Words and Phrases - "similar obligation"

88
44
79
53
38
31
19
14
74
2
2
32
56
25
38
81
3
76
90
47
16
9
23
2

4 April 1991 External T.I. 9104835 F - Interpretation of Bonds, Debentures, Notes or Similar Obligations

banker’s acceptances are not evidences of indebtedness of the issuer and, thus, are not a bond, debenture, note “or similar obligation”

In finding that banker’s acceptances were not qualified investments under former s. 204(e)(iii), Revenue Canada stated:

[B]onds, debentures and notes are promises by the issuer of the document to pay a specified amount on the terms set forth in the document and, as such, evidence the indebtedness of the issuer vis-à-vis the person to whom the document is addressed. Banker's acceptances require the person to whom it is addressed to pay a specified amount to a specified person at a specified time. They are not evidence of indebtedness of the issuer. Technically a banker's acceptance is a bill of exchange; bonds, debentures and notes are not. Accordingly it cannot be said that banker's acceptance are obligations which are similar to bonds, debentures and notes … .