Business Development Bank of Canada Act

Marginal note:Limit on borrowings and guarantees

• 30 (1) The aggregate of

  • (a) the borrowings of the Bank under subsection 18(1) and section 19, and

  • (b) the contingent liabilities of the Bank in the form of guarantees given by it

  must not at any time exceed twelve times the equity of the Bank.

• Marginal note:Definition of equity

  (2) For the purpose of subsection (1), the equity of the Bank consists of

  • (a) the amounts paid for its shares, including any contributed surplus;

  • (b) the retained earnings of the Bank, which may be positive or negative;

  • (c) amounts paid to the Bank as capital by Parliamentary appropriation; and

  • (d) such proceeds of debt instruments, hybrid capital instruments or other arrangements as may be prescribed as equity by the Governor in Council.