Words and Phrases - "similar obligation"

a
89
b
44
c
82
d
56
e
41
f
31
g
20
h
15
i
75
j
2
k
2
l
32
m
57
n
27
o
38
p
81
q
3
r
78
s
93
t
47
u
16
v
10
w
23
y
2

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

Summary Under
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(c.1)
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 … .

Words and Phrases
bond, debenture, note or similar obligation similar obligation