Winding-up and Restructuring Act — W-11 161
e terms of the policies of policyholders referred to in that subsection have been satisfied in full including any interest component of those policies accruing to the date of payment of the claim. Claims re life companies — creditors (2.1) No payment on a claim by a creditor of a company insuring risks under policies referred to in subparagraph (1)(c)(i) shall be made unless the assets of the company are sufficient to pay the claims referred to in subsections (1) and (2) and all of the terms of the policies of the policyholders referred to in those subsections have been satisfied in full including any interest component of those policies accruing to the date of payment of the claim. Interest component (3) For the purposes of subsections (2) and (2.1), the interest component of the claims of policyholders referred to in subparagraph (1)(c)(i) shall be treated as part of the claim that has arisen under the policy in accordance with the terms of the policy. Claims re other companies (4) No payment on a claim by a creditor of a company insuring risks under policies referred to in subparagraph (1)(c)(ii) shall be made unless the assets of the company are sufficient to pay the claims referred to in subsection (1). Subordinated debt holders (5) Holders of subordinated indebtedness, within the meaning of subsection 2(1) of the Insurance Companies Act , of a company and other indebtedness that by their terms rank equally or are subordinate to such indebtedness are entitled to receive payment on their claims only if the assets of the company are sufficient to pay the claims referred to in subsections (2), (2.1) and (4). Priority of claims of policyholders in foreign companies (6) Despite anything in this Part but subject to subsection (8), if a company is a foreign company, no claim, after the payment of costs of liquidation, ranks against the assets other than claims described in paragraphs (a) to (c), and the balance, if any, of the assets remaining after those claims are paid shall be applied by the liquidator in satisfaction of the claims of any other creditors — but not including policyholders and creditors of the foreign company in respect of a class of insurance not specified in the order referred to in paragraph (b) — of the insurance business in Canada of the foreign company in accordance with subsections (2), (2.1) and (4): (a) the preferred creditors referred to in paragraph (1)(b); (b) holders of policies of a class of insurance specified in the order of the Superintendent under Part XIII of the Insurance Companies Act other than holders of a policy exempt from Part XIII by virtue of section 572.1 of that Act; and (c) expenses described in paragraph 686(1)(a) of the Insurance Companies Act , that were incurred by the Superintendent in respect of the company and assessed against and paid by other companies pursuant to that Act, and interest in respect of those expenses at the rate that is specified by the Superintendent. Definitions (7) In subsection (8), assets in Canada means assets in Canada, within the meaning of subsection 2(1) of the Insurance Companies Act , of a foreign company; ( actif au Canada ) assets under the control of the chief agent means the other assets of the foreign company that are held in Canada under the control of its chief agent, within the meaning of section 571 of the Insurance Companies Act , including all amounts received or receivable in respect of its insurance business in Canada. ( actif sous le contrôle de l’agent principal ) Other foreign company priority provisions (8) Where a foreign company is authorized to insure in Canada (a) risks falling within the class of life insurance; and (b) risks falling within some other class of insurance, other than accident and sickness insurance, credit protection insurance and other approved products insurance, (i) in the case of the costs of liquidation and the claims of preferred creditors, the costs, portions of expenses and claims shall be paid from t