Interests in real property
 20. (1) For the purposes of Part XVII of the Act, the interest of an insurer or a prescribed subsidiary of an insurer in each of the types of property listed in Column 2 in the following Table is an interest in real property for the purposes of Part XVII of the Act and the value of the interest is the amount determined under the provisions set out opposite the type of property in Column 3 of the Table: Table of Real Property Interests  Column 1   Column 2    Column 3 

  Item   Description of Real Property Interest   Value of the Real Property Interest 

  1.   Real property beneficially owned by the insurer or by a designated entity controlled by the insurer.   The book value of the real property. 

  2.   A debt obligation for which the insurer or a designated entity controlled by the insurer is liable that was issued for the purpose of acquiring or improving real property described in Item 1.   The amount, if any, by which the book value of the debt obligation exceeds the book value of the real property. 

  3.   Real property,  (a) that is beneficially owned by,   (i) a related real property entity of the insurer that is a joint venture, or    (ii) an entity in which an entity described in subclause (i) has a substantial investment; and  (b) that would be reported on a balance sheet of the insurer prepared in accordance with section 104 of the Act.   The book value of the real property. 

  4.   Shares and ownership interests beneficially owned by the insurer, or by a designated entity controlled by the insurer, in any related real property entity of the insurer, other than a related real property entity referred to in Item 3.   The book value of the shares and ownership interests. 

  5.   A debt obligation that was issued by a related real property entity of the insurer and that is beneficially owned by the insurer or by a designated entity controlled by the insurer.   The book value of the debt obligation. 

  6.   A loan made by the insurer or a designated entity controlled by the insurer to a related real property entity of the insurer.   The book value of the loan. 

  7.   A loan made by the insurer or a designated entity controlled by the insurer to,  (a) a real property entity in which a financial institution controlled by the insurer has a substantial investment; or  (b) a real property entity that is controlled by a real property entity described in clause (a).   The book value of the loan. 

  8.   A debt obligation that was issued by a real property entity described in clause (a) or (b) of Item 7 and that is beneficially owned by the insurer or a designated entity controlled by the insurer.   The book value of the debt obligation. 

  9.   A debt obligation that is,  (a) issued by a related real property entity of the insurer;  (b) beneficially owned by a third party; and  (c) guaranteed by the insurer or a designated entity controlled by the insurer.   If the debt obligation is issued by a related real property entity and the entity beneficially owns real property that is an interest of the insurer in real property described in Item 3, the amount, if any, by which the face value of the guarantee exceeds the value of that real property. 

          In any other case, the face value of the guarantee. 

  10.   A loan made by a third party to a related real property entity of the insurer and guaranteed by the insurer or a designated entity controlled by the insurer.   If the loan is made to a related real property entity and the entity beneficially owns real property that is an interest of the insurer in real property described in Item 3, the amount, if any, by which the face value of the guarantee exceeds the value of that real property. 

          In any other case, the face value of the guarantee. 

  11.   A loan made by the insurer or a designated entity controlled by the insurer to a third party that is secured by real property beneficially owned by the third party in conjunction with,  (a) the insurer;  (b) the designated entity;  (c) a related real property entity of the insurer;  (d) a financial institution controlled by the insurer;  (e) an entity controlled by a financial institution controlled by the insurer; or  (f) a real property entity described in Item 7.   The lesser of,  (a) the net realizable value of the third party’s interest in the real property at the time that the security interest was given; and  (b) the amount by which the book value of the loan exceeds the total net realizable value of any other security interests that were given for the loan. 

  12.   A debt obligation of a third party beneficially owned by the insurer or a designated entity controlled by the insurer that is secured by real property beneficially owned by the third party in conjunction with,  (a) the insurer;  (b) the designated entity;  (c) a related real property entity of the insurer;  (d) a financial institution controlled by the insurer;  (e) an entity controlled by a financial institution controlled by the insurer; or  (f) a real property entity described in Item 7.   The lesser of,  (a) the net realizable value of the third party’s interest in the real property at the time that the security interest was given; and  (b) the amount by which the book value of the debt obligation exceeds the total net realizable value of any other security interests that were given for the debt obligation. 

  13.   A debt obligation of a third party guaranteed by the insurer or a designated entity controlled by the insurer that is secured by real property beneficially owned by the third party in conjunction with,  (a) the insurer;  (b) the designated entity;  (c) a related real property entity of the insurer;  (d) a financial institution controlled by the insurer;  (e) an entity controlled by a financial institution controlled by the insurer; or  (f) a real property entity described in Item 7.   The lesser of,  (a) the net realizable value of the third party’s interest in the real property at the time that the security interest was given; and  (b) the amount by which the face value of the guarantee exceeds the total net realizable value of any other security interests that were given for the debt obligation. 

  14.   A loan made by the insurer or a designated entity controlled by the insurer to a third party that is secured by shares or ownership interests beneficially owned by a third party in an entity that beneficially owns real property in conjunction with the insurer, a related real property entity of the insurer or a designated entity controlled by the insurer.   The lesser of,  (a) the net realizable value of the third party’s interest in the shares or ownership interests at the time that the security interest was given; and  (b) the amount by which the book value of the loan exceeds the amount determined by subtracting from “A” the amount determined by multiplying “B” by “C”,  where,   “A” is the total net realizable value of all security interests that were given for the loan,   “B” is the net realizable value of the entity’s interest in the real property, and   “C” is the ratio of the value of the shares or ownership interests that are given as the security interest to the total value of all outstanding shares or ownership interests in the entity. 

  15.   A debt obligation of a third party beneficially owned by the insurer or a designated entity controlled by the insurer that is secured by shares or ownership interests beneficially owned by a third party in an entity that beneficially owns real property in conjunction with the insurer, a related real property entity of the insurer or a designated entity controlled by the insurer.   The lesser of,  (a) the net realizable value of the third party’s interest in the shares or ownership interests at the time that the security interest was given; and  (b) the amount by which the book value of the debt obligation exceeds the amount determined by subtracting from “A” the amount determined by multiplying “B” by “C”, where,   “A” is the total net realizable value of all security interests that were given for the debt obligation,   “B” is the net realizable value of the entity’s interest in the real property, and   “C” is the ratio of the value of the shares or ownership interests that are given as the security interest to the total value of all outstanding shares or ownership interests in the entity. 

  16.   A debt obligation of a third party guaranteed by the insurer or a designated entity controlled by the insurer that is secured by shares or ownership interests beneficially owned by a third party in an entity that beneficially owns real property in conjunction with the insurer, a related real property entity of the insurer or a designated entity controlled by the insurer.   The lesser of,  (a) the net realizable value of the third party’s interest in those shares or ownership interests at the time that the security interest was given; and  (b) the amount by which the face value of the guarantee exceeds the amount determined by subtracting from “A” the amount determined by multiplying “B” by “C”, where,   “A” is the total net realizable value of all security interests that were given for the loan or debt obligation,   “B” is the net realizable value of the entity’s interest in the real property, and   “C” is the ratio of the value of the shares or ownership interests that are given as the security interest to the total value of all outstanding shares or ownership interests in the entity. 

  17.   A loan made by the insurer or a designated entity controlled by the insurer to a third party that is secured by shares or ownership interests beneficially owned by a third party in a related real property entity of the insurer.   The lesser of,  (a) the net realizable value of the third party’s interest in the shares or ownership interests at the time that the security interest was given; and  (b) the amount by which the book value of the loan exceeds the total net realizable value of all other security interests given for the loan. 

  18.   A debt obligation of a third party beneficially owned by the insurer or a designated entity controlled by the insurer that is secured by shares or ownership interests beneficially owned by a third party in a related real property entity of the insurer.   The lesser of,  (a) the net realizable value of the third party’s interest in the shares or ownership interests at the time that the security interest was given; and  (b) the amount by which the book value of the debt obligation exceeds the total net realizable value of all other security interests given for the debt obligation. 

  19.   A debt obligation of a third party guaranteed by the insurer or a designated entity controlled by the insurer that is secured by shares or ownership interests beneficially owned by a third party in a related real property entity of the insurer.   The lesser of,  (a) the net realizable value of the third party’s interest in the shares or ownership interests at the time that the security interest was given; and  (b) the amount by which the face value of the guarantee exceeds the total net realizable value of all other security interests given for the debt obligation. 

  20.   A guarantee given by the insurer or a designated entity controlled by the insurer to an entity other than the insurer or the designated entity for the purpose of completing the development of real property that is beneficially owned by,  (a) the insurer;  (b) the designated entity controlled by the insurer; or  (c) a related real property entity of the insurer.   The estimated cost of completing the development of the real property. 

  21.   An agreement made by the insurer or a designated entity controlled by the insurer to support a third party’s cost of operating or financing real property that is beneficially owned by,  (a) the insurer;  (b) the designated entity controlled by the insurer; or  (c) a related real property entity of the insurer.   The amount of any funds advanced pursuant to the agreement by the insurer or the designated entity controlled by the insurer. O. Reg. 121/08, s. 20 (1). (2) The book value at a particular time of property that is an interest in real property for the purposes of Part XVII of the Act is, (a) if the property is real property, the gross book value of the real property, less any accumulated depreciation on the real property, that would be reported on a balance sheet of the insurer prepared as of the particular time in accordance with section 104 of the Act; or (b) if the property consists of shares of or an ownership interest in another entity or a debt obligation or loan, the book value of the shares, ownership interest, debt obligation or loan that would be reported on a balance sheet of the insurer prepared as of the particular time in accordance with section 104 of the Act.  O. Reg. 121/08, s. 20 (2). Matters Prescribed for the Purposes of Section 435.14 of the Act