Specialized Financing (Trust And Loan Companies) Regulations

Marginal note:Limit of 10% of regulatory capital

6 A company shall not, by way of specialized financing activities, acquire control of, or hold, acquire or increase a substantial investment in, an entity if the sum of the following exceeds 10% of the company’s regulatory capital:

• (a) the aggregate book value of the shares and ownership interests that the company and its subsidiaries, whether individually or jointly, would acquire in the entity,

• (b) the aggregate value of outstanding loans made by the company and its subsidiaries, whether individually or jointly, to the specialized financing entities of the company, and

• (c) the aggregate book value of the shares and ownership interests held by the company and its subsidiaries, whether individually or jointly, in the specialized financing entities of the company, in the entities controlled by the company by way of specialized financing activities, and in the entities in which the company holds a substantial investment by way of specialized financing activities.