Due to the assumptions which must be made in arriving at estimates of fair market value, such estimates, by nature, are subjective and do not necessarily result in a precise determination of asset value. The Corporation's income producing properties consist of the CN Tower, offices, industrial and mixed-use buildings. The Corporation has a receivable under an assignment agreement in respect of rents receivable, which entitles it to receive rental income during the period ending 2013. The notes payable are non-interest bearing and repayable from the proceeds of the sale of real estate properties in respect of which the notes were issued. Short-term deposits are invested periodically at current market rates.
Payment is dependent upon the cash flow of certain real estate leased to a single party.
Trade receivables approximate fair value due to the short-term nature of these financial instruments. The Corporation is authorized to issue three shares which shall only be transferred to a person approved by the Minister of Public Works and Government Services. The three authorized shares have been issued in consideration of services rendered and are held in trust for Her Majesty in right of Canada by the Minister of Public Works and Government Services. Nominal value has been ascribed to the three issued shares of the Corporation. The agreement expires in 2083, subject to earlier termination in 2009 under certain circumstances.