CCQ-1991 - Civil Code of Québec

Section 1339 Disposition versions

2020-06-15

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a school service centre or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness guaranteed by an undertaking towards a trustee by Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital upon their respective maturities;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable or on securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are investments presumed sound;

(6)  bonds or other evidences of indebtedness issued by a deposit institution authorized under the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2);

(7)  claims secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the claim is not more than 80% of the value of the immovable property securing payment of the claim after deduction of the other claims secured by the same immovable and ranking equally with or before the claims;

(c)  if the amount of the claim that exceeds 80% of the value of the immovable by which it is secured, after deduction of the other claims secured by the same immovable and ranking equally with or before the claim, is guaranteed or secured by Québec, Canada or a province of Canada, the Canada Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothecary insurance contract underwritten by an insurer authorized under the Insurers Act (chapter A-32.1);

(8)  fully paid preferred shares issued by a company whose common shares are investments presumed sound or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares, issued by a company that for three years has been meeting the continuous disclosure requirements defined in the Securities Act (chapter V-1.1), where they are listed on a stock exchange recognized for that purpose by the Government on the recommendation of the Autorité des marchés financiers, and where the market capitalization of the company, not taking into account preferred shares or blocks of shares of 10% or more, is higher than the amount so fixed by the Government;

(10)  securities of an investment fund or of a private trust, provided that 60% of its portfolio consists of investments presumed sound and that the fund or trust has fulfilled in the last three years the continuous disclosure requirements specified in the Securities Act.

1991, c. 64, a. 1339; 2002, c. 19, s. 7; 2002, c. 45, s. 159; 2004, c. 37, s. 90; 2006, c. 50, s. 112; 2007, c. 16, s. 4; I.N. 2014-05-01; I.N. 2015-11-01; 2016, c. 4, s. 169; 2018, c. 23, s. 713; 2020, c. 1, s. 171.

2019-06-13

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness guaranteed by an undertaking towards a trustee by Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital upon their respective maturities;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable or on securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are investments presumed sound;

(6)  bonds or other evidences of indebtedness issued by a deposit institution authorized under the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2);

(7)  claims secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the claim is not more than 80% of the value of the immovable property securing payment of the claim after deduction of the other claims secured by the same immovable and ranking equally with or before the claims;

(c)  if the amount of the claim that exceeds 80% of the value of the immovable by which it is secured, after deduction of the other claims secured by the same immovable and ranking equally with or before the claim, is guaranteed or secured by Québec, Canada or a province of Canada, the Canada Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothecary insurance contract underwritten by an insurer authorized under the Insurers Act (chapter A-32.1);

(8)  fully paid preferred shares issued by a company whose common shares are investments presumed sound or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares, issued by a company that for three years has been meeting the continuous disclosure requirements defined in the Securities Act (chapter V-1.1), where they are listed on a stock exchange recognized for that purpose by the Government on the recommendation of the Autorité des marchés financiers, and where the market capitalization of the company, not taking into account preferred shares or blocks of shares of 10% or more, is higher than the amount so fixed by the Government;

(10)  securities of an investment fund or of a private trust, provided that 60% of its portfolio consists of investments presumed sound and that the fund or trust has fulfilled in the last three years the continuous disclosure requirements specified in the Securities Act.

1991, c. 64, a. 1339; 2002, c. 19, s. 7; 2002, c. 45, s. 159; 2004, c. 37, s. 90; 2006, c. 50, s. 112; 2007, c. 16, s. 4; I.N. 2014-05-01; I.N. 2015-11-01; 2016, c. 4, s. 169; 2018, c. 23, s. 713.

2016-04-06

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness guaranteed by an undertaking towards a trustee by Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital upon their respective maturities;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable or on securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are investments presumed sound;

(6)  bonds or other evidences of indebtedness issued by a loan society incorporated by a statute of Québec or authorized to do business in Québec under the Loan and Investment Societies Act (chapter S-30), provided it has been specially approved by the Government and its ordinary operations in Québec consist in making loans to municipalities or school boards and to fabriques or loans secured by a hypothec ranking first on immovables situated in Québec;

(7)  claims secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the claim is not more than 80% of the value of the immovable property securing payment of the claim after deduction of the other claims secured by the same immovable and ranking equally with or before the claims;

(c)  if the amount of the claim that exceeds 80% of the value of the immovable by which it is secured, after deduction of the other claims secured by the same immovable and ranking equally with or before the claim, is guaranteed or secured by Québec, Canada or a province of Canada, the Canada Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothecary insurance policy issued by a company holding a licence under the Act respecting insurance (chapter A-32);

(8)  fully paid preferred shares issued by a company whose common shares are investments presumed sound or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares, issued by a company that for three years has been meeting the continuous disclosure requirements defined in the Securities Act (chapter V-1.1), where they are listed on a stock exchange recognized for that purpose by the Government on the recommendation of the Autorité des marchés financiers, and where the market capitalization of the company, not taking into account preferred shares or blocks of shares of 10% or more, is higher than the amount so fixed by the Government;

(10)  securities of an investment fund or of a private trust, provided that 60% of its portfolio consists of investments presumed sound and that the fund or trust has fulfilled in the last three years the continuous disclosure requirements specified in the Securities Act.

1991, c. 64, a. 1339; 2002, c. 19, s. 7; 2002, c. 45, s. 159; 2004, c. 37, s. 90; 2006, c. 50, s. 112; 2007, c. 16, s. 4; I.N. 2014-05-01; I.N. 2015-11-01; 2016, c. 4, s. 169.

2015-11-01

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness guaranteed by an undertaking towards a trustee by Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital upon their respective maturities;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable, or by securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are investments presumed sound;

(6)  bonds or other evidences of indebtedness issued by a loan society incorporated by a statute of Québec or authorized to do business in Québec under the Loan and Investment Societies Act (chapter S-30), provided it has been specially approved by the Government and its ordinary operations in Québec consist in making loans to municipalities or school boards and to fabriques or loans secured by a hypothec ranking first on immovables situated in Québec;

(7)  claims secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the claim is not more than 80% of the value of the immovable property securing payment of the claim after deduction of the other claims secured by the same immovable and ranking equally with or before the claims;

(c)  if the amount of the claim that exceeds 80% of the value of the immovable by which it is secured, after deduction of the other claims secured by the same immovable and ranking equally with or before the claim, is guaranteed or secured by Québec, Canada or a province of Canada, the Canada Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothecary insurance policy issued by a company holding a licence under the Act respecting insurance (chapter A-32);

(8)  fully paid preferred shares issued by a company whose common shares are investments presumed sound or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares, issued by a company that for three years has been meeting the timely disclosure requirements defined in the Securities Act (chapter V-1.1), where they are listed on a stock exchange recognized for that purpose by the Government on the recommendation of the Autorité des marchés financiers, and where the market capitalization of the company, not taking into account preferred shares or blocks of shares of 10% or more, is higher than the amount so fixed by the Government;

(10)  securities of an investment fund or of a private trust, provided that 60% of its portfolio consists of investments presumed sound and that the fund or trust has fulfilled in the last three years the continuous disclosure requirements specified in the Securities Act.

1991, c. 64, a. 1339; 2002, c. 19, s. 7; 2002, c. 45, s. 159; 2004, c. 37, s. 90; 2006, c. 50, s. 112; 2007, c. 16, s. 4; I.N. 2014-05-01; I.N. 2015-11-01.

2014-05-01

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness guaranteed by an undertaking towards a trustee by Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital upon their respective maturities;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable, or by securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are investments presumed sound;

(6)  bonds or other evidences of indebtedness issued by a loan society incorporated by a statute of Québec or authorized to do business in Québec under the Loan and Investment Societies Act (chapter S-30), provided it has been specially approved by the Government and its ordinary operations in Québec consist in making loans to municipalities or school boards and to fabriques or loans secured by a hypothec ranking first on immovables situated in Québec;

(7)  debts secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the claim is not more than 80% of the value of the immovable property securing payment of the claim after deduction of the other claims secured by the same immovable and ranking equally with or before the claims;

(c)  if the amount of the claim that exceeds 80% of the value of the immovable by which it is secured, after deduction of the other claims secured by the same immovable and ranking equally with or before the claim, is guaranteed or secured by Québec, Canada or a province of Canada, the Canada Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothecary insurance policy issued by a company holding a licence under the Act respecting insurance (chapter A-32);

(8)  fully paid preferred shares issued by a company whose common shares are investments presumed sound or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares, issued by a company that for three years has been meeting the timely disclosure requirements defined in the Securities Act (chapter V-1.1), where they are listed on a stock exchange recognized for that purpose by the Government on the recommendation of the Autorité des marchés financiers, and where the market capitalization of the company, not taking into account preferred shares or blocks of shares of 10% or more, is higher than the amount so fixed by the Government;

(10)  securities of an investment fund or of a private trust, provided that 60% of its portfolio consists of investments presumed sound and that the fund or trust has fulfilled in the last three years the continuous disclosure requirements specified in the Securities Act.

1991, c. 64, a. 1339; 2002, c. 19, s. 7; 2002, c. 45, s. 159; 2004, c. 37, s. 90; 2006, c. 50, s. 112; 2007, c. 16, s. 4; I.N. 2014-05-01.

2007-11-09

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness secured by an undertaking, towards a trustee, of Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital on the maturity of each;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable, or by securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are presumed sound investments;

(6)  bonds or other evidences of indebtedness issued by a loan society incorporated by a statute of Québec or authorized to do business in Québec under the Loan and Investment Societies Act (chapter S-30), provided it has been specially approved by the Government and its ordinary operations in Québec consist in making loans to municipalities or school boards and to fabriques or loans secured by hypothec ranking first on immovables situated in Québec;

(7)  debts secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the debt is not more than 80% of the value of the immovable property securing payment of the debt after deduction of the other debts secured by the same immovable and ranking equally with or before the debt;

(c)  if the amount of the debt that exceeds 80% of the value of the immovable by which it is secured, after deduction of the other debts secured by the same immovable and ranking equally with or before the debt, is guaranteed or secured by Québec, Canada or a province of Canada, the Central Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothec insurance policy issued by a company holding a permit under the Act respecting insurance (chapter A-32);

(8)  fully paid preferred shares issued by a company whose common shares are presumed sound investments or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares issued by a company that for three years has been meeting the timely disclosure requirements defined in the Securities Act (chapter V-1.1) to such extent as they are listed by a stock exchange recognized for that purpose by the Government on the recommendation of the Autorité des marchés financiers, and when the market capitalization of the company, not considering preferred shares or blocks of shares of 10% or more, is higher than the amount so fixed by the Government;

(10)  securities of an investment fund or of a private trust, provided that 60% of its portfolio consists of investments presumed sound and that the fund or trust has fulfilled in the last three years the continuous disclosure requirements specified in the Securities Act.

1991, c. 64, a. 1339; 2002, c. 19, s. 7; 2002, c. 45, s. 159; 2004, c. 37, s. 90; 2006, c. 50, s. 112; 2007, c. 16, s. 4.

2006-12-14

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness secured by an undertaking, towards a trustee, of Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital on the maturity of each;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable, or by securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are presumed sound investments;

(6)  bonds or other evidences of indebtedness issued by a loan society incorporated by a statute of Québec or authorized to do business in Québec under the Loan and Investment Societies Act, provided it has been specially approved by the Government and its ordinary operations in Québec consist in making loans to municipalities or school boards and to fabriques or loans secured by hypothec ranking first on immovables situated in Québec;

(7)  debts secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the debt is not more than 75 % of the value of the immovable property securing payment of the debt after deduction of the other debts secured by the same immovable and ranking equally with or before the debt;

(c)  if the amount of the debt that exceeds 75 % of the value of the immovable by which it is secured, after deduction of the other debts secured by the same immovable and ranking equally with or before the debt, is guaranteed or secured by Québec, Canada or a province of Canada, the Central Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothec insurance policy issued by a company holding a permit under the Act respecting insurance;

(8)  fully paid preferred shares issued by a company whose common shares are presumed sound investments or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares issued by a company that for three years has been meeting the timely disclosure requirements defined in the Securities Act to such extent as they are listed by a stock exchange recognized for that purpose by the Government on the recommendation of the Autorité des marchés financiers, and when the market capitalization of the company, not considering preferred shares or blocks of shares of 10 % or more, is higher than the amount so fixed by the Government;

(10)  securities of an investment fund or of a private trust, provided that 60 % of its portfolio consists of investments presumed sound and that the fund or trust has fulfilled in the last three years the continuous disclosure requirements specified in the Securities Act.

1991, c. 64, a. 1339; 2002, c. 19, s. 7; 2002, c. 45, s. 159; 2004, c. 37, s. 90; 2006, c. 50, s. 112.

2004-12-17

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness secured by an undertaking, towards a trustee, of Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital on the maturity of each;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable, or by securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are presumed sound investments;

(6)  bonds or other evidences of indebtedness issued by a loan society incorporated by a statute of Québec or authorized to do business in Québec under the Loan and Investment Societies Act, provided it has been specially approved by the Government and its ordinary operations in Québec consist in making loans to municipalities or school boards and to fabriques or loans secured by hypothec ranking first on immovables situated in Québec;

(7)  debts secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the debt is not more than 75 % of the value of the immovable property securing payment of the debt after deduction of the other debts secured by the same immovable and ranking equally with or before the debt;

(c)  if the amount of the debt that exceeds 75 % of the value of the immovable by which it is secured, after deduction of the other debts secured by the same immovable and ranking equally with or before the debt, is guaranteed or secured by Québec, Canada or a province of Canada, the Central Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothec insurance policy issued by a company holding a permit under the Act respecting insurance;

(8)  fully paid preferred shares issued by a company whose common shares are presumed sound investments or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares issued by a company that for three years has been meeting the timely disclosure requirements defined in the Securities Act to such extent as they are listed by a stock exchange recognized for that purpose by the Government on the recommendation of the Autorité des marchés financiers, and when the market capitalization of the company, not considering preferred shares or blocks of shares of 10 % or more, is higher than the amount so fixed by the Government;

(10)  shares of a mutual fund and units of an unincorporated mutual fund or of a private trust, provided that 60 % of its portfolio consists of investments presumed sound and that the fund or trust has fulfilled in the last three years the continuous disclosure requirements specified in the Securities Act.

1991, c. 64, a. 1339; 2002, c. 19, s. 7; 2002, c. 45, s. 159; 2004, c. 37, s. 90.

2004-02-01

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness secured by an undertaking, towards a trustee, of Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital on the maturity of each;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable, or by securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are presumed sound investments;

(6)  bonds or other evidences of indebtedness issued by a loan society incorporated by a statute of Québec or authorized to do business in Québec under the Loan and Investment Societies Act, provided it has been specially approved by the Government and its ordinary operations in Québec consist in making loans to municipalities or school boards and to fabriques or loans secured by hypothec ranking first on immovables situated in Québec;

(7)  debts secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the debt is not more than 75 % of the value of the immovable property securing payment of the debt after deduction of the other debts secured by the same immovable and ranking equally with or before the debt;

(c)  if the amount of the debt that exceeds 75 % of the value of the immovable by which it is secured, after deduction of the other debts secured by the same immovable and ranking equally with or before the debt, is guaranteed or secured by Québec, Canada or a province of Canada, the Central Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothec insurance policy issued by a company holding a permit under the Act respecting insurance;

(8)  fully paid preferred shares issued by a company whose common shares are presumed sound investments or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares issued by a company that for three years has been meeting the timely disclosure requirements defined in the Securities Act to such extent as they are listed by a stock exchange recognized for that purpose by the Government on the recommendation of the Agence nationale d’encadrement du secteur financier, and when the market capitalization of the company, not considering preferred shares or blocks of shares of 10 % or more, is higher than the amount so fixed by the Government;

(10)  shares of a mutual fund and units of an unincorporated mutual fund or of a private trust, provided that 60 % of its portfolio consists of investments presumed sound and that the fund or trust has fulfilled in the last three years the continuous disclosure requirements specified in the Securities Act.

1991, c. 64, a. 1339; 2002, c. 19, s. 7; 2002, c. 45, s. 159.

2002-06-13

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness secured by an undertaking, towards a trustee, of Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital on the maturity of each;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable, or by securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are presumed sound investments;

(6)  bonds or other evidences of indebtedness issued by a loan society incorporated by a statute of Québec or authorized to do business in Québec under the Loan and Investment Societies Act, provided it has been specially approved by the Government and its ordinary operations in Québec consist in making loans to municipalities or school boards and to fabriques or loans secured by hypothec ranking first on immovables situated in Québec;

(7)  debts secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the debt is not more than 75 % of the value of the immovable property securing payment of the debt after deduction of the other debts secured by the same immovable and ranking equally with or before the debt;

(c)  if the amount of the debt that exceeds 75 % of the value of the immovable by which it is secured, after deduction of the other debts secured by the same immovable and ranking equally with or before the debt, is guaranteed or secured by Québec, Canada or a province of Canada, the Central Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothec insurance policy issued by a company holding a permit under the Act respecting insurance;

(8)  fully paid preferred shares issued by a company whose common shares are presumed sound investments or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares issued by a company that for three years has been meeting the timely disclosure requirements defined in the Securities Act to such extent as they are listed by a stock exchange recognized for that purpose by the Government on the recommendation of the Commission des valeurs mobilières, and when the market capitalization of the company, not considering preferred shares or blocks of shares of 10 % or more, is higher than the amount so fixed by the Government;

(10)  shares of a mutual fund and units of an unincorporated mutual fund or of a private trust, provided that 60 % of its portfolio consists of investments presumed sound and that the fund or trust has fulfilled in the last three years the continuous disclosure requirements specified in the Securities Act.

1991, c. 64, a. 1339; 2002, c. 19, s. 7.

1994-01-01

1339. Investments in the following are presumed sound:

(1)  titles of ownership in an immovable;

(2)  bonds or other evidences of indebtedness issued or guaranteed by Québec, Canada or a province of Canada, the United States of America or any of its member states, the International Bank for Reconstruction and Development, a municipality or a school board in Canada, or a fabrique in Québec;

(3)  bonds or other evidences of indebtedness issued by a legal person which operates a public service in Canada and which is entitled to impose a tariff for such service;

(4)  bonds or other evidences of indebtedness secured by an undertaking, towards a trustee, of Québec, Canada or a province of Canada, to pay sufficient subsidies to meet the interest and the capital on the maturity of each;

(5)  bonds or other evidences of indebtedness of a company in the following cases:

(a)  they are secured by a hypothec ranking first on an immovable, or by securities presumed to be sound investments;

(b)  they are secured by a hypothec ranking first on equipment and the company has regularly serviced the interest on its borrowings during the last 10 financial years;

(c)  they are issued by a company whose common or preferred shares are presumed sound investments;

(6)  bonds or other evidences of indebtedness issued by a loan society incorporated by a statute of Québec or authorized to do business in Québec under the Loan and Investment Societies Act, provided it has been specially approved by the Government and its ordinary operations in Québec consist in making loans to municipalities or school boards and to fabriques or loans secured by hypothec ranking first on immovables situated in Québec;

(7)  debts secured by hypothec on immovables in Québec:

(a)  if payment of the capital and interest is guaranteed or secured by Québec, Canada or a province of Canada;

(b)  if the amount of the debt is not more than 75 % of the value of the immovable property securing payment of the debt after deduction of the other debts secured by the same immovable and ranking equally with or before the debt;

(c)  if the amount of the debt that exceeds 75 % of the value of the immovable by which it is secured, after deduction of the other debts secured by the same immovable and ranking equally with or before the debt, is guaranteed or secured by Québec, Canada or a province of Canada, the Central Mortgage and Housing Corporation, the Société d’habitation du Québec or a hypothec insurance policy issued by a company holding a permit under the Act respecting insurance;

(8)  fully paid preferred shares issued by a company whose common shares are presumed sound investments or which, during the last five financial years, has distributed the stipulated dividend on all its preferred shares;

(9)  common shares issued by a company that for three years has been meeting the timely disclosure requirements defined in the Securities Act to such extent as they are listed by a stock exchange recognized for that purpose by the Government on the recommendation of the Commission des valeurs mobilières, and when the market capitalization of the company, not considering preferred shares or blocks of shares of 10 % or more, is higher than the amount so fixed by the Government;

(10)  shares of a mutual fund and units of an unincorporated mutual fund or of a private trust, provided that 60 % of its portfolio consists of presumed sound investments, in the following cases:

(a)  the shares or units meet the requirements of subparagraph a of paragraph 11 of section 3 of the Securities Act;

(b)  the company, the fund or the trust has been fulfilling the timely disclosure requirements defined by that Act for three years.

1991, c. 64, a. 1339.