Income Tax Regulations — 4900
 under the plan or fund is a designated shareholder of the corporation, the interest shall not be a qualified investment for the trust governed by the plan or fund unless (c) the designated security is a share of the capital stock of an eligible corporation, (d) the partnership or trust, as the case may be, has no right to set off, assign or otherwise apply, directly or indirectly, the designated security against the interest, (e) no person is obligated in any way, either absolutely or contingently, under any undertaking the intent or effect of which is (i) to limit any loss that the plan or fund may sustain by virtue of the ownership, holding or disposition of the interest, or (ii) to ensure that the plan or fund will derive earnings by virtue of the ownership, holding or disposition of the interest, (f) in the case of the partnership, there are more than 10 limited partners and no limited partner or group of limited partners who do not deal with each other at arm’s length holds more than 10 per cent of the units of the partnership, and (g) in the case of the trust, there are more than 10 beneficiaries and no beneficiary or group of beneficiaries who do not deal with each other at arm’s length holds more than 10 per cent of the units of the trust. (10) [Repealed, 2011, c. 24, s. 84] (11) For the purposes of subsection (7), where (a) a trust governed by a deferred profit sharing plan or revoked plan holds (i) an interest in a small business investment limited partnership, or (ii) an interest in a small business investment trust that holds a small business security of a corporation, (b) payments have been made in trust to a trustee under the deferred profit sharing plan or revoked plan for the benefit of beneficiaries thereunder by the corporation or a corporation related thereto, and (c) the small business security is not an equity share described in paragraph (e) of the definition qualified investment in section 204 of the Act, the interest referred to in subparagraphs (a)(i) and (ii) shall not be a qualified investment for the trust referred to in paragraph (a). (12) and (13) [Repealed, 2017, c. 33, s. 95] (14) For the purposes of paragraph (d) of the definition qualified investment in subsection 146(1) of the Act, paragraph (e) of the definition qualified investment in subsection 146.1(1) of the Act, paragraph (c) of the definition qualified investment in subsection 146.3(1) of the Act and paragraph (c) of the definition qualified investment in subsection 207.01(1) of the Act, a property is prescribed as a qualified investment for a trust governed by a FHSA, RESP, RRIF, RRSP or TFSA at any time if, at the time the property was acquired by the trust, the property (a) was (i) a share of the capital stock of a specified small business corporation, (ii) a share of the capital stock of a venture capital corporation described in any of sections 6700 to 6700.2, or (iii) a qualifying share in respect of a specified cooperative corporation and the FHSA, RESP, RRIF, RRSP or TFSA; and (b) was not a prohibited investment for the trust. (15) For the purposes of the definition prohibited investment in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a FHSA, RESP, RRIF, RRSP or TFSA solely because of subsection (14) is prescribed property for the trust at any time if, at that time, the property is not described in any of subparagraphs (14)(a)(i) to (iii). [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/81-725, s. 4; SOR/83-819, s. 1; SOR/85-202, s. 1; SOR/86-390, s. 2; SOR/86-1092, s. 12(F); SOR/88-165, s. 24(F); SOR/92-660, s. 2; SOR/94-471, s. 1; SOR/94-472, s. 1; SOR/94-686, ss. 26(F), 72(F), 74(F), 75(F), 78(F), 79(F); SOR/95-513, s. 1; SOR/96-450, s. 1; SOR/98-250, s. 1; SOR/99-9, s. 1; SOR/99-81, s. 1; SOR/99-102, s. 1; SOR/2001-216, ss. 6, 10(F),11(F); SOR/2001-289, s. 8(E); SOR/2005-264, s. 6; 2007, c. 29, s. 3