Related Party Transactions (Banks) Regulations

4 For the purposes of section 500 of the Act, a bank may, directly or indirectly, enter into any of the following transactions with a related party of the bank:

• (a) an allocation of an amount by or to the bank pursuant to subsection 18(2.3), 125(3), 127(10.3), 137(2), (4.1), (4.2) or (5.1), 181.5(2), 190.15(2) or 191.1(3) of the Income Tax Act;

• (b) an agreement or amended agreement described in subsection 191.3(1) of the Income Tax Act under which

  • (i) the bank agrees to pay all or a portion of the tax of the related party, and

  • (ii) the related party agrees to pay the bank an amount at least equal to the additional costs incurred by the bank, including additional taxes payable under the Income Tax Act, as a result of the bank entering into the agreement or amended agreement;

• (c) an agreement or amended agreement described in subsection 191.3(1) of the Income Tax Act under which the related party agrees to pay all or a portion of the tax of the bank;

• (d) the issue by or to the bank of conversion privileges, options or rights to acquire securities or membership shares the issuance of which is not otherwise provided for in the terms and conditions pursuant to which a security or membership share is being or has been issued;

• (e) the purchase, for the purpose of cancellation, of any shares, membership shares or debt obligations issued by or to the bank the purchase of which is not otherwise provided for in the terms and conditions pursuant to which the shares, membership shares or debt obligations were issued;

• (f) the redemption of any redeemable shares, membership shares or any debt obligations issued by or to the bank the redemption of which is not otherwise provided for in the terms and conditions pursuant to which the shares, membership shares or debt obligations were issued; or

• (g) the payment or delivery of money or property by or to the bank as a consequence of a reduction of the stated capital of the bank or related party.