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Financial Administration Act (R.S.C., 1985, c. F-11)

Act current to 2020-05-04 and last amended on 2020-04-11. Previous Versions

PART IVPublic Debt (continued)

Marginal note:Delegation

 The Minister may delegate to any officer of the Department of Finance any of the powers, duties and functions of the Minister under this Part, except the power to delegate under this section.

  • 1999, c. 26, s. 24

PART IV.1Stability and Efficiency of the Financial System

Marginal note:Definitions

  •  (1) The following definitions apply in this Part.

    debt obligation

    debt obligation means a bond, debenture, note or other evidence of indebtedness of an entity, whether secured or unsecured. (titre de créance)

    entity

    entity means an entity, including a trust, that, in the Minister’s opinion, is operating in Canada. (entité)

    financial markets

    financial markets includes markets for money, bonds, equities, derivatives, foreign exchange and commodities. (marchés financiers)

    financial system

    financial system includes financial institutions, financial markets and payment systems as defined in section 36 of the Canadian Payments Act. (système financier)

    security

    security means

    • (a) in relation to a corporation, a share, a class of shares or a debt obligation of the corporation, and includes any conversion or exchange privilege, option or other right to acquire a share of the corporation; and

    • (b) in relation to any other entity, any ownership interest in or debt obligation of the entity. (titre)

  • Marginal note:Contracts and payments

    (2) Subject to subsection (3), the Minister may, taking into account the interests of taxpayers,

    • (a) with the Governor in Council’s authorization, enter into, on behalf of Her Majesty in right of Canada, any contract that in the Minister’s opinion is necessary to promote the stability or maintain the efficiency of the financial system in Canada, including such a contract to

      • (i) purchase, acquire, hold, lend or sell or otherwise dispose of securities of an entity,

      • (ii) create a charge on, or right or interest in, securities of an entity held by the Minister,

      • (iii) make a loan to an entity,

      • (iv) provide a line of credit to an entity,

      • (v) guarantee any debt, obligation or financial asset of an entity, or

      • (vi) provide loan insurance or credit insurance for the benefit of an entity in respect of any debt, obligation or financial asset of the entity; and

    • (b) make payments to a province or territory — or, after consultation with a province or territory, to an entity — for the purposes of responding to a situation of significant and systemic economic and financial distress.

  • Marginal note:Contract with Her Majesty

    (2.1) The Minister may enter into a contract under paragraph (2)(a) with Her Majesty in right of Canada.

  • Marginal note:Without Governor in Council’s authorization

    (2.2) The Minister may enter into a contract under paragraph (2)(a) without the Governor in Council’s authorization until September 30, 2020.

  • Marginal note:Accountability to Parliament

    (2.3) The Minister is to exercise his or her powers under subsection (2) within the framework of the Minister’s accountability to Parliament.

  • Marginal note:Non-application to certain entities

    (3) Subparagraph (2)(a)(i) does not apply to

    • (a) shares, as defined in subsection 973.2(15) of the Bank Act, of a bank or bank holding company, as defined in section 2 of that Act;

    • (b) shares, as defined in subsection 459.9(14) of the Cooperative Credit Associations Act, of an association as defined in section 2 of that Act;

    • (c) shares, as defined in subsection 1016.7(15) of the Insurance Companies Act, of a company or insurance holding company, as defined in subsection 2(1) of that Act; or

    • (d) shares, as defined in subsection 527.9(15) of the Trust and Loan Companies Act, of a company as defined in section 2 of that Act.

  • Marginal note:Section 90 does not apply

    (4) Section 90 does not apply if the Minister purchases, acquires or sells or otherwise disposes, under subparagraph (2)(a)(i), of shares within the meaning of that section.

  • Marginal note:Section 61 and Surplus Crown Assets Act do not apply

    (5) Section 61 and the Surplus Crown Assets Act do not apply if the Minister holds, loans or sells or otherwise disposes of securities under subparagraph (2)(a)(i).

  • Marginal note:Payments out of C.R.F.

    (6) Any amount payable under or in connection with a contract entered into under this section or any payment made under paragraph (2)(b) may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, at the times and in the manner that the Minister considers appropriate.

  • Marginal note:Retroactive effect

    (7) This section applies to any contract entered into on or after November 30, 2008.

  • 2009, c. 2, s. 232
  • 2020, c. 5, s. 27

Marginal note:Incorporation

  •  (1) If, in the Minister’s opinion, it is necessary to promote the stability or maintain the efficiency of the financial system in Canada, the Minister may, during the period beginning on the day on which this subsection comes into force and ending on September 30, 2020, with the Governor in Council’s authorization, procure the incorporation of a corporation, all of the shares of which are held by the Minister on behalf of Her Majesty in right of Canada.

  • Marginal note:Not agent of Her Majesty

    (2) The corporation is not an agent of Her Majesty in right of Canada unless it is declared to be an agent of Her Majesty under an Act of Parliament.

  • Marginal note:Application of Part X

    (3) Subject to any regulations made under subsection (4), Part X does not apply to the corporation.

  • Marginal note:Regulations

    (4) The Minister may make regulations respecting the governance of the corporation, including regulations that adapt any provisions of this Act or the Canada Business Corporations Act and any regulations made under those Acts for the purpose of applying those provisions as adapted to the corporation.

  • Marginal note:Directives

    (5) The Minister may give a directive to the corporation.

  • Marginal note:Implementation

    (6) The directors of the corporation shall ensure that a directive is implemented in a prompt and efficient manner.

  • Marginal note:Best interests

    (7) Compliance by the corporation with a directive is deemed to be in the best interests of the corporation.

  • Marginal note:Terms and conditions

    (8) The Minister may, by order, establish terms and conditions in accordance with which the corporation shall enter into financial transactions.

  • Marginal note:Contract with Her Majesty

    (9) The corporation may enter into a contract with Her Majesty in right of Canada.

  • Marginal note:Payments out of C.R.F.

    (10) The Minister may make payments to the corporation out of the Consolidated Revenue Fund, at the times and in the manner that the Minister considers appropriate.

  • Marginal note:Loans to corporation

    (11) The Minister may, out of the Consolidated Revenue Fund, lend money to the corporation on any terms and conditions that the Minister may fix.

  • Marginal note:Powers of Minister

    (12) The Minister may merge, sell, wind-up or dissolve the corporation, dispose of any or all shares of the corporation or take other similar measures in respect of the corporation.

  • Marginal note:Statutory Instruments Act

    (13) The Statutory Instruments Act does not apply to a directive given under subsection (5) or to an order made under subsection (8).

  • Marginal note:Publication in Canada Gazette

    (14) The Minister shall publish a directive given under subsection (5) or an order made under subsection (8) in the Canada Gazette.

  • 2020, c. 5, s. 28
  • 2020, c. 6, s. 9
 
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