jswizzle3737/ontario_laws_and_regs huggingface dataset:
Interpretation
0.1 (1) In this Regulation, “finance company” means a corporation that meets the following criteria: 1. A material business activity of the corporation involves, i. purchasing, discounting or otherwise acquiring promissory notes, acceptances, accounts receivable, bills of sale, chattel mortgages, conditional sales contracts, drafts and other obligations representing part or all of the sales price of merchandise, or services, ii. factoring or purchasing and leasing personal property as part of a hire purchase or similar business, or iii. making secured and unsecured loans. 2. The shares of the corporation, or a corporation with which the corporation is affiliated, are listed on a stock exchange in Canada or outside Canada that is a prescribed stock exchange for the purposes of the Income Tax Act (Canada). 3. The corporation is not a corporation registered under the Insurance Act or the Loan and Trust Corporations Act, a bank under the Bank Act (Canada) or a credit union. (2) For the purposes of this Regulation, (a) a corporation shall be deemed to be controlled by another person or by two or more corporations if, but only if, (i) voting securities of the first-mentioned corporation carrying more than 50 per cent of the votes for the election of directors are held, other than by way of security only, by or for the benefit of such other person or by or for the benefit of such other corporations, and (ii) the votes carried by such securities are sufficient, if exercised, to elect a majority of the board of directors of the first-mentioned corporation; (b) one corporation shall be deemed to be affiliated with another corporation if, but only if, one of them is a subsidiary of the other or both are subsidiaries of the same corporation or each of them is controlled by the same person; and (c) a corporation shall be deemed to be a subsidiary of another corporation if, but only if, (i) it is controlled by, (A) that other, or (B) that other and one or more corporations each of which is controlled by that other, or (C) two or more corporations each of which is controlled by that other, or (ii) it is a subsidiary of a corporation that is that other’s subsidiary. O. Reg. 319/98, s. 1. Application
Application
1. (1) An application for registration as a mortgage broker or a renewal thereof shall be in a form provided by the Minister. (2) A notice by a mortgage broker under clause 27 (1) (a) or (b) of the Act shall be in a form provided by the Minister. R.R.O. 1990, Reg. 798, s. 1 (1, 2). (3) When notified by the Superintendent, the applicant shall file the fee established by the Minister for the application. O. Reg. 319/98, s. 2.
Application
2. Revoked: O. Reg. 319/98, s. 3. Terms and Conditions of Registration
Terms and Conditions of Registration
2.1 Sections 3 to 4.8 are conditions of registration that apply to every mortgage broker. O. Reg. 275/92, s. 1.
Terms and Conditions of Registration
3. (1) Every registration expires one year after the date of registration shown on the certificate of registration, unless an application for renewal of registration in a form provided by the Minister, together with the application fee established by the Minister, is filed with the Superintendent before the registration expires. O. Reg. 319/98, s. 4 (1). (2) No person shall be registered as a mortgage broker unless the person is a resident and, in the case of an individual, the person has attained the age of eighteen. (3) Every person registered as a mortgage broker shall operate from a permanent place of business in Ontario that shall be open to the public during normal business hours. (4) Every applicant for registration shall state in the application an address for service in Ontario. (5) Where an applicant for registration is a corporation, a copy of the most recent audited financial statement or, where the corporation is recently incorporated, a pro forma balance sheet shall be attached to the application referred to in subsection 1 (1) and where the applicant is a sole proprietorship or partnership, a recent statement of personal assets and liabilities shall be attached to the application. (6) Every mortgage broker shall keep and maintain books and records as set out in section 7. R.R.O. 1990, Reg. 798, s. 3 (2-6). (7) Revoked: O. Reg. 275/92, s. 2 (2). (8) The Superintendent may require further information or material to be submitted by any applicant or any registered person within a specified time limit and may require verification by affidavit or otherwise of any information or material then or previously submitted. R.R.O. 1990, Reg. 798, s. 3 (8); O. Reg. 319/98, s. 4 (2). (9) Every mortgage broker shall notify the Superintendent of the name of every person who is employed or authorized to arrange or deal in mortgages on behalf of the mortgage broker or who ceases to be employed or authorized to arrange or deal in mortgages on behalf of the mortgage broker. O. Reg. 275/92, s. 2 (3); O. Reg. 319/98, s. 4 (3). (9.1) Notice under subsection (9) shall be given within five days after the person is employed or authorized or ceases to be employed or authorized. O. Reg. 275/92, s. 2 (3). (10) Where a mortgage broker is a corporation, it shall, within five days after the event, notify the Superintendent in a form provided by the Minister where there is a change in a director of the corporation or where there is a change in its controlling interest. R.R.O. 1990, Reg. 798, s. 3 (10); O. Reg. 319/98, s. 4 (4). (11) Revoked: O. Reg. 275/92, s. 2 (4). (12) Revoked: O. Reg. 275/92, s. 2 (4). (13) Revoked: O. Reg. 275/92, s. 2 (5). (14) Revoked: O. Reg. 275/92, s. 2 (6). (15) Revoked: O. Reg. 275/92, s. 2 (6).
Terms and Conditions of Registration
4.2 A mortgage broker shall not, directly or indirectly, offer any guarantee in respect of an investment in mortgages. O. Reg. 275/92, s.4.
Terms and Conditions of Registration
4.3 A mortgage broker shall not make any false, misleading or deceptive statement concerning the quality or availability of mortgages or the procedures, costs or consequences of mortgage transactions. O.Reg. 275/92, s. 4.
Terms and Conditions of Registration
4.4 A mortgage broker shall not sell, attempt to sell, or arrange or attempt to arrange the sale of a mortgage that has been in default at any time in the preceding twelve months, except to a person, (a) who has been informed by the mortgage broker of the amount and length of the default; and (b) who acknowledges in writing that the person has received the information referred to in clause (a). O. Reg. 275/92, s. 4.
Terms and Conditions of Registration
4.5 (1) A mortgage broker shall not receive payments from the borrower on behalf of a mortgagee except pursuant to an agreement in writing between the mortgage broker and the mortgagee. (2) A mortgage broker shall not enter into an agreement referred to in subsection (1) unless the agreement contains the following provisions: 1. A provision that specifies the name in which the mortgage will be registered. 2. If the mortgage is held in trust, provisions that specify the details of the trust. 3. Provisions with respect to the disposition of all payments made by the borrower, including penalties and bonuses. 4. A provision that requires the notification of the mortgagee in the event of a default under the mortgage. 5. Provisions respecting the rights and obligations of the mortgagee in the event of default under the mortgage and the costs for which the mortgagee will be responsible in that event. 6. Provisions respecting the procedures that will be followed in the event of foreclosure or the exercise of a power of sale, including provisions respecting the rights and obligations of the mortgagee. 7. A provision that requires the mortgage broker to notify the mortgagee in the event that the mortgage broker becomes aware of a subsequent encumbrance on the property or any other significant change in circumstances affecting the mortgage. 8. Provisions respecting any fees payable by the mortgagee under the agreement, including provisions that specify the method of payment and how the fees are to be calculated. 9. Provisions respecting the terms and conditions under which the mortgagee may dispose of all or part of the mortgagee’s interest in the mortgage. (3) At least forty-eight hours, not including any time on a Sunday or holiday, before entering into an agreement referred to in subsection (1), the mortgage broker shall deliver to the mortgagee a copy of the proposed agreement. (4) The mortgage broker shall not make payments to the mortgagee except from payments of principal and interest made by the borrower under the mortgage. (5) If the borrower makes a payment by cheque, other than by certified cheque, the mortgage broker shall not make a payment to the mortgagee under subsection (4) until the cheque has cleared and the mortgage broker has received the funds. (6) If the mortgage broker receives money as the proceeds of the redemption or partial redemption of the mortgage, the mortgage broker shall promptly deliver a cheque to the mortgagee for the full amount owing to the mortgagee. O. Reg. 275/92, s. 4.
Terms and Conditions of Registration
4.7 If the principal amount of a mortgage is $200,000 or less, no mortgage broker shall accept an advance payment or deposit, or require or attempt to induce a person to make an advance payment or deposit, for services to be rendered or expenses to be incurred by the mortgage broker or any other person. O. Reg. 275/92, s. 4.
Terms and Conditions of Registration
4.8 (1) A mortgage broker shall not unreasonably withhold any deeds, instruments or other documents from their owner. (2) A mortgage broker shall promptly return deeds, instruments or other documents to their owner when requested in writing to do so by the Registrar, the owner or the owner’s agent. O. Reg. 275/92, s. 4. Exemptions
Exemptions
5. (1) An individual who lends or invests his or her own money on the security of real estate and does not otherwise act as a mortgage broker is exempt from section 8 of the Act. (2) A corporation that lends or invests money on the security of real estate and does not otherwise act as a mortgage broker is exempt from section 9 of the Act. (3) A person who is a mortgagor, mortgagee, assignor or assignee in a mortgage transaction on the security of a lot or unit in a subdivision in Canada, as defined in section 11 of the Act, is exempt from the provisions of section 12 of the Act where the amount of the loan or the consideration for the assignment is $100,000 or greater. R.R.O. 1990, Reg. 798, s. 5. Trust Funds
Trust Funds
6. (1) All funds received by a mortgage broker in connection with a mortgage transaction other than those which are clearly made as payment for fees earned shall be deemed to be trust funds. (2) Every mortgage broker shall maintain in respect of all funds that come into the mortgage broker’s hands in trust a separate trust account in an Ontario Branch of a chartered bank, a corporation registered under the Loan and Trust Corporations Act or Province of Ontario Savings Office designated as “The Mortgage Brokers Act Trust Account”, or a credit union as defined in the Credit Unions and Caisses Populaires Act.  R.R.O. 1990, Reg. 798, s. 6 (1, 2). (3) For the purpose of this section, no mortgage broker shall maintain more than one account designated as a trust account unless the mortgage broker has notified the Superintendent and has the Superintendent’s consent in writing. R.R.O. 1990, Reg. 798, s. 6 (3); O. Reg. 319/98, s. 8. (4) All trust funds received by the broker whether by cash, cheque or otherwise shall be deposited in the mortgage broker’s trust account within two banking days of their receipt. (5) Every mortgage broker shall deliver a written confirmation to the investor setting out therein the amount of any money received for investment purposes together with the terms upon which the money was held. (6) No mortgage broker shall disburse any money held in trust, or any part thereof, except in accordance with the terms and conditions upon which the money was received. (7) Nothing in this section shall be construed as affecting the right to any remedy available in law to the mortgage broker or any other person having a lawful claim to the money held in the trust account referred to in subsection (2). R.R.O. 1990, Reg. 798, s. 6 (4-7). Books and Records
Prospectus
9. A request for voluntary cancellation of registration shall be in a form provided by the Minister. R.R.O. 1990, Reg. 798, s. 9. FORM 1 Revoked: O. Reg. 319/98, s. 11. FORM 2 Revoked: O. Reg. 319/98, s. 11.