Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)

174 The Act is amended by adding the following after section 8.1:

175 Section 14 of the Act is replaced by the following:

DIVISION 2Asian Infrastructure Investment Bank Agreement Act

Marginal note:Enactment of Act

176 The Asian Infrastructure Investment Bank Agreement Act, whose text is as follows and whose schedule is set out in the schedule to this Act, is enacted:

DIVISION 3International Development Financing Agreements

Marginal note:Definition of Agreements

177 In this Division, Agreements means the following agreements, as amended from time to time:

• (a) the Administration Agreement for the Financial Support of the Private Sector Window of the Global Agriculture and Food Security Program (TFC-3), entered into between Her Majesty the Queen in right of Canada, as represented by the Minister of Finance, and the International Finance Corporation on March 14, 2011;

• (b) the Administration Agreement for the Financial Support of the Financial Mechanisms for Climate Change (FMCC) Facility — Concessional Finance (TFC-4), entered into between Her Majesty the Queen in right of Canada, as represented by the Minister of Finance, and the International Finance Corporation on March 8, 2011; and

• (c) the Administration Agreement for the Financial Support of the Financial Mechanisms for Climate (FMCC) Change Facility — Technical Assistance (TF 071589) entered into between Her Majesty the Queen in right of Canada, as represented by the Minister of Finance, and the International Finance Corporation on March 8, 2011.

Marginal note:Powers, duties and functions

• 178 (1) The Minister of Foreign Affairs is responsible for the Agreements.

• Marginal note:Share — acquisition

  (2) For the purposes of section 90 of the Financial Administration Act, shares of a corporation that, on acquisition, would be held by, on behalf of or in trust for the Crown may be acquired in the course of the administration of the Agreements.

Marginal note:Coming into force

179 This Division comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 4R.S., c. C-3Canada Deposit Insurance Corporation Act

Amendments to the Act

• 180 (1) Subsection 39.15(4) of the English version of the Canada Deposit Insurance Corporation Act is replaced by the following:

  • Marginal note:Rights subject to set-off or compensation

    (4) A federal member institution in respect of which an order is made under subsection 39.13(1) may not enforce against a person a right to receive an amount against which the person, but for paragraph (1)(d), would have a right of set-off or compensation.

• (2) Paragraph 39.15(7)(c) of the Act is replaced by the following:

  • (c) the exercise of remedies for a failure to satisfy an obligation under or in connection with the contract, including the payment of an amount payable — or the delivery of property deliverable — under or in connection with the contract;

• (3) Subsection 39.15(7) of the Act is amended by striking out “or” at the end of paragraph (d) and by replacing paragraph (e) with the following:

  • (e) any dealing with financial collateral

    • (i) to satisfy an amount payable — or the delivery of property deliverable — under or in connection with the contract,

    • (ii) for the purpose of calculating an amount payable under or in connection with the contract by way of netting, setting off or compensation of the financial collateral or application of the proceeds or value of the financial collateral, or

    • (iii) as a remedy for a failure described in paragraph (c); or

  • (f) any dealing with financial collateral, other than a dealing set out in paragraph (e).

• (4) Subsection 39.15(7.01) of the Act is replaced by the following:

  • Marginal note:Interpretation

    (7.01) For the purposes of paragraphs (7)(e) and (f), dealings with financial collateral include

    • (a) the sale or foreclosure or, in Quebec, the surrender of financial collateral; and

    • (b) the netting, setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

• (5) The portion of subsection 39.15(7.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Stay — eligible financial contracts

    (7.1) If an order is made under subsection 39.13(1), the actions referred to in paragraphs (7)(a), (b) and (f) are not to be taken by reason only of

• (6) Subsections 39.15(7.101) and (7.102) of the Act are replaced by the following:

  • Marginal note:Stay terminated — notice

    (7.101) If the Corporation considers that all or substantially all of the federal member institution’s assets will be transferred to a third party and that an eligible financial contract of that institution will not be assigned to a third party, it may give notice to that effect to the parties to that contract, in which case paragraphs (7.1)(a) and (c) cease to apply in respect of that contract at the date and time the notice is issued.

  • Marginal note:Stay terminated

    (7.102) Paragraph (7.1)(a) and, if the order made under subsection 39.13(1) directs the incorporation of a bridge institution, paragraph (7.1)(c) cease to apply to an eligible financial contract at 5:00 p.m. at the location of the Corporation’s head office on the second business day after the day on which the order is made under subsection 39.13(1), unless the Corporation has undertaken, before that time, to assign the contract to a bridge institution.

  • Marginal note:Interpretation

    (7.103) For greater certainty, paragraph (7.1)(a) and, if applicable, paragraph (7.1)(c) cease to apply in respect of an eligible financial contract to which both subsection (7.101) and (7.102) apply on the earlier of the date and time that a notice is issued under subsection (7.101) and the date and time set out in subsection (7.102).

  • Marginal note:Insolvency or deteriorated financial condition

    (7.104) Despite subsections (7.101) and (7.102), an action set out in paragraph (7)(a), (b) or (f) may only be taken by reason of the insolvency or deteriorated financial condition described in paragraph (7.1)(a) if that insolvency or deteriorated financial condition exists on the date and time paragraph (7.1)(a) ceases to apply.

  • Marginal note:Evidence

    (7.105) Nothing in paragraphs (7.1)(b) to (e) prevents a person from relying on the facts that led to the making of an order under subsection 39.13(1) as evidence of the insolvency or deteriorated financial condition described in paragraph (7.1)(a).

• (7) Paragraphs 39.15(7.11)(a) and (b) of the Act are replaced by the following:

  • (a) has the effect of providing for or permitting anything that, in substance, is contrary to subsection (7.1); or

  • (b) provides, in substance, that, by reason of the occurrence of any circumstance described in paragraphs (7.1)(a) to (e), the federal member institution ceases to have the rights — or, in the case of a bridge institution, does not have the rights — to use or deal with assets that the federal member institution or bridge institution would otherwise have.

• (8) Subsection 39.15(7.12) of the Act is replaced by the following:

  • Marginal note:Exception

    (7.12) Subsection (7.1) does not apply in respect of an eligible financial contract between the federal member institution and a clearing house unless the Corporation has given the undertaking referred to in subsection (3.3) in respect of the institution.

• (9) Paragraph 39.15(7.21)(d) of the Act is replaced by the following:

  • (d) its creditworthiness, taking into account any credit support or guarantee in respect of its obligations under the assigned contracts, is at least as good as the federal member institution’s creditworthiness was immediately before the order was made under subsection 39.13(1), taking into account any credit support or guarantee in respect of the federal member institution’s obligations under those contracts.

• (10) The definition business day in subsection 39.15(9) of the Act is replaced by the following:

  business day

  business day means a day, other than a Saturday or a holiday at the location of the head office of the federal member institution. (jour ouvrable)