Marginal note:Book value of interest in real property

2. For the purposes of sections 7 to 10, the book value of an asset that is an interest of a society in real property, at a particular time, is

• (a) if the asset is real property, the gross book value of the real property, less any accumulated depreciation on the real property, that would be reported on a balance sheet of the society prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 331(4) of the Act; and

• (b) if the asset is a security or loan, the book value of the security or loan that would be reported on a balance sheet of the society prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 331(4) of the Act.

Marginal note:Prescribed subsidiary of a society

3. For the purposes of sections 563, 565 and 566 of the Act, a prescribed subsidiary of a society is any subsidiary of the society, except where that subsidiary is

• (a) a financial institution; or

• (b) a subsidiary of a financial institution, other than where the subsidiary is a subsidiary of a financial institution only because it is a subsidiary of the society.

Marginal note:Definition of “total assets”

• 4. (1) In this section, “total assets”, in respect of a society, at a particular time, means the amount determined by the formula

  A - B

  where

  A 

  is the total of the assets that would be reported on the balance sheet of the society prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 331(4) of the Act; and

  B 

  is the total of all amounts each of which is an amount included in the value of A that is in respect of a subsidiary of the society, if that subsidiary is

  • (a) a financial institution, or

  • (b) a subsidiary of a financial institution, other than where the subsidiary is a subsidiary of a financial institution only because it is a subsidiary of the society.

• Marginal note:Amount determined — real property

  (2) For the purpose of section 563 of the Act, the amount determined in respect of a society is 15% of the total assets of the society.

• Marginal note:Amount determined — equity

  (3) For the purpose of section 565 of the Act, the amount determined in respect of a society is 25% of the total assets of the society.

Marginal note:Equity owned by society

5. For the purposes of sections 565 and 566 of the Act, the value of the participating shares and ownership interests referred to in those sections that are beneficially owned by a society and its subsidiaries prescribed by section 3 is equal to their book value as reported on the consolidated balance sheet of the society.