PART IV - ISSUES OF SECURITIES AND TAKE-OVERS AND MERGERS DIVISION 4 - DEBENTURES Subdivision 1 - Trust deeds, duties of trustees, borrowers, etc.
Section 79. Borrower to issue document evidencing indebtedness, etc.
(1) The borrower shall, within two weeks or such other period as may be specified by the Commission, after the acceptance of the moneys in response to an issue of, offer for subscription or purchase of, or invitation to subscribe for or purchase, a specified number or value of debentures, give to that person a document that acknowledges, evidences or constitutes an acknowledgment of the indebtedness of the borrower in respect of the receipt of moneys in response to the issue, offer or invitation.
(2) A document issued by the borrower in respect of any moneys received by the borrower in response to an issue of, offer for subscription or purchase of, or invitation to subscribe for or purchase, any debenture that certifies that a person named in the document-
(a) is the registered holder of a specified number or value of debentures issued by the borrower; and
(b) is subject to the provisions and covenants contained in a trust deed referred to or identified in the document,
shall be deemed to be a document evidencing the indebtedness of the borrower in respect of such moneys.
(3) A borrower shall not accept or retain subscriptions to a debenture issue in excess of the amount of the issue as disclosed in the prospectus unless the borrower has specified in the prospectus-
(a) that it expressly reserves the right to accept or retain over-subscriptions; and
(b) a limit expressed as a specific sum of money on the amount of over-subscriptions that may be accepted or retained, being an amount not more than twenty-five per centum in excess of the amount of the issue as disclosed in the prospectus.
(4) A borrower who contravenes subsection (1) or (3) shall be guilty of an offence.