Compensation Regulations — 2
Prescribed persons 2 (1) For the purposes of subsection 39.23(1) of the Act and subject to subsections (2) to (4), a prescribed person is a person who, immediately before the making of an order under subsection 39.13(1) of the Act with respect to a federal member institution, owns, directly or through an intermediary, any of the following: (a) shares of the federal member institution; (b) liabilities of the federal member institution that, after the order is made, are converted in whole or in part into common shares under subsection 39.2(2.3) of the Act or in accordance with their terms; (c) subordinated debt of the federal member institution that is vested in the Corporation under the order; (d) liabilities of the federal member institution — other than liabilities that, after the order is made, are assigned to or assumed by a bridge institution or third party — if a winding-up order is made under the Winding-up and Restructuring Act with respect to the federal member institution as a result of an application made under section 39.22 or 39.3717 of the Act; (e) liabilities of the federal member institution that, after the order is made, are assigned to or assumed by a corporation that is described in subsection 10(2) of the Act and that is then liquidated, during a period in which a majority of the corporation’s voting shares are held by, on behalf of or in trust for the Corporation, other than liabilities that, after being assigned to or assumed by that corporation, are assigned to or assumed by a third party; (f) liabilities of the federal member institution that, after the order is made, are assigned to or assumed by a bridge institution — other than liabilities that, after being assigned to or assumed by the bridge institution, are assigned to or assumed by a third party — when a winding-up order is made under the Winding-up and Restructuring Act with respect to the bridge institution. Exclusion — assignee or transferee (2) A prescribed person referred to in subsection (1) includes the person’s successor in interest but does not include an assignee or transferee. Exclusion — amounts paid (3) A person is not a prescribed person with respect to any liability if, after the order is made, the amounts owing under the liability’s terms are paid in full. Exclusion — intermediary (4) A person is not a prescribed person with respect to any shares or liabilities if, immediately before the making of the order, they own the shares or liabilities solely as an intermediary. Definitions (5) The following definitions apply in this section. intermediary means a natural person, corporation, trust, partnership or entity that, in the ordinary course of its business, owns or holds shares or liabilities on behalf of another person and is acting in that capacity, other than a natural person, corporation, trust, partnership or entity that, in the ordinary course of its business, manages or administers a pension fund, a mutual fund, an investment fund or similar type of fund and is acting in that capacity. ( intermédiaire ) liability means a debt of at least $100 owed immediately before the making of an order under subsection 39.13(1) of the Act by the federal member institution and excludes any claim against the federal member institution if (a) the value of the debt is too uncertain to be provable against the institution in a winding-up proceeding; or (b) the debt is for a monetary loss resulting from the ownership, purchase or sale of an equity interest in the institution or from the rescission, or, in Quebec, the annulment, of a purchase or sale of an equity interest in the institution, or for contribution or indemnity in respect of the claim. ( élément du passif )