MHHS · Business Corporations Act
Part 5 — Corporate Finance
40 Repayment, acquisition and reissue of debt obligations
by a corporation are not redeemed by reason only that the
indebtedness evidenced by the debt obligations or in respect of
which the debt obligations are issued, pledged, hypothecated or
deposited is repaid, and those obligations remain obligations of the
corporation until they are discharged.
(2) Debt obligations issued by a corporation and purchased,
redeemed or otherwise acquired by it may be cancelled or, subject
to any applicable trust indenture or other agreement, may be
reissued, pledged or hypothecated to secure any obligation of the
corporation then existing or thereafter incurred, and any such
acquisition and reissue, pledge or hypothecation is not a
cancellation of the debt obligations.
1981 cB-15 s37.1;1983 c20 s6