A-32 - Act respecting insurance

Section 62 Disposition versions

2004-12-17

62. No insurer may grant a hypothec or other security on its property, except

(1)  to secure a loan contracted to meet short term requirements for liquid funds;

(2)  on an immovable;

(3)  if the insurer is a registered institution within the meaning of the Deposit Insurance Act (chapter A-26), to obtain an advance of money under section 40 of that Act, or if the insurer receives deposits outside Québec, to obtain an advance of money from a federal or provincial body that guarantees or insures deposits;

(4)  to subscribe for savings bonds in favour of the Government of Québec or of Canada;

(5)  to become a member of a securities clearing-house recognized by the Autorité des marchés financiers as a self-regulatory organization or of any association the object of which is to organize a clearing and settlement system for instruments of payment or securities transactions, and to provide the necessary guarantees; or

(6)  for any other purpose provided for in a policy adopted by the board of directors of the insurer and approved by the Authority.

1974, c. 70, s. 62; 1979, c. 33, s. 3; 1984, c. 22, s. 27; 1999, c. 40, s. 33; 2002, c. 70, s. 36; 2004, c. 37, s. 90.

2004-02-01

62. No insurer may grant a hypothec or other security on its property, except

(1)  to secure a loan contracted to meet short term requirements for liquid funds;

(2)  on an immovable;

(3)  if the insurer is a registered institution within the meaning of the Deposit Insurance Act (chapter A-26), to obtain an advance of money under section 40 of that Act, or if the insurer receives deposits outside Québec, to obtain an advance of money from a federal or provincial body that guarantees or insures deposits;

(4)  to subscribe for savings bonds in favour of the Government of Québec or of Canada;

(5)  to become a member of a securities clearing-house recognized by the Agence nationale d’encadrement du secteur financier as a self-regulatory organization or of any association the object of which is to organize a clearing and settlement system for instruments of payment or securities transactions, and to provide the necessary guarantees; or

(6)  for any other purpose provided for in a policy adopted by the board of directors of the insurer and approved by the Agency.

1974, c. 70, s. 62; 1979, c. 33, s. 3; 1984, c. 22, s. 27; 1999, c. 40, s. 33; 2002, c. 70, s. 36.

2003-02-12

62. No insurer may grant a hypothec or other security on its property, except

(1)  to secure a loan contracted to meet short term requirements for liquid funds;

(2)  on an immovable;

(3)  if the insurer is a registered institution within the meaning of the Deposit Insurance Act (chapter A‐26), to obtain an advance of money under section 40 of that Act, or if the insurer receives deposits outside Québec, to obtain an advance of money from a federal or provincial body that guarantees or insures deposits;

(4)  to subscribe for savings bonds in favour of the Government of Québec or of Canada;

(5)  to become a member of a securities clearing-house recognized by the Commission des valeurs mobilières du Québec as a self-regulatory organization or of any association the object of which is to organize a clearing and settlement system for instruments of payment or securities transactions, and to provide the necessary guarantees; or

(6)  for any other purpose provided for in a policy adopted by the board of directors of the insurer and approved by the Agency.

1974, c. 70, s. 62; 1979, c. 33, s. 3; 1984, c. 22, s. 27; 1999, c. 40, s. 33; 2002, c. 70, s. 36.

1999-10-22

62. No insurer may grant security on his property except

(1)  security for a short-term loan to meet its liquidity needs;

(2)  security on landed property.

1974, c. 70, s. 62; 1979, c. 33, s. 3; 1984, c. 22, s. 27; 1999, c. 40, s. 33.

1984-06-20

62. No insurer may grant security on his property except

(1)  security for a short-term loan to meet its liquidity needs;

(2)  security on real estate.

1974, c. 70, s. 62; 1979, c. 33, s. 3; 1984, c. 22, s. 27.

1979-06-22

62. Insurers may, for the purposes of their objects and powers, contract loans with a term of not more than twelve months; these loans shall not be effected by way of an issue of bonds.

Insurers may also, for the same purposes, on such terms and conditions as may be provided in the regulations, contract loans by issuing subordinated notes or by accepting subordinated shareholder loans.

For the purposes of this section, a subordinated note is a security that by its terms provides that the indebtedness evidenced by it will, in the event of the insolvency or winding-up of the insurer, rank

(a)  after the other debts;

(b)  equally with the other subordinated notes issued by it;

(c)  before the subordinated shareholder loans.

For the purposes of this section, a subordinated shareholder loan is a loan for a fixed term granted to the insurer by one of its shareholders or by a person who controls one of its shareholders, stipulating that in the event of the insolvency or winding-up of the insurer, the loan will rank equally with other similar loans but be subordinate to all other debts.

1974, c. 70, s. 62; 1979, c. 33, s. 3.

1977-12-31

62. Insurers may, for the purposes of their objects and powers, contract loans with a term of not more than twelve months; these loans shall not be effected by way of an issue of bonds.

1974, c. 70, s. 62.