Companies’ Creditors Arrangement Act

Marginal note:Definitions

• 11.1 (1) In this section,

  eligible financial contract

  contrat financier admissible

  eligible financial contract means

  • (a) a currency or interest rate swap agreement,

  • (b) a basis swap agreement,

  • (c) a spot, future, forward or other foreign exchange agreement,

  • (d) a cap, collar or floor transaction,

  • (e) a commodity swap,

  • (f) a forward rate agreement,

  • (g) a repurchase or reverse repurchase agreement,

  • (h) a spot, future, forward or other commodity contract,

  • (i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities,

  • (j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i),

  • (k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j),

  • (l) any master agreement in respect of a master agreement referred to in paragraph (k),

  • (m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l), or

  • (n) any agreement of a kind prescribed; (contrat financier admissible)

  net termination value

  valeurs nettes dues à la date de résiliation

  net termination value means the net amount obtained after setting off the mutual obligations between the parties to an eligible financial contract in accordance with its provisions. (valeurs nettes dues à la date de résiliation)

• Marginal note:No stay, etc., in certain cases

  (2) No order may be made under this Act staying or restraining the exercise of any right to terminate, amend or claim any accelerated payment under an eligible financial contract or preventing a member of the Canadian Payments Association established by the Canadian Payments Act from ceasing to act as a clearing agent or group clearer for a company in accordance with that Act and the by-laws and rules of that Association.

• Marginal note:Existing eligible financial contracts

  (3) For greater certainty, where an eligible financial contract entered into before an order is made under section 11 is terminated on or after the date of the order, the setting off of obligations between the company and the other parties to the eligible financial contract, in accordance with its provisions, is permitted, and if net termination values determined in accordance with the eligible financial contract are owed by the company to another party to the eligible financial contract, that other party shall be deemed to be a creditor of the company with a claim against the company in respect of the net termination values.