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Bill C-420

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1st Session, 36th Parliament,
46-47 Elizabeth II, 1997-98

The House of Commons of Canada

BILL C-420

An Act to amend the Bank Act, the Insurance Companies Act and the Trust and Loan Companies Act (repayment of a mortgage loan before the maturity of the loan)

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

1991, cc. 46, 47, 48; 1992, cc. 27, 51; 1993, cc. 6, 28, 34, 44; 1994, cc. 24, 26, 47; 1996, c. 6; 1997, c. 15

BANK ACT

1. Paragraph 450(2)(a) of the Bank Act is replaced by the following:

    (a) a loan in excess of five hundred thousand dollars or such other amount as may be prescribed, where the loan is secured by a mortgage on real property;

2. Section 452 of the Act is amended by adding the following after subsection (1):

Information to be included

(1.1) Any regulation made under subsection (1) with respect to a loan secured by a mortgage on property that relates to the information required by paragraph (1)(a) shall provide that the information to be communicated by the bank shall be included in the mortgage document and expressed in plain language, in terms generally understood by the public.

1991, cc. 47, 48; 1992, c. 51; 1993, cc. 28, 34, 44; 1994, cc. 24, 26, 47; 1996, c. 6; 1997, c. 15

INSURANCE COMPANIES ACT

3. Paragraph 480(2)(a) of the Insurance Companies Act is replaced by the following:

    (a) a loan in excess of five hundred thousand dollars or such other amount as may be prescribed, where the loan is secured by a mortgage on real property;

4. Section 482 of the Act is amended by adding the following after subsection (1):

Information to be included

(1.1) Any regulation made under subsection (1) with respect to a loan secured by a mortgage on property that relates to the information required by paragraph (1)(a) shall provide that the information to be communicated by the company shall be included in the mortgage document and expressed in plain language, in terms generally understood by the public.

5. Paragraph 599(2)(a) of the Act is replaced by the following:

    (a) a loan in excess of five hundred thousand dollars or such other amount as may be prescribed, where the loan is secured by a mortgage on real property;

6. Section 601 of the Act is renumbered as subsection 601(1) and is amended by adding the following:

Information to be included

(1.1) Any regulation made under subsection (1) with respect to a loan secured by a mortgage on property that relates to the information required by paragraph (1)(a) shall provide that the information to be communicated by the foreign company shall be included in the mortgage document and expressed in plain language, in terms generally understood by the public.

1991, cc. 45, 47, 48; 1992, c. 51; 1993, cc. 28, 34, 44; 1994, cc. 24, 26, 47; 1996, c. 6; 1997, c. 15

TRUST AND LOAN COMPANIES ACT

7. Paragraph 436(2)(a) of the Trust and Loan Companies Act is replaced by the following:

    (a) a loan in excess of five hundred thousand dollars or such other amount as may be prescribed, where the loan is secured by a mortgage on real property;

8. Section 438 of the Act is amended by adding the following after subsection (1):

Information to be included

(1.1) Any regulation made under subsection (1) with respect to a loan secured by a mortgage on property that relates to the information required by paragraph (1)(a) shall provide that the information to be communicated by the company shall be included in the mortgage document and expressed in plain language, in terms generally understood by the public.

CONDITIONAL AMENDMENTS

1991, c. 46

BANK ACT

9. If section 49 of An Act to amend certain laws relating to financial institutions, being chapter 15 of the Statutes of Canada, 1997, comes into force before section 1 of this Act, section 1 of this Act is replaced by the following:

1. Subsection 450(2) of the Bank Act is replaced by the following:

Exceptions

(2) Subsection (1) does not apply in respect of

    (a) a loan in excess of five hundred thousand dollars or such other amount as may be prescribed, where the loan is secured by a mortgage on real property; or

    (b) a loan that is one of a prescribed class of loans.

1991, c. 47

INSURANCE COMPANIES ACT

10. If section 256 of An Act to amend certain laws relating to financial institutions, being chapter 15 of the Statutes of Canada, 1997, comes into force before section 3 of this Act, section 3 of this Act is replaced by the following:

3. Subsection 480(2) of the Insurance Companies Act is replaced by the following:

Non-
application

(2) Subsection (1) does not apply in respect of

    (a) a loan in excess of five hundred thousand dollars or such other amount as may be prescribed, where the loan is secured by a mortgage on real property; or

    (b) a loan that is one of a prescribed class of loans.

11. If section 307 of An Act to amend certain laws relating to financial institutions, being chapter 15 of the Statutes of Canada, 1997, comes into force before section 5 of this Act, section 5 of this Act is replaced by the following:

5. Subsection 599(2) of the Act is replaced by the following:

Non-
application

(2) Subsection (1) does not apply in respect of

    (a) a loan in excess of five hundred thousand dollars or such other amount as may be prescribed, where the loan is secured by a mortgage on real property; or

    (b) a loan that is one of a prescribed class of loans.

12. If section 308 of An Act to amend certain laws relating to financial institutions, being chapter 15 of the Statutes of Canada, 1997, comes into force before section 6 of this Act, section 6 of this Act is replaced by the following:

6. Section 601 of the Act is amended by adding the following after subsection (1):

Information to be included

(1.1) Any regulation made under subsection (1) with respect to a loan secured by a mortgage on property that relates to the information required by paragraph (1)(a) shall provide that the information to be communicated by the foreign company shall be included in the mortgage document and expressed in plain language, in terms generally understood by the public.

1991, c. 45

TRUST AND LOAN COMPANIES ACT

13. If section 379 of An Act to amend certain laws relating to financial institutions, being chapter 15 of the Statutes of Canada, 1997, comes into force before section 7 of this Act, section 7 of this Act is replaced by the following:

7. Subsection 436(2) of the Trust and Loan Companies Act is replaced by the following:

Exceptions

(2) Subsection (1) does not apply in respect of

    (a) a loan in excess of five hundred thousand dollars or such other amount as may be prescribed, where the loan is secured by a mortgage on real property; or

    (b) a loan that is one of a prescribed class of loans.

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