Légis Québec

Ministère de l'Emploi et de la Solidarité sociale

Consolidated Statutes and Regulations Consolidated Statutes Consolidated Regulations Annual Statutes and Regulations Annual Statutes Annual Regulations Additional information Québec Official Publisher What’s new? Information note Policy of the Minister of Justice Laws: Amendments Laws: Provisions not in force Laws: Provisions brought into force Annual Statutes: PDF versions since 1996 Regulations: Amendments Annual Regulations: PDF versions since 1996 Court Decisions

G-1.031 - Act respecting the Cree Nation Government

Full text

In force date

2020-06-15 Show full text at this date

SCHEDULE

(Section 68)

AUTHORIZED INVESTMENTS

(1) Bonds or other evidences of indebtedness issued or guaranteed by the government of Québec, of Canada or a province of Canada, of the United States of America or of any state of that country, by the International Bank of Reconstruction and Development, by a municipality, school service centre or school board in Canada or by the Comité de gestion de la taxe scolaire de l’île de Montréal, or by a fabrique in Québec;

(2) Bonds or other evidences of indebtedness issued by a public authority having as its object the operation of a public service in Canada or any province thereof and entitled to impose a tariff for such service;

(3) Bonds or other evidences of indebtedness secured by the transfer to a trustee of an undertaking by Canada or any province of Canada to pay sufficient subsidies to meet the interest and principal at their respective maturities;

(4) The bonds or other evidences of indebtedness of a legal person that are fully secured by a mortgage, charge or hypothec ranking first to a trustee or to the Cree Nation Government upon any, or upon any combination, of the following assets:

i. landed property or leaseholds;

ii. the plant or equipment of a legal person that is used in the transaction of its business; or

iii. bonds or other evidences of indebtedness, or shares of a class authorized hereunder as investments, or cash balances, if such bonds or other evidences of indebtedness, shares or cash balances are held by a trustee;

and the inclusion, as additional security under the mortgage, charge or hypothec, of any other assets not of a class authorized hereunder as investments shall not render such bonds or other evidences of indebtedness ineligible as an investment;

(5) Obligations or certificates issued by a trustee to finance the purchase of transportation equipment for a legal person constituted in Canada or the United States to be used on airlines, railways or public highways, if the obligations or certificates are fully secured by:

i. an assignment of the transportation equipment to, or the ownership thereof by, the trustee, and

ii. a lease or conditional sale thereof by the trustee to the legal person;

(6) The bonds or other evidences of indebtedness:

i. of a legal person if, at the date of investment, the preferred shares or the common shares of the legal person are authorized as investments by paragraph 8 or 9; or

ii. of or guaranteed by a legal person where the earnings of the legal person in a period of five years ended less than one year before the date of investment in a trust have been equal in sum total to at least ten times and in each of any four of the five years have been equal to at least one and one half times the annual interest requirements at the date of investment in a trust on all indebtedness of or guaranteed by it other than indebtedness classified as a current liability under generally accepted accounting principles in the balance sheet of the legal person; and if the legal person at the date of investment owns directly or indirectly more than 50% of the common shares of another legal person, the earnings of the legal person during the said period of five years may be consolidated with due allowance for minority interests, if any, and in that event the interest requirements of the legal persons shall be consolidated and such consolidated earnings and consolidated interest requirements shall be deemed to be the earnings and interest requirements of the legal person; and for the purpose of this subparagraph, “earnings” means earnings available to meet interest charges on indebtedness other than indebtedness classified as a current liability under generally accepted accounting principles;

(7) Guaranteed investment certificates issued by a trust company constituted as a legal person in Canada if, at the date of investment, the preferred shares or the common shares of the trust company are authorized as investments by paragraph 8 or 9 or certificates of deposit and bearer discount notes of any Canadian chartered bank or of any financial services cooperative;

(8) The preferred shares of a legal person if

i. the legal person has paid a dividend in each of the five years immediately preceding the date of investment at least equal to the specified annual rate upon all of its preferred shares, or

ii. the common shares of the legal person are, at the date of investment, authorized as investments by paragraph 9;

(9) The fully paid common shares of a legal person that during a period of five years that ended less than one year before the date of investment has either

i. paid a dividend in each such year upon its common shares, or

ii. had earnings in each such year available for the payment of a dividend upon its common shares

of at least 4% of the average value at which the shares were carried in the capital stock account of the legal person during the year in which the dividend was paid or in which the legal person had earnings available for the payment of dividends, as the case may be;

(10) Landed property or leaseholds for the production of income in Canada, if

i. a lease of the landed property or leasehold is made to, or guaranteed by,

(A) the government of Canada or any of the provinces, or an agency of the said governments, or

(B) a legal person, the preferred shares or common shares of which are, at the date of investment, authorized as investments by paragraph 8 or 9;

ii. the lease provides for a net revenue sufficient to yield a reasonable interest return during the period of the lease and to repay at least 85% of the amount invested in the landed property or leasehold within the period of the lease but not exceeding 30 years from the date of investment, and

iii. the total investment of the Cree Nation Government made pursuant to this Schedule in any one parcel of landed property or in any one leasehold does not exceed 2% of the book value of the total assets of the Cree Nation Government managed by the Board of Compensation;

and the Cree Nation Government may hold, maintain, improve lease, sell or otherwise convey or dispose of the landed property or leasehold;

(11) Landed property or leaseholds for the production of income in Canada, if

i. the landed property or leasehold has produced, in each of the three years immediately preceding the date of investment, net revenue in an amount that, if continued in future years, would be sufficient to yield a reasonable interest return on the amount invested in the landed property or leasehold and to repay at least 85% of that amount within the remaining economic lifetime of the improvements to the landed property or leasehold but not exceeding 40 years from the date of investment, and

ii. the total investment of the Cree Nation Government made pursuant to this Schedule in any one parcel of landed property or in any one leasehold does not exceed 2% of the book value of the total assets of the Cree Nation Government managed by the Board of Compensation;

and the Cree Nation Government may hold, maintain, improve, lease, sell or otherwise convey or dispose of the landed property or leasehold;

(12) Debts secured by mortgages, charges and hypothecs, upon improved landed property or leaseholds in Canada, notwithstanding that the amount paid for such debts so secured by mortgage, charge or hypothec exceeds three-fourths of the value of the landed property or leasehold, if the loan for which the mortgage, charge or hypothec is secured is an approved loan or an insured loan under the National Housing Act (Revised Statutes of Canada, 1985, chapter N-11) or any equivalent provincial legislation;

(13) Debts secured by hypothec or mortgage on landed property in Canada:

i. if payment of principal and interest is guaranteed or assured by the governments of Canada or of any province of Canada or any public authority therein, or

ii. if the hypothec or mortgage ranks first and the amount of the debt is not more than 80% of the value of the landed property securing payment thereof;

(14) Where the Cree Nation Government owns securities of a legal person and as a result of a bona fide arrangement for the reorganization or liquidation of the legal person or for the amalgamation of the legal person with another legal person, such securities are to be exchanged for bonds or other evidences of indebtedness or shares not authorized as investments by the foregoing provisions of this Schedule, the Cree Nation Government may accept such bonds or other evidences of indebtedness or shares;

(15) The total book value of the investments of the Cree Nation Government made pursuant to this Schedule in common shares shall not exceed 50% of the book value of the total assets of the Cree Nation Government managed by the Board of Compensation;

(16) The total book value of the investments of the Cree Nation Government made pursuant to this Schedule in landed property or leaseholds for the production of income shall not exceed 10% of the book value of the total assets of the Cree Nation Government managed by the Board of Compensation;

(17) The Cree Nation Government shall not invest any of its funds managed by the Board of Compensation in bonds or other evidences of indebtedness on which payment of principal or interest is in default;

(18) In order to secure total or partial payment of any amount owed to it, the Cree Nation Government may acquire and dispose of the landed property which secures such payment, and such landed property shall not be included in the restrictions pursuant to paragraph 10, 11 or 16;

(19) The Cree Nation Government may invest its funds managed by the Board of Compensation otherwise than as authorized in the present Schedule provided that the total amount of such investment does not exceed 7% of the book value of the total assets of the Cree Nation Government managed by the Board of Compensation and that, in the case of investment in landed property, the total investment in landed property consisting of a single undertaking does not exceed 1% of the book value of the total assets of the Cree Nation Government managed by the Board of Compensation.

1978, c. 89, Schedule; 1988, c. 84, s. 542; 1996, c. 2, s. 24; 1999, c. 40, s. 8; 2000, c. 29, s. 616; 2002, c. 75, s. 33; 2007, c. 16, s. 5; 2013, c. 19, s. 49; 2020, c. 12020, c. 1, s. 2791.

2014-01-01 Show full text at this date

SCHEDULE

(Section 68)

AUTHORIZED INVESTMENTS

(1) Bonds or other evidences of indebtedness issued or guaranteed by the government of Québec, of Canada or a province of Canada, of the United States of America or of any state of that country, by the International Bank of Reconstruction and Development, by a municipality, by a school board in Canada or by the Comité de gestion de la taxe scolaire de l’île de Montréal, or by a fabrique in Québec;