Office of the Superintendent of Financial Institutions
This document has been prepared for convenience of reference only and has no official sanction. For all purposes of interpreting and applying the law, users should consult the ICA.
In this Appendix,
[552(3)(a) and 557]
A Society may acquire control of, or acquire or increase a substantial investment in, any entity as a temporary investment [557(1)].
[552(3)(b) and 558]
Where an entity is in default with respect to a loan that a Society or its subsidiary has made to the entity, the Society or the subsidiary may acquire all or any of the shares of, or ownership interests in, (i) the entity, (ii) any affiliates of the entity, or (iii) an entity that is primarily engaged in holding shares of, ownership interests in, or assets acquired from, the entity to which the loan was made or any affiliates of the entity to which the loan was made [558(1)].
Despite the above, where a foreign government, or an entity controlled by a foreign government, is in default with respect to a loan from, or debt obligations held by, a Society, the Society may acquire all or any of the shares of, or ownership interests in, the entity or any other entity designated by the foreign government, if the acquisition is part of a debt restructuring program [558(5)]. The Society may hold those shares or ownership interests for a period specified by the Superintendent, including for an indeterminate period [558(6)].
Realization of a security interest
[552(3)(c) and 559]
A Society may, through the realization of a security interest held by the Society or its subsidiary, acquire control of, or acquire or increase a substantial investment in, any entity [559(1)].