F-3.2.1 - Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.)

Section 15 Disposition versions

2023-09-26

15. The Fund may make investments with or without a guarantee or security.

However, for a particular fiscal year, the Fund’s eligible investments must represent, on the average, at least the following percentage of the Fund’s average net assets for the preceding fiscal year:

(1)  60%, if the particular fiscal year ends on 31 May 2015;

(2)  61%, if the particular fiscal year ends on 31 May 2016;

(3)  62%, if the particular fiscal year ends on 31 May 2017;

(4)  63%, if the particular fiscal year ends on 31 May 2018;

(5)  64%, if the particular fiscal year ends on 31 May 2019; or

(6)  65%, if the particular fiscal year begins after 31 May 2019.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

[(A + B + C + D)/2] + E.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year;

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year; and

(5)  E is any of the following amounts:

(a)  if the fiscal year ends on 31 May 2008, $500,000,000;

(b)  if the fiscal year ends on 31 May 2009, $450,000,000;

(c)  if the fiscal year ends on 31 May 2010, $400,000,000;

(d)  if the fiscal year ends on 31 May 2011, $300,000,000;

(e)  if the fiscal year ends on 31 May 2012, $200,000,000; or

(f)  if the fiscal year ends after 31 May 2012, the amount designated by the Fund for the fiscal year, which amount may not exceed the lesser of $500,000,000 and the amount determined for the fiscal year by the formula

(FA − 1 − GA − 2) + {(FA − 2 − GA − 3) − [EA − 1 − (FA − 3 − GA − 4)]}.

In the formula in subparagraph f of subparagraph 5 of the fourth paragraph,

(1)  EA − 1 is the amount designated by the Fund under subparagraph f of subparagraph 5 of the fourth paragraph for the preceding fiscal year or, in the absence of such a designation, an amount equal to zero;

(2)  FA − 1 is the amount of the Fund’s average eligible investments for the preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(3)  FA − 2 is the amount of the Fund’s average eligible investments for the second preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(4)  FA − 3 is the amount of the Fund’s average eligible investments for the third preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(5)  GA − 2 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the second preceding fiscal year;

(6)  GA − 3 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the third preceding fiscal year;

(7)  GA − 4 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the fourth preceding fiscal year; and

(8)  where the result of a subtraction is less than zero, it is deemed to be equal to zero.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments of the Fund or any of its wholly-controlled subsidiaries in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003 and before 23 June 2016, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(5.1)  strategic investments made by the Fund after 22 June 2016, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000, or otherwise than as first purchaser for the acquisition of securities issued by an enterprise having such assets or net equity;

(6)  investments described in section 15.0.0.1, provided that they are not otherwise eligible investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2026 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, from Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and from Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  (subparagraph repealed);

(11)  (subparagraph repealed);

(12)  investments made by the Fund after 19 March 2009 in Teralys Capital Fund of Funds, L.P.;

(13)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c. or, taking into account the change of name of the fund on 12 June 2018, in Fonds de transfert d’entreprise du Québec, s.e.c.;

(14)  investments made by the Fund after 20 March 2012 in Fonds Valorisation Bois, s.e.c.;

(15)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.;

(16)  investments made by the Fund in Fonds de solidarité FTQ Pôles Logistiques, S.E.C.;

(17)  investments made by the Fund in Teralys Capital Fonds d’Innovation 2018 S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. or, taking into account the change of name of the fund on 12 June 2018, Fonds de transfert d’entreprise du Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the sixth and seventh paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 14 of the sixth paragraph or in the seventh paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the sixth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 8, 9, 12, 13 and 15 to 17 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraphs 2 and 5.1 of the sixth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the purposes of subparagraphs 2, 5.1 and 6 of the sixth paragraph, an investment made by an entity that is neither an enterprise within the meaning of the first paragraph of section 14 nor an investment fund, otherwise than as first purchaser for the acquisition of securities issued by a partnership or a legal person, is deemed to have been made by the Fund in proportion to its share in the entity, if one of the main reasons for which the Fund holds an interest in the entity is to enable the financing of such an acquisition.

For the application of the sixth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 12.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  (subparagraph repealed);

(3)  (subparagraph repealed);

(3.0.1)  the aggregate of the investments described in subparagraphs 5, 5.1 and 6 of that paragraph may not exceed 27.5% of the Fund’s net assets at the end of the preceding fiscal year;

(3.1)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2027, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the Fund’s interest in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  (subparagraph repealed);

(8)  the investments described in subparagraph 13 of that paragraph are deemed to be increased by 50%;

(9)  the investments described in subparagraph 16 of that paragraph are deemed to be increased by 25%, but the aggregate of those investments may not exceed $100,000,000 for the particular fiscal year before the increase.

The following investments are not permitted under subparagraph 3 of the sixth paragraph:

(1)  investments in immovables situated in Québec and intended mainly for the operation of shopping centres otherwise than as part of a project in the recreation and tourism sector; and

(2)  investments made after 22 June 2016, in accordance with an investment policy referred to in subparagraph 5.1 of that paragraph, in property infrastructure projects with a socio-economic vocation.

The second paragraph of section 14.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the sixth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15; 2007, c. 12, s. 14; 2011, c. 6, s. 94; 2012, c. 8, s. 31; 2013, c. 10, s. 8; 2015, c. 21, s. 37; 2017, c. 1, s. 50; 2019, c. 14, s. 42; 2020, c. 16, s. 12; 2021, c. 36, s. 35; 2023, c. 19, s. 7.

2021-12-10

15. The Fund may make investments with or without a guarantee or security.

However, for a particular fiscal year, the Fund’s eligible investments must represent, on the average, at least the following percentage of the Fund’s average net assets for the preceding fiscal year:

(1)  60%, if the particular fiscal year ends on 31 May 2015;

(2)  61%, if the particular fiscal year ends on 31 May 2016;

(3)  62%, if the particular fiscal year ends on 31 May 2017;

(4)  63%, if the particular fiscal year ends on 31 May 2018;

(5)  64%, if the particular fiscal year ends on 31 May 2019; or

(6)  65%, if the particular fiscal year begins after 31 May 2019.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

[(A + B + C + D)/2] + E.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year;

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year; and

(5)  E is any of the following amounts:

(a)  if the fiscal year ends on 31 May 2008, $500,000,000;

(b)  if the fiscal year ends on 31 May 2009, $450,000,000;

(c)  if the fiscal year ends on 31 May 2010, $400,000,000;

(d)  if the fiscal year ends on 31 May 2011, $300,000,000;

(e)  if the fiscal year ends on 31 May 2012, $200,000,000; or

(f)  if the fiscal year ends after 31 May 2012, the amount designated by the Fund for the fiscal year, which amount may not exceed the lesser of $500,000,000 and the amount determined for the fiscal year by the formula

(FA − 1 − GA − 2) + {(FA − 2 − GA − 3) − [EA − 1 − (FA − 3 − GA − 4)]}.

In the formula in subparagraph f of subparagraph 5 of the fourth paragraph,

(1)  EA − 1 is the amount designated by the Fund under subparagraph f of subparagraph 5 of the fourth paragraph for the preceding fiscal year or, in the absence of such a designation, an amount equal to zero;

(2)  FA − 1 is the amount of the Fund’s average eligible investments for the preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(3)  FA − 2 is the amount of the Fund’s average eligible investments for the second preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(4)  FA − 3 is the amount of the Fund’s average eligible investments for the third preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(5)  GA − 2 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the second preceding fiscal year;

(6)  GA − 3 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the third preceding fiscal year;

(7)  GA − 4 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the fourth preceding fiscal year; and

(8)  where the result of a subtraction is less than zero, it is deemed to be equal to zero.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments of the Fund or any of its wholly-controlled subsidiaries in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003 and before 23 June 2016, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(5.1)  strategic investments made by the Fund after 22 June 2016, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000, or otherwise than as first purchaser for the acquisition of securities issued by an enterprise having such assets or net equity;

(6)  investments described in section 15.0.0.1, provided that they are not otherwise eligible investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2026 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, from Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and from Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  (subparagraph repealed);

(11)  (subparagraph repealed);

(12)  investments made by the Fund after 19 March 2009 in Teralys Capital Fund of Funds, L.P.;

(13)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c.;

(14)  investments made by the Fund after 20 March 2012 in Fonds Valorisation Bois, s.e.c.;

(15)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.;

(16)  investments made by the Fund in Fonds de solidarité FTQ Pôles Logistiques, S.E.C.;

(17)  investments made by the Fund in Teralys Capital Fonds d’Innovation 2018 S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the sixth and seventh paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 14 of the sixth paragraph or in the seventh paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the sixth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 8, 9, 12, 13 and 15 to 17 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraphs 2 and 5.1 of the sixth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the purposes of subparagraphs 2, 5.1 and 6 of the sixth paragraph, an investment made by an entity that is neither an enterprise within the meaning of the first paragraph of section 14 nor an investment fund, otherwise than as first purchaser for the acquisition of securities issued by a partnership or a legal person, is deemed to have been made by the Fund in proportion to its share in the entity, if one of the main reasons for which the Fund holds an interest in the entity is to enable the financing of such an acquisition.

For the application of the sixth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 12.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  (subparagraph repealed);

(3)  (subparagraph repealed);

(3.0.1)  the aggregate of the investments described in subparagraphs 5, 5.1 and 6 of that paragraph may not exceed 27.5% of the Fund’s net assets at the end of the preceding fiscal year;

(3.1)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2027, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the Fund’s interest in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  (subparagraph repealed);

(8)  the investments described in subparagraph 13 of that paragraph are deemed to be increased by 50%;

(9)  the investments described in subparagraph 16 of that paragraph are deemed to be increased by 25%, but the aggregate of those investments may not exceed $100,000,000 for the particular fiscal year before the increase.

The following investments are not permitted under subparagraph 3 of the sixth paragraph:

(1)  investments in immovables situated in Québec and intended mainly for the operation of shopping centres otherwise than as part of a project in the recreation and tourism sector; and

(2)  investments made after 22 June 2016, in accordance with an investment policy referred to in subparagraph 5.1 of that paragraph, in property infrastructure projects with a socio-economic vocation.

The second paragraph of section 14.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the sixth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15; 2007, c. 12, s. 14; 2011, c. 6, s. 94; 2012, c. 8, s. 31; 2013, c. 10, s. 8; 2015, c. 21, s. 37; 2017, c. 1, s. 50; 2019, c. 14, s. 42; 2020, c. 16, s. 12; 2021, c. 36, s. 35.

2020-09-24

15. The Fund may make investments with or without a guarantee or security.

However, for a particular fiscal year, the Fund’s eligible investments must represent, on the average, at least the following percentage of the Fund’s average net assets for the preceding fiscal year:

(1)  60%, if the particular fiscal year ends on 31 May 2015;

(2)  61%, if the particular fiscal year ends on 31 May 2016;

(3)  62%, if the particular fiscal year ends on 31 May 2017;

(4)  63%, if the particular fiscal year ends on 31 May 2018;

(5)  64%, if the particular fiscal year ends on 31 May 2019; or

(6)  65%, if the particular fiscal year begins after 31 May 2019.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

[(A + B + C + D)/2] + E.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year;

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year; and

(5)  E is any of the following amounts:

(a)  if the fiscal year ends on 31 May 2008, $500,000,000;

(b)  if the fiscal year ends on 31 May 2009, $450,000,000;

(c)  if the fiscal year ends on 31 May 2010, $400,000,000;

(d)  if the fiscal year ends on 31 May 2011, $300,000,000;

(e)  if the fiscal year ends on 31 May 2012, $200,000,000; or

(f)  if the fiscal year ends after 31 May 2012, the amount designated by the Fund for the fiscal year, which amount may not exceed the lesser of $500,000,000 and the amount determined for the fiscal year by the formula

(FA − 1 − GA − 2) + {(FA − 2 − GA − 3) − [EA − 1 − (FA − 3 − GA − 4)]}.

In the formula in subparagraph f of subparagraph 5 of the fourth paragraph,

(1)  EA − 1 is the amount designated by the Fund under subparagraph f of subparagraph 5 of the fourth paragraph for the preceding fiscal year or, in the absence of such a designation, an amount equal to zero;

(2)  FA − 1 is the amount of the Fund’s average eligible investments for the preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(3)  FA − 2 is the amount of the Fund’s average eligible investments for the second preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(4)  FA − 3 is the amount of the Fund’s average eligible investments for the third preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(5)  GA − 2 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the second preceding fiscal year;

(6)  GA − 3 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the third preceding fiscal year;

(7)  GA − 4 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the fourth preceding fiscal year; and

(8)  where the result of a subtraction is less than zero, it is deemed to be equal to zero.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments of the Fund or any of its wholly-controlled subsidiaries in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003 and before 23 June 2016, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(5.1)  strategic investments made by the Fund after 22 June 2016, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000, or otherwise than as first purchaser for the acquisition of securities issued by an enterprise having such assets or net equity;

(6)  investments described in section 15.0.0.1, provided that they are not otherwise eligible investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2021 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, from Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and from Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  (subparagraph repealed);

(11)  (subparagraph repealed);

(12)  investments made by the Fund after 19 March 2009 in Teralys Capital Fund of Funds, L.P.;

(13)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c.;

(14)  investments made by the Fund after 20 March 2012 in Fonds Valorisation Bois, s.e.c.;

(15)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.;

(16)  investments made by the Fund in Fonds de solidarité FTQ Pôles Logistiques, S.E.C;

(17)  investments made by the Fund in Teralys Capital Fonds d’Innovation 2018 S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the sixth and seventh paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 14 of the sixth paragraph or in the seventh paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the sixth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 8, 9, 12, 13 and 15 to 17 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraphs 2 and 5.1 of the sixth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the purposes of subparagraphs 2, 5.1 and 6 of the sixth paragraph, an investment made by an entity that is neither an enterprise within the meaning of the first paragraph of section 14 nor an investment fund, otherwise than as first purchaser for the acquisition of securities issued by a partnership or a legal person, is deemed to have been made by the Fund in proportion to its share in the entity, if one of the main reasons for which the Fund holds an interest in the entity is to enable the financing of such an acquisition.

For the application of the sixth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 12.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  (subparagraph repealed);

(3)  (subparagraph repealed);

(3.0.1)  the aggregate of the investments described in subparagraphs 5, 5.1 and 6 of that paragraph may not exceed 27.5% of the Fund’s net assets at the end of the preceding fiscal year;

(3.1)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2022, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the Fund’s interest in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  (subparagraph repealed);

(8)  the investments described in subparagraph 13 of that paragraph are deemed to be increased by 50%;

(9)  the investments described in subparagraph 16 of that paragraph are deemed to be increased by 25%, but the aggregate of those investments may not exceed $100,000,000 for the particular fiscal year before the increase.

The following investments are not permitted under subparagraph 3 of the sixth paragraph:

(1)  investments in immovables situated in Québec and intended mainly for the operation of shopping centres otherwise than as part of a project in the recreation and tourism sector; and

(2)  investments made after 22 June 2016, in accordance with an investment policy referred to in subparagraph 5.1 of that paragraph, in property infrastructure projects with a socio-economic vocation.

The second paragraph of section 14.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the sixth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15; 2007, c. 12, s. 14; 2011, c. 6, s. 94; 2012, c. 8, s. 31; 2013, c. 10, s. 8; 2015, c. 21, s. 37; 2017, c. 1, s. 50; 2019, c. 14, s. 42; 2020, c. 16, s. 12.

2019-06-19

15. The Fund may make investments with or without a guarantee or security.

However, for a particular fiscal year, the Fund’s eligible investments must represent, on the average, at least the following percentage of the Fund’s average net assets for the preceding fiscal year:

(1)  60%, if the particular fiscal year ends on 31 May 2015;

(2)  61%, if the particular fiscal year ends on 31 May 2016;

(3)  62%, if the particular fiscal year ends on 31 May 2017;

(4)  63%, if the particular fiscal year ends on 31 May 2018;

(5)  64%, if the particular fiscal year ends on 31 May 2019; or

(6)  65%, if the particular fiscal year begins after 31 May 2019.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

[(A + B + C + D)/2] + E.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year;

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year; and

(5)  E is any of the following amounts:

(a)  if the fiscal year ends on 31 May 2008, $500,000,000;

(b)  if the fiscal year ends on 31 May 2009, $450,000,000;

(c)  if the fiscal year ends on 31 May 2010, $400,000,000;

(d)  if the fiscal year ends on 31 May 2011, $300,000,000;

(e)  if the fiscal year ends on 31 May 2012, $200,000,000; or

(f)  if the fiscal year ends after 31 May 2012, the amount designated by the Fund for the fiscal year, which amount may not exceed the lesser of $500,000,000 and the amount determined for the fiscal year by the formula

(FA − 1 − GA − 2) + {(FA − 2 − GA − 3) − [EA − 1 − (FA − 3 − GA − 4)]}.

In the formula in subparagraph f of subparagraph 5 of the fourth paragraph,

(1)  EA − 1 is the amount designated by the Fund under subparagraph f of subparagraph 5 of the fourth paragraph for the preceding fiscal year or, in the absence of such a designation, an amount equal to zero;

(2)  FA − 1 is the amount of the Fund’s average eligible investments for the preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(3)  FA − 2 is the amount of the Fund’s average eligible investments for the second preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(4)  FA − 3 is the amount of the Fund’s average eligible investments for the third preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(5)  GA − 2 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the second preceding fiscal year;

(6)  GA − 3 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the third preceding fiscal year;

(7)  GA − 4 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the fourth preceding fiscal year; and

(8)  where the result of a subtraction is less than zero, it is deemed to be equal to zero.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments of the Fund or any of its wholly-controlled subsidiaries in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003 and before 23 June 2016, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(5.1)  strategic investments made by the Fund after 22 June 2016, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000, or otherwise than as first purchaser for the acquisition of securities issued by an enterprise having such assets or net equity;

(6)  investments described in section 15.0.0.1, provided that they are not otherwise eligible investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2021 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, from Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and from Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  (subparagraph repealed);

(11)  (subparagraph repealed);

(12)  investments made by the Fund after 19 March 2009 in Teralys Capital Fund of Funds, L.P.;

(13)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c.;

(14)  investments made by the Fund after 20 March 2012 in Fonds Valorisation Bois, s.e.c.;

(15)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.;

(16)  investments made by the Fund in Fonds de solidarité FTQ Pôles Logistiques, S.E.C;

(17)  investments made by the Fund in Teralys Capital Fonds d’Innovation 2018 S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the sixth and seventh paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 14 of the sixth paragraph or in the seventh paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the sixth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 8, 9, 12, 13 and 15 to 17 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraphs 2 and 5.1 of the sixth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the purposes of subparagraphs 2, 5.1 and 6 of the sixth paragraph, an investment made by an entity that is neither an enterprise within the meaning of the first paragraph of section 14 nor an investment fund, otherwise than as first purchaser for the acquisition of securities issued by a partnership or a legal person, is deemed to have been made by the Fund in proportion to its share in the entity, if one of the main reasons for which the Fund holds an interest in the entity is to enable the financing of such an acquisition.

For the application of the sixth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 12.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraphs 5 and 5.1 of that paragraph may not exceed 17.5% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 6 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(3.1)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2022, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the Fund’s interest in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  (subparagraph repealed);

(8)  the investments described in subparagraph 13 of that paragraph are deemed to be increased by 50%;

(9)  the investments described in subparagraph 16 of that paragraph are deemed to be increased by 25%, but the aggregate of those investments may not exceed $100,000,000 for the particular fiscal year before the increase.

The following investments are not permitted under subparagraph 3 of the sixth paragraph:

(1)  investments in immovables situated in Québec and intended mainly for the operation of shopping centres otherwise than as part of a project in the recreation and tourism sector; and

(2)  investments made after 22 June 2016, in accordance with an investment policy referred to in subparagraph 5.1 of that paragraph, in property infrastructure projects with a socio-economic vocation.

The second paragraph of section 14.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the sixth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15; 2007, c. 12, s. 14; 2011, c. 6, s. 94; 2012, c. 8, s. 31; 2013, c. 10, s. 8; 2015, c. 21, s. 37; 2017, c. 1, s. 50; 2019, c. 14, s. 42.

2017-02-08

15. The Fund may make investments with or without a guarantee or security.

However, for a particular fiscal year, the Fund’s eligible investments must represent, on the average, at least the following percentage of the Fund’s average net assets for the preceding fiscal year:

(1)  60%, if the particular fiscal year ends on 31 May 2015;

(2)  61%, if the particular fiscal year ends on 31 May 2016;

(3)  62%, if the particular fiscal year ends on 31 May 2017;

(4)  63%, if the particular fiscal year ends on 31 May 2018;

(5)  64%, if the particular fiscal year ends on 31 May 2019; or

(6)  65%, if the particular fiscal year begins after 31 May 2019.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

[(A + B + C + D)/2] + E.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year;

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year; and

(5)  E is any of the following amounts:

(a)  if the fiscal year ends on 31 May 2008, $500,000,000;

(b)  if the fiscal year ends on 31 May 2009, $450,000,000;

(c)  if the fiscal year ends on 31 May 2010, $400,000,000;

(d)  if the fiscal year ends on 31 May 2011, $300,000,000;

(e)  if the fiscal year ends on 31 May 2012, $200,000,000; or

(f)  if the fiscal year ends after 31 May 2012, the amount designated by the Fund for the fiscal year, which amount may not exceed the lesser of $500,000,000 and the amount determined for the fiscal year by the formula

(FA − 1 − GA − 2) + {(FA − 2 − GA − 3) − [EA − 1 − (FA − 3 − GA − 4)]}.

In the formula in subparagraph f of subparagraph 5 of the fourth paragraph,

(1)  EA − 1 is the amount designated by the Fund under subparagraph f of subparagraph 5 of the fourth paragraph for the preceding fiscal year or, in the absence of such a designation, an amount equal to zero;

(2)  FA − 1 is the amount of the Fund’s average eligible investments for the preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(3)  FA − 2 is the amount of the Fund’s average eligible investments for the second preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(4)  FA − 3 is the amount of the Fund’s average eligible investments for the third preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(5)  GA − 2 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the second preceding fiscal year;

(6)  GA − 3 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the third preceding fiscal year;

(7)  GA − 4 is the percentage specified in the second paragraph of the Fund’s average net assets that is applicable for the fourth preceding fiscal year; and

(8)  where the result of a subtraction is less than zero, it is deemed to be equal to zero.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments of the Fund or any of its wholly-controlled subsidiaries in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003 and before 23 June 2016, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(5.1)  strategic investments made by the Fund after 22 June 2016, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000, or otherwise than as first purchaser for the acquisition of securities issued by an enterprise having such assets or net equity;

(6)  investments described in section 15.0.0.1, provided that they are not otherwise eligible investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2021 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, from Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and from Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  (subparagraph repealed);

(11)  (subparagraph repealed);

(12)  investments made by the Fund after 19 March 2009 in Teralys Capital Fund of Funds, L.P.;

(13)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c.;

(14)  investments made by the Fund after 20 March 2012 in Fonds Valorisation Bois, s.e.c.;

(15)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.;

(16)  investments made by the Fund in Fonds de solidarité FTQ Pôles Logistiques, S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the sixth and seventh paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 14 of the sixth paragraph or in the seventh paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the sixth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 8, 9, 12, 13, 15 and 16 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraphs 2 and 5.1 of the sixth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the purposes of subparagraphs 2, 5.1 and 6 of the sixth paragraph, an investment made by an entity that is neither an enterprise within the meaning of the first paragraph of section 14 nor an investment fund, otherwise than as first purchaser for the acquisition of securities issued by a partnership or a legal person, is deemed to have been made by the Fund in proportion to its share in the entity, if one of the main reasons for which the Fund holds an interest in the entity is to enable the financing of such an acquisition.

For the application of the sixth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 12.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraphs 5 and 5.1 of that paragraph may not exceed 17.5% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 6 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(3.1)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2022, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the Fund’s interest in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  (subparagraph repealed);

(8)  the investments described in subparagraph 13 of that paragraph are deemed to be increased by 50%;

(9)  the investments described in subparagraph 16 of that paragraph are deemed to be increased by 25%, but the aggregate of those investments may not exceed $100,000,000 for the particular fiscal year before the increase.

The following investments are not permitted under subparagraph 3 of the sixth paragraph:

(1)  investments in immovables situated in Québec and intended mainly for the operation of shopping centres otherwise than as part of a project in the recreation and tourism sector; and

(2)  investments made after 22 June 2016, in accordance with an investment policy referred to in subparagraph 5.1 of that paragraph, in property infrastructure projects with a socio-economic vocation.

The second paragraph of section 14.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the sixth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15; 2007, c. 12, s. 14; 2011, c. 6, s. 94; 2012, c. 8, s. 31; 2013, c. 10, s. 8; 2015, c. 21, s. 37; 2017, c. 1, s. 50.

2015-10-21

15. The Fund may make investments with or without a guarantee or security.

However, for each fiscal year, the Fund’s eligible investments must represent, on the average, at least 60% of the Fund’s average net assets for the preceding year.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

[(A + B + C + D)/2] + E.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year;

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year; and

(5)  E is any of the following amounts:

(a)  if the fiscal year ends on 31 May 2008, $500,000,000;

(b)  if the fiscal year ends on 31 May 2009, $450,000,000;

(c)  if the fiscal year ends on 31 May 2010, $400,000,000;

(d)  if the fiscal year ends on 31 May 2011, $300,000,000;

(e)  if the fiscal year ends on 31 May 2012, $200,000,000; or

(f)  if the fiscal year ends after 31 May 2012, the amount designated by the Fund for the fiscal year, which amount may not exceed the lesser of $500,000,000 and the amount determined for the fiscal year by the formula

(FA − 1 − GA − 2) + {(FA − 2 − GA − 3) − [EA − 1 − (FA − 3 − GA − 4)]}.

In the formula in subparagraph f of subparagraph 5 of the fourth paragraph,

(1)  EA − 1 is the amount designated by the Fund under subparagraph f of subparagraph 5 of the fourth paragraph for the preceding fiscal year or, in the absence of such a designation, an amount equal to zero;

(2)  FA − 1 is the amount of the Fund’s average eligible investments for the preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(3)  FA − 2 is the amount of the Fund’s average eligible investments for the second preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(4)  FA − 3 is the amount of the Fund’s average eligible investments for the third preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(5)  GA − 2 is 60% of the Fund’s average net assets for the second preceding fiscal year;

(6)  GA − 3 is 60% of the Fund’s average net assets for the third preceding fiscal year;

(7)  GA − 4 is 60% of the Fund’s average net assets for the fourth preceding fiscal year; and

(8)  where the result of a subtraction is less than zero, it is deemed to be equal to zero.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments described in section 15.0.0.1, provided that they are not otherwise eligible investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2016 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, from Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and from Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  investments made by the Fund after 19 March 2009 in the Fonds Élan d’entreprises, société en commandite;

(11)  investments made by the Fund after 19 March 2009 in the Fonds Envol, société en commandite, that the Fund acquired from the Fonds Élan d’entreprises, société en commandite;

(12)  investments made by the Fund after 19 March 2009 in Teralys Capital Fund of Funds, L.P.;

(13)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c.;

(14)  investments made by the Fund after 20 March 2012 in Fonds Valorisation Bois, s.e.c.;

(15)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the sixth and seventh paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 14 of the sixth paragraph or in the seventh paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the sixth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 8 to 10, 12, 13 and 15 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the sixth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the application of the sixth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  neither the aggregate of the investments described in subparagraph 6 of that paragraph nor the aggregate of the investments described in subparagraph 7 of that paragraph may exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2017, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the Fund’s interest in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  the aggregate of the investments described in subparagraphs 10 and 11 of that paragraph may not exceed $250,000,000 for the particular fiscal year; and

(8)  the investments described in subparagraph 13 of that paragraph are deemed to be increased by 50%.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the sixth paragraph otherwise than as part of a project in the recreation and tourism sector.

The second paragraph of section 14.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the sixth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15; 2007, c. 12, s. 14; 2011, c. 6, s. 94; 2012, c. 8, s. 31; 2013, c. 10, s. 8; 2015, c. 21, s. 37.

2013-06-05

15. The Fund may make investments with or without a guarantee or security.

However, for each fiscal year, the Fund’s eligible investments must represent, on the average, at least 60% of the Fund’s average net assets for the preceding year.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

[(A + B + C + D)/2] + E.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year;

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year; and

(5)  E is any of the following amounts:

(a)  if the fiscal year ends on 31 May 2008, $500,000,000;

(b)  if the fiscal year ends on 31 May 2009, $450,000,000;

(c)  if the fiscal year ends on 31 May 2010, $400,000,000;

(d)  if the fiscal year ends on 31 May 2011, $300,000,000;

(e)  if the fiscal year ends on 31 May 2012, $200,000,000; or

(f)  if the fiscal year ends after 31 May 2012, the amount designated by the Fund for the fiscal year, which amount may not exceed the lesser of $500,000,000 and the amount determined for the fiscal year by the formula

(FA − 1 − GA − 2) + {(FA − 2 − GA − 3) − [EA − 1 − (FA − 3 − GA − 4)]}.

In the formula in subparagraph f of subparagraph 5 of the fourth paragraph,

(1)  EA − 1 is the amount designated by the Fund under subparagraph f of subparagraph 5 of the fourth paragraph for the preceding fiscal year or, in the absence of such a designation, an amount equal to zero;

(2)  FA − 1 is the amount of the Fund’s average eligible investments for the preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(3)  FA − 2 is the amount of the Fund’s average eligible investments for the second preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(4)  FA − 3 is the amount of the Fund’s average eligible investments for the third preceding fiscal year, which amount is determined as if the formula in subparagraph 3 of the third paragraph were read without reference to “+ E”;

(5)  GA − 2 is 60% of the Fund’s average net assets for the second preceding fiscal year;

(6)  GA − 3 is 60% of the Fund’s average net assets for the third preceding fiscal year;

(7)  GA − 4 is 60% of the Fund’s average net assets for the fourth preceding fiscal year; and

(8)  where the result of a subtraction is less than zero, it is deemed to be equal to zero.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments described in section 15.0.0.1, provided that they are not otherwise eligible investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2016 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, from Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and from Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  investments made by the Fund after 19 March 2009 in the Fonds Élan d’entreprises, société en commandite;

(11)  investments made by the Fund after 19 March 2009 in the Fonds Envol, société en commandite, that the Fund acquired from the Fonds Élan d’entreprises, société en commandite;

(12)  investments made by the Fund after 19 March 2009 in Teralys Capital Fund of Funds, L.P.;

(13)  investments made by the Fund after 17 November 2011 in Fonds Relève Québec, s.e.c.; and

(14)  investments made by the Fund after 20 March 2012 in Fonds Valorisation Bois, s.e.c.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the sixth and seventh paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 14 of the sixth paragraph or in the seventh paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the sixth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 8 to 10, 12 and 13 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the sixth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the application of the sixth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  neither the aggregate of the investments described in subparagraph 6 of that paragraph nor the aggregate of the investments described in subparagraph 7 of that paragraph may exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2017, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph revoked);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the Fund’s interest in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  the aggregate of the investments described in subparagraphs 10 and 11 of that paragraph may not exceed $250,000,000 for the particular fiscal year; and

(8)  the investments described in subparagraph 13 of that paragraph are deemed to be increased by 50%.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the sixth paragraph otherwise than as part of a project in the recreation and tourism sector.

The second paragraph of section 14.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the sixth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15; 2007, c. 12, s. 14; 2011, c. 6, s. 94; 2012, c. 8, s. 31; 2013, c. 10, s. 8.

2012-05-09

15. The Fund may make investments with or without a guarantee or security.

However, for each fiscal year, the Fund’s eligible investments must represent, on the average, at least 60% of the Fund’s average net assets for the preceding year.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

[(A + B + C + D)/2] + E.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year;

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year; and

(5)  E is any of the following amounts:

(a)  if the fiscal year ends on 31 May 2008, $500,000,000;

(b)  if the fiscal year ends on 31 May 2009, $450,000,000;

(c)  if the fiscal year ends on 31 May 2010, $400,000,000;

(d)  if the fiscal year ends on 31 May 2011, $300,000,000; or

(e)  if the fiscal year ends on 31 May 2012, $200,000,000.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments described in section 15.0.0.1, provided that they are not otherwise eligible investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2016 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, from Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and from Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  investments made by the Fund after 19 March 2009 in the Fonds Élan d’entreprises, société en commandite;

(11)  investments made by the Fund after 19 March 2009 in the Fonds Envol, société en commandite, that the Fund acquired from the Fonds Élan d’entreprises, société en commandite;

(12)  investments made by the Fund after 19 March 2009 in Teralys Capital Fund of Funds, L.P.; and

(13)  investments made by the Fund after 17 November 2011 in Fonds Relève Québec, s.e.c.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the fifth and sixth paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 of the fifth paragraph or in the sixth paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 8 to 10, 12 and 13 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  neither the aggregate of the investments described in subparagraph 6 of that paragraph nor the aggregate of the investments described in subparagraph 7 of that paragraph may exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2017, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph revoked);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the Fund’s interest in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  the aggregate of the investments described in subparagraphs 10 and 11 of that paragraph may not exceed $250,000,000 for the particular fiscal year; and

(8)  the investments described in subparagraph 13 of that paragraph are deemed to be increased by 50%.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector

The second paragraph of section 14.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the fifth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15; 2007, c. 12, s. 14; 2011, c. 6, s. 94; 2012, c. 8, s. 31.

2011-06-06

15. The Fund may make investments with or without a guarantee or security.

However, for each fiscal year, the Fund’s eligible investments must represent, on the average, at least 60% of the Fund’s average net assets for the preceding year.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

[(A + B + C + D)/2] + E.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year;

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year; and

(5)  E is any of the following amounts:

(a)  if the fiscal year ends on 31 May 2008, $500,000,000;

(b)  if the fiscal year ends on 31 May 2009, $450,000,000;

(c)  if the fiscal year ends on 31 May 2010, $400,000,000;

(d)  if the fiscal year ends on 31 May 2011, $300,000,000; or

(e)  if the fiscal year ends on 31 May 2012, $200,000,000.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000, provided that the strategic value of that capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 23 March 2011 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, from Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and from Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  investments made by the Fund after 19 March 2009 in the Fonds Élan d’entreprises, société en commandite;

(11)  investments made by the Fund after 19 March 2009 in the Fonds Envol, société en commandite, that the Fund acquired from the Fonds Élan d’entreprises, société en commandite; and

(12)  investments made by the Fund after 19 March 2009 in Teralys Capital Fund of Funds, L.P.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 8 to 10 and 12 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 and in subparagraph 6 of that paragraph, respectively, may not exceed 5% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2012, the investments described in subparagraph 8 of that paragraph are deemed to be increased by 50%;

(5)  the aggregate of the investments described in subparagraph 8 of that paragraph may not exceed, if the particular fiscal year ends before 1 January 2012, 7.5% of the Fund’s net assets at the end of the preceding fiscal year and, in any other case, 5% of those assets;

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the Fund’s interest in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%; and

(7)  the aggregate of the investments described in subparagraphs 10 and 11 of that paragraph may not exceed $250,000,000 for the particular fiscal year.

If, at a particular time in a fiscal year, the Fund holds several investments described in subparagraph 6 of the fifth paragraph, only one of those investments may be considered to be an eligible investment, at that particular time, for the purposes of the requirement set out in the second paragraph.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15; 2007, c. 12, s. 14; 2011, c. 6, s. 94.

2007-11-07

15. The Fund may make investments with or without a guarantee or security.

However, for each fiscal year, the Fund’s eligible investments must represent, on the average, at least 60% of the Fund’s average net assets for the preceding year.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000, provided that the strategic value of that capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 23 March 2011 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and are not otherwise eligible investments; and

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 or 9 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 and in subparagraph 6 of that paragraph, respectively, may not exceed 5% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2012, the investments described in subparagraph 8 of that paragraph are deemed to be increased by 50%; and

(5)  the aggregate of the investments described in subparagraph 8 of that paragraph may not exceed, if the particular fiscal year ends before 1 January 2012, 7.5% of the Fund’s net assets at the end of the preceding fiscal year and, in any other case, 5% of those assets.

If, at a particular time in a fiscal year, the Fund holds several investments described in subparagraph 6 of the fifth paragraph, only one of those investments may be considered to be an eligible investment, at that particular time, for the purposes of the requirement set out in the second paragraph.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15; 2007, c. 12, s. 14.

2006-12-06

15. The Fund may make investments with or without a guarantee or security.

However, for each fiscal year, the Fund’s qualified investments must represent, on the average, at least 60 % of the Fund’s average net assets for the preceding year.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average qualified investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s qualified investments at the beginning of the fiscal year;

(2)  B is the Fund’s qualified investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the qualified investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2 % of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are qualified investments:

(1)  investments made by the Fund in qualified undertakings;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by qualified undertakings;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5 % of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an undertaking that was, at the time of the investment, a qualified undertaking, and that are made in an undertaking that would be a qualified undertaking under the first paragraph of section 14.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an undertaking whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000, provided that the strategic value of that capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise qualified investments;

(7)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 23 March 2011 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150 % of the aggregate of the sums received from the Fund, Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi and Capital régional et coopératif Desjardins, in Québec undertakings whose assets are less than $100,000,000 or whose net equity is less than $50,000,000, and are not otherwise qualified investments; and

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12 % of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 or 9 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20 % of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 and in subparagraph 6 of that paragraph, respectively, may not exceed 5 % of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10 % of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2012, the investments described in subparagraph 8 of that paragraph are deemed to be increased by 50 %; and

(5)  the aggregate of the investments described in subparagraph 8 of that paragraph may not exceed, if the particular fiscal year ends before 1 January 2012, 7.5 % of the Fund’s net assets at the end of the preceding fiscal year and, in any other case, 5 % of those assets.

If, at a particular time in a fiscal year, the Fund holds several investments described in subparagraph 6 of the fifth paragraph, only one of those investments may be considered to be a qualified investment, at that particular time, for the purposes of the requirement set out in the second paragraph.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector

The requirement set out in the second paragraph applies from the fiscal year that began on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35; 2006, c. 36, s. 15.

2005-12-13

15. The Fund may make investments in any undertaking with or without security or guarantee.

However, in the course of each fiscal year, the portion of the Fund’s investments in qualified undertakings entailing no guarantee or hypothec must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for the preceding fiscal year shall be determined by adding the net assets at the beginning of that preceding year to the net assets at the end of that preceding year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average investments for the current fiscal year shall be determined by the formula

(A + B + C + D) / 2.

In the formula provided for in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s investments that qualify under this section and entailing no security or hypothec, at the beginning of the current fiscal year;

(2)  B is the Fund’s investments that qualify under this section and entailing no security or hypothec, at the end of the current fiscal year;

(3)  C is the amount by which an amount that is the total of the disinvestments for the current fiscal year that relate to investments entailing no security or hypothec, already made by the Fund and that qualify under this section, exceeds an amount equal to 2 % of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the fiscal year preceding the current fiscal year.

For the purposes of this norm, qualified investments include

(1)  investments made otherwise than as first purchaser for the acquisition of securities issued by qualified undertakings;

(2)  investments added to investments previously made and which qualify under the second paragraph, in relation to an undertaking whose assets are less than $350,000,000 or whose net equity are not over $150,000,000;

(3)  investments in income-producing immovable property situated in Québec that is new property or property under substantial renovation, up to a sum not exceeding 5 % of the net assets of the Fund at the end of the preceding fiscal year;

(4)  strategic investments made after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an undertaking whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(5)  investments that are not otherwise eligible for the purposes of the requirement set out in the second paragraph and that consist of an initial capital outlay of at least $25,000,000 whose strategic value was recognized by the Minister of Finance after 22 December 2004;

(6)  investments described in section 15.0.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(7)  investments made after 21 April 2005, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in local venture capital funds whose primary mission is to make investments in qualified undertakings; and

(8)  investments made after 21 March 2005 in FIER-Partenaires, s.e.c..

The total of the investments that qualify under subparagraphs 1 and 2 of the fifth paragraph is limited to 20 % of the net assets of the Fund at the end of the preceding fiscal year. For the purposes of subparagraph 1 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser.

The total of the investments that qualify under subparagraph 4 of the fifth paragraph and subparagraph 5 of that paragraph, respectively, is limited to 5 % of the net assets of the Fund at the end of the preceding fiscal year.

The total of the investments that qualify under subparagraph 6 of the fifth paragraph is limited to 10 % of the net assets of the Fund at the end of the preceding fiscal year.

If, at a particular time in a fiscal year, the Fund holds several investments described in subparagraph 5 of the fifth paragraph, only one of those investments is eligible, at that particular time, for the purposes of the requirement set out in the second paragraph.

The total of the investments that qualify under subparagraph 7 of the fifth paragraph, determined without reference to the presumption provided for in the eleventh paragraph, is limited to 5 % of the net assets of the Fund at the end of the preceding fiscal year.

For the purposes of the requirement set out in the second paragraph, the total of the investments that qualify under subparagraph 7 of the fifth paragraph is deemed to be equal to the amount obtained by multiplying that total by 1.5.

Investments in immovable property situated in Québec and intended mainly for the operation of shopping centres do not qualify under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

Investments with regard to which the Fund has entered into an agreement and for which it has committed but not disbursed sums of money at the end of a fiscal year shall be taken into account in the calculation of the investments that qualify under the norms set out in this section, other than the investments that qualify under subparagraphs 7 and 8 of the fifth paragraph, up to a total amount not exceeding 12 % of the net assets of the Fund at the end of the preceding fiscal year.

Investments with regard to which the Fund has entered into an agreement and for which it has committed but not disbursed sums of money at the end of a fiscal year shall be taken into account in the calculation of the investments that qualify under subparagraphs 7 and 8 of the fifth paragraph.

The requirement prescribed in the second paragraph applies from the fiscal year having begun on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28; 2005, c. 38, s. 35.

2005-06-17

15. The Fund may make investments in any undertaking with or without security or guarantee.

However, in the course of each fiscal year, the portion of the Fund’s investments in qualified undertakings entailing no guarantee or hypothec must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for the preceding fiscal year shall be determined by adding the net assets at the beginning of that preceding year to the net assets at the end of that preceding year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average investments for the current fiscal year shall be determined by the formula

(A + B + C + D) / 2.

In the formula provided for in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s investments that qualify under this section and entailing no security or hypothec, at the beginning of the current fiscal year;

(2)  B is the Fund’s investments that qualify under this section and entailing no security or hypothec, at the end of the current fiscal year;

(3)  C is the amount by which an amount that is the total of the disinvestments for the current fiscal year that relate to investments entailing no security or hypothec, already made by the Fund and that qualify under this section, exceeds an amount equal to 2 % of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the fiscal year preceding the current fiscal year.

For the purposes of this norm, qualified investments include

(1)  investments made otherwise than as first purchaser for the acquisition of securities issued by qualified undertakings;

(2)  investments added to investments previously made and which qualify under the second paragraph, in relation to an undertaking whose assets are less than $350,000,000 or whose net assets are not over $150,000,000;

(3)  investments in income-producing immovable property that is new property or property under substantial renovation, up to a sum not exceeding 5 % of the net assets of the Fund at the end of the preceding fiscal year;

(4)  strategic investments made after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000.

The total of the investments that qualify under subparagraphs 1 and 2 of the fifth paragraph is limited to 20 % of the net assets of the Fund at the end of the preceding fiscal year. For the purposes of subparagraph 1 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser.

The total of the investments that qualify under subparagraph 4 of the fifth paragraph is limited to 5 % of the net assets of the Fund at the end of the preceding fiscal year.

Subparagraph 3 of the fifth paragraph does not apply to investments in immovable property situated outside Québec, except where they have an impact on the raising or maintenance of the level of employment or the economic activity in Québec or are likely to have such an impact, in the cases and to the extent determined in a policy adopted by the board of directors and approved by the Minister of Finance. In addition, the said subparagraph does not apply to investments in immovable property located in Québec and intended primarily for the operation of shopping centres, other than within the scope of a project related to the recreation-tourism sector.

Investments with regard to which the Fund has entered into an agreement and for which it has committed but not disbursed sums of money at the end of a fiscal year shall be taken into account in the calculation of the investments that qualify under the norms set out in this section, up to a total amount not exceeding 12 % of the net assets of the Fund at the end of the preceding fiscal year.

The requirement prescribed in the second paragraph applies from the fiscal year having begun on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34; 2005, c. 23, s. 28.

2004-11-03

15. The Fund may make investments in any undertaking with or without security or guarantee.

However, in the course of each fiscal year, the portion of the Fund’s investments in qualified undertakings entailing no guarantee or hypothec must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year.

For the purposes of this section and section 15.1, the following rules apply:

(1)  the average net assets for the preceding fiscal year shall be determined by adding the net assets at the beginning of that preceding year to the net assets at the end of that preceding year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average investments for the current fiscal year shall be determined by the formula

(A + B + C + D) / 2.

In the formula provided for in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s investments that qualify under this section and entailing no security or hypothec, at the beginning of the current fiscal year;

(2)  B is the Fund’s investments that qualify under this section and entailing no security or hypothec, at the end of the current fiscal year;

(3)  C is the amount by which an amount that is the total of the disinvestments for the current fiscal year that relate to investments entailing no security or hypothec, already made by the Fund and that qualify under this section, exceeds an amount equal to 2 % of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the fiscal year preceding the current fiscal year.

For the purposes of this norm, qualified investments include

(1)  investments made otherwise than as first purchaser for the acquisition of securities issued by qualified undertakings;

(2)  investments added to investments previously made and which qualify under the second paragraph, in relation to an undertaking whose assets are less than $350,000,000 or whose net assets are not over $150,000,000;

(3)  investments in income-producing immovable property that is new property or property under substantial renovation, up to a sum not exceeding 5 % of the net assets of the Fund at the end of the preceding fiscal year;

(4)  strategic investments made after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000.

The total of the investments that qualify under subparagraphs 1 and 2 of the fifth paragraph is limited to 20 % of the net assets of the Fund at the end of the preceding fiscal year. For the purposes of subparagraph 1 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser.

The total of the investments that qualify under subparagraph 4 of the fifth paragraph is limited to 5 % of the net assets of the Fund at the end of the preceding fiscal year.

Subparagraph 3 of the fifth paragraph does not apply to investments in immovable property situated outside Québec, except where they have an impact on the raising or maintenance of the level of employment or the economic activity in Québec or are likely to have such an impact, in the cases and to the extent determined in a policy adopted by the board of directors and approved by the Minister of Finance. In addition, the said subparagraph does not apply to investments in immovable property located in Québec and intended primarily for housing or shopping centres, other than within the scope of a project related to the recreation-tourism sector.

Investments with regard to which the Fund has entered into an agreement and for which it has committed but not disbursed sums of money at the end of a fiscal year shall be taken into account in the calculation of the investments that qualify under the norms set out in this section, up to a total amount not exceeding 12 % of the net assets of the Fund at the end of the preceding fiscal year.

The requirement prescribed in the second paragraph applies from the fiscal year having begun on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4; 2004, c. 21, s. 34.

1997-06-19

15. The Fund may make investments in any undertaking with or without security or guarantee.

However, in the course of each fiscal year, the portion of the Fund’s investments in qualified undertakings entailing no guarantee or hypothec must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year. For the purposes of this section and of section 15.1, the average net assets for the preceding fiscal year and the average investments for the current year shall be determined by adding the net assets or, as the case may be, such investments at the beginning of the years concerned, to the net assets or, as the case may be, to such investments at the end of the years concerned, and by dividing by 2 each of the sums so obtained. In addition, the net assets do not include the movable and immovable property used by the Fund to carry on its operations.

For the purposes of this norm, qualified investments include

(1)  investments made otherwise than as first purchaser for the acquisition of securities issued by qualified undertakings;

(2)  investments added to investments previously made and which qualify under the second paragraph, in relation to an undertaking whose assets are less than $100,000,000 or whose net assets are not over $40,000,000;

(3)  investments in income-producing immovable property that is new property or property under substantial renovation, up to a sum not exceeding 5 % of the net assets of the Fund at the end of the preceding fiscal year.

The total of the investments that qualify under subparagraphs 1 and 2 of the third paragraph is limited to 20 % of the net assets of the Fund at the end of the preceding fiscal year. For the purposes of subparagraph 1 of the third paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser.

Subparagraph 3 of the third paragraph does not apply to investments in immovable property situated outside Québec, except where they have an impact on the raising or maintenance of the level of employment or the economic activity in Québec or are likely to have such an impact, in the cases and to the extent determined in a policy adopted by the board of directors and approved by the Minister of Finance. In addition, the said subparagraph does not apply to investments in immovable property located in Québec and intended primarily for housing or shopping centres, other than within the scope of a project related to the recreation-tourism sector.

Investments with regard to which the Fund has entered into an agreement and for which it has committed but not disbursed sums of money at the end of a fiscal year shall be taken into account in the calculation of the investments that qualify under the norms set out in this section, up to a total amount not exceeding 12 % of the net assets of the Fund at the end of the preceding fiscal year.

The requirement prescribed in the second paragraph applies from the fiscal year having begun on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585; 1997, c. 62, s. 4.

1994-01-01

15. The Fund may make investments in any undertaking with or without security or guarantee.

However, in the course of each fiscal year, the portion of the Fund’s investments in Québec undertakings entailing no guarantee or hypothec must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year. For the purposes of this section and of section 15.1, the average net assets for the preceding fiscal year and the average investments for the current year shall be determined by adding the net assets or, as the case may be, such investments at the beginning of the years concerned, to the net assets or, as the case may be, to such investments at the end of the years concerned, and by dividing by 2 each of the sums so obtained. In addition, the net assets do not include the movable and immovable property used by the Fund to carry on its operations.

For the purposes of this norm, investments referred to in the second paragraph which are the subject of an agreement and for which sums of money have been committed but not disbursed at the end of the fiscal year are qualified investments.

Investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by Québec undertakings, up to a sum not exceeding 20 % of the net assets of the Fund at the end of the preceding fiscal year, are also qualified investments. For that purpose, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser.

The requirement prescribed in the second paragraph applies from the fiscal year having begun on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8; 1992, c. 57, s. 585.

1989-06-22

15. The Fund may make investments in any undertaking with or without security or guarantee.

However, in the course of each fiscal year, the portion of the Fund’s investments in Québec undertakings entailing no guarantee, mortgage, pledge, privilege or hypothec must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year. For the purposes of this section and of section 15.1, the average net assets for the preceding fiscal year and the average investments for the current year shall be determined by adding the net assets or, as the case may be, such investments at the beginning of the years concerned, to the net assets or, as the case may be, to such investments at the end of the years concerned, and by dividing by 2 each of the sums so obtained. In addition, the net assets do not include the movable and immovable property used by the Fund to carry on its operations.

For the purposes of this norm, investments referred to in the second paragraph which are the subject of an agreement and for which sums of money have been committed but not disbursed at the end of the fiscal year are qualified investments.

Investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by Québec undertakings, up to a sum not exceeding 20 % of the net assets of the Fund at the end of the preceding fiscal year, are also qualified investments. For that purpose, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser.

The requirement prescribed in the second paragraph applies from the fiscal year having begun on 1 November 1986.

1983, c. 58, s. 15; 1989, c. 78, s. 8.

1983-06-23

15. The Fund may make investments in any undertaking with or without security or guarantee.

However, in the course of each financial year, the portion of the Fund’s investments in Québec undertakings entailing no guarantee, mortgage, pledge, privilege or hypothec must represent, on the average, at least 60% of the assets of the Fund for the preceding year. For the purposes of this section, the assets do not include the movable and immovable property used by the Fund to carry on its operations.

the requirement prescribed in the second paragraph applies from the third financial year following that in progress on 1 April 1984.

1983, c. 58, s. 15.