Indirect Interests — Secured Loans and Debt Obligations
151. (1) If a provincial corporation or a designated entity controlled by a corporation makes a loan to, or beneficially owns or guarantees the debt obligation of, a third party, the loan or debt obligation is an interest of the corporation in real estate if it is secured by, (a) real estate beneficially owned by a third party in conjunction with, (i) the corporation, (ii) the designated entity, (iii) a related real estate entity of the corporation, (iv) a securities dealer or insurance company controlled by the corporation, (v) an entity controlled by a securities dealer or insurance company controlled by the corporation, or (vi) a real estate entity described in subparagraph i or ii of paragraph 3 of subsection 150 (1); (b) shares or ownership interests beneficially owned by a third party in, (i) an entity that beneficially owns real estate in conjunction with the corporation, a related real estate entity of the corporation or a designated entity controlled by the corporation, or (ii) a related real estate entity of the corporation. (2) The value of the interests of a provincial corporation in real estate is, (a) in respect of a loan or debt obligation that is secured by real estate referred to in clause (1) (a), the lesser of, (i) the net realizable value of the third party’s interest in the real estate at the time that the security interest was given, and (ii) either, (A) if the loan was made by the corporation or a designated entity controlled by the corporation or the debt obligation is beneficially owned by the corporation or a designated entity controlled by the corporation, the book value of the loan or debt obligation, or (B) if the debt obligation is guaranteed by the corporation or a designated entity controlled by the corporation, the face value of the guarantee, less the total net realizable value of any other security interests that were given for the loan or debt obligation; (b) in respect of a loan or debt obligation that is secured by shares or ownership interests beneficially owned by a third party in an entity referred to in subclause (1) (b) (i), the lesser of, (i) 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 (ii) either, (A) if the loan was made by the corporation or a designated entity controlled by the corporation or the debt obligation is beneficially owned by the corporation or a designated entity controlled by the corporation, the book value of the loan or debt obligation, or (B) if the debt obligation is guaranteed by the corporation or a designated entity controlled by the corporation, the face value of the guarantee, less any amount by which, (C) the total net realizable value of all security interests that were given for the loan or debt obligation, exceeds, (D) the product obtained by multiplying the net realizable value of the entity’s interest in the real estate referred to in subclause (1) (b) (i) by the percentage that the shares or ownership interests that are given as the security interest constitute of the total outstanding shares or ownership interests in the entity; and (c) in respect of a loan or debt obligation that is secured by shares or ownership interests beneficially owned by a third party in a related real estate entity referred to in subclause (1) (b) (ii), the lesser of, (i) 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 (ii) either, (A) if the loan was made by the corporation or a designated entity controlled by the corporation or the debt obligation is beneficially owned by the corporation or a designated entity controlled by the corporation, the book value of the loan or debt obligation, or (B) if the debt obligation is guaranteed by the corporation or a designated entity controlled by the corporation, the face value of the guarantee, less the total net realizable value of any other security interests that were given for the loan or debt obligation. O. Reg. 413/97, s. 32. Other Interests