S-18.1 - Act respecting the Makivik Corporation

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SCHEDULE

(Section 7)
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 thereof, by the International Bank for Reconstruction and Development, by a municipality, a school service centre or a school board in Canada, 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) bonds or other evidences of indebtedness of a legal person that are fully secured by a first mortgage, charge or hypothec to a trustee or to the Corporation upon any, or 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 business; and
(iii) bonds or other evidences of indebtedness, shares of a class authorized hereunder as investments, or cash balances, if such bonds, 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) bonds 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 bonds 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) 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 whose total earnings for a period of five (5) years ended less than one year before the date of investment were at least ten (10) times, and in each of any four (4) of the five (5) years, were at least one and one-half times the annual interest requirements at the date of investment on all indebtedness of or guaranteed by that legal person 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 fifty per cent (50%) of the common shares of another legal person, the earnings of the legal persons during the said period of five (5) 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 common shares or the preferred shares of the trust company are authorized as investments by paragraph 8 or 9, certificates of deposit and bearer discount notes of any Canadian chartered bank or 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 (5) years immediately preceding the date of investment, at least equal to the specified annual rate on all its preferred shares, or
(ii) the common shares of the Corporation 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 (5) years that ended less than one (1) 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 four per cent (4%) of the average value at which the shares were carried in the capital 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 of 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 eighty-five per cent (85%) of the amount invested in the landed property or leasehold within the period of the lease but not exceeding thirty (30) years from the date of investment, and
(iii) the total investment of the Corporation hereunder in any one parcel of landed property or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the total assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate 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 (3) 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 eighty-five per cent (85%) of that amount within the remaining economic lifetime of the improvements to the landed property or leasehold but not exceeding forty (40) years from the date of investment, and
(ii) the total investment of the Corporation hereunder in any one parcel of landed property or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate 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-quarters of the value of the landed property or leasehold, if the loan for which the hypothec, mortgage or charge is security, 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 government of Canada or of any province of Canada, or by any public authority therein; or
(ii) if the hypothec or mortgage ranks first and the amount of the debt is not more than eighty per cent (80%) of the value of the landed property securing payment thereof;

(14) where the Corporation owns securities of a legal person and as a result of investments made hereunder and as a result of a bona fide arrangement for the reorganization or winding-up 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 Corporation may accept such bonds or other evidences of indebtedness or shares;

(15) the total book value of the investments of the Corporation in common shares authorized in this Schedule shall not exceed fifty per cent (50%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(16) the total book value of the investments of the Corporation in landed property or leaseholds for the production of income authorized in this Schedule shall not exceed ten per cent (10%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(17) the Corporation shall not invest any of its funds 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 Corporation may acquire and alienate the landed property which secures such payment, and such landed property is not subject to the restrictions prescribed in paragraph 10, 11 or 16;

(19) the Corporation may invest the funds described in section 8 of this Act otherwise than as authorized in this Schedule, provided that the total amount of such investment does not exceed seven per cent (7%) of the book value of the portion of the assets of the Corporation relating to the compensation and that, in the case of investment in landed property, the total landed property investment in a single undertaking does not exceed one per cent (1%) of the book value of the portion of the total assets of the Corporation relating to the compensation.
1978, c. 91, Schedule; 1988, c. 84, s. 682; 1996, c. 2, s. 926; 1999, c. 40, s. 296; 2000, c. 29, s. 673; 2002, c. 75, s. 33; 2007, c. 16, s. 8; 2020, c. 12020, c. 1, s. 304.
SCHEDULE

(Section 7)
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 thereof, by the International Bank for Reconstruction and Development, by a municipality or a school board in Canada, 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) bonds or other evidences of indebtedness of a legal person that are fully secured by a first mortgage, charge or hypothec to a trustee or to the Corporation upon any, or 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 business; and
(iii) bonds or other evidences of indebtedness, shares of a class authorized hereunder as investments, or cash balances, if such bonds, 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) bonds 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 bonds 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) 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 whose total earnings for a period of five (5) years ended less than one year before the date of investment were at least ten (10) times, and in each of any four (4) of the five (5) years, were at least one and one-half times the annual interest requirements at the date of investment on all indebtedness of or guaranteed by that legal person 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 fifty per cent (50%) of the common shares of another legal person, the earnings of the legal persons during the said period of five (5) 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 common shares or the preferred shares of the trust company are authorized as investments by paragraph 8 or 9, certificates of deposit and bearer discount notes of any Canadian chartered bank or 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 (5) years immediately preceding the date of investment, at least equal to the specified annual rate on all its preferred shares, or
(ii) the common shares of the Corporation 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 (5) years that ended less than one (1) 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 four per cent (4%) of the average value at which the shares were carried in the capital 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 of 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 eighty-five per cent (85%) of the amount invested in the landed property or leasehold within the period of the lease but not exceeding thirty (30) years from the date of investment, and
(iii) the total investment of the Corporation hereunder in any one parcel of landed property or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the total assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate 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 (3) 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 eighty-five per cent (85%) of that amount within the remaining economic lifetime of the improvements to the landed property or leasehold but not exceeding forty (40) years from the date of investment, and
(ii) the total investment of the Corporation hereunder in any one parcel of landed property or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate 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-quarters of the value of the landed property or leasehold, if the loan for which the hypothec, mortgage or charge is security, 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 government of Canada or of any province of Canada, or by any public authority therein; or
(ii) if the hypothec or mortgage ranks first and the amount of the debt is not more than eighty per cent (80%) of the value of the landed property securing payment thereof;

(14) where the Corporation owns securities of a legal person and as a result of investments made hereunder and as a result of a bona fide arrangement for the reorganization or winding-up 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 Corporation may accept such bonds or other evidences of indebtedness or shares;

(15) the total book value of the investments of the Corporation in common shares authorized in this Schedule shall not exceed fifty per cent (50%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(16) the total book value of the investments of the Corporation in landed property or leaseholds for the production of income authorized in this Schedule shall not exceed ten per cent (10%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(17) the Corporation shall not invest any of its funds 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 Corporation may acquire and alienate the landed property which secures such payment, and such landed property is not subject to the restrictions prescribed in paragraph 10, 11 or 16;

(19) the Corporation may invest the funds described in section 8 of this Act otherwise than as authorized in this Schedule, provided that the total amount of such investment does not exceed seven per cent (7%) of the book value of the portion of the assets of the Corporation relating to the compensation and that, in the case of investment in landed property, the total landed property investment in a single undertaking does not exceed one per cent (1%) of the book value of the portion of the total assets of the Corporation relating to the compensation.
1978, c. 91, Schedule; 1988, c. 84, s. 682; 1996, c. 2, s. 926; 1999, c. 40, s. 296; 2000, c. 29, s. 673; 2002, c. 75, s. 33; 2007, c. 16, s. 8.
SCHEDULE

(Section 7)
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 thereof, by the International Bank for Reconstruction and Development, by a municipality or a school board in Canada, 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) bonds or other evidences of indebtedness of a legal person that are fully secured by a first mortgage, charge or hypothec to a trustee or to the Corporation upon any, or 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 business; and
(iii) bonds or other evidences of indebtedness, shares of a class authorized hereunder as investments, or cash balances, if such bonds, 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) bonds 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 bonds 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) 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 whose total earnings for a period of five (5) years ended less than one year before the date of investment were at least ten (10) times, and in each of any four (4) of the five (5) years, were at least one and one-half times the annual interest requirements at the date of investment on all indebtedness of or guaranteed by that legal person 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 fifty per cent (50%) of the common shares of another legal person, the earnings of the legal persons during the said period of five (5) 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 common shares or the preferred shares of the trust company are authorized as investments by paragraph 8 or 9, certificates of deposit and bearer discount notes of any Canadian chartered bank or 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 (5) years immediately preceding the date of investment, at least equal to the specified annual rate on all its preferred shares, or
(ii) the common shares of the Corporation 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 (5) years that ended less than one (1) 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 four per cent (4%) of the average value at which the shares were carried in the capital 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 of 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 eighty-five per cent (85%) of the amount invested in the landed property or leasehold within the period of the lease but not exceeding thirty (30) years from the date of investment, and
(iii) the total investment of the Corporation hereunder in any one parcel of landed property or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the total assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate 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 (3) 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 eighty-five per cent (85%) of that amount within the remaining economic lifetime of the improvements to the landed property or leasehold but not exceeding forty (40) years from the date of investment, and
(ii) the total investment of the Corporation hereunder in any one parcel of landed property or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate 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-quarters of the value of the landed property or leasehold, if the loan for which the hypothec, mortgage or charge is security, 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 government of Canada or of any province of Canada, or by any public authority therein; or
(ii) if the hypothec or mortgage ranks first and the amount of the debt is not more than seventy-five per cent (75%) of the value of the landed property securing payment thereof;

(14) where the Corporation owns securities of a legal person and as a result of investments made hereunder and as a result of a bona fide arrangement for the reorganization or winding-up 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 Corporation may accept such bonds or other evidences of indebtedness or shares;

(15) the total book value of the investments of the Corporation in common shares authorized in this Schedule shall not exceed fifty per cent (50%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(16) the total book value of the investments of the Corporation in landed property or leaseholds for the production of income authorized in this Schedule shall not exceed ten per cent (10%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(17) the Corporation shall not invest any of its funds 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 Corporation may acquire and alienate the landed property which secures such payment, and such landed property is not subject to the restrictions prescribed in paragraph 10, 11 or 16;

(19) the Corporation may invest the funds described in section 8 of this Act otherwise than as authorized in this Schedule, provided that the total amount of such investment does not exceed seven per cent (7%) of the book value of the portion of the assets of the Corporation relating to the compensation and that, in the case of investment in landed property, the total landed property investment in a single undertaking does not exceed one per cent (1%) of the book value of the portion of the total assets of the Corporation relating to the compensation.
1978, c. 91, Schedule; 1988, c. 84, s. 682; 1996, c. 2, s. 926; 1999, c. 40, s. 296; 2000, c. 29, s. 673; 2002, c. 75, s. 33.
SCHEDULE

(Section 7)
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 thereof, by the International Bank for Reconstruction and Development, by a municipality or a school board in Canada, by the Conseil 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) bonds or other evidences of indebtedness of a legal person that are fully secured by a first mortgage, charge or hypothec to a trustee or to the Corporation upon any, or 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 business; and
(iii) bonds or other evidences of indebtedness, shares of a class authorized hereunder as investments, or cash balances, if such bonds, 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) bonds 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 bonds 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) 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 whose total earnings for a period of five (5) years ended less than one year before the date of investment were at least ten (10) times, and in each of any four (4) of the five (5) years, were at least one and one-half times the annual interest requirements at the date of investment on all indebtedness of or guaranteed by that legal person 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 fifty per cent (50%) of the common shares of another legal person, the earnings of the legal persons during the said period of five (5) 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 common shares or the preferred shares of the trust company are authorized as investments by paragraph 8 or 9, certificates of deposit and bearer discount notes of any Canadian chartered bank or 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 (5) years immediately preceding the date of investment, at least equal to the specified annual rate on all its preferred shares, or
(ii) the common shares of the Corporation 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 (5) years that ended less than one (1) 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 four per cent (4%) of the average value at which the shares were carried in the capital 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 of 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 eighty-five per cent (85%) of the amount invested in the landed property or leasehold within the period of the lease but not exceeding thirty (30) years from the date of investment, and
(iii) the total investment of the Corporation hereunder in any one parcel of landed property or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the total assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate 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 (3) 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 eighty-five per cent (85%) of that amount within the remaining economic lifetime of the improvements to the landed property or leasehold but not exceeding forty (40) years from the date of investment, and
(ii) the total investment of the Corporation hereunder in any one parcel of landed property or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate 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-quarters of the value of the landed property or leasehold, if the loan for which the hypothec, mortgage or charge is security, 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 government of Canada or of any province of Canada, or by any public authority therein; or
(ii) if the hypothec or mortgage ranks first and the amount of the debt is not more than seventy-five per cent (75%) of the value of the landed property securing payment thereof;

(14) where the Corporation owns securities of a legal person and as a result of investments made hereunder and as a result of a bona fide arrangement for the reorganization or winding-up 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 Corporation may accept such bonds or other evidences of indebtedness or shares;

(15) the total book value of the investments of the Corporation in common shares authorized in this Schedule shall not exceed fifty per cent (50%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(16) the total book value of the investments of the Corporation in landed property or leaseholds for the production of income authorized in this Schedule shall not exceed ten per cent (10%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(17) the Corporation shall not invest any of its funds 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 Corporation may acquire and alienate the landed property which secures such payment, and such landed property is not subject to the restrictions prescribed in paragraph 10, 11 or 16;

(19) the Corporation may invest the funds described in section 8 of this Act otherwise than as authorized in this Schedule, provided that the total amount of such investment does not exceed seven per cent (7%) of the book value of the portion of the assets of the Corporation relating to the compensation and that, in the case of investment in landed property, the total landed property investment in a single undertaking does not exceed one per cent (1%) of the book value of the portion of the total assets of the Corporation relating to the compensation.
1978, c. 91, Schedule; 1988, c. 84, s. 682; 1996, c. 2, s. 926; 1999, c. 40, s. 296; 2000, c. 29, s. 673.
SCHEDULE

(Section 7)
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 thereof, by the International Bank for Reconstruction and Development, by a municipality or a school board in Canada, by the Conseil 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) bonds or other evidences of indebtedness of a legal person that are fully secured by a first mortgage, charge or hypothec to a trustee or to the Corporation upon any, or 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 business; and
(iii) bonds or other evidences of indebtedness, shares of a class authorized hereunder as investments, or cash balances, if such bonds, 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) bonds 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 bonds 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) 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 whose total earnings for a period of five (5) years ended less than one year before the date of investment were at least ten (10) times, and in each of any four (4) of the five (5) years, were at least one and one-half times the annual interest requirements at the date of investment on all indebtedness of or guaranteed by that legal person 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 fifty per cent (50%) of the common shares of another legal person, the earnings of the legal persons during the said period of five (5) 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 common shares or the preferred shares of the trust company are authorized as investments by paragraph 8 or 9, certificates of deposit and bearer discount notes of any Canadian chartered bank or any savings and credit union;

(8) the preferred shares of a legal person if
(i) the legal person has paid a dividend, in each of the five (5) years immediately preceding the date of investment, at least equal to the specified annual rate on all its preferred shares, or
(ii) the common shares of the Corporation 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 (5) years that ended less than one (1) 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 four per cent (4%) of the average value at which the shares were carried in the capital 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 of 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 eighty-five per cent (85%) of the amount invested in the landed property or leasehold within the period of the lease but not exceeding thirty (30) years from the date of investment, and
(iii) the total investment of the Corporation hereunder in any one parcel of landed property or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the total assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate 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 (3) 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 eighty-five per cent (85%) of that amount within the remaining economic lifetime of the improvements to the landed property or leasehold but not exceeding forty (40) years from the date of investment, and
(ii) the total investment of the Corporation hereunder in any one parcel of landed property or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate 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-quarters of the value of the landed property or leasehold, if the loan for which the hypothec, mortgage or charge is security, 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 government of Canada or of any province of Canada, or by any public authority therein; or
(ii) if the hypothec or mortgage ranks first and the amount of the debt is not more than seventy-five per cent (75%) of the value of the landed property securing payment thereof;

(14) where the Corporation owns securities of a legal person and as a result of investments made hereunder and as a result of a bona fide arrangement for the reorganization or winding-up 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 Corporation may accept such bonds or other evidences of indebtedness or shares;

(15) the total book value of the investments of the Corporation in common shares authorized in this Schedule shall not exceed fifty per cent (50%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(16) the total book value of the investments of the Corporation in landed property or leaseholds for the production of income authorized in this Schedule shall not exceed ten per cent (10%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(17) the Corporation shall not invest any of its funds 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 Corporation may acquire and alienate the landed property which secures such payment, and such landed property is not subject to the restrictions prescribed in paragraph 10, 11 or 16;

(19) the Corporation may invest the funds described in section 8 of this Act otherwise than as authorized in this Schedule, provided that the total amount of such investment does not exceed seven per cent (7%) of the book value of the portion of the assets of the Corporation relating to the compensation and that, in the case of investment in landed property, the total landed property investment in a single undertaking does not exceed one per cent (1%) of the book value of the portion of the total assets of the Corporation relating to the compensation.
1978, c. 91, Schedule; 1988, c. 84, s. 682; 1996, c. 2, s. 926; 1999, c. 40, s. 296.
SCHEDULE

(Section 7)
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 thereof, by the International Bank for Reconstruction and Development, by a municipality or a school board in Canada, by the Conseil 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) bonds, debentures or other evidences of indebtedness of a corporation that are fully secured by a first mortgage, charge or hypothec to a trustee or to the Corporation upon any, or any combination, of the following assets:
(i) real estate or leaseholds;
(ii) the plant or equipment of a corporation that is used in the transaction of business; and
(iii) bonds, debentures or other evidences of indebtedness, shares of a class authorized hereunder as investments, or cash balances, if such bonds, debentures, 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, debentures or other evidences of indebtedness ineligible as an investment;

(5) bonds or certificates issued by a trustee to finance the purchase of transportation equipment, for a corporation incorporated in Canada or the United States, to be used on airlines, railways or public highways, if the bonds 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 corporation;

(6) bonds, debentures or other evidences of indebtedness
(i) of a corporation if, at the date of investment, the preferred shares or the common shares of the corporation are authorized as investments by paragraph 8 or 9; or
(ii) of, or guaranteed by, a corporation whose total earnings for a period of five (5) years ended less than one year before the date of investment were at least ten (10) times, and in each of any four (4) of the five (5) years, were at least one and one-half times the annual interest requirements at the date of investment on all indebtedness of or guaranteed by that corporation other than indebtedness classified as a current liability, under generally accepted accounting principles, in the balance sheet of the corporation; and if the corporation at the date of investment owns directly or indirectly more than fifty per cent (50%) of the common shares of another corporation, the earnings of the corporations during the said period of five (5) years may be consolidated with due allowance for minority interests, if any, and in that event the interest requirements of the corporations shall be consolidated and such consolidated earnings and consolidated interest requirements shall be taken as the earnings and interest requirements of the corporation; 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 incorporated in Canada if, at the date of investment, the common shares or the preferred shares of the trust company are authorized as investments by paragraph 8 or 9, certificates of deposit and bearer discount notes of any Canadian chartered bank or any savings and credit union;

(8) the preferred shares of a corporation if
(i) the corporation has paid a dividend, in each of the five (5) years immediately preceding the date of investment, at least equal to the specified annual rate on all its preferred shares, or
(ii) the common shares of the Corporation are, at the date of investment, authorized as investments by paragraph 9;

(9) the fully paid common shares of a corporation that, during a period of five (5) years that ended less than one (1) 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 four per cent (4%) of the average value at which the shares were carried in the capital account of the corporation during the year in which the dividend was paid or in which the corporation had earnings available for the payment of dividends, as the case may be;

(10) real estate or leaseholds for the production of income in Canada, if
(i) a lease of the real estate or leasehold is made to, or guaranteed by,
(A) the government of Canada or of any of the provinces, or an agency of the said governments, or
(B) a corporation, 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 eighty-five per cent (85%) of the amount invested in the real estate or leasehold within the period of the lease but not exceeding thirty (30) years from the date of investment, and
(iii) the total investment of the Corporation hereunder in any one parcel of real estate or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the total assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate or dispose of the real estate or leasehold;

(11) real estate or leaseholds for the production of income in Canada, if
(i) the real estate or leasehold has produced, in each of the three (3) 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 real estate or leasehold and to repay at least eighty-five per cent (85%) of that amount within the remaining economic lifetime of the improvements to the real estate or leasehold but not exceeding forty (40) years from the date of investment, and
(ii) the total investment of the Corporation hereunder in any one parcel of real estate or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate or dispose of the real estate or leasehold;

(12) debts secured by mortgages, charges and hypothecs, upon improved real estate or leaseholds in Canada, notwithstanding that the amount paid for such debts so secured by mortgage, charge or hypothec exceeds three-quarters of the value of the real estate or leasehold, if the loan for which the hypothec, mortgage or charge is security, 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 real estate in Canada:
(i) if payment of principal and interest is guaranteed or assured by the government of Canada or of any province of Canada, or by any public authority therein; or
(ii) if the hypothec or mortgage ranks first and the amount of the debt is not more than seventy-five per cent (75%) of the value of the real estate securing payment thereof;

(14) where the Corporation owns securities of a corporation and as a result of investments made hereunder and as a result of a bona fide arrangement for the reorganization or winding-up of the corporation or for the amalgamation of the corporation with another corporation, such securities are to be exchanged for bonds, debentures or other evidences of indebtedness or shares not authorized as investments by the foregoing provisions of this Schedule, the Corporation may accept such bonds, debentures or other evidences of indebtedness or shares;

(15) the total book value of the investments of the Corporation in common shares authorized in this Schedule shall not exceed fifty per cent (50%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(16) the total book value of the investments of the Corporation in real estate or leaseholds for the production of income authorized in this Schedule shall not exceed ten per cent (10%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(17) the Corporation shall not invest any of its funds in bonds, debentures 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 Corporation may acquire and alienate the real estate which secures such payment, and such real estate is not subject to the restrictions prescribed in paragraph 10, 11 or 16;

(19) the Corporation may invest the funds described in section 8 of this Act otherwise than as authorized in this Schedule, provided that the total amount of such investment does not exceed seven per cent (7%) of the book value of the portion of the assets of the Corporation relating to the compensation and that, in the case of investment in real estate, the total real estate investment in a single undertaking does not exceed one per cent (1%) of the book value of the portion of the total assets of the Corporation relating to the compensation.
1978, c. 91, Schedule; 1988, c. 84, s. 682; 1996, c. 2, s. 926.
SCHEDULE

(Section 7)
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 thereof, by the International Bank for Reconstruction and Development, by a municipal or school corporation in Canada, by a school board, by the Conseil 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) bonds, debentures or other evidences of indebtedness of a corporation that are fully secured by a first mortgage, charge or hypothec to a trustee or to the Corporation upon any, or any combination, of the following assets:
(i) real estate or leaseholds;
(ii) the plant or equipment of a corporation that is used in the transaction of business; and
(iii) bonds, debentures or other evidences of indebtedness, shares of a class authorized hereunder as investments, or cash balances, if such bonds, debentures, 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, debentures or other evidences of indebtedness ineligible as an investment;

(5) bonds or certificates issued by a trustee to finance the purchase of transportation equipment, for a corporation incorporated in Canada or the United States, to be used on airlines, railways or public highways, if the bonds 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 corporation;

(6) bonds, debentures or other evidences of indebtedness
(i) of a corporation if, at the date of investment, the preferred shares or the common shares of the corporation are authorized as investments by paragraph 8 or 9; or
(ii) of, or guaranteed by, a corporation whose total earnings for a period of five (5) years ended less than one year before the date of investment were at least ten (10) times, and in each of any four (4) of the five (5) years, were at least one and one-half times the annual interest requirements at the date of investment on all indebtedness of or guaranteed by that corporation other than indebtedness classified as a current liability, under generally accepted accounting principles, in the balance sheet of the corporation; and if the corporation at the date of investment owns directly or indirectly more than fifty per cent (50%) of the common shares of another corporation, the earnings of the corporations during the said period of five (5) years may be consolidated with due allowance for minority interests, if any, and in that event the interest requirements of the corporations shall be consolidated and such consolidated earnings and consolidated interest requirements shall be taken as the earnings and interest requirements of the corporation; 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 incorporated in Canada if, at the date of investment, the common shares or the preferred shares of the trust company are authorized as investments by paragraph 8 or 9, certificates of deposit and bearer discount notes of any Canadian chartered bank or any savings and credit union;

(8) the preferred shares of a corporation if
(i) the corporation has paid a dividend, in each of the five (5) years immediately preceding the date of investment, at least equal to the specified annual rate on all its preferred shares, or
(ii) the common shares of the Corporation are, at the date of investment, authorized as investments by paragraph 9;

(9) the fully paid common shares of a corporation that, during a period of five (5) years that ended less than one (1) 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 four per cent (4%) of the average value at which the shares were carried in the capital account of the corporation during the year in which the dividend was paid or in which the corporation had earnings available for the payment of dividends, as the case may be;

(10) real estate or leaseholds for the production of income in Canada, if
(i) a lease of the real estate or leasehold is made to, or guaranteed by,
(A) the government of Canada or of any of the provinces, or an agency of the said governments, or
(B) a corporation, 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 eighty-five per cent (85%) of the amount invested in the real estate or leasehold within the period of the lease but not exceeding thirty (30) years from the date of investment, and
(iii) the total investment of the Corporation hereunder in any one parcel of real estate or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the total assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate or dispose of the real estate or leasehold;

(11) real estate or leaseholds for the production of income in Canada, if
(i) the real estate or leasehold has produced, in each of the three (3) 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 real estate or leasehold and to repay at least eighty-five per cent (85%) of that amount within the remaining economic lifetime of the improvements to the real estate or leasehold but not exceeding forty (40) years from the date of investment, and
(ii) the total investment of the Corporation hereunder in any one parcel of real estate or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate or dispose of the real estate or leasehold;

(12) debts secured by mortgages, charges and hypothecs, upon improved real estate or leaseholds in Canada, notwithstanding that the amount paid for such debts so secured by mortgage, charge or hypothec exceeds three-quarters of the value of the real estate or leasehold, if the loan for which the hypothec, mortgage or charge is security, 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 real estate in Canada:
(i) if payment of principal and interest is guaranteed or assured by the government of Canada or of any province of Canada, or by any public authority therein; or
(ii) if the hypothec or mortgage ranks first and the amount of the debt is not more than seventy-five per cent (75%) of the value of the real estate securing payment thereof;

(14) where the Corporation owns securities of a corporation and as a result of investments made hereunder and as a result of a bona fide arrangement for the reorganization or winding-up of the corporation or for the amalgamation of the corporation with another corporation, such securities are to be exchanged for bonds, debentures or other evidences of indebtedness or shares not authorized as investments by the foregoing provisions of this Schedule, the Corporation may accept such bonds, debentures or other evidences of indebtedness or shares;

(15) the total book value of the investments of the Corporation in common shares authorized in this Schedule shall not exceed fifty per cent (50%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(16) the total book value of the investments of the Corporation in real estate or leaseholds for the production of income authorized in this Schedule shall not exceed ten per cent (10%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(17) the Corporation shall not invest any of its funds in bonds, debentures 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 Corporation may acquire and alienate the real estate which secures such payment, and such real estate is not subject to the restrictions prescribed in paragraph 10, 11 or 16;

(19) the Corporation may invest the funds described in section 8 of this Act otherwise than as authorized in this Schedule, provided that the total amount of such investment does not exceed seven per cent (7%) of the book value of the portion of the assets of the Corporation relating to the compensation and that, in the case of investment in real estate, the total real estate investment in a single undertaking does not exceed one per cent (1%) of the book value of the portion of the total assets of the Corporation relating to the compensation.
1978, c. 91, Schedule; 1988, c. 84, s. 682.
SCHEDULE

(Section 7)
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 thereof, by the International Bank for Reconstruction and Development, by a municipal or school corporation in Canada, 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) bonds, debentures or other evidences of indebtedness of a corporation that are fully secured by a first mortgage, charge or hypothec to a trustee or to the Corporation upon any, or any combination, of the following assets:
(i) real estate or leaseholds;
(ii) the plant or equipment of a corporation that is used in the transaction of business; and
(iii) bonds, debentures or other evidences of indebtedness, shares of a class authorized hereunder as investments, or cash balances, if such bonds, debentures, 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, debentures or other evidences of indebtedness ineligible as an investment;

(5) bonds or certificates issued by a trustee to finance the purchase of transportation equipment, for a corporation incorporated in Canada or the United States, to be used on airlines, railways or public highways, if the bonds 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 corporation;

(6) bonds, debentures or other evidences of indebtedness
(i) of a corporation if, at the date of investment, the preferred shares or the common shares of the corporation are authorized as investments by paragraph 8 or 9; or
(ii) of, or guaranteed by, a corporation whose total earnings for a period of five (5) years ended less than one year before the date of investment were at least ten (10) times, and in each of any four (4) of the five (5) years, were at least one and one-half times the annual interest requirements at the date of investment on all indebtedness of or guaranteed by that corporation other than indebtedness classified as a current liability, under generally accepted accounting principles, in the balance sheet of the corporation; and if the corporation at the date of investment owns directly or indirectly more than fifty per cent (50%) of the common shares of another corporation, the earnings of the corporations during the said period of five (5) years may be consolidated with due allowance for minority interests, if any, and in that event the interest requirements of the corporations shall be consolidated and such consolidated earnings and consolidated interest requirements shall be taken as the earnings and interest requirements of the corporation; 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 incorporated in Canada if, at the date of investment, the common shares or the preferred shares of the trust company are authorized as investments by paragraph 8 or 9, certificates of deposit and bearer discount notes of any Canadian chartered bank or any savings and credit union;

(8) the preferred shares of a corporation if
(i) the corporation has paid a dividend, in each of the five (5) years immediately preceding the date of investment, at least equal to the specified annual rate on all its preferred shares, or
(ii) the common shares of the Corporation are, at the date of investment, authorized as investments by paragraph 9;

(9) the fully paid common shares of a corporation that, during a period of five (5) years that ended less than one (1) 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 four per cent (4%) of the average value at which the shares were carried in the capital account of the corporation during the year in which the dividend was paid or in which the corporation had earnings available for the payment of dividends, as the case may be;

(10) real estate or leaseholds for the production of income in Canada, if
(i) a lease of the real estate or leasehold is made to, or guaranteed by,
(A) the government of Canada or of any of the provinces, or an agency of the said governments, or
(B) a corporation, 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 eighty-five per cent (85%) of the amount invested in the real estate or leasehold within the period of the lease but not exceeding thirty (30) years from the date of investment, and
(iii) the total investment of the Corporation hereunder in any one parcel of real estate or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the total assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate or dispose of the real estate or leasehold;

(11) real estate or leaseholds for the production of income in Canada, if
(i) the real estate or leasehold has produced, in each of the three (3) 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 real estate or leasehold and to repay at least eighty-five per cent (85%) of that amount within the remaining economic lifetime of the improvements to the real estate or leasehold but not exceeding forty (40) years from the date of investment, and
(ii) the total investment of the Corporation hereunder in any one parcel of real estate or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate or dispose of the real estate or leasehold;

(12) debts secured by mortgages, charges and hypothecs, upon improved real estate or leaseholds in Canada, notwithstanding that the amount paid for such debts so secured by mortgage, charge or hypothec exceeds three-quarters of the value of the real estate or leasehold, if the loan for which the hypothec, mortgage or charge is security, 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 real estate in Canada:
(i) if payment of principal and interest is guaranteed or assured by the government of Canada or of any province of Canada, or by any public authority therein; or
(ii) if the hypothec or mortgage ranks first and the amount of the debt is not more than seventy-five per cent (75%) of the value of the real estate securing payment thereof;

(14) where the Corporation owns securities of a corporation and as a result of investments made hereunder and as a result of a bona fide arrangement for the reorganization or winding-up of the corporation or for the amalgamation of the corporation with another corporation, such securities are to be exchanged for bonds, debentures or other evidences of indebtedness or shares not authorized as investments by the foregoing provisions of this Schedule, the Corporation may accept such bonds, debentures or other evidences of indebtedness or shares;

(15) the total book value of the investments of the Corporation in common shares authorized in this Schedule shall not exceed fifty per cent (50%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(16) the total book value of the investments of the Corporation in real estate or leaseholds for the production of income authorized in this Schedule shall not exceed ten per cent (10%) of the book value of the portion of the assets of the Corporation relating to the compensation;

(17) the Corporation shall not invest any of its funds in bonds, debentures 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 Corporation may acquire and alienate the real estate which secures such payment, and such real estate is not subject to the restrictions prescribed in paragraph 10, 11 or 16;

(19) the Corporation may invest the funds described in section 8 of this Act otherwise than as authorized in this Schedule, provided that the total amount of such investment does not exceed seven per cent (7%) of the book value of the portion of the assets of the Corporation relating to the compensation and that, in the case of investment in real estate, the total real estate investment in a single undertaking does not exceed one per cent (1%) of the book value of the portion of the total assets of the Corporation relating to the compensation.
1978, c. 91, Schedule.
SCHEDULE

(Section 7)

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 thereof, by the International Bank for Reconstruction and Development, by a municipal or school corporation in Canada, 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) bonds, debentures or other evidences of indebtedness of a corporation that are fully secured by a first mortgage, charge or hypothec to a trustee or to the Corporation upon any, or any combination, of the following assets:
i. real estate or leaseholds;
ii. the plant or equipment of a corporation that is used in the transaction of business; and
iii. bonds, debentures or other evidences of indebtedness, shares of a class authorized hereunder as investments, or cash balances, if such bonds, debentures, 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, debentures or other evidences of indebtedness ineligible as an investment;
(5) bonds or certificates issued by a trustee to finance the purchase of transportation equipment, for a corporation incorporated in Canada or the United States, to be used on airlines, railways or public highways, if the bonds 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 corporation;
(6) bonds, debentures or other evidences of indebtedness
i. of a corporation if, at the date of investment, the preferred shares or the common shares of the corporation are authorized as investments by paragraph 8 or 9; or
ii. of, or guaranteed by, a corporation whose total earnings for a period of five (5) years ended less than one year before the date of investment were at least ten (10) times, and in each of any four (4) of the five (5) years, were at least one and one-half times the annual interest requirements at the date of investment on all indebtedness of or guaranteed by that corporation other than indebtedness classified as a current liability, under generally accepted accounting principles, in the balance sheet of the corporation; and if the corporation at the date of investment owns directly or indirectly more than fifty per cent (50%) of the common shares of another corporation, the earnings of the corporations during the said period of five (5) years may be consolidated with due allowance for minority interests, if any, and in that event the interest requirements of the corporations shall be consolidated and such consolidated earnings and consolidated interest requirements shall be taken as the earnings and interest requirements of the corporation; 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 incorporated in Canada if, at the date of investment, the common shares or the preferred shares of the trust company are authorized as investments by paragraph 8 or 9, certificates of deposit and bearer discount notes of any Canadian chartered bank or any savings and credit union;
(8) the preferred shares of a corporation if
i. the corporation has paid a dividend, in each of the five (5) years immediately preceding the date of investment, at least equal to the specified annual rate on all its preferred shares, or
ii. the common shares of the Corporation are, at the date of investment, authorized as investments by paragraph 9;
(9) the fully paid common shares of a corporation that, during a period of five (5) years that ended less than one (1) 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 four per cent (4%) of the average value at which the shares were carried in the capital account of the corporation during the year in which the dividend was paid or in which the corporation had earnings available for the payment of dividends, as the case may be;
(10) real estate or leaseholds for the production of income in Canada, if
i. a lease of the real estate or leasehold is made to, or guaranteed by,
(A) the government of Canada or of any of the provinces, or an agency of the said governments, or
(B) a corporation, 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 eighty-five per cent (85%) of the amount invested in the real estate or leasehold within the period of the lease but not exceeding thirty (30) years from the date of investment, and
iii. the total investment of the Corporation hereunder in any one parcel of real estate or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the total assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate or dispose of the real estate or leasehold;
(11) real estate or leaseholds for the production of income in Canada, if
i. the real estate or leasehold has produced, in each of the three (3) 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 real estate or leasehold and to repay at least eighty-five per cent (85%) of that amount within the remaining economic lifetime of the improvements to the real estate or leasehold but not exceeding forty (40) years from the date of investment, and
ii. the total investment of the Corporation hereunder in any one parcel of real estate or in any one leasehold does not exceed two per cent (2%) of the book value of the portion of the assets of the Corporation relating to the compensation;
and the Corporation may hold, maintain, improve, lease, sell or otherwise alienate or dispose of the real estate or leasehold;
(12) debts secured by mortgages, charges and hypothecs, upon improved real estate or leaseholds in Canada, notwithstanding that the amount paid for such debts so secured by mortgage, charge or hypothec exceeds three-quarters of the value of the real estate or leasehold, if the loan for which the hypothec, mortgage or charge is security, is an approved loan or an insured loan under the National Housing Act (Revised Statutes of Canada, 1970, chapter N-10) or any equivalent provincial legislation;
(13) debts secured by hypothec or mortgage on real estate in Canada:
i. if payment of principal and interest is guaranteed or assured by the government of Canada or of any province of Canada, or by any public authority therein; or
ii. if the hypothec or mortgage ranks first and the amount of the debt is not more than seventy-five per cent (75%) of the value of the real estate securing payment thereof;
(14) where the Corporation owns securities of a corporation and as a result of investments made hereunder and as a result of a bona fide arrangement for the reorganization or winding-up of the corporation or for the amalgamation of the corporation with another corporation, such securities are to be exchanged for bonds, debentures or other evidences of indebtedness or shares not authorized as investments by the foregoing provisions of this schedule, the Corporation may accept such bonds, debentures or other evidences of indebtedness or shares;
(15) the total book value of the investments of the Corporation in common shares authorized in this schedule shall not exceed fifty per cent (50%) of the book value of the portion of the assets of the Corporation relating to the compensation;
(16) the total book value of the investments of the Corporation in real estate or leaseholds for the production of income authorized in this schedule shall not exceed ten per cent (10%) of the book value of the portion of the assets of the Corporation relating to the compensation;
(17) the Corporation shall not invest any of its funds in bonds, debentures 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 Corporation may acquire and alienate the real estate which secures such payment, and such real estate is not subject to the restrictions prescribed in paragraph 10, 11 or 16;
(19) the Corporation may invest the funds described in section 8 of this Act otherwise than as authorized in this schedule, provided that the total amount of such investment does not exceed seven per cent (7%) of the book value of the portion of the assets of the Corporation relating to the compensation and that, in the case of investment in real estate, the total real estate investment in a single undertaking does not exceed one per cent (1%) of the book value of the portion of the total assets of the Corporation relating to the compensation.
1978, c. 91, Schedule.