27. The Fund may acquire and hold bonds or other evidences of indebtedness issued by a company:
(a) if they are fully secured by hypothec on real estate and equipment or by pledge of evidences of indebtedness acceptable as investments for the Fund; or
(b) if they are secured by privilege on equipment and the company has paid in full the interest on its other debts during the ten years preceding the acquisition; or
(c) if they are issued or fully guaranteed by a company which, during each of the five years preceding the acquisition, has
— paid on its common shares a dividend at least equal to the weighted average of the annual dividend rates specified on all its preferred shares, or
— obtained on its common shares a net yield of at least 4% of their book value.
The total investment of the Fund in bonds or other evidences of indebtedness contemplated in paragraph c and issued or guaranteed by one company shall not exceed 1% of its total assets.
1965 (1st sess.), c. 23, s. 24; 1969, c. 27, s. 7.