CONSULTATION DRAFT

MORTGAGE BROKERAGES, MORTGAGE LENDERS AND MORTGAGE ADMINISTRATORS ACT

CONSULTATION DRAFT

INTERPRETATION

1. Definitions

REGULATED ACTIVITIES

2. Dealing in mortgages
3. Trading in mortgages
4. Carrying on business as a mortgage lender
5. Carrying on business as a mortgage administrator

LICENCES

6. Brokerage licence
7. Mortgage broker's licence
8. Mortgage agent's licence
9. Mortgage administrator's licence
10. Licence as prerequisite for enforcing payment

THE LICENSING PROCESS

11. Application for a licence
12. Issuance of licence
13. Amendment of licence
14. Renewal of mortgage broker's or agent's licence
15. Automatic suspension of licence
16. Suspension by Superintendent
17. Revocation of licence
18. Surrender of licence
19. Superintendent's proposal to refuse application, etc.
20. Circumstances in which proposal not required
21. Public register of licensees

ADMINISTRATION

22. Information requirements
23. Inquiries and examinations
24. Power to summon persons, etc.
25. Search warrant
26. Immunity re disclosures

ENFORCEMENT

27. Compliance order
28. Order to freeze assets and trust funds
29. Appointment of receiver, etc.
30. General administrative penalties
31. Enforcement of administrative penalties

OFFENCES

32. Prohibition against obstruction
33. Prohibition re false or misleading information
34. Prohibition against reprisals
35. Prohibition against unfair or deceptive acts or practices
36. List of offences
37. Penalties for offences
38. Additional order for compensation or restitution

DUTY TO DISCLOSE THE COST OF BORROWING

39. Required disclosure
40. Additional disclosure - term mortgages
41. Additional disclosure - other mortgages
42. Statement re mortgage renewal
43. Disclosure in advertising
44. Disclosure on behalf of other persons
45. Regulations re cost of borrowing

GENERAL

46. Approved methods of delivering information and documents
47. Matters of evidence
48. Joint and several liability
49. Fees
50. Forms
51. Regulations, general

INTERPRETATION

Definitions

  1.  
    1. In this Act,

      "cost of borrowing", for a mortgage, means,

      1. the interest or discount applicable to the mortgage,

      2. any amount charged in connection with the mortgage that is payable by the borrower to the brokerage, mortgage broker or agent or lender,

      3. any amount charged in connection with the mortgage that is payable by the borrower to a person other than the brokerage, mortgage broker, agent or lender, where the amount is chargeable, directly or indirectly, by the person to the brokerage, mortgage broker, agent or lender, and

      4. any charge prescribed as included in the cost of borrowing,

      but does not include any charge prescribed as excluded from the cost of borrowing;

      "financial institution" means a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada), a credit union or caisse populaire to which the Credit Unions and Caisses Populaires Act, 1994 applies including a league within the meaning of that Act, an insurer licensed under the Insurance Act, a corporation registered under the Loan and Trust Corporations Act or a retail association as defined under the Cooperative Credit Associations Act (Canada);

      "lawyer" means a person who is authorized to practice law in Ontario;

      "licence" means a licence issued under this Act;

      "licensed" means licensed under this Act;

      "mortgage administrator" means a corporation, partnership or sole proprietorship that has a mortgage administrator's licence;

      "mortgage agent" or "agent" means an individual who has a mortgage agent's licence;

      "mortgage broker" means an individual who has a mortgage broker's licence;

      "mortgage brokerage" or "brokerage" means a corporation, partnership or sole proprietorship that has a brokerage licence;

      "prescribed" means prescribed by a regulation made under this Act;

      "requirement established under this Act" includes a condition of a licence, a requirement imposed by order or an obligation assumed by way of an undertaking;

      "Superintendent" means the Superintendent of Financial Services appointed under the Financial Services Commission of Ontario Act, 1997;

      "Tribunal" means the Financial Services Tribunal established under the Financial Services Commission of Ontario Act, 1997.

    Mortgage

    1. This Act applies with respect to mortgages within the meaning of the Mortgages Act.

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REGULATED ACTIVITIES

Dealing in mortgages

  1.  
    1. For the purposes of this Act, a person is dealing in mortgages when the person provides any of the following services, or holds themself out as doing so:

      1. Soliciting another person to lend or borrow money on the security of real property.

      2. Negotiating or arranging a mortgage or the assignment of a mortgage on behalf of another person.

      3. Helping another person to enter into a mortgage or to attempt to enter into a mortgage.

      4. Providing such other services as may be prescribed to another person.

    Prohibition re carrying on business

    1. No corporation, partnership or sole proprietorship shall carry on the business of dealing in mortgages in Ontario unless it has a brokerage licence and is acting within the scope of its licence or it is exempted from the requirement to have such a licence.

    Same

    1. No person or entity other than a corporation, partnership or sole proprietorship shall carry on the business of dealing in mortgages in Ontario.

    Prohibition re employees, etc.

    1. No individual shall deal in mortgages for remuneration, as an employee or otherwise, unless the individual has a mortgage broker's or agent's licence and is acting on behalf of a mortgage brokerage and within the scope of his or her licence or the individual is exempted from the requirement to have such a licence.

    Exemption for financial institutions

    1. Every financial institution is exempted from the requirement to have a brokerage licence when dealing in mortgages in Ontario.

    Same

    1. A director, officer or employee of a financial institution is exempted from the requirement to have a mortgage broker's or agent's licence when, in the ordinary course of his or her duties, the individual deals in mortgages on behalf of the financial institution.

    Exemption for certain employees, etc.

    1. A director, officer or employee of a corporation, partnership or sole proprietorship is exempted from the requirement to have a mortgage broker's or agent's licence when, in the ordinary course of his or her duties, he or she deals in mortgages on behalf of the corporation, partnership or sole proprietorship but only if the corporation, partnership or sole proprietorship itself does not carry on the business of dealing in mortgages in Ontario or carry on business as a mortgage lender in Ontario.

    Exemption for lawyers

    1. A lawyer is exempted from the requirement to have a brokerage licence or a mortgage broker's or agent's licence when the lawyer provides a service described in paragraph 2 or 3 of subsection (1), but only when this also constitutes providing a legal service.

    Exemption, simple referrals

    1. A person is exempted from the requirement to have a brokerage licence or a mortgage broker's or agent's licence when the person refers a prospective borrower to a prospective lender for a fee, but only if the person does not otherwise deal in mortgages in Ontario, trade in mortgages in Ontario or carry on business as a mortgage lender or mortgage administrator in Ontario.

    Other exemptions

    1. Such other persons as may be prescribed are exempted from the requirement to have a brokerage licence or a mortgage broker's or agent's licence when dealing in mortgages in Ontario in such circumstances as may be prescribed.

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Trading in mortgages

  1.  
    1. For the purposes of this Act, a person is trading in mortgages in Ontario when the person engages in any of the following activities, or holds themself out as doing so:

      1. Soliciting another person to trade in mortgages.

      2. Buying, selling or exchanging mortgages on behalf of another person.

      3. Buying, selling or exchanging mortgages on the person's own behalf.

    Prohibition re carrying on business

    1. No corporation, partnership or sole proprietorship shall carry on the business of trading in mortgages in Ontario unless it has a brokerage licence and is acting within the scope of its licence or is exempted from the requirement to have such a licence.

    Same

    1. No person or entity other than a corporation, partnership or sole proprietorship shall carry on the business of trading in mortgages in Ontario.

    Prohibition re employees, etc.

    1. No individual shall trade in mortgages for remuneration, as an employee or otherwise, by engaging in an activity described in paragraph 1 or 2 of subsection (1) unless the individual has a mortgage broker's or agent's licence and is acting on behalf of a mortgage brokerage and within the scope of his or her licence or the individual is exempted from the requirement to have such a licence.

    Exemption re authorized intermediary

    1. A person is exempted from the requirement to have a brokerage licence when trading in mortgages if the person solicits and executes trades through a mortgage brokerage or through another person who is exempted from the requirement to have a brokerage licence.

    Exemption for financial institutions

    1. Every financial institution is exempted from the requirement to have a brokerage licence when trading in mortgages in Ontario.

    Same

    1. A director, officer or employee of a financial institution is exempted from the requirement to have a mortgage broker's or agent's licence when, in the ordinary course of his or her duties, the individual trades in mortgages on behalf of the financial institution.

    Exemption for lawyers

    1. A lawyer is exempted from the requirement to have a brokerage licence or a mortgage broker's or agent's licence when the lawyer engages in an activity described in paragraph 1 or 2 of subsection (1), but only when this also constitutes providing a legal service.

    Other exemptions

    1. Such other persons as may be prescribed are exempted from the requirement to have a brokerage licence or a mortgage broker's or agent's licence when trading in mortgages in Ontario in such circumstances as may be prescribed.

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Carrying on business as a mortgage lender

  1.  
    1. For the purposes of this Act, a person is carrying on business as a mortgage lender in Ontario when the person carries on the business of lending money in Ontario on the security of real property, or holds themself out as doing so.

    Prohibition

    1. No corporation, partnership or sole proprietorship shall carry on business as a mortgage lender in Ontario unless it has a brokerage licence and is acting within the scope of its licence or it is exempted from the requirement to have such a licence.

    Same

    1. No person or entity other than a corporation, partnership or sole proprietorship shall carry on business as a mortgage lender in Ontario.

    Exemption re authorized intermediary

    1. A person is exempted from the requirement to have a brokerage licence when carrying on business as a mortgage lender if, when doing so, the person uses the services of a mortgage brokerage or another person who is exempted from the requirement to have a brokerage licence.

    Exemption for financial institutions

    1. Every financial institution is exempted from the requirement to have a brokerage licence when carrying on business as a mortgage lender in Ontario.

    Other exemptions

    1. Such other persons as may be prescribed are exempted from the requirement to have a brokerage licence when carrying on business as a mortgage lender in Ontario in such circumstances as may be prescribed.

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Carrying on business as a mortgage administrator

  1.  
    1. For the purposes of this Act, a person is carrying on business as a mortgage administrator in Ontario when the person carries on the business of providing any of the following services in Ontario, or holds themself out as doing so:

      1. On behalf of another person, collecting money payable under a mortgage.

      2. Providing such other services as may be prescribed to another person.

    Prohibition, carrying on business

    1. No corporation, partnership or sole proprietorship shall carry on business as a mortgage administrator in Ontario unless it has a mortgage administrator's licence and is acting within the scope of its licence or it is exempted from the requirement to have such a licence.

    Same

    1. No person or entity other than a corporation, partnership or sole proprietorship shall carry on business as a mortgage administrator in Ontario.

    Exemption for financial institutions

    1. Every financial institution is exempted from the requirement to have a mortgage administrator's licence when carrying on business as a mortgage administrator in Ontario.

    Exemption for lawyers

    1. A lawyer is exempted from the requirement to have a mortgage administrator's licence when the person is providing a service described in paragraph 1 or 2 of subsection (1) on behalf of an estate, but only when this also constitutes providing a legal service.

    Other exemptions

    1. Such other persons as may be prescribed are exempted from the requirement to have a mortgage administrator's licence when carrying on business as a mortgage administrator in Ontario in such circumstances as may be prescribed.

LICENCES

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Brokerage licence

  1.  
    1. A corporation, partnership or sole proprietorship is entitled to apply for a brokerage licence.

    Authorized activities

    1. A brokerage licence authorizes the licensee to deal in mortgages in Ontario, trade in mortgages in Ontario or carry on business as a mortgage lender in Ontario, as the case may be, by providing the services or engaging in the activities permitted under the licence, or class of licence, issued to the licensee.

    Conditions

    1. A brokerage licence is subject to such conditions as may be imposed by the Superintendent or by the Tribunal and it is not transferable.

    Prescribed duties

    1. The licensee shall comply with such requirements as may be prescribed for the licence, or class of licence, issued to the licensee.

    Duties re mortgage brokers and agents

    1. The licensee shall ensure that every mortgage broker and mortgage agent who is authorized to deal in mortgages or trade in mortgages on behalf of the licensee complies with the applicable requirements established under this Act.

    Principal broker

    1. A person who has a brokerage licence shall designate a principal broker to exercise such powers and perform such duties as may be prescribed.

    Same

    1. A person who satisfies the prescribed criteria is eligible to be designated as a principal broker.

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Mortgage broker's licence

  1.  
    1. An individual is entitled to apply for a mortgage broker's licence.

    Authorized activities

    1. A mortgage brokers' licence authorizes the licensee to deal in mortgages in Ontario or trade in mortgages in Ontario on behalf of a specified mortgage brokerage by providing the services permitted under the licence, or class of licence, issued to the licensee.

    Conditions

    1. A mortgage broker's licence is subject to such conditions as may be imposed by the Superintendent or by the Tribunal and it is not transferable.

    Prescribed duties

    1. The licensee shall comply with such requirements as may be prescribed for the licence, or class of licence, issued to the licensee.

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Mortgage agent's licence

  1.  
    1. An individual is entitled to apply for a mortgage agent's licence.

    Authorized activities

    1. A mortgage agent's licence authorizes the agent to deal in mortgages in Ontario or trade in mortgages in Ontario on behalf of a specified brokerage by providing the services permitted under the licence, or class of licence, issued to the licensee.

    Conditions

    1. A mortgage agent's licence is subject to such conditions as may be imposed by the Superintendent or by the Tribunal and it is not transferable.

    Prescribed duties

    1. The licensee shall comply with such requirements as may be prescribed for the licence, or class of licence, issued to the licensee.

    Supervision by mortgage broker

    1. A person who has a mortgage agent's licence shall not deal in mortgages in Ontario or trade in mortgages in Ontario unless he or she is acting under the supervision of a mortgage broker when doing so.

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Mortgage administrator's licence

  1.  
    1. A corporation, partnership or sole proprietorship is entitled to apply for a mortgage administrator's licence.

    Authorized activities

    1. A mortgage administrator's licence authorizes the licensee to carry on business as a mortgage administrator in Ontario by providing the services permitted under the licence, or class of licence, issued to the licensee.

    Conditions

    1. A mortgage administrator's licence is subject to such requirements as may be prescribed and such conditions as may be imposed by the Superintendent or by the Tribunal and it is not transferable.

    Prescribed duties

    1. The licensee shall comply with such requirements as may be prescribed for the licence, or class of licence, issued to the licensee.

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Licence as prerequisite for enforcing payment

  1.  
    1. A person is not entitled to commence an action or proceeding to be paid for dealing in mortgages or trading in mortgages in Ontario or for providing a service that constitutes carrying on business as a mortgage administrator in Ontario unless, at the time the person was dealing in mortgages, trading in mortgages or providing the service, the person was licensed to do so or was exempted from the licensing requirement.

    Same

    1. The court may, upon motion, stay an action or proceeding described in subsection (1).

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THE LICENSING PROCESS

Application for a licence

  1.  
    1. A person who wishes to apply for a licence shall submit an application to the Superintendent in the manner required by the Superintendent and shall give the Superintendent such information and documents as he or she may require and pay the applicable fee.

    Withdrawal of application

    1. The applicant may withdraw the application at any time before the licence is issued.

Issuance of licence

  1.  
    1. The Superintendent shall issue a licence to an applicant who satisfies the prescribed requirements for the licence unless the Superintendent believes, on reasonable grounds, that the applicant is not suitable to be licensed having regard to such circumstances as may be prescribed and such other matters as the Superintendent considers appropriate.

    Proposal to refuse application

    1. If the Superintendent proposes to refuse to issue a licence to the applicant, the Superintendent shall take the steps required by section 19 or 20.

    Proposal to impose conditions

    1. If the Superintendent proposes to issue the licence and, without the applicant's consent, to impose conditions on the licence, the Superintendent shall take the steps required by section 19.

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Amendment of licence

  1.  
    1. The Superintendent may amend a licence at any time to change the conditions to which the licence is subject.

    Same

    1. The Superintendent may also amend a mortgage broker's or agent's licence at any time to replace the name of the brokerage on whose behalf the mortgage broker or agent is authorized under the licence to deal in mortgages or trade in mortgages.

    Proposal to amend

    1. If the Superintendent proposes to amend the licence without the licensee's consent, the Superintendent shall take the steps required by section 19.

Renewal of mortgage broker's or agent's licence

  1.  
    1. A person who has a mortgage broker's or agent's licence may apply to the Superintendent to renew the licence.

    Deadline

    1. The application must be made within the prescribed period before the expiry date of the licence or, if no period is prescribed, before the expiry date.

    Information

    1. The applicant must give the Superintendent such information and documents as he or she may require and must pay the applicable fee.

    Effect of application

    1. If the application is made by the deadline described in subsection (2), the licence that is being renewed continues in effect after the expiry date until the Superintendent notifies the applicant that the licence is renewed or is not being renewed.

    Renewal

    1. The Superintendent shall renew the licence of an applicant who satisfies the prescribed requirements for renewal of the licence unless the Superintendent believes, on reasonable grounds, that the applicant is not suitable to be licensed having regard to such circumstances as may be prescribed and such other matters as the Superintendent considers appropriate.

    Conditions

    1. Upon renewal, the licence may be made subject to different conditions than those to which it was subject before the renewal.

    Proposal to refuse application

    1. If the Superintendent proposes to refuse to renew a licence, the Superintendent shall take the steps required by section 19 or 20.

    Proposal to change conditions

    1. If the Superintendent proposes to renew the licence and, without the applicant's consent, to change the conditions to which the licence is subject, the Superintendent shall take the steps required by section 19.

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Automatic suspension of licence
Brokerage licence

  1.  
    1. A brokerage licence is suspended if the mortgage brokerage ceases to have a minimum of one mortgage broker who is authorized under his or her licence to deal in mortgages or trade in mortgages on behalf of the brokerage.

    Same, end of suspension

    1. The suspension of the brokerage licence is terminated when a mortgage broker becomes authorized under his or her licence to deal in mortgages or trade in mortgages on behalf of the brokerage.

    Suspension of mortgage broker's or agent's licence

    1. A mortgage broker's or agent's licence is suspended,

      1. if the mortgage broker or agent ceases to be authorized by the mortgage brokerage specified in his or her licence to deal in mortgages or trade in mortgages on behalf of the brokerage; or

      2. if the brokerage's licence is suspended, surrendered or revoked.

    Same, end of suspension

    1. The suspension of a mortgage broker's or agent's licence is terminated,

      1. when the licence suspension of the specified mortgage brokerage on whose behalf the broker or agent is authorized under his or her licence to deal in mortgages or trade in mortgages is terminated; or

      2. when the mortgage broker or agent becomes authorized by another mortgage brokerage to deal in mortgages or trade in mortgages on its behalf and his or her licence has been amended accordingly.

    Continuing obligations

    1. During the suspension, the mortgage brokerage, mortgage broker and agent are required to comply with the requirements established under this Act as if the licence were in effect.

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Suspension by Superintendent

  1.  
    1. The Superintendent may suspend a licence,

      1. if the licensee ceases to satisfy the prescribed requirements for issuance or renewal, as the case may be, of the licence;

      2. if the Superintendent believes, on reasonable grounds, that the licensee is no longer suitable to be licensed having regard to the circumstances, if any, prescribed for the purposes of subsection 12 (1) or 14 (5), as the case may be, and such other matters as the Superintendent considers appropriate;

      3. if the licensee fails to comply with a requirement established under this Act; or

      4. in such other circumstances as may be prescribed.

    Proposal to suspend

    1. If the Superintendent proposes to suspend a licence without the licensee's consent, the Superintendent shall take the steps required by section 19.

    Interim order

    1. If, in the Superintendent's opinion, the interests of the public may be adversely affected by any delay in the suspension of a licence as a result of the steps required by section 19, the Superintendent may, without notice, make an interim order suspending the licence and may do so before or after giving the notice required by subsection 19 (2) of the proposal to suspend the licence.

    Same

    1. An interim order takes effect immediately and remains in effect until the expiry of the period for requesting a hearing about the Superintendent's proposal to suspend the licence.

    Same

    1. Despite subsection (4), if before the end of such period as may be prescribed the Superintendent does not give the person the notice required by subsection 19 (2) of the proposal, the interim order expires at the end of the prescribed period.

    Extension of interim order

    1. If the licensee requests a hearing about the proposal to suspend the licence, the Superintendent may extend the interim order until the proposal is finally determined.

    Revocation

    1. The Superintendent may revoke a suspension order or an interim order at any time.

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Revocation of licence

  1.  
    1. The Superintendent may revoke a licence in any of the circumstances in which he or she is authorized by clauses 16 (1) (a) to (d) to suspend the licence.

    Proposal to revoke

    1. If the Superintendent proposes to revoke a licence without the licensee's consent, the Superintendent shall take the steps required by section 19 or 20.

    Interim order

    1. If, in the Superintendent's opinion, the interests of the public may be adversely affected by any delay in the revocation of a licence as a result of the steps required by section 19, the Superintendent may, without notice, make an interim order suspending the licence and may do so before or after giving the notice required by subsection 19 (2) to revoke the licence.

    Same

    1. Subsections 16 (4) to (7) apply, with necessary modifications, with respect to an interim order.

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Surrender of licence

  1.  
    1. A mortgage brokerage or mortgage administrator may apply to the Superintendent for permission to surrender his, her or its licence.

    Same

    1. The applicant must give the Superintendent such information and documents as he or she may require and must pay the applicable fee, if any.

    Same

    1. The Superintendent shall allow the applicant to surrender the licence unless the Superintendent believes, on reasonable grounds, that the surrender of the licence is not in the public interest having regard to such criteria as may be prescribed and such other factors as the Superintendent considers appropriate.

    Same

    1. The Superintendent may impose conditions relating to the surrender of the licence.

    Proposal to refuse application

    1. If the Superintendent proposes to refuse to allow the surrender of the licence, the Superintendent shall take the steps required by section 19.

    Proposal to impose conditions

    1. If the Superintendent proposes to allow the surrender of the licence and, without the applicant's consent, impose conditions relating to its surrender, the Superintendent shall take the steps required by section 19.

    Withdrawal of application

    1. The applicant may withdraw the application at any time.

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Superintendent's proposal to refuse application, etc.

  1.  
    1. This section applies if the Superintendent proposes to do any of the following things:

      1. Refuse to issue a licence.

      2. Issue a licence and, without the applicant's consent, impose conditions.

      3. Amend a licence without the licensee's consent.

      4. Refuse to renew a mortgage broker's or agent's licence.

      5. Renew a mortgage broker's or agent's licence and, without the applicant's consent, change the conditions to which the licence is subject.

      6. Suspend a licence without the licensee's consent, except by an interim order authorized by subsection 16 (3) or 17 (3).

      7. Revoke a licence without the licensee's consent.

      8. Refuse to allow the surrender of a brokerage licence or mortgage administrator's licence.

      9. Allow the surrender of a brokerage licence or mortgage administrator's licence and, without the applicant's consent, impose conditions concerning its surrender.

    Notice of proposal

    1. The Superintendent shall give written notice of the proposal to the applicant or licensee, including the reasons for the proposal; the Superintendent shall also inform the applicant or licensee that he, she or it can request a hearing by the Tribunal about the proposal and shall advise the applicant or licensee about the process for requesting the hearing.

    Hearing requested

    1. If the applicant or licensee requests a hearing and makes the request in the prescribed manner within 15 days after receiving notice of the proposal, the Tribunal shall hold a hearing.

    Order

    1. The Tribunal may, by order, direct the Superintendent to carry out the proposal, with or without changes, or substitute its opinion for that of the Superintendent and the Tribunal may impose such conditions as it considers appropriate in the circumstances.

    Appeal

    1. A party to a proceeding before the Tribunal under subsection (4) may appeal the order of the Tribunal to the Divisional Court.

    Effect of appeal

    1. An order of the Tribunal takes effect immediately, but if the order is appealed, the Tribunal may grant a stay of the order until the appeal is finally determined.

    Hearing not requested

    1. If the applicant or licensee does not request a hearing or does not make the request in the prescribed manner and within 15 days after receiving notice of the proposal, the Superintendent may carry out the proposal.

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Circumstances in which proposal not required

  1.  
    1. The Superintendent may revoke a licence or refuse to issue or renew a licence without making a proposal to do so and without taking the steps required by section 19,

      1. if the applicant or licensee fails to pay a fee or an administrative penalty as required under this Act;

      2. if the applicant or licensee does not give the Superintendent information or documents as required under this Act; or

      3. in such other circumstances as may be prescribed.

    Notice

    1. The Superintendent shall give written notice to the applicant or licensee before exercising the Superintendent's authority under subsection (1).

Public register of licensees

  1.  
    1. The Superintendent shall maintain a register containing the name, licence number and business address of every person who has a licence and may maintain separate registers for different types and classes of licence.

    Same

    1. The register must also include the expiry date of each mortgage broker's or agent's licence and the name and business address of the mortgage brokerage on whose behalf the mortgage broker or agent is authorized to deal in mortgages or trade in mortgages.

    Same

    1. The register shall be made available for inspection by the public without charge in accordance with the regulations.

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ADMINISTRATION

Information requirements

  1.  
    1. Every licensee shall give the Superintendent such information and documents as may be prescribed and shall do so in the prescribed manner and within the prescribed period.

    Additional information

    1. A licensee shall give the Superintendent such additional information and documents as the Superintendent may request and shall do so in the manner and within the period specified by the Superintendent.

    Failure to comply

    1. The Superintendent may, by order, impose an administrative penalty on a person who fails to comply with subsection (1) or (2) and shall do so in accordance with the regulations.

    Same

    1. Before imposing a penalty, the Superintendent shall give the person a reasonable opportunity to make written submissions.

    Appeal

    1. The person may appeal the Superintendent's order to the Tribunal in the prescribed manner within 15 days after the receiving the order, and an appeal operates as a stay of the order until the matter is finally disposed of.

    Same

    1. The Tribunal may confirm, revoke or vary the order within the limits, if any, established by the regulations made under subsection (3).

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Inquiries and examinations
Of licensees

  1.  
    1. The Superintendent or a person designated by the Superintendent may make inquiries and conduct examinations of the affairs of each licensee to ensure that the licensee is complying with the requirements established under this Act.

    Of other persons

    1. If, in the Superintendent's opinion, a person who is not a licensee is or was required to have a licence, the Superintendent or a person designated by the Superintendent may make such inquiries and conduct such examinations of the person's affairs as the Superintendent or designate considers appropriate in the circumstances.

    Powers

    1. The Superintendent or designate may do any of the following things in the course of making an inquiry or conducting an examination:

      1. Enter and inspect at any reasonable time any premises used in connection with the licensee's or person's business or activities.

      2. Inspect money, valuables, documents and records of the licensee or person that may be relevant to the inquiry or examination.

      3. Require a person to answer questions about anything that may be relevant to the inquiry or examination.

      4. In order to produce information, use any data storage, processing or retrieval device or system that is used in connection with the licensee's or person's business or activities.

      5. Require a person to produce a document or record or provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce information.

      6. Remove for examination and copying anything that may be relevant to the inquiry or examination, including removing any data storage, processing or retrieval device in order to produce information.

    Entry into dwelling

    1. The Superintendent or designate shall not enter any part of a premises that is used as a dwelling unless the occupant consents to the entry or the Superintendent or designate is authorized to enter the dwelling by a warrant issued under section 25.

    Use of force

    1. The Superintendent or designate shall not use force to enter or inspect premises.

    Duty to assist

    1. If the Superintendent or designate requires a person to answer questions, to produce a document or record or to provide assistance, the person shall do so in the manner and within the period specified by the Superintendent or designate.

    Receipt for things removed

    1. The Superintendent or designate shall give a receipt for anything that he or she removes for examination and copying and the Superintendent or designate shall promptly return the thing to the person who produced it.

    Identification

    1. Upon request, the designate shall produce evidence of his or her designation.

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Power to summon persons, etc.

  1.  
    1. The Superintendent or a person designated by the Superintendent may, by summons, require a person to produce such documents and things as the Superintendent or designate may specify and to give such information on oath or affirmation as the Superintendent or designate considers relevant for the purpose of determining whether a person is complying with a requirement established under this Act.

    Same

    1. The Superintendent or designate may exercise the power described in subsection (1) if the Superintendent or designate believes it to be necessary in order to determine whether a person is complying with a requirement established under this Act and if the Superintendent or designate believes that exercising the power is, in the circumstances, in the public interest.

    Identification

    1. Upon request, the designate shall produce evidence of his or her designation.

    Right to counsel

    1. A person may be represented by counsel when giving information on oath or affirmation.

    Stated case

    1. If the person does not comply with the summons, the Superintendent may state a case to the Divisional Court setting out the facts and, after hearing any witnesses who may be produced against or on behalf of that person and after hearing any statement that may be offered in defence, the court may punish the person in the same manner as if the person had been guilty of contempt of the court.

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Search warrant

  1.  
    1. A justice of the peace may issue a warrant under this section if he or she is satisfied on information under oath,

      1. that there are reasonable grounds for believing that a person has contravened a requirement established under this Act or has committed an offence under the law of any jurisdiction that is relevant to the person's fitness to be licensed; and

      2. that, in a building, dwelling, receptacle or place, there is anything related to the contravention or to the person's fitness to be licensed.

    Same, entry or access refused

    1. A justice of the peace may also issue a warrant under this section if he or she is satisfied on information under oath that the Superintendent or a person designated by the Superintendent has been refused entry or access to a building, dwelling, receptacle or place.

    Application for warrant

    1. The Superintendent or a person designated by the Superintendent may, without notice, apply to a justice of the peace for a warrant under this section.

    Powers under warrant

    1. The justice of the peace may issue a warrant under this section and the warrant authorizes the Superintendent or designate to exercise the following powers and such other powers as may be specified in the warrant:

      1. To enter or access the building, dwelling, receptacle or place specified in the warrant for the purpose of conducting an inquiry or examination under this Act.

      2. To exercise such of the powers described in section 23 as may be specified in the warrant.

    Expert help

    1. The warrant may authorize persons who have special, expert or professional knowledge to accompany and assist the Superintendent or designate.

    Restriction re dwelling

    1. The Superintendent or designate shall not enter a place, or part of a place, used as a dwelling unless the justice of the peace is informed that the warrant is being sought to authorize entry into a dwelling and he or she authorizes the entry into the dwelling.

    Time of execution

    1. Entry or access under a warrant shall be made between 6 a.m. and 9 p.m. unless the warrant specifies otherwise.

    Use of force

    1. The Superintendent or designate may call upon police officers for assistance in executing the warrant and may use whatever force is reasonably necessary to execute the warrant.

    Expiry of warrant

    1. A warrant shall specify an expiry date, which shall be no later than 30 days after the warrant is issued, but a justice of the peace may extend the warrant for an additional period of no more than 30 days upon application without notice.

Immunity re disclosures

  1. A person who gives information or documents to the Tribunal, the Superintendent or any other person acting under the authority of this Act is not liable in any civil action for having done so if the person giving the information or documents was acting in good faith and if the information or documents were relevant to the duties of the Tribunal, Superintendent, designate or other person.

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ENFORCEMENT

Compliance order

  1.  
    1. This section applies if, in the Superintendent's opinion,

      1. a person is committing any act or pursuing any course of conduct that does not comply with a requirement established under this Act;

      2. a person is committing any act or pursuing any course of conduct that might reasonably be expected to result in a state of affairs that would not comply with a requirement established under this Act; or

      3. a person has committed any act or pursued any course of conduct that does not comply with a requirement established under this Act.

    Proposal re order

    1. The Superintendent may propose to order the person to cease committing an act or cease pursuing a course of conduct identified by the Superintendent or to perform such acts as, in the Superintendent's opinion, are necessary to remedy the situation.

    Notice of proposal

    1. The Superintendent shall give written notice of the proposal to the person including the reasons for the proposal; the Superintendent shall also inform the person that he, she or it can request a hearing by the Tribunal about the proposal and shall advise the person about the process for requesting the hearing.

    Hearing requested

    1. If the person requests a hearing and makes the request in the prescribed manner within 15 days after receiving notice of the proposal, the Tribunal shall hold a hearing.

    Order

    1. The Tribunal may, by order, direct the Superintendent to carry out the proposal, with or without changes, or substitute its opinion for that of the Superintendent and the Tribunal may impose such conditions as it considers appropriate in the circumstances.

    Hearing not requested

    1. If the person does not request a hearing or does not make the request in the prescribed manner within 15 days after receiving notice of the proposal, the Superintendent may carry out the proposal.

    Interim order

    1. If, in the opinion of the Superintendent, the interests of the public may be adversely affected by any delay in the issuance of an order (a "permanent order") as a result of the steps required by subsections (3), (4) and (5), the Superintendent may, without notice, make an interim order as described in subsection (2) and may do so before or after giving notice of his or her proposal to make the permanent order.

    Same

    1. An interim order takes effect immediately and remains in effect until the expiry of the period for requesting a hearing about the Superintendent's proposal to make the permanent order.

    Same

    1. Despite subsection (8), if before the end of such period as may be prescribed the Superintendent does not give the person notice of the proposal to make the permanent order, the interim order expires at the end of the prescribed period.

    Extension of interim order

    1. If the person requests a hearing about the proposal to make the permanent order, the Superintendent may extend the interim order until the proposal is finally determined.

    Amendment, etc., of interim order

    1. The Superintendent may amend, revoke or replace an interim order and the amended or replacement order has effect as described in subsection (8), (9) and (10).

    Amendment of permanent order

    1. The Superintendent may amend a permanent order and, if the Superintendent proposes to amend it, subsections (2) to (6) apply with respect to the proposal.

    Revocation of permanent order

    1. The Superintendent may revoke a permanent order.

    Court enforcement

    1. The Superintendent may file a certified copy of an order made under this section in the Superior Court of Justice and the order shall be deemed to be an order of that court and is enforceable as such.

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Order to freeze assets and trust funds
Circumstances

  1.  
    1. This section applies in any of the following circumstances:

      1. The Superintendent has notified, or is about to notify, a person (the "designated person") under subsection 19 (2) that the Superintendent proposes to refuse the designated person's application for a licence or application to renew a licence or that the Superintendent proposes to suspend or revoke the designated person's licence without his, her or its consent.

      2. The Superintendent has, or is about to, make an interim order under subsection 16 (3) or 17 (3) suspending the designated person's licence.

      3. The Superintendent has notified, or is about to notify, the designated person under subsection 27 (3) that the Superintendent proposes to make an order concerning him, her or it.

      4. The Superintendent has made, or is about to make, an interim order under subsection 27 (7) concerning the designated person.

      5. The Superintendent believes that proceedings for an offence under this Act have been or are about to be instituted against the designated person or a director, officer or employee of the designated person.

      6. The Superintendent believes that proceedings in relation to a contravention of any other Act have been or are about to be instituted against the designated person in connection with or arising out of activities for which a licence under this Act is required.

    Orders

    1. The Superintendent may, without notice, make any order under this section with respect to the designated person if the Superintendent believes it to be in the public interest to do so.

    Order to third party

    1. The Superintendent may order a person who holds assets or trust funds on deposit or controls them for or on behalf of the designated person to hold them.

    Order to refrain from withdrawing assets, etc.

    1. The Superintendent may order the designated person to refrain from withdrawing assets or trust funds from another person who has them on deposit or controls them.

    Order to have assets, etc., in trust

    1. The Superintendent may order the designated person to hold assets or trust funds of another person in trust for the person entitled to them.

    Orders given to financial institution

    1. An order given to a financial institution, other than an insurer, applies only with respect to the offices and branches named in the order.

    Effect

    1. An order takes effect immediately and may be made subject to such conditions as the Superintendent considers appropriate.

    Release of assets

    1. The Superintendent may consent to the release of any particular asset or trust fund from the order or may wholly revoke the order.

    Effect of giving security

    1. The Superintendent shall not make an order under subsection (3), (4) or (5) if the designated person gives the Superintendent security in any of the following forms and in the amount and manner required by the Superintendent:

      1. A personal bond accompanied by collateral security.

      2. A bond of an insurer who is licensed under the Insurance Act to write surety and fidelity insurance.

      3. A bond of a guarantor accompanied by collateral security.

      4. Another prescribed form of security.

    Same

    1. If an order is made under subsection (3), (4) or (5) before the designated person gives the Superintendent the security described in subsection (9), the Superintendent shall revoke the order.

    Notice in land registry office

    1. The Superintendent may register in the appropriate land registry office a notice that an order has been made under this section and that the order may affect land belonging to the person referred to in the notice; and this notice has the same effect as the registration of a certificate of pending litigation, except that the Superintendent may in writing revoke or modify the notice.

    Application to court

    1. A person in receipt of an order under this section may apply to the Superior Court of Justice if the person is in doubt about whether the order applies to a particular asset or trust fund.

    Same

    1. A person who claims an interest in an asset or a trust fund that is subject to an order under this section may apply to the Superior Court of Justice for a decision concerning the disposition of the asset or trust fund.

    Same, by Superintendent

    1. The Superintendent may apply to the Superior Court of Justice for directions or an order relating to the disposition of assets, trust funds or land affected by an order under this section or a notice filed under subsection (11), and the application may be made without notice to any other person.

    Court order

    1. On an application under subsection (12), (13) or (14), the court may make any order the court considers appropriate in the circumstances.

    Application to Tribunal

    1. A designated person in respect of whom an order under this section is made may apply to the Tribunal for cancellation of the order in whole or in part and the Tribunal may, by order, do so if the Tribunal is satisfied that the order or the part of the order is not required in the public interest.

    Same

    1. A person who has an interest in land affected by a notice filed under subsection (11) may apply to the Tribunal to discharge the registration of the notice in whole or in part and the Tribunal may, by order, do so if the Tribunal is satisfied that registration of the notice or the part of the notice is not required to protect other persons having an interest in the land.

    Appeal

    1. A party to a proceeding before the Tribunal under subsection (16) or (17) may appeal the order of the Tribunal to the Divisional Court.

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Appointment of receiver, etc.

  1.  
    1. The Superintendent may apply to the Superior Court of Justice for an order appointing a receiver, receiver and manager, trustee or liquidator of property that is in the possession or under the control of a person (the "designated person") who the Superintendent believes, on reasonable grounds, is or was required to be licensed.

    Orders

    1. If the court is satisfied that the appointment is in the public interest, the court may make the appointment and may impose such conditions as the court considers appropriate.

    Application without notice

    1. The court may make an order on an application without notice, but the period of the appointment shall not exceed 15 days.

    Same

    1. If an order is made without notice, the Superintendent may apply to the court within 15 days after the date of the order to continue the order or for such other order as the court considers appropriate.

    Powers of appointee

    1. The appointee has the powers specified in the order and, if so directed by the court, has the authority to wind up or manage the affairs of the designated person.

    Effect of appointment

    1. When an order is made, the directors of the designated person are no longer entitled to exercise the powers that are given to the appointee; and when the appointee is discharged by the court, the directors become entitled to exercise those powers once again.

    Fees and expenses

    1. The appointee's fees and expenses are in the discretion of the court.

    Variation or discharge of order

    1. The court may vary or discharge an order made under this section.

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General administrative penalties

  1.  
    1. This section applies if the Superintendent is satisfied that a person is contravening or has contravened a requirement established under this Act, other than a requirement described in subsection 22 (1), (2) or (3).

    Amount of penalty

    1. An administrative penalty for a contravention may be imposed in accordance with the regulations and shall not exceed $25,000 for a contravention by a person who is, or is required to be, licensed as a mortgage brokerage or a mortgage administrator and $10,000 for a contravention by a person who is, or is required to be, licensed as a mortgage broker or agent.

    Proposal to impose penalty

    1. If the Superintendent proposes to impose an administrative penalty on a person for a contravention, the Superintendent shall give written notice of the proposal to the person, including the details of contravention, the amount of the penalty and the payment requirements; the Superintendent shall also inform the person that he, she or it can request a hearing by the Tribunal about the proposal and shall advise the person about the process for requesting a hearing.

    Limitation

    1. The Superintendent shall not make a proposal more than two years after the later of the day on which the contravention occurred or the day on which the Superintendent became aware of the contravention.

    Hearing requested

    1. If the person requests a hearing and makes the request in the prescribed manner within 15 days after receiving notice of the proposal, the Tribunal shall hold a hearing.

    Order

    1. The Tribunal may, by order, direct the Superintendent to carry out the proposal, with or without changes, or substitute its opinion for that of the Superintendent.

    Hearing not requested

    1. If the person does not request a hearing or does not make the request within the prescribed period or in the prescribed manner, the Superintendent may, by order, carry out the proposal.

    Effect of paying penalty

    1. If the person pays the administrative penalty in accordance with the terms of the order, the person cannot be charged with an offence under this Act in respect of the same contravention.

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Enforcement of administrative penalties

  1.  
    1. If a person fails to pay an administrative penalty imposed under section 22 or 30 in accordance with the terms of the order imposing the penalty, the Superintendent may file the order with the Superior Court of Justice and the order may be enforced as if it were an order of the court.

    Same

    1. For the purposes of section 129 of the Courts of Justice Act, the date on which the order is filed with the court shall be deemed to be the date of the order.

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OFFENCES

Prohibition against obstruction

  1.  
    1. No person shall hinder or obstruct a designate in the performance of his or her duties under this Act.

    Same

    1. No person shall withhold from a designate or conceal, alter or destroy anything relevant to an examination under this Act.

Prohibition re false or misleading information

  1.  
    1. No person shall give false or misleading information to the Superintendent or a designate in respect of any matter related to this Act or the regulations.

    Same

    1. No person shall include false or misleading information in any document required to be created, stored or given to the Superintendent under this Act.

Prohibition against reprisals

  1. No person shall take adverse employment action against any employee of any person because the employee, acting in good faith, has given information or documents to the Tribunal, the Superintendent, a designate or any other person acting under the authority of this Act.

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Prohibition against unfair or deceptive acts or practices

  1.  
    1. No person shall engage in any unfair or deceptive act or practice with respect to dealing in mortgages in Ontario, trading in mortgages in Ontario, acting as a mortgage lender in Ontario or administering a mortgage in Ontario.

    Definition

    1. For the purposes of this section,

      "unfair or deceptive act or practice" means an activity or failure to act that is prescribed as an unfair or deceptive act or practice.

List of offences

  1.  
    1. Every person who contravenes any of the following provisions of this Act is guilty of an offence:

      1. Subsections 2 (2), (3) and (4) (Dealing in mortgages).

      2. Subsections 3 (2), (3) and (4) (Trading in mortgages).

      3. Subsections 4 (2) and (3) (Carrying on business as a mortgage lender).

      4. Subsections 5 (2) and (3) (Carrying on business as a mortgage administrator).

      5. Subsection 23 (5) (Inquiries and examinations).

      6. Subsection 32 (1) or (2) (Prohibition against obstruction).

      7. Subsection 33 (1) or (2) (Prohibition re false or misleading information).

      8. Section 34 (Prohibition against reprisals).

      9. Subsection 35 (1) (Prohibition against unfair or deceptive acts or practices).

    Offence re regulation

    1. Every person who contravenes a provision of a regulation is guilty of an offence.

    Offence re orders

    1. Every person who fails to comply with an order made under this Act is guilty of an offence.

    Liability of directors and officers

    1. If a corporation commits an offence, every director or officer of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence or who failed to take reasonable care to prevent the corporation from committing the offence is a party to and guilty of the offence and on conviction is liable to the punishment provided for the offence, whether or not the corporation has been prosecuted and convicted.

    Limitation

    1. No proceeding under this section shall be commenced more than two years after the facts upon which the proceeding is based first come to the attention of the Superintendent.

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Penalties for offences
For an individual

  1.  
    1. Every individual convicted of an offence under this Act is liable to a fine of not more than $100,000 or imprisonment for a term of not more than one year or both a fine and imprisonment.

    For a corporation

    1. Every corporation convicted of an offence under this Act is liable to a fine of not more than $200,000.

    For a partnership or sole proprietorship

    1. Despite subsection (1), if an individual is carrying on business as partner in a partnership or as a sole proprietorship and if the partnership or sole proprietorship has, or is required to have, a brokerage licence or a mortgage administrator's licence, the individual is liable to the penalties described in subsection (2) if he or she is convicted of an offence under this Act relating to the powers or duties of the brokerage or mortgage administrator, as the case may be.

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Additional order for compensation or restitution

  1.  
    1. If a person is convicted of an offence under this Act, the court may order the person convicted to pay compensation or make restitution in such amount and on such conditions as the court considers just, in addition to any other penalty imposed by the court.

    Civil remedy

    1. No civil remedy for an act or omission is affected by reason only that an order for compensation or restitution under this section has been made in respect of that act or omission.

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DUTY TO DISCLOSE
THE COST OF BORROWING

Required disclosure

  1.  
    1. A mortgage broker or agent shall disclose to each borrower the cost of borrowing and any other information prescribed for the purposes of this section.

    Same

    1. For the purposes of disclosure required by subsection (1), the cost of borrowing,

      1. shall be calculated on the basis that all obligations of the borrower are duly fulfilled;

      2. shall be calculated in accordance with the regulations;

      3. shall be expressed as a rate per annum; and

      4. where required by the regulations, shall be expressed as an amount in dollars and cents.

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Additional disclosure - term mortgages

  1. A mortgage broker or agent shall disclose the following to a borrower with respect to a mortgage if the mortgage is required to be repaid on a fixed future date or by instalments:

    1. Whether the borrower has the right to repay the amount borrowed before the maturity of the mortgage.

    2. Any terms and conditions relating to a right described in paragraph 1, including particulars of the circumstances in which the borrower may exercise the right.

    3. Whether any portion of the cost of borrowing for the mortgage is to be rebated to the borrower or any charge or penalty is to be imposed on the borrower, if the borrower exercises a right described in paragraph 1.

    4. The manner in which any rebate, charge or penalty referred to in paragraph 3 is to be calculated.

    5. Particulars of any charges or penalties to be imposed on the borrower if the borrower fails to repay the amount of the mortgage at maturity or fails to pay an instalment on the day the instalment is due to be paid.

    6. If the mortgage brokerage is the lender, particulars of any prescribed change relating to the mortgage agreement or the cost of borrowing for the mortgage.

    7. Particulars of any rights or obligations of the borrower prescribed by the regulations for the purposes of this section.

    8. Any other information prescribed for the purposes of this section.

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Additional disclosure - other mortgages

  1.  
    1. A mortgage broker or agent shall disclose the following to a person if there is an arrangement to enter into a loan secured by a mortgage with the person in respect of which section 40 does not apply:

      1. Particulars of any charges or penalties to be imposed on the person if he or she fails to pay an amount in accordance with the arrangement.

      2. Particulars of any charges for which the person becomes responsible by entering the arrangement.

      3. If the mortgage brokerage is the lender, particulars of any prescribed change relating to the arrangement or the cost of borrowing under the arrangement.

      4. Particulars of any rights or obligations of the person prescribed for the purposes of this section.

      5. Any other information prescribed for the purposes of this section.

    Interpretation

    1. For the purposes of subsection (1), an arrangement for the making of a loan secured by a mortgage includes an arrangement for a line of credit.

Statement re mortgage renewal

  1. The mortgage broker or agent shall disclose to the borrower such information respecting renewal of the mortgage as is prescribed.

Disclosure in advertising

  1. No person shall authorize any advertisement for a mortgage which purports to contain information relating to the cost of borrowing or any other prescribed matter unless the advertisement contains the information that may be required by the regulations and is in the form and manner that may be prescribed.

Disclosure on behalf of other persons

  1. Subject to the regulations, sections 39 to 42 and the regulations under those sections do not apply to a mortgage broker or agent where one of the persons set out in Column 1 of the following Table, acting as a lender, authorizes the mortgage broker or agent, or the brokerage, to provide a disclosure statement on the person's behalf, that disclosure statement meets the disclosure requirements under the legislation set out in Column 2 of the Table, opposite to that person, and the mortgage broker or agent, or the brokerage, does so:
COLUMN 1 COLUMN 2
A bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada) Bank Act (Canada)
A credit union or caisse populaire to which the Credit Unions and Caisses Populaires Act, 1994 applies or a league within the meaning of that Act Credit Unions and Caisses Populaires Act, 1994
An insurer licensed under the Insurance Act Insurance Act
A corporation registered under the Loan and Trust Corporations Act Loan andTrust Corporations Act
A retail association as defined under the Cooperative Credit Associations Act (Canada) Cooperative Credit Associations Act (Canada)
Another person licensed under this Act This Act

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Regulations re cost of borrowing

  1.  
    1. The Lieutenant Governor in Council may make regulations,

      1. prescribing, for the purposes of the definition of the "cost of borrowing" in subsection 1 (1), charges that are included in the cost of borrowing and charges that are excluded from the cost of borrowing;

      2. prescribing information other than the cost of borrowing that must be disclosed under section 39;

      3. prescribing the manner of calculating the cost of borrowing for the purposes of section 39;

      4. prescribing the circumstances in which the cost of borrowing must be expressed as an amount in dollars and cents for the purposes of section 39;

      5. prescribing the manner of calculating any rebate referred to in paragraph 4 of section 40;

      6. prescribing changes for the purposes of paragraph 6 of section 40 and paragraph 3 of subsection 41 (1);

      7. prescribing rights and obligations of borrowers for the purposes of paragraph 7 of section 40 and paragraph 4 of subsection 41 (1);

      8. prescribing information that must be disclosed under paragraph 8 of section 40 and paragraph 5 of subsection 41 (1);

      9. prescribing information for the purposes of section 42;

      10. prescribing matters for the purposes of section 43 and respecting the form, manner and content of advertisements for the purposes of section 43;

      11. prescribing the time, manner and form of any disclosure required under sections 40 to 42;

      12. prescribing classes of mortgages in respect of which some or all of the requirements of sections 39 to 42 do not apply;

      13. prohibiting the imposition by a brokerage who is the lender of any charge or penalty referred to in section 40 or 41;

      14. governing the nature and amount of any charge or penalty referred to in section 40 or 41 that may be imposed by a brokerage who is the lender, including but not limited to,

        1. regulations providing that such a charge or penalty shall not exceed an amount prescribed in the regulation, and

        2. regulations respecting the costs of the brokerage, mortgage broker or agent that may be included or must be excluded in the determination of the charge or penalty;

      15. respecting information to be disclosed under the circumstances set out in section 42 and the form and manner of disclosing that information;

      16. respecting any other matter or thing that is necessary to carry out the purposes of sections 39 to 42.

    Same

    1. A regulation made under clause (1) (a) may exclude charges described in clause (a), (b) or (c) of the definition of ‘‘cost of borrowing" in subsection 1 (1).

    Same

    1. A regulation made under subsection (1) may be general or particular in its application and may be restricted in its application to the class or classes of mortgages or of lenders set out in the regulation.

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GENERAL

Approved methods of delivering information and documents

  1.  
    1. Any information or document to be given to a person under this Act must be given to the person in writing and may be delivered personally, sent by registered mail or sent by any other method that permits the sender to prove that the information or document was received by the person.

    Deemed receipt

    1. If information or a document is sent by registered mail to the addressee's most recent address as set out in the records maintained by the Superintendent, it shall be deemed to have been received by the addressee on the third day after mailing, unless the addressee establishes that he, she or it, acting in good faith, did not receive it until a later date because of an absence, illness or other cause beyond the addressee's control.

Matters of evidence

  1. A copy of a document or record certified by the Superintendent or a person designated by the Superintendent to be a true copy of the original is admissible in evidence to the same extent as the original and has the same evidentiary value.

Joint and several liability

  1.  
    1. If a licence is issued to a partnership, the partners are jointly and severally liable to comply with all conditions in the licence.

    Same

    1. If an order is issued to a partnership, the partners are jointly and severally liable to comply with all requirements of the order.

Fees

  1. The Minister of Finance may establish fees that are payable under this Act with respect to licensing and other administrative matters.

Forms

  1.  
    1. The Superintendent may approve the use of forms for any purpose under this Act.

    Verification of information

    1. The Superintendent may require a person to verify by affidavit or statutory declaration any information or document given under this Act to the Superintendent or to a person designated by the Superintendent for the purposes of this Act.

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Regulations, general

  1.  
    1. The Lieutenant Governor in Council may make regulations,

      1. prescribing anything that is required or permitted to be prescribed or that is required or permitted to be done in accordance with the regulations or as provided in the regulations;

      2. establishing classes of licences and governing the requirements relating to each class of licence;

      3. governing the issuance, amendment, renewal, suspension, revocation and surrender of licences;

      4. governing the public register of licences;

      5. governing the provision of information and documents to the Superintendent by licensees;

      6. governing proposals by the Superintendent that are referred to in sections 19, 27 and 30 with respect to licences;

      7. governing the administrative penalties that may be imposed under section 22 and those that may be imposed under section 30;

      8. providing for transitional matters relating to the requirements to be satisfied for issuance of licences.

    Classes of persons

    1. A regulation may create different classes of persons and may establish different entitlements for, or relating to, each class or impose different requirements, conditions or restrictions on, or relating to, each class.

    Exemptions, etc.

    1. A regulation may exempt a class from a specified requirement imposed by the Act or a regulation or provide that a specified provision of the Act or a regulation does not apply to the class.

    Administrative penalties

    1. Without limiting the generality of clause (1) (g) and subsection 22 (3), a regulation governing the administrative penalties referred to in subsection 22 (3) may,

      1. establish different fines or ranges of fines for different types of contraventions and for different classes of licensees and persons;

      2. authorize a fine to be levied for each day or part of a day on which a contravention continues;

      3. authorize higher fines for a second or subsequent contravention by a person;

      4. require that a fine be paid before a specified deadline;

      5. authorize the imposition of late payment fees respecting fines that are not paid before the specified deadline;

      6. establish the maximum cumulative fine payable in respect of a contravention or in respect of contraventions during a specified period.

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