Definitions
 2. (1) In this Regulation, “designated entity” means, in respect of an insurer, an entity that is not, (a) a joint venture, (b) a financial institution, or (c) a subsidiary of a financial institution that is not a subsidiary of the financial institution only because it is a subsidiary of the insurer; (“entité désignée”) “factoring entity” means an entity whose activities are limited to acting as a factor in respect of accounts receivable, including the raising of money for the purposes of acting as a factor and lending money while acting as a factor; (“entité s’occupant d’affacturage”) “finance entity” means an entity, (a) that engages in a business that includes, (i) issuing payment, credit or charge cards and, in co-operation with others, including financial institutions, operating a payment, credit or charge card plan, or (ii) making or refinancing loans or entering into any other similar arrangements for advancing funds or credit, and (b) that is not, (i) a financial institution, (ii) a factoring entity, (iii) a financial leasing entity that is a permitted entity under this Regulation, or (iv) a specialized financing entity that makes or refinances loans to, or enters into other similar arrangements for advancing funds or credit to, only entities that it controls or in which it holds a substantial investment; (“entité s’occupant de financement”) “financial leasing entity” means an entity whose activities are limited to the financial leasing of personal property, including, (a) the entering into and acceptance of assignments of conditional sales agreements in respect of personal property, (b) the administration of financial lease agreements and conditional sales agreements on behalf of any person, and (c) the raising of money for the purposes of financing the activities of the financial leasing entity and the investment of that money pending its use for those activities; (“entité s’occupant de crédit-bail”) “financial services entity” means an entity that is, (a) a financial institution, (b) an entity listed in any of paragraphs 1 to 11 of subsection 5 (1), or (c) any other entity whose primary business activity is the provision of financial services; (“entité s’occupant de services financiers”) “joint venture” means a real property entity, (a) that was formed by an insurer or a designated entity controlled by the insurer and one or more other persons for the purpose of a specific business undertaking, (b) in which the insurer or designated entity has made and holds a substantial investment, and (c) in respect of which the persons who formed it have agreed on joint control, regardless of the distribution of their equity; (“coentreprise”) “minority interest” means, in respect of an entity controlled by an insurer, an equity interest in the entity that is held by a person who is neither the insurer nor another entity controlled by the insurer; (“participation minoritaire”) “motor vehicle” means a motorized vehicle designed to be used primarily on a public highway for the transportation of persons or things, but does not include, (a) an ambulance or fire department vehicle as defined in section 61 of the Highway Traffic Act, (b) a utility truck, (c) a bus, or (d) another special purpose motorized vehicle that contains significant special features that make it suitable for a specific purpose; (“véhicule automobile”) “mutual fund dealer” means an entity whose principal activity is acting as a selling agent of units, shares or other interests in a mutual fund and acting as a collecting agent in the collection of payments for any such interests if, (a) the proceeds of the sales of any such interests, less any sales commissions and service fees, are paid to the mutual fund, and (b) the existence of a sales commission and service fee in respect of the sale of any such interest is disclosed to the purchaser of the interest before the purchase of the interest; (“courtier de fonds mutuels”) “real property entity” means, (a) an entity that is primarily engaged in the business of holding, managing or otherwise dealing with real property, or (b) an entity that is primarily engaged in holding or dealing in, (i) shares of, or ownership interests in, an entity described under clause (a), or (ii) shares of, or ownership interests in, another entity that is primarily engaged in holding or dealing in shares of, or ownership interests, in an entity described under clause (a); (“entité immobilière”) “related real property entity” means, in respect of an insurer, (a) a real property entity, other than a designated entity controlled by the insurer, in which the insurer or a designated entity controlled by the insurer beneficially owns sufficient shares or ownership interests to cause the insurer or designated entity to have a substantial investment in the real property entity, or (b) a real property entity that is controlled by a real property entity described in clause (a); (“entité immobilière apparentée”) “residential real property” means real property that includes one or more buildings in each of which at least one-half of the floor area is used, or is to be used, as residential premises; (“immeuble résidentiel”) “third party” means, in respect of an insurer, another person that is not, (a) a designated entity controlled by the insurer, or (b) a related real property entity of the insurer. (“tierce partie”)  O. Reg. 121/08, s. 2 (1). (2) For the purposes of section 435.5 of the Act and this Regulation, a specialized financing entity is an entity that acquires and holds shares of or ownership interests in entities in which an insurer may acquire, hold or increase a substantial investment by way of specialized financing activities.  O. Reg. 121/08, s. 2 (2). (3) For the purposes of this Regulation and subject to subsection (4), the capital of an insurer at a particular time is the amount calculated using the formula, A – B in which, “A” is the sum of the following amounts that would be reported in the financial statements of the insurer prepared in accordance with section 104 of the Act as of the particular time: 1. The amount of minority interests. 2. The amount of subordinated indebtedness. 3. The amount by which assets exceed liabilities. 4. The amount of the total deferred realized capital gains less the total deferred realized capital losses from real estate and share transactions of the insurer or any other insurer controlled by it that is licensed to transact the business of life insurance. “B” is the amount of goodwill that would be included in the financial statements referred to in the definition of “A”. O. Reg. 121/08, s. 2 (3). (4) In calculating the amount of an insurer’s capital under subsection (3), an amount may be included in respect of a security only if, (a) the security is, by its terms, subordinate in right of payment to the policy liabilities and other liabilities of the entity that issued the security, other than liabilities that by their terms rank equally with or are subordinate to the security; (b) the security is issued and fully paid up; and (c) if the security is subordinated indebtedness or a preferred share, the security, (i) has an initial minimum term of at least five years or has no stated term, and (ii) cannot be redeemed or purchased for cancellation in the first five years after it is issued.  O. Reg. 121/08, s. 2 (4).