(1) A port authority may, for the purpose of managing, limiting or reducing perceived risks or anticipated costs in connection with the exercise of any power conferred by section 85 ¾

(a) enter into an agreement or arrangement to effect any of the following transactions ¾

(i) a foreign exchange transaction;

(ii) a forward foreign exchange transaction;

(iii) a currency swap;

(iv) a forward currency swap;

(v) a foreign currency cap, a foreign currency collar or a foreign currency floor;

(vi) a forward interest rate agreement;

(vii) an interest rate swap;

(viii) a forward interest rate swap;

(ix) an interest rate cap, an interest rate collar or an interest rate floor;

(x) an option for interest rate or currency management purposes;

(xi) a futures contract or a futures option; or

(xii) a transaction of such other class as is approved in writing by the Minister, with the Treasurer's concurrence, as a class of transactions to which this paragraph applies;

or

(b) enter into an agreement or arrangement to effect any transaction which is a combination of ¾

(i) 2 or more transactions permitted under paragraph (a); or

(ii) one or more transactions permitted under paragraph (a) and one or more transactions permitted under section 85.

(2) In subsection (1)(a) ¾

}interest rate~ includes coupon rate, discount rate and yield.

[Section 87 amended by No. 10 of 2001 s.158; No. 21 of 2003 s. 19.]