Business Development Bank of Canada Act

Marginal note:Security

• 15 (1) The Bank may

  • (a) acquire and hold security or a security interest, including, in Quebec, a right in a security, of any kind and in any form for the due discharge of obligations under a loan, investment, guarantee or agreement that it makes or gives;

  • (b) surrender the security, security interest or right in the security and acquire and hold, in exchange, security or a security interest, including, in Quebec, a right in a security, of any kind and in any form;

  • (c) realize the security, security interest or right in the security made, acquired or held by it on the loan, investment, guarantee or agreement; and

  • (d) exchange, lease, sell, assign, convey or otherwise dispose of the loan, investment, guarantee, agreement, security, security interest or right in a security.

• Marginal note:Additional security

  (2) Without limiting the generality of the powers of the Bank under this section, the Bank may, for the due discharge of the obligations referred to in paragraph (1)(a),

  • (a) acquire and hold a warehouse receipt or bill of lading as security; or

  • (b) take security on goods, wares and merchandise in the same form and manner as security on such property may be taken by a bank under section 427 of the Bank Act.

• Marginal note:Warehouse receipts and bills of lading

  (3) Where the Bank acquires and holds a warehouse receipt or bill of lading as security, subsections 428(1), (2), (7), (8), (9) and (12) and 435(2) and section 436 of the Bank Act apply, with any modifications that the circumstances require, as if the Bank were a bank under that Act.

• Marginal note:Goods, wares and merchandise

  (4) Where the Bank takes security on goods, wares and merchandise, section 427 and subsections 428(1), (2), (7), (8), (9) and (12) of the Bank Act apply, with any modifications that the circumstances require, as if the Bank were a bank under that Act.

• Marginal note:Deemed loan or advance

  (5) Where the Bank issues a guarantee or otherwise makes a promise to effect a payment, the Bank is deemed to lend money or make an advance for the purposes of subsections (3) and (4) and the provisions of the Bank Act that they refer to.