not considered to be transactions to borrow money for the purpose of a limit referred to in subsection (5).