17 November 2015 Roundtable, 2015-0614241C6 - 2015 TEI Liaison Meeting Q.6 - Specified Right -- summary under Paragraph 18(6)(c)

A notional cash pooling arrangement between (i) a non-resident parent and its various subsidiaries including Canco, and (ii) a non-resident bank, as a result of which Canco has an overdraft balance in its pool account, is caught by the back-to-back loan rules in ss. 18(6)(c)(i) and 212(3.1)(c)(i). Accordingly, it is not necessary to consider whether the right of the non-resident bank to offset overdraft balances of any pool participants against deposit balances of other pool participants without prior notice engages the specified right rules in ss. 18(6)(c)(ii) and 212(3.1)(c)(ii).