Bill C-52

Transitional Provisions

83. (1) For the fiscal year that begins on April 1, 2007, if Newfoundland and Labrador makes the election under subsection 3.7(1) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act,

(a) section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act shall be read as follows:

220. The fiscal equalization offset payment that is to be paid to Her Majesty in right of the Province for a fiscal year pursuant to section 219 is the amount, as determined by the Federal Minister, equal to the aggregate of

(a) the amount, if any, by which

(i) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act,

is less than

(ii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 95 per cent,

(iii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 75 per cent but greater than 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 90 per cent, or

(iv) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is greater than 75 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 85 per cent

of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and

(b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which

(i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year

is greater than

(ii) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year.

(b) a reference to “average” in section 220 of that Act, except within the expression “national average per capita fiscal capac- ity”, shall be considered to mean a weighted average where the most recent fiscal year that is taken into account in the calculation of the fiscal equalization payment shall be weighted at 50% and each of the other two fiscal years that are taken into account in the calculation of the fiscal equalization payment shall be weighted at 25%; and

(c) the definition “fiscal equalization payment” in section 18 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows:

“fiscal equalization payment” means

(a) for the purposes of section 22, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accord- ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and

(b) for the purposes of sections 24 to 26, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula

A + B + (C / F)

where

A,      B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act.

(2) For the fiscal year that begins on April 1, 2007, if Nova Scotia makes the election under subsection 3.7(1) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, the definition “fiscal equalization payment” in section 4 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows:

“fiscal equalization payment” means

(a) for the purposes of section 8, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accord- ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and

(b) for the purposes of sections 10 to 12, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula

A + B + (C / F)

where

A,      B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act.

(3) For the fiscal year that begins on April 1, 2008, if Newfoundland and Labrador does not make the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, and made, in respect of the preceding fiscal year, the election under subsection 3.7(1) of that Act, as enacted by that section 62,

(a) the portion of paragraph 220(a) of the Canada-Newfoundland Atlantic Accord Implementation Act after subparagraph (iv) shall be read as follows:

of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accord-ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and

(b) subparagraph 220(b)(i) of that Act shall be read as follows:

(i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year

(4) For the first fiscal year that begins after the coming into force of section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act, as enacted by section 78 of this Act,

(a) the portion of paragraph 220(a) of that Act after subparagraph (iv) shall be read as follows:

of the aggregate of the fiscal equalization payment that may be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, and

(b) subparagraph 220(b)(i) of that Act shall be read as follows:

(i) the aggregate of the fiscal equalization payment that may be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year

(5) If Newfoundland and Labrador makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, for the fiscal year beginning on April 1, 2008 and that province had made the election under subsection 3.7(1) of that Act, as enacted by that section 62, for the preceding fiscal year, subsection (4) does not apply.

Coming into Force

84. (1) Sections 78, 79 and 82 come into force on a day to be fixed by order of the Governor in Council, but the day that is fixed must not be before the day on which Newfoundland and Labrador makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act.

(2) Section 81 comes into force on a day to be fixed by order of the Governor in Council, but the day that is fixed must not be before the day on which Nova Scotia makes the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act.

PART 7

AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT

Financial Administration Act

85. The Financial Administration Act is amended by adding the following after section 43:

43.1 The Governor in Council may authorize the Minister to borrow money on behalf of Her Majesty in right of Canada.

86. Sections 46.1 and 47 of the Act are repealed.

87. Section 49 of the Act is replaced by the following:

49. (1) After the Public Accounts are tabled in the House of Commons, the Minister shall cause to be tabled in each House of Parliament, within the first 30 days on which that House is sitting after the Public Accounts are tabled in the House of Commons, a report on the activities of the Minister in relation to the following:

(a) the money borrowed under section 43.1 in the fiscal year to which the Public Accounts relate; and

(b) the management of the public debt in the fiscal year to which the Public Accounts relate.

(2) In every fiscal year, the Minister shall cause to be tabled in each House of Parliament a report on the Minister’s plans in relation to the following:

(a) the money to be borrowed under section 43.1 in the next fiscal year and the purposes for which the moneys will be borrowed; and

(b) the management of the public debt in the next fiscal year.

88. Section 54 of the Act is replaced by the following:

54. The repayment of all money borrowed and interest on that money, including the principal of and interest on all securities issued by or on behalf of Her Majesty with the authority of Parliament, is a charge on and payable out of the Consolidated Revenue Fund.

Coming into Force

89. This Part comes into force on a day to be fixed by order of the Governor in Council.

PART 8

AMENDMENTS TO THE CANADA MORTGAGE AND HOUSING CORPORATION ACT

90. (1) Subsection 21(1) of the Canada Mortgage and Housing Corporation Act is replaced by the following:

21. (1) At the request of the Corporation, the Minister of Finance may, out of the Consolidated Revenue Fund, lend money to the Corporation on any terms and conditions that that Minister may fix.

(2) The portion of subsection 21(2) of the French version of the Act before paragraph (a) is replaced by the following:

PART 9

AMENDMENTS RELATING TO ELIGIBLE FINANCIAL CONTRACTS

Bankruptcy and Insolvency Act

91. (1) Section 2 of the Bankruptcy and Insolvency Act is amended by adding the following in alphabetical order:

“eligible financial contract” means

(a) a currency or interest rate swap agreement,

(b) a basis swap agreement,

(c) a spot, future, forward or other foreign exchange agreement,

(d) a cap, collar or floor transaction,

(e) a commodity swap,

(f) a forward rate agreement,

(g) a repurchase or reverse repurchase agreement,

(h) a spot, future, forward or other commodity contract,

(i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities,

(j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i),

(k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j),

(l) any master agreement in respect of a master agreement referred to in paragraph (k),

(m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l), or

(n) any agreement of a kind prescribed;

“financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement:

(a) cash or cash equivalents, including negotiable instruments and demand deposits,

(b) securities, a securities account, a securities entitlement or a right to acquire securities, or

(c) a futures agreement or a futures account;

“net termination value” means the net amount obtained after netting or setting off or compensating the mutual obligations between the parties to an eligible financial contract in accordance with its provisions;

“title transfer credit support agreement” means an agreement under which an insolvent person or a bankrupt has provided title to property for the purpose of securing the payment or performance of an obligation of the insolvent person or bankrupt in respect of an eligible financial contract;

(2) The definition “eligible financial contract” in section 2 of the Act, as enacted by subsection (1), is replaced by the following:

“eligible financial contract” means an agreement of a prescribed kind;

92. (1) Subsection 65.1(8) of the Act is repealed.

(2) Subsection 65.1(9) of the Act is replaced by the following:

(9) Despite subsections 69(1) and 69.1(1), the following actions are permitted in respect of an eligible financial contract that is entered into before the filing, in respect of an insolvent person of a notice of intention or, where no notice of intention is filed, a proposal, and that is terminated on or after that filing, but only in accordance with the provisions of that contract:

(a) the netting or setting off or compensation of obligations between the insolvent person and the other parties to the eligible financial contract; and

(b) any dealing with financial collateral including

(i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and

(ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

(10) If net termination values determined in accordance with an eligible financial contract referred to in subsection (9) are owed by the insolvent person to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the insolvent person with a claim provable in bankruptcy in respect of those net termination values.

93. Paragraph 65.11(2)(a) of the Act, as enacted by section 44 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

(a) an eligible financial contract;

94. Section 66.34 of the Act is amended by adding the following after subsection (6):

(7) Subsection (1) does not apply in respect of an eligible financial contract.

(8) Despite section 69.2, the following actions are permitted in respect of an eligible financial contract that is entered into before the filing of a consumer proposal and is terminated on or after that filing, but only in accordance with the provisions of that contract:

(a) the netting or setting off or compensation of obligations between the consumer debtor and the other parties to the eligible financial contract; and

(b) any dealing with financial collateral including

(i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and

(ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

(9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the consumer debtor to another party to the eligible financial contract, that other party is deemed, for the purposes of subsection 69.2(1), to be a creditor of the consumer debtor with a claim provable in bankruptcy in respect of those net termination values.

95. Section 69.2 of the Act is amended by adding the following after subsection (4):

(5) No order may be made under subsection (4) if the order would have the effect of preventing a secured creditor from realizing or otherwise dealing with financial collateral.

96. Section 69.3 of the Act is amended by adding the following after subsection (2):

(2.1) No order may be made under subsection (2) if the order would have the effect of preventing a secured creditor from realizing or otherwise dealing with financial collateral.

97. Paragraph 84.1(3)(a) of the Act, as enacted by section 68 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

(a) under an eligible financial contract;

98. Section 84.2 of the Act, as enacted by section 68 of chapter 47 of the Statutes of Canada, 2005, is amended by adding the following after subsection (6):

(7) Subsection (1) does not apply

(a) in respect of an eligible financial contract; or

(b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for an insolvent person in accordance with the Canadian Payments Act and the by-laws and rules of that Association.

(8) Despite section 69.3, the following actions are permitted in respect of an eligible financial contract that is entered into before the time of the bankruptcy, and is terminated on or after that time, but only in accordance with the provisions of that contract:

(a) the netting or setting off or compensation of obligations between the individual bankrupt and the other parties to the eligible financial contract; and

(b) any dealing with financial collateral including

(i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and

(ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

(9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the individual bankrupt to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the individual bankrupt with a claim provable in bankruptcy in respect of those net termination values.

99. The Act is amended by adding the following after section 87:

Priority of Financial Collateral

88. In relation to a bankruptcy or proposal, no order may be made under this Act if the order would have the effect of subordinating financial collateral.

100. Subsection 95(2.1) of the Act is replaced by the following:

(2.1) Subsection (2) does not apply in respect of the following:

(a) a margin deposit made by a clearing member with a clearing house; or

(b) a transfer, charge or payment made in connection with financial collateral and in accordance with the provisions of an eligible financial contract.

101. The definition “eligible financial contract” in section 253 of the Act is repealed.

102. Subsection 254(4) of the Act is replaced by the following:

(4) Nothing in this Part affects the rights of a party to a contract, including an eligible financial contract, with respect to termination, netting or setting off or compensation.

Canada Deposit Insurance Corporation Act

103. (1) Subsections 39.15(7) and (8) of the Canada Deposit Insurance Corporation Act are replaced by the following:

(7) Nothing in subsection (1) or (2) prevents the following actions from being taken in accordance with the provisions of an eligible financial contract:

(a) the termination of the contract;

(b) the netting or setting off or compensation of an amount payable under or in connection with the contract; or

(c) any dealing with financial collateral including

(i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and

(ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

(8) The Governor in Council may make regulations prescribing

(a) kinds of services for the purposes of subparagraph (5)(c)(xiii); and

(b) kinds of agreements for the purposes of the definition “eligible financial contract” in subsection (9).

(9) The following definitions apply in subsections (7) and (8).

“eligible financial contract” means

(a) a currency or interest rate swap agreement;

(b) a basis swap agreement;

(c) a spot, future, forward or other foreign exchange agreement;

(d) a cap, collar or floor transaction;

(e) a commodity swap;

(f) a forward rate agreement;

(g) a repurchase or reverse repurchase agreement;

(h) a spot, future, forward or other commodity contract;

(i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities;

(j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i);

(k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j);

(l) any master agreement in respect of a master agreement referred to in paragraph (k);

(m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l); and

(n) any agreement of a kind prescribed by the regulations.

“financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement:

(a) cash or cash equivalents, including negotiable instruments and demand deposits;

(b) securities, a securities account, a securities entitlement or a right to acquire securities; or

(c) a futures agreement or a futures account.

“title transfer credit support agreement” means an agreement under which title to property has been provided for the purpose of securing the payment or performance of an obligation in respect of an eligible financial contract.

(2) The definition “eligible financial contract” in subsection 39.15(9) of the Act, as enacted by subsection (1), is replaced by the following:

“eligible financial contract” means an agreement of a prescribed kind;

Companies’ Creditors Arrangement Act

104. (1) Section 2 of the Companies’ Creditors Arrangement Act is amended by adding the following in alphabetical order:

“eligible financial contract” means

(a) a currency or interest rate swap agreement,

(b) a basis swap agreement,

(c) a spot, future, forward or other foreign exchange agreement,

(d) a cap, collar or floor transaction,

(e) a commodity swap,

(f) a forward rate agreement,

(g) a repurchase or reverse repurchase agreement,

(h) a spot, future, forward or other commodity contract,

(i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities,

(j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i),

(k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j),

(l) any master agreement in respect of a master agreement referred to in paragraph (k),

(m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l), or

(n) any agreement of a kind prescribed;

“financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement:

(a) cash or cash equivalents, including negotiable instruments and demand deposits,

(b) securities, a securities account, a securities entitlement or a right to acquire securities, or

(c) a futures agreement or a futures account;

“net termination value” means the net amount obtained after netting or setting off or compensating the mutual obligations between the parties to an eligible financial contract in accordance with its provisions;

“title transfer credit support agreement” means an agreement under which a debtor company has provided title to property for the purpose of securing the payment or performance of an obligation of the debtor company in respect of an eligible financial contract;

(2) The definition “eligible financial contract” in section 2 of the Act, as enacted by subsection (1), is replaced by the following:

“eligible financial contract” means an agreement of a prescribed kind;

105. Section 11.05 of the Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, is repealed.

106. (1) Subsection 11.1(1) of the Act is repealed.

(2) Subsection 11.1(3) of the Act is replaced by the following:

(3) The following actions are permitted in respect of an eligible financial contract that is entered into before proceedings under this Act are commenced in respect of the company and is terminated on or after that day, but only in accordance with the provisions of that contract:

(a) the netting or setting off or compensation of obligations between the company and the other parties to the eligible financial contract; and

(b) any dealing with financial collateral including

(i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and

(ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

(4) No order may be made under this Act if the order would have the effect of staying or restraining the actions permitted under subsection (3).

(5) If net termination values determined in accordance with an eligible financial contract referred to in subsection (3) are owed by the company to another party to the eligible financial contract, that other party is deemed to be a creditor of the company with a claim against the company in respect of those net termination values.

(6) No order may be made under this Act if the order would have the effect of subordinating financial collateral.

107. Paragraph 11.3(3)(a) of the Act, as enacted by section 128 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

(a) under an eligible financial contract;

108. Paragraph 32(2)(a) of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

(a) an eligible financial contract;

109. Section 34 of the Act, as enacted by section 131 of chapter 47 of the Statutes of Canada, 2005, is amended by adding the following after subsection (6):

(7) Subsection (1) does not apply

(a) in respect of an eligible financial contract; or

(b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for a company in accordance with the Canadian Payments Act and the by-laws and rules of that Association.

(8) The following actions are permitted in respect of an eligible financial contract that is entered into before proceedings under this Act are commenced in respect of the company and is terminated on or after that day, but only in accordance with the provisions of that contract:

(a) the netting or setting off or compensation of obligations between the company and the other parties to the eligible financial contract; and

(b) any dealing with financial collateral including

(i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and

(ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

(9) No order may be made under this Act if the order would have the effect of staying or restraining the actions permitted under subsection (8).

(10) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the company to another party to the eligible financial contract, that other party is deemed to be a creditor of the company with a claim against the company in respect of those net termination values.

(11) No order may be made under this Act if the order would have the effect of subordinating financial collateral.

Payment Clearing and Settlement Act

110. Section 2 of the Payment Clearing and Settlement Act is amended by adding the following in alphabetical order:

“eligible financial contract” has the same meaning as in subsection 22.1(2) of the Winding-up and Restructuring Act;

111. (1) Section 13 of the Act is amended by adding the following after subsection (1):

(1.1) If a netting agreement referred to in subsection (1) is an eligible financial contract, the financial institution or the Bank may also, in accordance with the provisions of that agreement, deal with financial collateral including

(a) selling or foreclosing or, in the Province of Quebec, surrendering financial collateral; and

(b) setting off or compensating financial collateral or applying the proceeds or value of financial collateral.

(2) The definition “netting agreement” in subsection 13(2) of the Act is replaced by the following:

“netting agreement” means an agreement between two or more financial institutions or between the Bank and one or more financial institutions that is

(a) an eligible financial contract, or

(b) an agreement that provides for the netting or set-off or compensation of present or future obligations to make payments against the present or future rights to receive payments.

(3) The definition “net termination value” in subsection 13(2) of the English version of the Act is replaced by the following:

“net termination value” means the net amount obtained after setting off or compensating or otherwise netting the obligations between the parties to a netting agreement in accordance with its provisions;

(4) Subsection 13(2) of the Act is amended by adding the following in alphabetical order:

“financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement:

(a) cash or cash equivalents, including negotiable instruments and demand deposits,

(b) securities, a securities account, a securities entitlement or a right to acquire securities, or

(c) a futures agreement or a futures account;

“title transfer credit support agreement” means an agreement under which title to property has been provided for the purpose of securing the payment or performance of an obligation in respect of an eligible financial contract;

112. (1) The definition “netting agreement” in subsection 13.1(3) of the Act is replaced by the following:

“netting agreement” means an agreement between a securities and derivatives clearing house and a clearing member that is

(a) an eligible financial contract; or

(b) an agreement that provides for the netting or setting off or compensation of present or future obligations to make payments or deliveries against present or future rights to receive payments or take deliveries.

(2) The definition “net termination value” in subsection 13.1(3) of the English version of the Act is replaced by the following:

“net termination value” means the net amount obtained after setting off or compensating or otherwise netting the obligations between a securities and derivatives clearing house and a clearing member in accordance with the netting agreement.

Winding-up and Restructuring Act

113. (1) Subsection 22.1(1) of the Winding-up and Restructuring Act is replaced by the following:

22.1 (1) Nothing in this Act or an order made under this Act prevents or prohibits the following actions from being taken in accord-ance with the provisions of an eligible financial contract:

(a) the termination of the contract;

(b) the netting or setting off or compensation of obligations between a company in respect of which winding-up proceedings under this Act are commenced and another party to the contract; and

(c) any dealing with financial collateral including

(i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and

(ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

(1.01) If the net termination values determined in accordance with the eligible financial contract referred to in subsection (1) are owed by the company to another party to the eligible financial contract, that other party is deemed to be a creditor of the company with a claim provable against the company in respect of the net termination values.

(2) The definition “eligible financial contract” in subsection 22.1(2) of the Act is replaced by the following:

“eligible financial contract” means an agreement of a prescribed kind;

(3) Subsection 22.1(2) of the Act is amended by adding the following in alphabetical order:

“financial collateral” means any of the following that is subject to an interest, or in the Province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement:

(a) cash or cash equivalents, including negotiable instruments and demand deposits,

(b) securities, a securities account, a securities entitlement or a right to acquire securities, or

(c) a futures agreement or a futures account;

“title transfer credit support agreement” means an agreement under which title to property has been provided for the purpose of securing the payment or performance of an obligation in respect of an eligible financial contract;

(4) Subsection 22.1(3) of the Act is replaced by the following:

(3) The Governor in Council may make regulations prescribing kinds of agreements for the purposes of the definition “eligible financial contract” in subsection (2).

114. Section 100 of the Act is amended by adding the following after subsection (2):

(3) The presumption referred to in subsection (2) does not apply to a sale, deposit, pledge or transfer of financial collateral made in accord- ance with the provisions of an eligible financial contract.

115. Section 101 of the Act is amended by adding the following after subsection (2):

(3) Subsection (1) does not apply to a payment made in connection with financial collateral in accordance with the provisions of an eligible financial contract.

116. The Act is amended by adding the following after section 101:

101.1 In subsections 100(3) and 101(3), “eligible financial contract” and “financial collateral” have the same meanings as in subsection 22.1(2).

Transitional Provisions

117. An amendment to the Bankruptcy and Insolvency Act made by any of sections 91, 92, 94 to 96 and 99 to 101 of this Act applies only to a person who, on or after the day on which the amendment comes into force, is described in one of the following paragraphs:

(a) the person becomes bankrupt;

(b) the person files a notice of intention;

(c) the person files a proposal without having filed a notice of intention; or

(d) a proposal is made in respect of the person without the person having filed a notice of intention.

118. The amendment to the Canada Deposit Insurance Corporation Act made by section 103 of this Act applies only to a federal member institution in respect of which an order under subsection 39.13(1) of that Act is made on or after the day on which the amendment comes into force.

119. An amendment to the Companies’ Creditors Arrangement Act made by section 104 or 106 of this Act applies only to a debtor company in respect of which proceedings under that Act are commenced on or after the day on which the amendment comes into force.

120. An amendment to the Payment Clearing and Settlement Act made by any of sections 110 to 112 of this Act applies only to a party to a netting agreement who, on or after the day on which the amendment comes into force,

(a) is a person described in any of paragraphs 117(a) to (d);

(b) is a person described in section 118;

(c) is a person in respect of whom proceedings have been commenced under the Companies’ Creditors Arrangement Act;

(d) is a person in respect of whom winding up proceedings have been commenced under the Winding-up and Restructuring Act; or

(e) is a person subject to an order of a court made pursuant to an administration of a reorganization, arrangement or receivership involving insolvency.

121. An amendment to the Winding-up and Restructuring Act made by any of sections 113 to 116 of this Act applies only to companies in respect of which winding up proceedings under that Act are commenced on or after the day on which the amendment comes into force.

Coordinating Amendments

122. (1) In this section, “other Act” means An Act to establish the Wage Earner Protection Program Act, to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act and to make consequential amendments to other Acts, being chapter 47 of the Statutes of Canada, 2005.

(2) If subsection 124(1) of the other Act comes into force before section 104 of this Act, section 104 of this Act is replaced by the following:

104. (1) Subsection 2(1) of the Companies’ Creditors Arrangement Act is amended by adding the following in alphabetical order:

“eligible financial contract” means

(a) a currency or interest rate swap agreement,

(b) a basis swap agreement,

(c) a spot, future, forward or other foreign exchange agreement,

(d) a cap, collar or floor transaction,

(e) a commodity swap,

(f) a forward rate agreement,

(g) a repurchase or reverse repurchase agreement,

(h) a spot, future, forward or other commodity contract,

(i) an agreement to buy, sell, borrow or lend securities, to clear or settle securities transactions or to act as a depository for securities,

(j) any derivative, combination or option in respect of, or agreement similar to, an agreement or contract referred to in paragraphs (a) to (i),

(k) any master agreement in respect of any agreement or contract referred to in paragraphs (a) to (j),

(l) any master agreement in respect of a master agreement referred to in paragraph (k),

(m) a guarantee of the liabilities under an agreement or contract referred to in paragraphs (a) to (l), or

(n) any agreement of a kind prescribed;

“financial collateral” means any of the following that is subject to an interest, or in the province of Quebec a right, that secures payment or performance of an obligation in respect of an eligible financial contract or that is subject to a title transfer credit support agreement:

(a) cash or cash equivalents, including negotiable instruments and demand deposits,

(b) securities, a securities account, a securities entitlement or a right to acquire securities, or

(c) a futures agreement or a futures account;

“net termination value” means the net amount obtained after netting or setting off or compensating the mutual obligations between the parties to an eligible financial contract in accordance with its provisions;

“title transfer credit support agreement” means an agreement under which a debtor company has provided title to property for the purpose of securing the payment or performance of an obligation of the debtor company in respect of an eligible financial contract;

(2) The definition “eligible financial contract” in subsection 2(1) of the Act, as enacted by subsection (1), is replaced by the following:

“eligible financial contract” means an agreement of a prescribed kind;

(3) If subsection 124(1) of the other Act comes into force on the same day as section 104 of this Act, section 104 of this Act is deemed to have come into force before subsection 124(1) of the other Act.

(4) If section 128 of the other Act comes into force before section 106 of this Act, or if those provisions come into force on the same day, section 106 of this Act is repealed and is deemed never to have had effect.

Coming into Force

123. Subsections 91(2), 103(2), 104(2) and 113(2) come into force on a day or days to be fixed by order of the Governor in Council.

PART 10

PAYMENTS TO PROVINCES AND TERRITORIES

Payment to British Columbia

124. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, a sum not exceeding thirty million dollars to the Province of British Columbia to promote fair and equitable economic development, in an environmentally sustainable and ecologically integrated manner, of First Nations in the Spirit Bear Rainforest area of British Columbia and the Queen Charlotte Islands of British Columbia.

Clean Air and Climate Change Trust Fund

125. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding one billion, five hundred and nineteen million dollars, to a trust established to provide provinces and territories with funding to support provincial and territorial projects that will result in reductions in greenhouse gas emissions and air pollutants. Territories may also use those funds to adapt to a changing climate.

(2) The amount that may be provided to a province or territory under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1).

(3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate.

Transitional Payments

126. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding six hundred and fourteen million, one hundred thousand dollars, to a trust established to provide the Province of Ontario with funding for post-secondary education and training and the Provinces of Manitoba and Saskatchewan with funding for training.

(2) The amount that may be provided to a province under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1) and allocated as follows:

(a) a sum not exceeding five hundred and seventy-four million dollars to the Province of Ontario;

(b) a sum not exceeding twenty-one million, seven hundred thousand dollars to the Province of Manitoba; and

(c) a sum not exceeding eighteen million, four hundred thousand dollars to the Province of Saskatchewan.

(3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate.

Human Papillomavirus Immunization

127. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding three hundred million dollars, to a trust established to provide the provinces and territories with funding in support of human papillomavirus immunization.

(2) The amount that may be provided to a province or territory under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1).

(3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate.

Patient Wait Times Guarantee

128. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding six hundred and twelve million dollars, to a trust established to provide provinces and territories with funding in support of a patient wait times guarantee.

(2) The amount that may be provided to a province or territory under this section is to be determined in accordance with the terms of the trust indenture establishing the trust referred to in subsection (1).

(3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate.

Child Care Spaces

129. (1) The Minister of Finance may, for the fiscal year beginning on April 1, 2007, make direct payments, in an aggregate amount not exceeding two hundred and fifty million dollars to the provinces and territories for the purpose of supporting the creation of child care spaces.

(2) The amount that may be paid to a province or territory for the fiscal year referred to in subsection (1) is the amount determined by multiplying the amount set out in that subsection by the quotient obtained by dividing

(a) the population of the province or territory for the fiscal year

by

(b) the total of the population of all provinces and territories for the fiscal year.

(3) Any amount payable under this section may be paid by the Minister of Finance out of the Consolidated Revenue Fund at the times and in the manner that the Minister of Finance considers appropriate.

Payment to Yukon

130. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, the sum of three million, five hundred thousand dollars to Yukon.

Payment to Northwest Territories

131. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, the sum of fifty-four million, four hundred thousand dollars to the Northwest Territories.

PART 11

PAYMENTS TO CERTAIN ENTITIES

Nature Conservancy of Canada

132. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of the Environment, a sum not exceeding two hundred and twenty-five million dollars to the Nature Conservancy of Canada for its use.

Canada Health Infoway Inc.

133. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Health, a sum not exceeding four hundred million dollars to Canada Health Infoway Inc. for its use.

CANARIE Inc.

134. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, a sum not exceeding ninety-six million dollars to CANARIE Inc. for its use.

Genome Canada

135. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, a sum not exceeding one hundred million dollars to Genome Canada for its use.

Aid to Afghanistan

136. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of International Cooperation, a sum not exceeding ninety million dollars to the World Bank for the Afghanistan Reconstruction Trust Fund in respect of development assistance for Afghanistan.

137. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of International Cooperation, a sum not exceeding twenty million dollars to the United Nations for use in UN Mine Action Service activities in Afghanistan.

138. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Foreign Affairs, a sum not exceeding thirteen million dollars to the United Nations Office on Drugs and Crime, in respect of counter-narcotics initiatives for Afghanistan.

139. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Foreign Affairs, a sum not exceeding two million dollars to the United Nations Development Programme for the Counter Narcotics Trust Fund, in respect of counter-narcotics initiatives for Afghanistan.

140. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Foreign Affairs, a sum not exceeding ten million dollars to the United Nations Development Programme for the Law and Order Trust Fund for Afghanistan, for use consistent with the purposes of that fund.

Rick Hansen Man in Motion Foundation

141. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Health, a sum not exceeding thirty million dollars to the Rick Hansen Man in Motion Foundation for its use.

The Perimeter Institute for Theoretical Physics

142. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Industry, a sum not exceeding fifty million dollars to The Perimeter Institute for Theoretical Physics for its use.

Canada Foundation for Sustainable Development Technology

143. There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of the Environment and the Minister of Natural Resources, a sum not exceeding two hundred million dollars to the Canada Foundation for Sustainable Development Technology for its use.

PART 12

AMENDMENTS RELATING TO FINANCIAL INSTITUTIONS

Bank Act

144. Section 21 of the Bank Act is replaced by the following:

21. (1) Subject to subsections (2) and (3), banks shall not carry on business, and authorized foreign banks shall not carry on business in Canada, after October 24, 2007.

(2) The Governor in Council may, by order, extend by up to six months the time during which banks may continue to carry on business and authorized foreign banks may continue to carry on business in Canada. No more than one order may be made under this subsection.

(3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), banks may continue to carry on business, and authorized foreign banks may continue to carry on business in Canada, for 180 days after the first day of the first session of the next Parliament.

145. Section 670 of the Act is replaced by the following:

670. (1) Subject to subsections (2) and (3), bank holding companies shall not carry on business after October 24, 2007.

(2) The Governor in Council may, by order, extend by up to six months the time during which bank holding companies may continue to carry on business. No more than one order may be made under this subsection.

(3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), bank holding companies may continue to carry on business for 180 days after the first day of the first session of the next Parliament.

Cooperative Credit Associations Act

146. Section 22 of the Cooperative Credit Associations Act is replaced by the following:

22. (1) Subject to subsections (2) and (3), associations shall not carry on business after October 24, 2007.

(2) The Governor in Council may, by order, extend by up to six months the time during which associations may continue to carry on business. No more than one order may be made under this subsection.

(3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), associations may continue to carry on business for 180 days after the first day of the first session of the next Parliament.

Insurance Companies Act

147. Section 21 of the Insurance Companies Act is replaced by the following:

21. (1) Subject to subsections (2) and (3), companies and societies shall not carry on business, and foreign companies shall not carry on business in Canada, after October 24, 2007.

(2) The Governor in Council may, by order, extend by up to six months the time during which companies and societies may continue to carry on business and foreign companies may continue to carry on business in Canada. No more than one order may be made under this subsection.

(3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), companies and societies may continue to carry on business, and foreign companies may continue to carry on business in Canada, for 180 days after the first day of the first session of the next Parliament.

148. Section 707 of the Act is replaced by the following:

707. (1) Subject to subsections (2) and (3), insurance holding companies shall not carry on business after October 24, 2007.

(2) The Governor in Council may, by order, extend by up to six months the time during which insurance holding companies may continue to carry on business. No more than one order may be made under this subsection.

(3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), insurance holding companies may continue to carry on business for 180 days after the first day of the first session of the next Parliament.

Trust and Loan Companies Act

149. Section 20 of the Trust and Loan Companies Act is replaced by the following:

20. (1) Subject to subsections (2) and (3), companies shall not carry on business after October 24, 2007.

(2) The Governor in Council may, by order, extend by up to six months the time during which companies may continue to carry on business. No more than one order may be made under this subsection.

(3) If Parliament dissolves on October 24, 2007, on any day within the three-month period before that day or on any day within an extension under subsection (2), companies may continue to carry on business for 180 days after the first day of the first session of the next Parliament.

Coordinating Amendments

150. (1) Subsections (2) to (7) apply if Bill C-37, introduced in the 1st session of the 39th Parliament and entitled An Act to amend the law governing financial institutions and to provide for related and consequential matters (the “other Act”), receives royal assent.

(2) If section 4 of the other Act comes into force before section 144 of this Act, or if those provisions come into force on the same day, section 144 of this Act is repealed and is deemed never to have had effect.

(3) If section 105 of the other Act comes into force before section 145 of this Act, or if those provisions come into force on the same day, section 145 of this Act is repealed and is deemed never to have had effect.

(4) If section 138 of the other Act comes into force before section 146 of this Act, or if those provisions come into force on the same day, section 146 of this Act is repealed and is deemed never to have had effect.

(5) If section 189 of the other Act comes into force before section 147 of this Act, or if those provisions come into force on the same day, section 147 of this Act is repealed and is deemed never to have had effect.

(6) If section 310 of the other Act comes into force before section 148 of this Act, or if those provisions come into force on the same day, section 148 of this Act is repealed and is deemed never to have had effect.

(7) If section 338 of the other Act comes into force before section 149 of this Act, or if those provisions come into force on the same day, section 149 of this Act is repealed and is deemed never to have had effect.

PART 13

AMENDMENTS TO THE DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT

151. Section 2 of the Department of Public Works and Government Services Act is amended by adding the following in alphabetical order:

“appropriate minister” has the same meaning as in section 2 of the Financial Administration Act;

152. Section 8 of the Act is replaced by the following:

8. (1) The Minister may delegate any of the Minister’s powers, duties or functions under this Act to an appropriate minister for any period and under any terms and conditions that the Minister considers suitable.

(2) The Minister may, with respect to a department over which the Minister does not preside but for which the Minister is the appropriate minister, delegate any of the Minister’s powers, duties or functions under this Act, for any period and under any terms and conditions that the Minister considers suitable, to the chief executive of that department.

(3) The appropriate minister for a department may, subject to and in accordance with the delegation under subsection (1), subdelegate to the chief executive of that department, for any period and under any terms and conditions that the appropriate minister considers suitable, any of the powers, duties or functions that were delegated to the appropriate minister under that subsection.

(4) The chief executive of a department may, subject to and in accordance with the delegation under subsection (2) or the subdelegation under subsection (3), subdelegate to any person under his or her jurisdiction, for any period and under any terms and conditions that the chief executive considers suitable, any of the powers, duties or functions that were delegated or subdelegated to him or her under that subsection.

(5) In this section, “chief executive”

(a) with respect to a department named in Part I of Schedule VI to the Financial Administration Act, means its deputy minister;

(b) with respect to a department named in Part II or III of that Schedule, means the person occupying the position set out opposite that name; and

(c) with respect to a department that is not named in that Schedule, means the chief executive officer, deputy head or the person who occupies any other similar position, however called, in that department.

153. The Act is amended by adding the following after section 9:

9.1 Section 9 does not apply to a department within the meaning of paragraph (c) of the definition “department” in section 2 of the Financial Administration Act.

9.2 The Minister may, by order, exempt the following from the application of section 9:

(a) a department that is not named in Schedule VI to the Financial Administration Act; and

(b) a department over which the Minister does not preside but for which the Minister is the appropriate minister.

PART 14

AMENDMENT TO THE FINANCIAL CONSUMER AGENCY OF CANADA ACT

154. Section 13 of the Financial Consumer Agency of Canada Act is amended by adding the following after subsection (2):

(3) If the Commissioner carries on any activity in furtherance of an object described in paragraph 3(2)(d) or (e) on the recommendation of the Minister, the Minister may on terms and conditions approved by the Treasury Board, in any fiscal year, make a payment out of the Consolidated Revenue Fund to the Agency for the purposes of the activity.