Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 132

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 132
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 amongst other things that, subject to certain statutorily preferred
debts, the insurance debts of an insurer must be paid in priority to all other unsecured debts of the insurer. Insurance debt is defined
as a debt to which an insurer is or may become liable pursuant to an insurance contract excluding debts owed to an insurer under an insurance
contract where the insurer is the person insured.

An insolvent Bermuda company
may be the subject in Bermuda of winding up proceedings. In the context of insolvency, the other proceedings that may be used in Bermuda
are a scheme of arrangement or receivership, but these are not exclusive to insolvency. There are two types of insolvent liquidations
in Bermuda: voluntary and compulsory. The former is commenced by the company itself (which can be on a solvent or insolvent basis and
will require a resolution of the members and, if the company is insolvent, a creditors’ resolution), while the latter is commenced
by way of a petition presented to the Supreme Court of Bermuda by either the Company or its creditors or contributories upon which the
court is asked to make a winding-up order. There are a number of circumstances provided for in Section 161 of the Bermuda Companies
Act in which a Bermuda company may be wound up by the court, the most common of which is when the company is unable to pay its debts.

Under Bermuda law, certain
transactions may be set aside or otherwise be varied or amended by order of a Bermuda court when an insolvent Bermuda company goes into
liquidation, including but not limited to transactions for fraudulent trading, fraudulent preference and/or a fraudulent conveyance (as
such terms are understood under Bermuda law).

Set-off of debts is permissible
upon the commencement of winding-up of an insolvent Bermuda company, but only in respect of mutual dealings subsisting at the commencement
of winding-up. If there is a net balance after the set-off, such sums may be claimed in the liquidation.

There are no bankruptcy
treaties in force under the laws of Bermuda.

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CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS</div>

The following is a summary of the principal Canadian federal income tax considerations under the Canadian Tax Act generally applicable to a holder ofInitial Notes who acquires Exchange Notes, including entitlement to all payments thereunder, as a beneficial owner
pursuant to the Exchange Offer and who, for purposes of the Canadian Tax Act, and at all relevant times