Interpretation
126. (1) For the purposes of section 164 of the Act, “commercial loan” means, (a) any loan made or acquired other than, (i) a loan to an individual in an amount of $250,000 or less, (ii) a loan to, (A) the Government of Canada, the government of a province or territory of Canada, a municipality in Canada or an agency of any of them, (B) the government of a foreign country that is a member of the Organization for Economic Cooperation and Development or any political subdivision or agency thereof, or (C) the Asian Development Bank, the Inter-American Development Bank, the International Bank for Reconstruction and Development or the International Finance Corporation, (iii) a loan that is guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in subclause (ii), (iv) a loan that is secured by a mortgage on real estate if the mortgage is, (A) on residential real estate and the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the real estate, does not exceed the lending value of the real estate at the time the loan is made or acquired, or (B) on real estate other than residential real estate and, 1. the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the real estate, does not exceed the lending value of the real estate at the time the loan is made or acquired, and 2. at the time the loan is made or acquired the real estate provides an annual income sufficient to pay all annual expenses related to the real estate, including the payments owing under the mortgage and the mortgages having an equal or prior claim against the real estate, (v) a loan that is secured by a mortgage on real estate, where, (A) the mortgage is on residential real estate and, 1. the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the real estate, exceeds the lending value of the real estate at the time the loan is made or acquired, and 2. repayment of the amount of the loan that exceeds the lending value of the real estate is guaranteed or insured by a government agency or private insurer other than a subsidiary of the corporation that is licensed or registered under the laws of Canada or a province of Canada, (B) the mortgage is on real estate, other than residential real estate and, 1. the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the real estate, exceeds the lending value of the real estate at the time the loan is made or acquired, 2. repayment of the amount of the loan that exceeds the lending value of the real estate is guaranteed or insured by a government agency or private insurer other than a subsidiary of the corporation that is licensed or registered under the laws of Canada or a province of Canada, and 3. at the time the loan is made or acquired, the real estate provides an annual income sufficient to pay all annual expenses related to the real estate, including the payments owing under the mortgage and the mortgages having an equal or prior claim against the real estate, or (C) the loan is one referred to in clause 134 (2) (d), or (vi) a loan that, (A) consists of a deposit made by the corporation with another financial institution, (B) is fully secured by a deposit with any financial institution, including the corporation, (C) is fully secured by debt obligations guaranteed by any financial institution other than the corporation or a subsidiary of the corporation, or (D) is fully secured by a guarantee of a financial institution other than the corporation or a subsidiary of the corporation, (b) an investment in debt obligations other than, (i) debt obligations that are, (A) guaranteed by any financial institution other than the corporation or a subsidiary of the corporation, (B) fully secured by deposits with any financial institution, including the corporation, or (C) fully secured by debt obligations that are guaranteed by any financial institution other than the corporation or a subsidiary of the corporation, (ii) debt obligations issued by, (A) the Government of Canada, the government of a province or territory of Canada, a municipality in Canada or an agency of any of them, (B) the government of a foreign country that is a member of the Organization for Economic Cooperation and Development or any political subdivision or agency thereof, or (C) the Asian Development Bank, the Inter-American Development Bank, the International Bank for Reconstruction and Development or the International Finance Corporation, (iii) debt obligations that are guaranteed or fully secured by securities issued by a government, a municipality or an agency referred to in subclause (ii), (iv) debt obligations that are widely distributed, or (v) debt obligations of an entity controlled by the corporation, and (c) an investment in shares of a body corporate or ownership interests in an unincorporated entity, other than, (i) shares or ownership interests that are widely distributed, (ii) shares or ownership interests of an entity controlled by the corporation, or (iii) participating shares. (2) If a provincial corporation and its prescribed subsidiaries make or acquire loans having an aggregate amount of more than $250,000 to an individual to avoid the application of subclause (1) (a) (i) to the loans, the loans shall be deemed to be commercial loans. O. Reg. 413/97, s. 32.