Business Development Bank of Canada Act (S.C. 1995, c. 28)

Specific Powers of the Bank

Financial Services

Marginal note:Loans, investments, etc.

• 14 (1) The Bank may

  • (a) make loans to, or investments in, any person;

  • (b) give guarantees in relation to any person; or

  • (c) extend credit or provide liquidity to, or in relation to, any person through a category of transactions that is prescribed by the regulations.

• Marginal note:How services may be provided

  (2) The services referred to in subsection (1) may be

  • (a) provided directly;

  • (b) provided through arrangements with other persons; or

  • (c) provided by the Bank as a member of a financing syndicate.

• Marginal note:Criteria for making loans, etc.

  (3) The loans, investments and guarantees may be made or given only where, in the opinion of the Board or any committee or officer designated by the Board,

  • (a) the person is engaged, or is about to engage, in an enterprise in Canada;

  • (b) the amount invested, or to be invested, in the enterprise by persons other than the Bank and the character of the investment are such that the Bank may reasonably expect that those persons will have a continuing commitment to the enterprise; and

  • (c) the enterprise may reasonably be expected to prove successful.

• Marginal note:Enterprises outside Canada  — loans and guarantees

  (4) Despite paragraph (3)(a), loans may be made to, or guarantees given in relation to, a person that is engaged or about to be engaged in an enterprise outside Canada if

  • (a) the person is a corporation, trust, partnership or joint venture in which at least one third of the voting interests are held by Canadians or is an association of natural persons or corporations of which at least half the members are Canadians; and

  • (b) at least one of the Canadians referred to in paragraph (a) is also engaged or about to be engaged in an enterprise in Canada.

• Marginal note:Enterprises outside Canada — investments

  (5) Despite paragraph (3)(a), investments may be made in a person that is engaged or about to be engaged in an enterprise outside Canada if

  • (a) the person meets the requirements set out in paragraphs (4)(a) and (b); and

  • (b) the investment is of a category prescribed by the regulations.

• Marginal note:Funds outside Canada — investments

  (6) Despite paragraph (3)(a), investments may be made in a person outside Canada if, in the opinion of the Board or any committee or officer designated by the Board,

  • (a) the person is an investment fund or other investment vehicle of which at least one half of the investment managers reside in Canada; and

  • (b) that fund or vehicle has an investment strategy that reflects an ongoing commitment to invest in Canada.

• Marginal note:Limitation

  (7) Paragraph (3)(b) does not apply

  • (a) to a person that is a trust, a corporation as defined in subsection 2(1) of the Canada Not-for-profit Corporations Act or a corporation incorporated under a provincial statute equivalent to that Act; or

  • (b) in the case where a loan, investment or guarantee is made or given through an arrangement referred to in paragraph (2)(b).

• Marginal note:Complementary to other services

  (8) The services referred to in subsection (1) are to fill out or complete services available from commercial financial institutions.

• Marginal note:Acquiring and dealing with property

  (9) In any circumstances in which the Bank may provide a service to a person under this section, the Bank may

  • (a) purchase or otherwise acquire real or personal property or immovables or movables including accounts receivable; and

  • (b) subject to any right of redemption that may exist, hold, lease to the person or subsequently sell, dispose of or otherwise deal with the property or immovables or movables.

• Marginal note:Definitions

  (10) The following definitions apply in this section.

  Canadian

  Canadian has the same meaning as in paragraph (a), (b) or (d) of the definition Canadian in section 3 of the Investment Canada Act. (Canadien)

  voting interest

  voting interest

  • (a) with respect to a corporation with share capital, means a voting share;

  • (b) with respect to a corporation without share capital, means an ownership interest in the assets of the corporation that entitles the owner to rights similar to those enjoyed by the owner of a voting share; and

  • (c) with respect to a partnership, trust or joint venture, means an ownership interest in the assets of the partnership, trust or joint venture that entitles the owner to receive a share of the profits and to share in the assets on dissolution. (intérêt avec droit de vote)

Marginal note:Security

• 15 (1) The Bank may

  • (a) acquire and hold security or a security interest, including, in Quebec, a right in a security, of any kind and in any form for the due discharge of obligations under a loan, investment, guarantee or agreement that it makes or gives;

  • (b) surrender the security, security interest or right in the security and acquire and hold, in exchange, security or a security interest, including, in Quebec, a right in a security, of any kind and in any form;

  • (c) realize the security, security interest or right in the security made, acquired or held by it on the loan, investment, guarantee or agreement; and

  • (d) exchange, lease, sell, assign, convey or otherwise dispose of the loan, investment, guarantee, agreement, security, security interest or right in a security.

• Marginal note:Additional security

  (2) Without limiting the generality of the powers of the Bank under this section, the Bank may, for the due discharge of the obligations referred to in paragraph (1)(a),

  • (a) acquire and hold a warehouse receipt or bill of lading as security; or

  • (b) take security on goods, wares and merchandise in the same form and manner as security on such property may be taken by a bank under section 427 of the Bank Act.

• Marginal note:Warehouse receipts and bills of lading

  (3) Where the Bank acquires and holds a warehouse receipt or bill of lading as security, subsections 428(1), (2), (7), (8), (9) and (12) and 435(2) and section 436 of the Bank Act apply, with any modifications that the circumstances require, as if the Bank were a bank under that Act.

• Marginal note:Goods, wares and merchandise

  (4) Where the Bank takes security on goods, wares and merchandise, section 427 and subsections 428(1), (2), (7), (8), (9) and (12) of the Bank Act apply, with any modifications that the circumstances require, as if the Bank were a bank under that Act.

• Marginal note:Deemed loan or advance

  (5) Where the Bank issues a guarantee or otherwise makes a promise to effect a payment, the Bank is deemed to lend money or make an advance for the purposes of subsections (3) and (4) and the provisions of the Bank Act that they refer to.

Marginal note:Acquisition of loans

16 The Bank may acquire and deal with as its own any loan, investment or guarantee made or given by another person if

• (a) the loan, investment or guarantee would meet the Bank’s eligibility criteria in subsection 14(3); or

• (b) it is part of a block of loans, investments or guarantees the majority of which meet those criteria.

Management Services

Marginal note:Agreements

• 17 (1) The Bank may provide, or enter into agreements for the provision of, any of the following services:

  • (a) consulting;

  • (b) management training and mentoring;

  • (c) networking, referral and sourcing;

  • (d) information and research;

  • (e) any other management services prescribed by the regulations.

• Marginal note:Complementary to service providers

  (2) The services are to fill out or complete services available from private sector service providers.

Treasury Activities

Marginal note:Borrowing powers

• 18 (1) The Bank may borrow money by any means, including issuing, selling, pledging or hypothecating debt obligations of the Bank.

• Marginal note:Debt obligations

  (2) The debt obligations may, in accordance with their terms, be subordinated to secured or unsecured indebtedness of the Bank and liability under them may be limited to the remaining assets of the Bank, after payment of indebtedness ranking prior to the debt obligations.

• Marginal note:Investment powers

  (3) The Bank may invest any money administered by it

  • (a) in debentures, bonds, stocks, bankers’ acceptances or other securities of or guaranteed by any member of the Canadian Payments Association, or the government of Canada or a province; or

  • (b) in any other manner that the Minister of Finance may approve.

• Marginal note:Financial management

  (4) The Bank may enter into any transaction for the purpose of reducing risk in the financial management of the Bank, including any financial instrument or agreement whose object is the management of financial risks, such as interest rate or currency exchange agreements, options, futures contracts and any other similar agreements.

• Marginal note:Securities

  (5) The Bank may pledge or hypothecate any of its assets or give deposits as security for any debt obligations issued by the Bank or as security for the due performance of its obligations under any financial management agreement.

• Marginal note:Non-application of certain provisions

  (6) For greater certainty, this section has effect notwithstanding sections 100 and 101 of the Financial Administration Act.

Marginal note:Loans to the Bank from Consolidated Revenue Fund

19 At the request of the Bank, the Minister of Finance may, out of the Consolidated Revenue Fund, lend money to the Bank on any terms and conditions that the Minister of Finance may fix.

Agreements and Programs

Marginal note:Agreements

20 The Bank may enter into agreements with, and act as agent or mandatary for, any department or agency of the government of Canada or a province, or any other body or person, for the provision of services or programs to, by, on behalf of or jointly with that body or person and, subject to subsection 14(3), may deliver financial assistance on their behalf under the agreement.

Marginal note:Entrepreneur-ship programs

21 The Bank may carry out duties or functions that may be assigned to it by the Designated Minister in relation to the administration of any program supporting Canadian entrepreneurship, to the extent that it is able to recover the costs of carrying out the duties or functions.

Ancillary Powers

Marginal note:Powers

22 The Bank may

• (a) accept deposits as security for the due performance of any arrangement or agreement with the Bank;

• (b) determine and charge interest and any other form of compensation for services provided by the Bank in the exercise of its powers under this Act;

• (c) procure the incorporation, dissolution or amalgamation of subsidiaries and acquire or dispose of any shares in them;

• (d) acquire and dispose of any interest or right in any entity by any means;

• (e) acquire, hold, exchange, lease, sell or otherwise dispose of any interest or right in real or personal property or immovables or movables and retain and use the proceeds of disposition; and

• (f) generally, do all other things that are incidental or conducive to attaining the purpose of this Act and the exercise of the powers of the Bank.