Principal-protected Notes Regulations

Marginal note:Definitions

1 The following definitions apply in these Regulations.

institution

institution

institution means

• (a) a bank, as defined in section 2 of the Bank Act;

• (b) an authorized foreign bank, as defined in section 2 of the Bank Act;

• (c) a retail association, as defined in section 2 of the Cooperative Credit Associations Act; or

• (d) a company, as defined in section 2 of the Trust and Loan Companies Act. (institution)

interest

intérêt

interest, in relation to a principal protected note, includes any return payable under the note by an institution in respect of the principal. (intérêt)

principal protected note

billet à capital protégé

principal protected note means a financial instrument that is issued in Canada by an institution to an investor and that

• (a) provides for one or more payments to be made by the institution that is determined, in whole or in part, by reference to an index or reference point, including

  • (i) the market price of a security, commodity, investment fund or other financial instrument, and

  • (ii) the exchange rate between any two currencies; and

• (b) provides that the principal amount that the institution is obligated to repay at or before the note’s maturity is equal to or more than the total paid by the investor for the note. (billet à capital protégé)