Income Tax Regulations — 8502
rship between an individual and the individual’s spouse or common-law partner or former spouse or common-law partner, on or after the breakdown of their marriage or common-law partnership, or (B) assignment by the legal representative of a deceased individual on the distribution of the individual’s estate, and (ii) surrender does not include (A) a reduction in benefits to avoid the revocation of the registration of the plan, or (B) a surrender of retirement benefits payable to a beneficiary of a member after the member’s death, to the extent permitted under the Pension Benefits Standards Act, 1985 or a similar law of a province; Funding Media (g) the arrangement under which property is held in connection with the plan is acceptable to the Minister; Investments (h) the property that is held in connection with the plan does not include (i) a prohibited investment under subsection 8514(1), (ii) at any time that the plan is subject to the Pension Benefits Standards Act, 1985 or a similar law of a province, an investment that is not permitted at that time under such laws as apply to the plan, or (iii) at any time other than a time referred to in subparagraph (ii), an investment that would not be permitted were the plan subject to the Pension Benefits Standards Act, 1985 ; Borrowing (i) subject to paragraph (i.2), a trustee or other person who holds property in connection with the plan does not borrow money for the purposes of the plan, except where (i) the borrowing is for a term not exceeding 90 days, (ii) the borrowing is not part of a series of loans or other transactions and repayments, and (iii) none of the property that is held in connection with the plan is used as security for the borrowed money (except where the borrowing is necessary to provide funds for the current payment of benefits or the purchase of annuities under the plan without resort to a distressed sale of the property that is held in connection with the plan), or where (iv) the money is borrowed for the purpose of acquiring real property that may reasonably be considered to be acquired for the purpose of producing income from property, (v) the aggregate of all amounts borrowed for the purpose of acquiring the property and any indebtedness incurred as a consequence of the acquisition of the property does not exceed the cost to the person of the property, and (vi) none of the property that is held in connection with the plan, other than the real property, is used as security for the borrowed money; COVID-19 — Borrowing (i.1) in their application to loans that are entered into after April 2020 and before February 2022, subparagraphs (i)(i) and (ii) are to be read as follows: (i) the loan or, if the loan is part of a series of loans or repayments, the series of loans and repayments is repaid no later than April 30, 2022, and Borrowing – Defined Benefit Provision (i.2) in the case of a defined benefit provision of the plan (other than an individual pension plan), a trustee or other person who holds property in connection with the provision does not borrow money for the purposes of the provision, except in the circumstances described in paragraph (i) or if, at the time an amount is borrowed (i) the difference between A and B in subparagraph (ii) does not exceed 125% of the actuarial liabilities (determined on the effective date of the plan’s most recent actuarial report) in respect of the provision, and (ii) the total of the borrowed amount and the amount of any other outstanding borrowings in respect of the provision (other than an amount described in paragraph (i)) does not exceed the amount determined by the formula 0.20 × (A − B) where A is the value of the plan assets in respect of the provision on the first day of the fiscal period of the plan in which the amount is borrowed, and B is the amount of outstanding borrowings in respect of the provision, determined on the first day of the fiscal period in which the amount is borrowed; Determination of Amounts (j) e