National Housing Act — N-11 39
Company may invest funds in purchase of land for housing development 39 (1) Any life insurance, trust or loan company subject to the jurisdiction of Parliament (in this Part called “company”) may, notwithstanding any restriction on the power of the company to lend or invest money contained in any other statute or law, (a) subject to the conditions set out in subsection (2), invest its funds in the purchase and improvement of land to be used for a residential housing development to an aggregate amount that, when added to the aggregate amount invested by the company under section 32, does not exceed the limitation on the investment imposed by or pursuant to section 32 or 33; and (b) subject to this Part, hold, maintain, repair, alter, demolish, improve, manage, collect or receive income from, sell or convey, in whole or in part, land acquired by means of investment pursuant to paragraph (a) and the improvements on the land. Conditions of investment (2) The conditions under which an investment referred to in subsection (1) may be made are as follows: (a) the land shall, in the opinion of the Corporation, be suitable for a residential housing development; (b) the purchase price of the land shall be satisfactory to the Corporation; (c) the improvements to be effected and the cost thereof shall be satisfactory to the Corporation; (d) the company shall submit to the Corporation an application in a form satisfactory to the Corporation containing such information and accompanied by such material as the Corporation may prescribe; (e) the investment shall first be approved in writing by the Corporation; and (f) the company shall enter into an agreement with the Corporation in accordance with subsection (3). In case of agreement Corporation to guarantee return and interest (3) Where a company agrees with the Corporation (a) to acquire land and effect improvements thereon in accordance with this Part, (b) to maintain, in relation to the land, the expenses incurred in respect thereof, the improvements made thereon and sales made thereof, separate books and records satisfactory to the Corporation and open to its inspection at any time, and (c) to sell the land at such price as the Corporation may determine and on such terms and conditions as are satisfactory to the Corporation or as may be set out in the agreement, the Corporation shall guarantee to the company for as long as it retains ownership of the whole or any part of the land in which an investment is made pursuant to this Part but not longer than the time specified in the agreement, which shall not exceed five years after the date of acquisition of the land by the company, the return of an amount equal to the company’s investment in the land, together with interest thereon at a rate specified in the agreement but not in excess of three per cent per annum compounded annually. Further provisions of agreement (4) The agreement referred to in subsection (3) may also provide (a) that the company shall plan the development of the land in a manner satisfactory to the Corporation and, as a condition of the sale of the land, shall receive an undertaking from the purchaser that any structures erected on the land shall conform to the plan of the area and shall comply with standards of construction prescribed by the Corporation under this Act; and (b) for such other measures to be taken by the Corporation and the company as the Corporation may deem necessary or desirable to give effect to the purposes or provisions of this Part and to safeguard the interests of the Corporation. R.S., c. N-10, s. 20