Thanks for the link Dalreg.
I guess under section 9f,
" is indebted to the Crown for expenses related to repatriation to Canada or for other consular financial assistance provided abroad at his request by the Government of Canada"
I'll interpret it as you can only be refused a passport if you owe the Canadian Gov't money for bailing you out of a situation abroad. I guess if you are in debt with the Foreign Affairs department only. That's how I interpret it.