Can a prescribed annuity contract encumbered by a moveable hypothec be a prescribed annuity contract? CRA responded:
In the situation where the annuitant of a prescribed annuity contract grants, in a taxation year, a moveable hypothec on the prescribed annuity contract in order to secure a loan, it is our view that the moveable hypothec, in and of itself, would not prevent the conditions of I.T.R. 304(1)(c)(iv)(D) from being satisfied. Consequently, a prescribed annuity contract subject to a moveable hypothec would continue to be a prescribed annuity contract.