Exemption thereupon from certain conditions.

with respect to all policies issued in Canada after the said date, if a company other than a Canadian company, maintain for the security of the holders of the said policies the said reserve and comply with all other provisions of this Act applicable thereto as if it were licensed under section 4 of this Act, and it shall, as to such policies, be exempt from all special provisions and conditions imposed by this Act upon assessment life insurance companies, except the provisions of subsection 10 of section 39. Application of "2. The deposit of any such company in the hands of the deposit to all Minister, at the date mentioned in the notice in the preceding policies. subsection referred to, shall be applicable to the policies issued prior to the said date and shall be dealt with in regard to such policies as if the said notice had not been given, and the provisions of this Act applicable to assessment life insurance companies (other than the provisions contained in this section) shall be applicable to the policies of the company issued prior to the said date in the same manner and to the same extent as if this section had not been passed.

Deposit at

"3. Any such company shall at the time of the filing of time of notice. such notice make with the Minister such deposit, if any, in respect of the policies to be issued in pursuance of such notice as the Treasury Board may fix and determine.

Accounts, etc. of assessment

"4. For the purpose of carrying out the provisions of this and ordinary section, separate and distinct registers and books of account business to be shall be opened and kept, showing respectively all policies kept distinct. issued and business transacted by such company after the

New section 50. Existing powers not affected.

Investment of funds of life insurance

company.

date mentioned in the said notice and all policies issued and business transacted before the said date; and such books and registers shall show all assets, liabilities, moneys and securities belonging or appertaining to the said respective portions of such company's business; and the assets and entire business of the said respective portions shall be kept absolutely separate and distinct; and the reserves or assets applicable to the policies issued by such company after the date mentioned in the said notice shall not be available in any way for any liability of such company arising out of any policy issued by it on the assessment plan.

8. The said Act is hereby amended by adding thereto the following section: provided that nothing therein contained shall be construed to diminish, impair, or in any way take away or limit any power of lending or investing now possessed by any company therein mentioned or referred to:

"50. Any life insurance company which derives its corporate powers, or any of them, from an Act of the Parliament of Canada, or which is within the legislative power of the Parliament of Canada, may invest its funds, or any portion thereof, in the purchase of

"(a.) the debentures, bonds, stocks or other securities of Canada, or of any province of Canada, or of any municipal or public school corporation in Canada, or

"(b.) the debentures, bonds, stocks or other securities of any building society, loan or investment company, trust company, water works company, water power company, gas company, navigation company, street railway company (by whatever power the railway is operated), electric light or power company, heat and light company, rolling stock company, bridge construction company, harbour trust company or commission, telegraph, cable or telephone company, dock company, fire insurance company, or the debentures or bonds of any steam railway company, which has earned and paid regular dividends upon its ordinary preferred or guaranteed stocks for the two years next preceding the purchase of such bonds or debentures, every such society, commission or company being incorporated in Canada, or the stock of any chartered bank in Canada, or

"(c.) life, endowment, or other policies or contracts issued by the company, or by any other life insurance company, or "(d.) the public consols, stocks, bonds, debentures or other securities, of the United Kingdom, or of any colony or dependency thereof, or of the United States or of any state thereof, or "(e.) ground rents and mortgages on real estate in any province of Canada, or

"(f.) any securities accepted by the Treasury Board as deposits from insurance companies under this Act.

66

2. Any such life insurance company may lend its funds or any portion thereof, on the security of

"(a.) any of the bonds, stocks, debentures or securities mentioned in the preceding subsection, or

"(b.) real estate or leaseholds for a term or terms of years or other estate or interest in real property in any province of Canada.

for maintenance of

branch.

"3. Any such life insurance company may invest in foreign Investment securities, or deposit outside of Canada, such portion of its funds as is necessary or desirable for the maintenance of any foreign branch: Provided that such investment, when not required by the law of the country where such branch is established, but deemed desirable in the interest of such branch, shall not exceed one hundred thousand dollars, Canadian currency.

States.

"4. Any such life insurance company doing business in the In case of United States, in the event of the reserve or reinsurance value Company doing business upon its outstanding policies in force in the United States in United exceeding the amount which may be invested or deposited under the authority of the next preceding subsection, may invest a portion of its funds in the purchase of bonds or debentures of any of the states of the United States, or of any municipal corporation in the United States, or in mortgages on real estate therein, or the debentures, bonds or preferred or guaranteed stocks of any building society, loan or investment company, trust company, water works or water power company, gas company, navigation company, street railway company (by

Doing business in United Kingdom.

Doing business

outside of Canada elsewhere

than in U. K. and U. S.

Investment of funds of other than life insurance

whatever power the railway is operated), electric light or power company, heat and light company, rolling stock company, bridge construction company, harbour trust company or commission, telegraph, cable or telephone company, dock company, fire insurance company, or the debentures or bonds of any steam railway company, which has earned and paid regular dividends upon its ordinary, preferred or guaranteed stocks for the two years next preceding the purchase of such bonds or debentures, every such society, commission or company being incorporated in the United States, or may lend it on the security of any such bonds, debentures, preferred or guaranteed stocks or mortgages; but in such event the amount so invested or lent in the United States, including any sum invested or deposited under the authority of the next preceding subsection, shall not at any time exceed by over ten per cent the said reserve or reinsurance value of its policies in force in the United States, such reserve to be calculated upon the basis prescribed in this Act.

"5. Any such life insurance company doing business in the United Kingdom, in the event of the reserve or reinsurance value upon its outstanding policies in force in the United Kingdom exceeding the amount which may be invested or deposited under the authority of subsection 3 of this section, may invest a portion of its funds in the purchase of bonds or debentures of any of the municipalities of the United Kingdom, or mortgages on real estate therein, or may lend it on the security of any such bonds, debentures or mortgages; but in such event the amount so invested or lent in the United Kingdom, including any sum invested or deposited under the authority of subsection 3 of this section, shall not at any time exceed by over ten per cent the said reserve or reinsurance value of its policies in force in the United Kingdom, such reserve to be calculated on the basis prescribed by this Act.

"6. Any such life insurance company which does business outside of Canada elsewhere than in the United Kingdom and the United States and also does business in the United Kingdom and the United States, in the event of the reserve or reinsurance value upon its outstanding policies in force outside of Canada exceeding the amount which may be invested or deposited under the authority of subsections 3, 4 and 5 of this section, may invest a further portion of its funds in the purchase of the securities mentioned in subsections 4 and 5 of this section, or may lend such further portion upon the security thereof; but in such event the total amount so invested or lent outside of Canada under the authority of the said subsections 3, 4 and 5 of this section, shall never exceed by over ten per cent the said reserve upon its said outstanding policies in force outside of Canada, such reserve to be calculated on the basis prescribed by this Act.

"7. Any insurance company other than a life insurance company which derives its corporate powers, or any of them,

134

from

from an Act of the Parliament of Canada, or which is within the legislative power of the Parliament of Canada, may invest its funds, or any portion thereof, in the purchase of any of the bonds, stocks, debentures or other securities mentioned in subsection 1 of this section, except those mentioned in paragraph (c) of the said subsection, or may lend its said funds, or any portion thereof, on the security of any of the bonds, stocks, debentures or other securities mentioned or referred to in subsection 2 of this section, except those mentioned in the said paragraph (c) of the said subsection 1 of this section.

securities.

"8. Any company in this section mentioned may take any Collateral additional securities of any nature to further secure the repayment of any liability thereto, or to further secure the sufficiency of any of the securities in or upon which such company is hereby authorized to invest or lend any of its funds.

"9. Any loan in this section authorized to be made may be Conditions on such terms and conditions, and in such manner and at such of loans. times, and for such sums, and in such sums of repayment, whether of principal or interest or principal and interest together, as the directors from time to time determine.

10. Such securities may be taken and accepted either in In whose the name of the company or in the name of any officer of the company or other person in trust for the company."

name securities may be taken.

51.

9. The said Act is hereby further amended by adding New section thereto the following section: provided that nothing therein contained shall be construed to diminish or limit the period Existing during which any such company may, by virtue of its present affected. corporate powers, hold any parcel of real estate or any interest therein :

powers not

not held for

own use or as

"51. Notwithstanding anything contained in its Act of Power as to incorporation or in any Act amending it, any insurance real estate. company which derives its corporate powers, or any of them, from an Act of the Parliament of Canada, or which is within the legislative authority of the said Parliament, may hold such real estate as is bonâ fide mortgaged to it by way of security, or conveyed to it in satisfaction of debts or judgments recovered: Provided that no parcel of land or interest therein, Proviso: as to at any time acquired by such company and not required for such estate its actual use and occupation, and not held by way of security, company's shall be held by such company or any trustee on its behalf, for a longer period than twelve years after the acquisition thereof, but shall be absolutely sold and disposed of, so that such company shall no longer retain any interest therein, except by way of security; and any such parcel of land, or any interest therein, not within the exceptions herein before mentioned, which has been held by such company for a longer period than twelve years without being disposed of, shall be forfeited to Her Majesty for the use of Canada: Provided further, that Notice of no such forfeitures shall take effect or be enforced until the forfeiture. expiration of at least six calendar months after notice in writ

security.

ing from the Minister to such company of the intention of Statement of Her Majesty to claim such forfeiture; and it shall be the duty such estate to of such company to give the Minister, when required, a full and correct statement of all lands at the date of such statement held by the company, or in trust for it, and subject to the said provisoes."

be furnished by company.

New section

52.

Change of head office by by-law.

10. The said Act is hereby further amended by adding thereto the following section :

"52. Notwithstanding anything contained in its Act of incorporation, any insurance company which derives its corporate powers, or any of them, from an Act of the Parliament of Canada, or which is within the legislative power of the said l'arliament, may,

"(a.) if the company has no members other than shareholders entitled to vote, by by-law passed and approved of by the votes of shareholders, representing at least two-thirds in value of the subscribed capital of the company, present or represented at a special general meeting duly called for considering the by. law, or

"(b.) if the company has no shareholders, by by-law passed and approved of by the votes of two-thirds of the members present or represented at a special general meeting duly called for considering the by-law, or

(c.) if the company has both shareholders and members entitled to vote, by by-law passed and approved of by at least two-thirds of the votes cast by such shareholders and members at a special general meeting duly called for considering the by-law,

"change the head office of such company from any place in Canada to any other place in Canada."

OTTAWA: Printed by SAMUEL EDWARD DAWSON, Law Printer to the Queen's most Excellent Majesty.