I-13.2.2, r. 3 - Regulation respecting the classes of negotiable and transferable unsecured debts and the issuance of such debts and of shares

Section 4 Disposition versions

2019-03-31

4. For the purposes of subparagraph 3 of section 3, a “structured note” means a debt obligation that:

(1)  specifies that the obligation’s stated term to maturity, or a payment to be made by its issuer, is determined in whole or principally by reference to an index or reference point, including:

(a)  the performance or value of an entity or asset;

(b)  the market price of a security, commodity, investment fund or financial instrument;

(c)  an interest rate; and

(d)  the exchange rate applicable between two currencies;

or

(2)  contains any other type of embedded derivative or similar feature.

However, a structured note does not mean:

(1)  a debt obligation in respect of which the stated term to maturity, or a payment to be made by its issuer, is determined in whole or principally by reference to the performance of a security of a deposit institution belonging to the cooperative group; or

(2)  a debt obligation that is payable in cash and that:

(a)  specifies that the return is determined by a fixed or floating interest rate or a fixed spread above or below a fixed or floating interest rate, regardless of whether the return is subject to a minimum interest rate or whether the interest rate changes between fixed and floating; and

(b)  has no other terms affecting the stated term to maturity or the return on the debt obligation, with the exception of the right of the issuer to redeem the debt obligation or the right of the holder or issuer to extend its term to maturity.

M.O. 2019-03, s. 4.

Not in force

In force: 2019-03-31

4. For the purposes of subparagraph 3 of section 3, a “structured note” means a debt obligation that:

(1)  specifies that the obligation’s stated term to maturity, or a payment to be made by its issuer, is determined in whole or principally by reference to an index or reference point, including:

(a)  the performance or value of an entity or asset;

(b)  the market price of a security, commodity, investment fund or financial instrument;

(c)  an interest rate; and

(d)  the exchange rate applicable between two currencies;

or

(2)  contains any other type of embedded derivative or similar feature.

However, a structured note does not mean:

(1)  a debt obligation in respect of which the stated term to maturity, or a payment to be made by its issuer, is determined in whole or principally by reference to the performance of a security of a deposit institution belonging to the cooperative group; or

(2)  a debt obligation that is payable in cash and that:

(a)  specifies that the return is determined by a fixed or floating interest rate or a fixed spread above or below a fixed or floating interest rate, regardless of whether the return is subject to a minimum interest rate or whether the interest rate changes between fixed and floating; and

(b)  has no other terms affecting the stated term to maturity or the return on the debt obligation, with the exception of the right of the issuer to redeem the debt obligation or the right of the holder or issuer to extend its term to maturity.

M.O. 2019-03, s. 4.