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ARTICLE · 10 DECEMBER 2007

Ottawa Releases Updated "Eligible Financial Contract" Definition

Stikeman Elliott LLP
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In the Spring of 2007, Canada's Parliament amended several federal insolvency statutes so as to transfer the definition of the class of protected contracts known as "eligible financial contracts" (EFCs) from the federal insolvency statutes themselves to their respective associated regulations.

CanadaFinance and Banking
Stikeman Elliott LLP
Stikeman Elliott LLP
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In the Spring of 2007, Canada's Parliament amended several federal insolvency statutes so as to transfer the definition of the class of protected contracts known as "eligible financial contracts" (EFCs) from the federal insolvency statutes themselves to their respective associated regulations. On November 15, the Treasury Board approved the finalized regulations to the Bankruptcy and Insolvency Act, the Winding-up and Restructuring Act, the Companies' Creditors Arrangement Act, and the Canada Deposit Insurance Corporation Act. The changes were effective November 17, 2007. The long-awaited EFC definition includes the following types of agreement:

  1. a derivatives agreement, whether settled by payment or delivery, that

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