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  Disclosures

In accordance with province and federal regulations, the following disclosure and licensing information is available for you to review online:

Interpretation

1. (1) In this Act,

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (1) is amended by the Statutes of Ontario, 2001, chapter 8, section 186 by adding the following definition:

"bank" means a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada); ("banque")

See: 2001, c. 8, ss. 186, 189 (2).

"business premises" does not include a dwelling; ("locaux commerciaux")

"dwelling" means any premises or any part thereof occupied as living accommodation; ("logement")

"equity share" means a share of a class of shares that carries a voting right either under all circumstances or under some circumstances that have occurred and are continuing; ("action participante")

"Minister" means the Minister of Finance; ("ministre")

"mortgage" has the same meaning as in the Mortgages Act; ("hypothèque")

"mortgage broker" means a person who carries on the business of lending money on the security of real estate, whether the money is the person's money or that of another person, or who holds himself, herself or itself out as or who by an advertisement, notice or sign indicates that the person is a mortgage broker, or a person who carries on the business of dealing in mortgages; ("courtier en hypothèques")

"non-resident" means an individual, corporation or trust that is not a resident; ("non-résident")

"prescribed" means prescribed by this Act or the regulations; ("prescrit")

"registered" means registered under this Act; ("inscrit")

"regulations" means the regulations made under this Act; ("règlements")

"resident" means,

(a) an individual who is a Canadian citizen or has been lawfully admitted to Canada for permanent residence and who is ordinarily resident in Canada,

(b) a corporation that is incorporated, formed or organized in Canada and that is controlled directly or indirectly by persons who are residents or by a resident trust, or

(c) a trust that is established by resident individuals or a resident corporation or one in which resident individuals or corporations hold more than 50 per cent of the beneficial interest; ("résident")

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

"Tribunal" means the Financial Services Tribunal established under the Financial Services Commission of Ontario Act, 1997. ("Tribunal") R.S.O. 1990, c. M.39, s. 1 (1); 1994, c. 27, s. 91 (1); 1997, c. 28, s. 173.

Note: Despite the re-enactment of the definition of "Tribunal" by the Statutes of Ontario, 1997, chapter 28, subsection 173 (4), The Commercial Registration Appeal Tribunal shall continue to conduct, and decide issues raised in, proceedings that were commenced under the Act but not concluded on July 1, 1998. See: 1997, c. 28, s. 173 (5).

Note: Despite subsection 173 (5) of the Financial Services Commission of Ontario Act, 1997, the Licence Appeal Tribunal shall conduct, and decide issues raised in, proceedings under this Act that were before the Commercial Registration Appeal Tribunal immediately before April 1, 2000. See: 1999, c. 12, Sched. G, s. 28.

Control

(2) For the purposes of clause (b) of the definition of "resident" in section 1, a corporation shall be deemed to be controlled by another person or corporation or by two or more corporations if,

(a) equity shares of the first-mentioned corporation carrying more than 50 per cent of the votes for the election of directors are held, otherwise than by way of security only, by or for the benefit of such other person or corporation or by or for the benefit of such other corporations; and

(b) the votes carried by such securities are sufficient, if exercised, to elect a majority of the board of directors of the first-mentioned corporation. R.S.O. 1990, c. M.39, s. 1 (2).

Exemptions

2. This Act, except sections 11 to 21, does not apply to,

(a) corporations registered under the Insurance Act or the Investment Contracts Act;

(b) corporations registered under the Loan and Trust Corporations Act that are not also registered under the Real Estate and Business Brokers Act;

(c) banks under the Bank Act (Canada);

Note: On a day to be named by proclamation of the Lieutenant Governor, clause (c) is repealed by the Statutes of Ontario, 2001, chapter 8, section 187 and the following substituted:

(c) banks;

See: 2001, c. 8, ss. 187, 189 (2).

(d) credit unions;

(e) non-resident insurance companies loaning on the security of first mortgages or acquiring first mortgages of Ontario real estate under section 22 of the Extra-Provincial Corporations Act;

(f) an employee of a party to a mortgage transaction when the employee is acting for or on behalf of his or her employer. R.S.O. 1990, c. M.39, s. 2.

3. Repealed: 1997, c. 28, s. 174.

Registration required

4. (1) No person shall carry on business as a mortgage broker unless the person is registered by the Superintendent under this Act. R.S.O. 1990, c. M.39, s. 4 (1); 1997, c. 28, s. 172 (1).

Name and place of business

(2) A registered mortgage broker shall not carry on business in a name other than the name in which the mortgage broker is registered or invite the public to deal at a place other than that authorized by the registration.

Publication of registration

(3) No person shall publish or cause to be published in writing any representation that the person is registered under this Act.

Registered real estate brokers

(4) Every person who is registered as a real estate broker under the Real Estate and Business Brokers Act shall, so long as the person is so registered, be deemed to be registered as a mortgage broker under this Act. R.S.O. 1990, c. M.39, s. 4 (2-4).

Registration of mortgage brokers

5. (1) An applicant is entitled to registration or renewal of registration by the Superintendent except where,

(a) having regard to the applicant's financial position, the applicant cannot reasonably be expected to be financially responsible in the conduct of business; or

(b) the past conduct of the applicant affords reasonable grounds for belief that the applicant will not carry on business in accordance with law and with integrity and honesty; or

(c) the applicant is a corporation and,

(i) having regard to its financial position, it cannot reasonably be expected to be financially responsible in the conduct of its business, or

(ii) the past conduct of its officers or directors affords reasonable grounds for belief that its business will not be carried on in accordance with law and with integrity and honesty; or

(d) the applicant is carrying on activities that are, or will be, if the applicant is registered, in contravention of this Act or the regulations; or

(e) the applicant fails to comply with section 8 or 9, as the case may be. R.S.O. 1990, c. M.39, s. 5 (1); 1997, c. 28, s. 172 (1).

Conditions of registration

(2) A registration is subject to such terms and conditions to give effect to the purposes of this Act as are consented to by the applicant, imposed by the Tribunal or the Superintendent or prescribed by the regulations. R.S.O. 1990, c. M.39, s. 5 (2); 1997, c. 28, ss. 172 (2), 175 (1).

Same, Superintendent's proposal

(3) Subject to section 7, the Superintendent may impose terms and conditions on the registration of an applicant or registrant. 1997, c. 28, s. 175 (2).

Refusal to register

6. (1) Subject to section 7, the Superintendent may refuse to register an applicant where in the Superintendent's opinion the applicant is disentitled to registration under section 5. R.S.O. 1990, c. M.39, s. 6 (1); 1997, c. 28, s. 172 (1).

Revocation

(2) Subject to section 7, the Superintendent may refuse to renew or may suspend or revoke a registration for any reason that would disentitle the registrant to registration under section 5 if the registrant were an applicant, or where the registrant is in breach of a term or condition of the registration. R.S.O. 1990, c. M.39, s. 6 (2); 1997, c. 28, s. 172 (1).

Proposal to refuse to register, to revoke, etc.

7. (1) If the Superintendent proposes to refuse to grant or renew a registration, proposes to impose terms and conditions on the registration of an applicant or a registrant or proposes to suspend or revoke a registration, the Superintendent shall serve notice of the proposal, together with written reasons for it, on the applicant or registrant. 1997, c. 28, s. 176 (1).

Notice requiring hearing

(2) A notice under subsection (1) shall state that the applicant or registrant is entitled to a hearing by the Tribunal if the applicant or registrant mails or delivers, within fifteen days after the notice under subsection (1) is served, notice in writing requiring a hearing to the Superintendent and the Tribunal. R.S.O. 1990, c. M.39, s. 7 (2); 1997, c. 28, s. 172.

Powers of Registrar where no hearing

(3) Where an applicant or registrant does not require a hearing by the Tribunal in accordance with subsection (2), the Superintendent may carry out the proposal stated in the notice under subsection (1). R.S.O. 1990, c. M.39, s. 7 (3); 1997, c. 28, s. 172.

Powers of Tribunal where hearing

(4) Where an applicant or registrant requires a hearing by the Tribunal in accordance with subsection (2), the Tribunal shall appoint a time for and hold the hearing and, on the application of the Superintendent at the hearing, may by order direct the Superintendent to carry out the Superintendent's proposal or refrain from carrying out the proposal and to take such action as the Tribunal considers the Superintendent ought to take in accordance with this Act and the regulations, and for such purposes the Tribunal may substitute its opinion for that of the Superintendent. R.S.O. 1990, c. M.39, s. 7 (4); 1997, c. 28, s. 172.

Conditions of order

(5) The Tribunal may attach such terms and conditions to its order or to the registration as it considers proper to give effect to the purposes of this Act. R.S.O. 1990, c. M.39, s. 7 (5); 1997, c. 28, s. 172 (2).

Parties

(6) The Superintendent, the applicant or registrant who has required the hearing and such other persons as the Tribunal may specify are parties to proceedings before the Tribunal under this section. R.S.O. 1990, c. M.39, s. 7 (6); 1997, c. 28, s. 172.

Voluntary cancellation

(7) Despite subsection (1), the Superintendent may cancel a registration upon the request in writing of the registrant in the form approved by the Superintendent surrendering the registrant's registration. R.S.O. 1990, c. M.39, s. 7 (7); 1997, c. 19, s. 15 (1); 1997, c. 28, s. 172 (1); 1999, c. 12, Sched. I, s. 6 (1).

Continuation of registration pending renewal

(8) Where, within the time prescribed therefor or, if no time is prescribed, before expiry of the registration, a registrant has applied for renewal of a registration and paid the fee established by the Minister, the registration shall be deemed to continue,

(a) until the renewal is granted; or

(b) where the registrant is served with notice that the Superintendent proposes to refuse to grant the renewal, until the time for giving notice requiring a hearing has expired and, where a hearing is required, until the Tribunal has made its order. R.S.O. 1990, c. M.39, s. 7 (8); 1997, c. 19, s. 15 (2); 1997, c. 28, s. 172.

When order effective

(9) Even though a registrant appeals from an order of the Tribunal under section 30.1, the order takes effect immediately but the Tribunal may grant a stay until disposition of the appeal. 1997, c. 28, s. 176 (2).

Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section:

Cost of Borrowing

Definition of "cost of borrowing"

7.1 In sections 7.2 to 7.8,

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

(a) the interest or discount applicable to the mortgage,

(b) any amount charged in connection with the mortgage that is payable by the borrower to the mortgage broker or the lender,

(c) any amount charged in connection with the mortgage that is payable by the borrower to a person other than the mortgage broker or lender, where the amount is chargeable, directly or indirectly, by the person to the mortgage broker or lender, and

(d) any charge prescribed by the regulations as included in the cost of borrowing,

but does not include any charge prescribed by the regulations as excluded from the cost of borrowing.

See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2).

Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section:

Disclosure of cost of borrowing

7.2 (1) A mortgage broker shall disclose to each borrower the cost of borrowing and any other information prescribed for the purposes of this section by the regulations.

Same

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

(a) shall be calculated on the basis that all obligations of the borrower are duly fulfilled;

(b) shall be calculated in accordance with the regulations;

(c) shall be expressed as a rate per annum; and

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

See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2).

Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section:

Additional disclosure - term mortgages

7.3 A mortgage broker 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 broker 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 by the regulations for the purposes of this section.

See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2).

Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section:

Additional disclosure - other mortgages

7.4 (1) A mortgage broker 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 7.3 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 broker 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 by the regulations for the purposes of this section.

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

Interpretation

(2) 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.

See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2).

Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section:

Statement re mortgage renewal

7.5 The mortgage broker shall disclose to the borrower such information respecting renewal of the mortgage as is prescribed by the regulations.

See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2).

Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section:

Disclosure in advertising

7.6 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.

See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2).

Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section:

Disclosure on behalf of other persons

7.7 Subject to the regulations, sections 7.2 to 7.5 and the regulations under those sections do not apply to a mortgage broker where one of the persons set out in Column 1 of the following Table, acting as a lender, authorizes a mortgage broker to provide a disclosure statement on its 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 does so:

A bank
Bank Act (Canada)

An insurance company
Insurance Act

A trust corporation
Loan and Trust Corporations Act

A loan corporation
Loan and Trust Corporations Act

A credit union
Credit Unions and Caisses Populaires Act, 1994

Another mortgage broker
This Act



See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2).

Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section:

Regulations re disclosure

7.8 (1) The Lieutenant Governor in Council may make regulations,

(a) prescribing, for the purposes of section 7.1, charges that are included in the cost of borrowing and charges that are excluded from the cost of borrowing;

(b) prescribing information other than the cost of borrowing that must be disclosed under section 7.2;

(c) prescribing the manner of calculating the cost of borrowing for the purposes of section 7.2;

(d) prescribing the circumstances in which the cost of borrowing must be expressed as an amount in dollars and cents for the purposes of section 7.2;

(e) prescribing the manner of calculating any rebate referred to in paragraph 4 of section 7.3;

(f) prescribing changes for the purposes of paragraph 6 of section 7.3 and paragraph 3 of subsection 7.4 (1);

(g) prescribing rights and obligations of borrowers for the purposes of paragraph 7 of section 7.3 and paragraph 4 of subsection 7.4 (1);

(h) prescribing information that must be disclosed under paragraph 8 of section 7.3 and paragraph 5 of subsection 7.4 (1);

(i) prescribing information for the purposes of section 7.5;

(j) prescribing matters for the purposes of section 7.6 and respecting the form, manner and content of advertisements for the purposes of section 7.6;

(k) prescribing the time, manner and form of any disclosure required under sections 7.3 to 7.7;

(l) prescribing classes of mortgages in respect of which some or all of the requirements of sections 7.2 to 7.7 do not apply;

(m) prohibiting the imposition by a mortgage broker who is the lender of any charge or penalty referred to in section 7.3 or 7.4;

(n) governing the nature and amount of any charge or penalty referred to in section 7.3 or 7.4 that may be imposed by a mortgage broker who is the lender, including but not limited to,

(i) regulations providing that such a charge or penalty shall not exceed an amount prescribed in the regulation, and

(ii) regulations respecting the costs of the mortgage broker that may be included or must be excluded in the determination of the charge or penalty;

(o) respecting information to be disclosed under the circumstances set out in section 7.7 and the form and manner of disclosing that information;

(p) respecting any other matter or thing that is necessary to carry out the purposes of sections 7.2 to 7.7.

Same

(2) 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 section 7.1.

Same

(3) 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.

See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2).

Resident requirements re individuals

8. (1) Subject to subsection (2), no individual shall carry on business in Ontario as a mortgage broker unless,

(a) he or she is a resident; or

(b) where he or she is a member of a partnership or an association, syndicate or organization of individuals, every member thereof is a resident.

Idem

(2) An individual who was carrying on business as a registered mortgage broker immediately before the 2nd day of October, 1973, and who on that day was in contravention of subsection (1), may continue to carry on business subject to the provisions of this Act if,

(a) his or her interest or any part thereof is not transferred to or for the benefit of a non-resident; or

(b) where he or she is a member of a partnership or an association, syndicate or organization of individuals, no person who is a non-resident is admitted as a member thereof. R.S.O. 1990, c. M.39, s. 8.

Resident requirements re corporations

9. (1) No corporation shall carry on business in Ontario as a mortgage broker if,

(a) the total number of equity shares of the corporation beneficially owned directly or indirectly by non-residents or over which non-residents exercise control or direction exceeds 25 per cent of the total number of issued and outstanding equity shares of the corporation;

(b) the total number of equity shares of the corporation beneficially owned directly or indirectly by a non-resident over which the non-resident exercises control or direction, together with other shareholders associated with the non-resident, if any, exceeds 10 per cent of the total number of issued and outstanding equity shares of the corporation; or

(c) the corporation is not incorporated by or under an Act of Ontario, Canada or any province of Canada.

Idem

(2) In calculating the total number of equity shares of the corporation beneficially owned or controlled for the purposes of this section, the total number shall be calculated as the total of all the shares actually owned or controlled, but each share that carries the right to more than one vote shall be calculated as the number of shares equalling the total number of votes it carries.

Idem

(3) A corporation that was carrying on business as a registered mortgage broker immediately before the 2nd day of October, 1973, and which on that day was in contravention of subsection (1), may continue to carry on business, subject to the provisions of this Act,

(a) in the case of a contravention of clause (1) (a) or (b), if no transfer of equity shares or beneficial interest therein including their control or direction is made to a non-resident or person associated with the non-resident excepting when the result would be in compliance with clauses (1) (a) and (b); or

(b) in the case of a contravention of clause (1) (c), until the 1st day of January, 1975, but a corporation incorporated on or after the 30th day of October, 1973 and before the 1st day of January, 1975 by or under an Act of Ontario, Canada or a province of Canada may, despite clauses (1) (a) and (b), be registered in the place of the first-mentioned corporation if the equity shares of the new corporation or beneficial interest therein, including their control or direction, held by non-residents are held directly or indirectly in the same manner as the equity shares of the first-mentioned corporation, but where the new corporation is in contravention of clause (1) (a) or (b), clause (a) of this subsection applies.

Associated shareholders

(4) For the purpose of this section, a shareholder shall be deemed to be associated with another shareholder if,

(a) one shareholder is a corporation of which the other shareholder is an officer or director;

(b) one shareholder is a partnership of which the other shareholder is a partner;

(c) one shareholder is a corporation that is controlled directly or indirectly by the other shareholder;

(d) both shareholders are corporations and one shareholder is controlled directly or indirectly by the same individual or corporation that controls directly or indirectly the other shareholder;

(e) both shareholders are members of a voting trust where the trust relates to shares of a corporation; or

(f) both shareholders are associated within the meaning of clauses (a) to (e) with the same shareholder.

Joint ownership

(5) For the purpose of this section, where an equity share of the corporation is held jointly and one or more of the joint holders thereof is a non-resident, the share shall be deemed to be held by a non-resident. R.S.O. 1990, c. M.39, s. 9.

Further applications

10. A further application for registration may be made upon new or other evidence or where it is clear that material circumstances have changed. R.S.O. 1990, c. M.39, s. 10.

Interpretation, ss. 11 to 19

11. (1) In sections 11 to 19,

"mortgage transaction" means the borrowing of money on the security of real property or the assignment of a mortgage for consideration; ("opération hypothécaire")

"subdivision" means improved or unimproved land divided or proposed to be divided into five or more lots or other units for the purpose of sale or lease and includes land divided or proposed to be divided into condominium units. ("lotissement")

Application of ss. 12 to 19

(2) Sections 12 to 19 apply to mortgage transactions on the security of lots or units in a subdivision outside Ontario where the mortgagor or assignor is the owner of an interest in five or more such lots or units or has been the owner of such an interest at any time in the preceding five years.

Idem

(3) Sections 12 to 19 do not apply to mortgage transactions in which the mortgagee or assignee is a bank to which the Bank Act (Canada) applies or a loan or trust corporation registered under the Loan and Trust Corporations Act or an insurance company licensed under the Insurance Act. R.S.O. 1990, c. M.39, s. 11.

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (3) is repealed by the Statutes of Ontario, 2001, chapter 8, section 188 and the following substituted:

Application of ss. 12 to 19

(3) Sections 12 to 19 do not apply to mortgage transactions in which the mortgagee or assignee is,

(a) a bank;

(b) a loan or trust corporation registered under the Loan and Trust Corporations Act; or

(c) an insurance company licensed under the Insurance Act.

See: 2001, c. 8, ss. 188, 189 (2).

Mortgage transactions where land outside Ontario

12. (1) No person shall enter into or negotiate a mortgage transaction in respect of a lot or unit of land in a subdivision located outside Ontario unless,

(a) a prospectus containing the prescribed information has been filed with the Superintendent and the Superintendent has issued a certificate of acceptance;

(b) the person is a registered mortgage broker or the mortgage transaction is negotiated by a registered mortgage broker;

(c) a copy of the prospectus or such shorter form of the prospectus as the Superintendent approves for distribution to the public has been delivered to the prospective lender or assignee;

(d) the prospective lender or assignee has in writing acknowledged receipt of a copy of a prospectus or shorter form of prospectus and has been afforded an opportunity to read it. R.S.O. 1990, c. M.39, s. 12 (1); 1997, c. 28, s. 172 (1).

Inspection of acknowledgments

(2) Every acknowledgment referred to in subsection (1) shall be retained by the mortgagor, assignor or mortgage broker and be available for inspection by the Superintendent for a period of not less than three years. R.S.O. 1990, c. M.39, s. 12 (2); 1997, c. 28, s. 172 (1).

Rescission

(3) A lender or assignee who has entered into a mortgage transaction to which subsection (1) applies is entitled to rescission of the contract if,

(a) subsection (1) has not been complied with; and

(b) written notice of exercising the right of rescission is served on the mortgagor, assignor or mortgage broker within ninety days of the signing of the contract.

Onus

(4) In an action for rescission under subsection (3), the onus of proving compliance with subsection (1) rests upon the mortgagor or assignor.

Rights reserved

(5) The right of rescission provided in this section is in addition to any other rights that the lender or assignee may have in respect of the contract or arrangement. R.S.O. 1990, c. M.39, s. 12 (3-5).

Material filed with prospectus

13. Each prospectus submitted to the Superintendent for filing shall be accompanied by,

(a) an affidavit of the proposed mortgagor or assignor or, where the proposed mortgagor or assignor is a corporation, any two officers or an officer and a director, as to the correctness of every matter of fact stated in the prospectus;

(b) a copy of every plan referred to in the prospectus;

(c) a copy of every form of contract referred to in the prospectus;

(d) such documents as the Superintendent may require to support any statement of fact, proposal or estimate set out in the prospectus;

(e) such financial particulars of the proposed mortgagor or assignor as the Superintendent may require; and

(f) the fees established by the Minister. R.S.O. 1990, c. M.39, s. 13; 1997, c. 19, s. 15 (3); 1997, c. 28, s. 172 (1).

Inquiries by Superintendent

14. (1) The Superintendent may make such inquiries with respect to a prospectus as are necessary to determine whether a certificate of acceptance should be issued, including,

(a) an examination of the subdivision and any of the surrounding circumstances; and

(b) the obtaining of reports from public authorities or others within or outside Ontario. R.S.O. 1990, c. M.39, s. 14 (1); 1997, c. 28, s. 172 (1).

Costs

(2) The reasonable and proper costs of such inquiries or reports shall be borne by the person on whose behalf the prospectus was filed. R.S.O. 1990, c. M.39, s. 14 (2).

Refusal of certificate of acceptance

15. (1) The Superintendent shall grant a certificate of acceptance except where it appears that,

(a) the prospectus contains any statement, promise or forecast that is misleading, false or deceptive, or has the effect of concealing material facts;

(b) adequate provision has not been made for the protection of deposits or other funds or for assurance of title or other interest contracted for;

(c) the prospectus fails to comply in any substantial respect with any of the requirements prescribed;

(d) the requirements of section 13 have not been complied with in any substantial respect;

(e) the proposed methods of offering do not accord with standard real estate practices in Ontario. R.S.O. 1990, c. M.39, s. 15 (1); 1997, c. 28, s. 172 (1).

Application of s. 7

(2) Where the Superintendent proposes to refuse to grant a certificate of acceptance, the Superintendent shall serve notice of the proposal to refuse on the person on whose behalf the prospectus was filed and section 7 applies with necessary modifications to the proposal in the same manner as to a proposal to refuse to register an applicant. R.S.O. 1990, c. M.39, s. 15 (2); 1997, c. 28, s. 172 (1).

Revocation of certificate of acceptance

16. (1) Where it appears to the Superintendent, subsequent to the filing of a prospectus and the granting of a certificate of acceptance therefor, that any of the conditions referred to in subsection 15 (1) exist or there has been any contravention of this Act or the regulations, the Superintendent may revoke the certificate of acceptance, which thereupon shall be deemed not to be issued. R.S.O. 1990, c. M.39, s. 16 (1); 1997, c. 28, s. 172 (1).

Application of s. 7

(2) Subject to subsection (3), the Superintendent shall not revoke a certificate of acceptance and make an order under subsection (1) without serving notice of the proposal to revoke the certificate and make the order, together with written reasons therefor, on the person on whose behalf the prospectus was filed, and section 7 applies with necessary modifications to the proposal in the same manner as to a proposal by the Superintendent to revoke a registration. R.S.O. 1990, c. M.39, s. 16 (2); 1997, c. 28, s. 172 (1).

Interim suspension

(3) Where the Superintendent proposes to revoke a certificate of acceptance, the Superintendent may, where the Superintendent considers it to be necessary in the public interest, by order temporarily suspend the certificate of acceptance and the order shall take effect immediately and, where a hearing is required, the order expires fifteen days from the date of the notice requiring the hearing unless the hearing is commenced in which case the Tribunal holding the hearing may extend the time of expiration until the hearing is concluded. R.S.O. 1990, c. M.39, s. 16 (3); 1997, c. 28, s. 172.

Amendment of prospectus

17. (1) If a change occurs with regard to any of the matters set out in any prospectus,

(a) that would have the effect of rendering a statement in the prospectus false or misleading; or

(b) that brings into being a fact or proposal that should have been disclosed in the prospectus if the fact or proposal had existed at the time of filing,

the person who filed the prospectus shall, within twenty days of the change occurring, notify the Superintendent in writing of the change and shall file an amendment to the prospectus or a new prospectus as the Superintendent may direct. R.S.O. 1990, c. M.39, s. 17 (1); 1997, c. 28, s. 172 (1).

Application of ss. 13 to 16

(2) Sections 13 to 16 apply with necessary modifications where a prospectus is amended or a new prospectus filed under subsection (1). R.S.O. 1990, c. M.39, s. 17 (2).

Expiration of certificate of acceptance

18. A certificate of acceptance expires twelve months after it is issued and shall thereupon be deemed not to be issued, subject to the right to file a new prospectus and obtain a certificate of acceptance therefor in accordance with this Act. R.S.O. 1990, c. M.39, s. 18.

Advertising

19. No person shall publish or cause to be published any advertisement for mortgage transactions on a lot or unit in a subdivision located outside Ontario until the advertisement has been approved by the Superintendent. R.S.O. 1990, c. M.39, s. 19; 1997, c. 28, s. 172 (1).

Investigation of complaints

20. (1) Where the Superintendent receives a complaint in respect of a mortgage broker and so requests in writing, the mortgage broker shall furnish the Superintendent with such information respecting the matter complained of as the Superintendent requires. R.S.O. 1990, c. M.39, s. 20 (1); 1997, c. 28, s. 172 (1).

Idem

(2) The request under subsection (1) shall indicate the nature of the inquiry involved. R.S.O. 1990, c. M.39, s. 20 (2).

Idem

(3) For the purposes of subsection (1), the Superintendent or any person designated in writing by the Superintendent may at any reasonable time enter upon the business premises of the mortgage broker to make an inspection in relation to the complaint. R.S.O. 1990, c. M.39, s. 20 (3); 1997, c. 28, s. 172 (1).

Inspection

21. (1) The Superintendent or any person designated by the Superintendent in writing may at any reasonable time enter upon the business premises of the registrant to make an inspection to ensure that the provisions of this Act and the regulations relating to registration and the maintenance of trust accounts are being complied with. R.S.O. 1990, c. M.39, s. 21 (1); 1997, c. 28, s. 172 (1).

Idem

(2) Where the Superintendent has reasonable and probable grounds to believe that any person is acting as a mortgage broker while unregistered, the Superintendent or any person designated by the Superintendent in writing may at any reasonable time enter upon such person's business premises to make an inspection for the purpose of determining whether or not the person is in contravention of section 4. R.S.O. 1990, c. M.39, s. 21 (2); 1997, c. 28, s. 172 (1).

Powers on inspection

22. (1) Upon an inspection under section 20 or 21, the person inspecting,

(a) is entitled to free access to all books of account, cash, documents, bank accounts, vouchers, correspondence and records of the person being inspected that are relevant for the purposes of the inspection; and

(b) may, upon giving a receipt therefor, remove any material referred to in clause (a) that relates to the purpose of the inspection for the purpose of making a copy thereof, provided that such copying is carried out with reasonable dispatch and the material in question is promptly thereafter returned to the person being inspected,

and no person shall obstruct the person inspecting or withhold or destroy, conceal or refuse to furnish any information or thing required by the person inspecting for the purposes of the inspection.

Admissibility of copies

(2) Any copy made as provided in subsection (1) and purporting to be certified by an ins

   

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