Business Development Bank of Canada Act

Marginal note:Borrowing powers

• 18 (1) The Bank may borrow money by any means, including issuing and selling or pledging 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:Pledging assets

  (5) The Bank may pledge 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.