Marginal note:Definition and value of interest in real property

6. For the purposes of Part XII of the Act, sections 7 to 11 define the interests of a society in real property and set out how those interests are to be valued.

Marginal note:Direct interests

• 7. (1) The following are interests of a society in real property:

  • (a) real property beneficially owned by the society or by a designated entity controlled by the society; and

  • (b) a debt obligation, for which the society or a designated entity controlled by the society is liable, that was issued for the purpose of acquiring or improving real property referred to in paragraph (a).

• Marginal note:Value of direct interests

  (2) The value of the interests of a society in real property is

  • (a) in respect of real property referred to in paragraph (1)(a), the book value of the real property; and

  • (b) in respect of a debt obligation referred to in paragraph (1)(b), any amount by which the book value of the debt obligation exceeds the book value of the real property referred to in that paragraph.

Marginal note:Certain indirect interests

• 8. (1) The following are interests of a society in real property:

  • (a) at a particular time, real property

    • (i) that is beneficially owned by

      • (A) a related real property entity of the society that is a joint venture, or

      • (B) an entity in which an entity described in clause (A) has a substantial investment, and

    • (ii) 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) shares and ownership interests beneficially owned by the society, or by a designated entity controlled by the society, in any related real property entity of the society other than a related real property entity referred to in paragraph (a).

• Marginal note:Value of those interests

  (2) The value of the interests of a society in real property is

  • (a) in respect of real property referred to in paragraph (1)(a), the book value of the real property; and

  • (b) in respect of shares and ownership interests referred to in paragraph (1)(b), the book value of the shares and ownership interests.

Marginal note:Certain indirect interests

• 9. (1) The following are interests of a society in real property:

  • (a) a debt obligation issued by a related real property entity of the society and beneficially owned by the society or by a designated entity controlled by the society;

  • (b) a loan made by the society, or by a designated entity controlled by the society, to a related real property entity of the society;

  • (c) a loan made by the society, or by a designated entity controlled by the society, to

    • (i) a real property entity in which a financial institution controlled by the society has a substantial investment, or

    • (ii) a real property entity that is controlled by a real property entity described in subparagraph (i);

  • (d) a debt obligation issued by a real property entity described in subparagraph (c)(i) or (ii) and beneficially owned by the society or by a designated entity controlled by the society;

  • (e) a debt obligation that is

    • (i) issued by a related real property entity of the society,

    • (ii) beneficially owned by a third party, and

    • (iii) guaranteed by the society or by a designated entity controlled by the society; and

  • (f) a loan made by a third party to a related real property entity of the society and guaranteed by the society or by a designated entity controlled by the society.

• Marginal note:Value of those interests

  (2) The value of the interests of a society in real property is

  • (a) in respect of a debt obligation referred to in paragraph (1)(a) or (d), the book value of the debt obligation;

  • (b) in respect of a loan referred to in paragraph (1)(b) or (c), the book value of the loan; and

  • (c) in respect of a guaranteed debt obligation referred to in paragraph (1)(e) or a guaranteed loan referred to in paragraph (1)(f),

    • (i) if the debt obligation is issued by, or the loan is made to, an entity that is a related real property entity of the society and the entity beneficially owns real property that is an interest of the society in real property under paragraph 8(1)(a), any amount by which the face value of the guarantee exceeds the value of the real property determined in accordance with paragraph 8(2)(a), and

    • (ii) in any other case, the face value of the guarantee.