R-15.1, r. 6.2 - General Regulation respecting supplemental pension plans

Section 77.3 Disposition versions

2019-06-13

77.3. (1)  In this section, the expression “real estate corporation” means a corporation set up to acquire and hold real estate.

(2)  A plan may acquire and hold fully paid shares of a real estate corporation provided that the following conditions are observed:

(1)  the real estate corporation must restrict its activities to the purposes for which it was incorporated;

(2)  the assets of the real estate corporation must consist solely of real estate, cash and demand deposits in a bank, a trust company or a savings and credit union that is an institution registered under the Deposit Insurance Act (chapter A-26) and its revenue must come solely from such deposits or such real estate;

(3)  the real estate corporation may not raise capital except by issuing common shares or by loans secured by hypothec on the real estate that it holds;

(4)  all the shares of the share capital of the real estate corporation must be acquired and held by the same plan;

(5)  the administrator of the plan shall keep, as long as it is the holder of the shares of a real estate corporation, an undertaking by the latter to permit the Board to examine the books and registers of the corporation and to submit to the Board, within 6 months of the end of each fiscal year of the corporation, its financial statements prepared on an accrual basis and audited by an accountant, and a detailed list of its investments with an indication of their book value and their market value;

(6)  the fiscal year of the real estate corporation shall coincide with that of the plan;

(7)  all the deposits and investments of the real estate corporation shall be made in its own name;

(8)  the standards prescribed by sections 74, 75, 76 and 81 shall be observed when the real estate corporation acquires and holds real estate as if it were the plan holding the shares of the corporation which itself acquired and held the real estate instead of the real estate corporation;

(9)  for the purposes of paragraph 8, the total amount mentioned in subparagraph a of section 81 and that mentioned in subparagraph b of the same section shall be calculated by taking into account the amount of all investments covered by those sections made by any real estate corporation whose shares the plan holds and by the plan itself;

(10)  notwithstanding paragraph 8, the real estate corporation may acquire from the plan that holds its shares real estate held by the latter in accordance with the standards of this Division;

(11)  the investments of a real estate corporation at the time when the plan becomes the holder of all its shares shall be in accordance with the standards of this Division as if it were the plan itself that made them at the same time;

(12)  real estate acquired by a plan in application of section 73 may not be held by a real estate corporation more than 7 years, including any time during which a plan or a real estate corporation held it;

(13)  if one of the transactions covered by section 90 is made by a real estate corporation, the second paragraph of that section shall apply not only to persons covered by it as if it were the plan holding the shares of the corporation that itself carried out the transaction, but also to any officer or employee of the real estate corporation.

(3)  The restrictions in sections 69 and 89 shall not apply to the acquisition and holding by a plan of the shares of a real estate corporation.

O.C. 354-85, s. 3.

2012-09-01

77.3. (1)  In this section, the expression “real estate corporation” means a corporation set up to acquire and hold real estate.

(2)  A plan may acquire and hold fully paid shares of a real estate corporation provided that the following conditions are observed:

(1)  the real estate corporation must restrict its activities to the purposes for which it was incorporated;

(2)  the assets of the real estate corporation must consist solely of real estate, cash and demand deposits in a bank, a trust company or a savings and credit union that is an institution registered under the Deposit Insurance Act (chapter A-26) and its revenue must come solely from such deposits or such real estate;

(3)  the real estate corporation may not raise capital except by issuing common shares or by loans secured by hypothec on the real estate that it holds;

(4)  all the shares of the share capital of the real estate corporation must be acquired and held by the same plan;

(5)  the administrator of the plan shall keep, as long as it is the holder of the shares of a real estate corporation, an undertaking by the latter to permit the Board to examine the books and registers of the corporation and to submit to the Board, within 6 months of the end of each fiscal year of the corporation, its financial statements prepared on an accrual basis and audited by an accountant, and a detailed list of its investments with an indication of their book value and their market value;

(6)  the fiscal year of the real estate corporation shall coincide with that of the plan;

(7)  all the deposits and investments of the real estate corporation shall be made in its own name;

(8)  the standards prescribed by sections 74, 75, 76 and 81 shall be observed when the real estate corporation acquires and holds real estate as if it were the plan holding the shares of the corporation which itself acquired and held the real estate instead of the real estate corporation;

(9)  for the purposes of paragraph 8, the total amount mentioned in subparagraph a of section 81 and that mentioned in subparagraph b of the same section shall be calculated by taking into account the amount of all investments covered by those sections made by any real estate corporation whose shares the plan holds and by the plan itself;

(10)  notwithstanding paragraph 8, the real estate corporation may acquire from the plan that holds its shares real estate held by the latter in accordance with the standards of this Division;

(11)  the investments of a real estate corporation at the time when the plan becomes the holder of all its shares shall be in accordance with the standards of this Division as if it were the plan itself that made them at the same time;

(12)  real estate acquired by a plan in application of section 73 may not be held by a real estate corporation more than 7 years, including any time during which a plan or a real estate corporation held it;

(13)  if one of the transactions covered by section 90 is made by a real estate corporation, the second paragraph of that section shall apply not only to persons covered by it as if it were the plan holding the shares of the corporation that itself carried out the transaction, but also to any officer or employee of the real estate corporation.

(3)  The restrictions in sections 69 and 89 shall not apply to the acquisition and holding by a plan of the shares of a real estate corporation.

O.C. 354-85, s. 3.