Volume 44, No. 21 October 9, 2020

Part II Halifax, Nova Scotia Regulations under the Regulations Act Printed by the Queen’s Printer Contents Act Reg. No.

Page Employment Support and Income Assistance Act Employment Support and Income Assistance Regulations–amendment . . . . . . . . . . . . . . . 135/2020 527 Mortgage Regulation Act Compliance Officers Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123/2020 427 Cost of Borrowing Disclosure Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125/2020 434 Forms Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132/2020 479 General Disclosure Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124/2020 429 Mortgage Lender, Brokerage, Broker and Administrator Licensing Regulations . . . . . . . . 121/2020 414 Mortgage Regulation Act Exemption Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120/2020 410 Principal Broker Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122/2020 424 Standards of Conduct for Mortgage Administrators Regulations . . . . . . . . . . . . . . . . . . . . 129/2020 464 Standards of Conduct for Mortgage Brokerages Regulations . . . . . . . . . . . . . . . . . . . . . . . 126/2020 448 Standards of Conduct for Mortgage Brokers and Associate Mortgage Brokers Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127/2020 455 Standards of Conduct for Mortgage Lenders Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . 128/2020 458 Record-Keeping Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130/2020 471 Reporting Requirements Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131/2020 476 Motor Vehicle Act Classification of Driver’s Licenses Regulations–amendment . . . . . . . . . . . . . . . . . . . . . . . 136/2020 527 Petroleum Products Pricing Act Prescribed Petroleum Products Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134/2020 525 Prescribed Petroleum Products Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137/2020 529 Teachers’ Pension Act Teachers’ Pension Plan Regulations–amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133/2020 523 In force date of regulations: As of March 4, 2005*, the date a regulation comes into force is determined by subsection 3(6) of the Regulations Act.

The date a regulation is made, the date a regulation is approved, the date a regulation is filed and any date specified in a regulation are important to determine when the regulation is in force. *Date that subsections 3(6) and (7) and Sections 11 and 13 of the Regulations Act and amendments to the Regulations Act made by

Chapter 46 of the Acts of 2004 were proclaimed in force. © NS Office of the Registrar of Regulations. Web version. 409

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Part II - Regulations Vol. 44, No. 21 N.S. Reg. 120/2020 Made: September 16, 2020 Filed: September 17, 2020 Mortgage Regulation Act Exemption Regulations Order dated September 16, 2020 Regulations made by the Minister of Service Nova Scotia and Internal Services pursuant to

Section 90 of the Mortgage Regulation Act In the matter of

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act -and- In the matter of new regulations respecting exemptions from the application of the Act made by the Minister of Service Nova Scotia and Internal Services Order I, Patricia Arab, Minister of Service Nova Scotia and Internal Services for the Province of Nova Scotia, pursuant to

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, hereby make new regulations respecting exemptions from the application of the Act, in the form set forth in the attached

Schedule “A”. This order is effective on and after the date that

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, comes into force. Dated and made September 16, 2020, at Halifax Regional Municipality, Province of Nova Scotia. sgd. P. Arab Honourable Patricia Arab Minister of Service Nova Scotia and Internal Services

Schedule “A” Regulations Respecting Exemptions from the Application of the Act made by the Minister of Service Nova Scotia and Internal Services under

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act Citation 1 These regulations may be cited as the Mortgage Regulation Act Exemption Regulations .

Definitions 2 In these regulations, “Act” means the Mortgage Regulation Act; “mortgage professional” means a mortgage lender, mortgage brokerage, mortgage broker, associate mortgage broker or mortgage administrator; “syndicated mortgage” means a mortgage in which 2 or more persons participate, directly or © NS Office of the Registrar of Regulations. Web version. 410

3 N.S. Reg. 120/2020 Royal Gazette

Part II - Regulations Vol. 44, No. 21 indirectly, as a lender in a debt obligation that is secured by a mortgage. Persons exempt from Act All of the following persons are exempted under subsection 3(1) of the Act from the application of the Act: (

a) a bank or an authorized foreign bank, as defined in the Bank Act (Canada); (

b) a body corporate to which the Trust and Loan Companies Act (Canada) applies; (

c) a retail association as defined in the Cooperative Credit Associations Act (Canada); (

d) a company as defined in the Insurance Companies Act (Canada); (

e) a director, officer, employee or other representative of a person that is exempted under clauses (

a) to (d), when acting solely on behalf of the person; (

f) a person that undertakes mortgage brokerage or lender activities, but only if each mortgage related to those activities meets all of the following conditions: (

i) the mortgage loan is for an amount greater than $1 000 000, (ii) the Cost of Borrowing Regulations made under the Act do not apply to the mortgage loan, (iii) 1 of the following applies: (

A) none of the investors in the mortgage is a private investor, (B) 1 or more of the investors in the mortgage are private investors, and a person that is exempted from the Act under clauses (

a) to (

e) or by

Section 5 brokers the mortgage on behalf of each private investor; (

g) a person that refers prospective borrowers to mortgage professionals and meets the conditions of

Section 4; (

h) a person that refers mortgage professionals to prospective borrowers and meets the conditions of

Section 4; (

i) a person that undertakes activities in relation to a syndicated mortgage that are regulated under the Securities Act. Conditions for exempting persons doing simple referrals All of the following are the conditions required to be met for a person that makes referrals to be exempted under clause 3(

g) or (h): (

a) the person informs the prospective borrower in writing of all of the following before making a referral for which the person has received or may receive a fee or other remuneration, directly or indirectly: (

i) the amount of the fee or other remuneration or, if the amount of the fee or other remuneration is not ascertainable at that time, a reasonable estimate of the fee or other remuneration, © NS Office of the Registrar of Regulations. Web version. 4 411

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Part II - Regulations Vol. 44, No. 21 (ii) if the remuneration is in a form other than money, the nature of the remuneration, (iii) the nature of the relationship between the person and the mortgage professional; (

b) in referring a prospective borrower to a mortgage professional, the only information that the person provides to the prospective borrower, in addition to the information required by clause (a), is the name, address, telephone number, fax number, e-mail address or website address of the mortgage professional or an individual who acts on behalf of the mortgage professional; (

c) in referring a mortgage professional to a prospective borrower, (

i) the only information that the person provides to the mortgage professional is the name, address, telephone number, fax number, e-mail address or website address of the prospective borrower or an individual who acts on behalf of the prospective borrower, and (ii) the person obtains the written consent of the prospective borrower to give the information referred to in subclause (

i) to the mortgage professional. Exemption from mortgage administrator requirements 5

(1) The Central as defined in the Credit Union Act and a credit union to which the Credit Union Act applies are exempted from the mortgage administrator requirements of the Act and regulations while acting as a mortgage administrator on behalf of an investor that meets any of the following: (

a) the investor is exempted under clauses 3(

a) to (c); (

b) the investor is a credit union established under the laws of a province of Canada; (

c) the investor is an entity owned or controlled, in whole or in part, by a person to whom clause (

a) or (

b) applies.

(2) A director, officer, employee or other representative of a person that is exempted under subsection (1) is exempted from the mortgage administrator requirements of the Act and regulations when acting solely on behalf of that person. Exemption from requirement for licence to act as mortgage broker 6

(1) Subject to subsection (2), a person who is a director, officer, employee or other representative of a credit union to which the Credit Union Act applies is exempted from the requirement to hold a licence to act as a mortgage broker while acting as a mortgage broker on behalf of a person that meets all of the following: (

a) the person is exempted under clauses 3(

a) to (c); (

b) the person is owned, controlled or affiliated with the credit union.

(2) A person is exempted under subsection (1) only if the person meets all of the following: (

a) the person is acting in its professional capacity on behalf of a client; (

b) the person is not holding themself out as being a mortgage broker. © NS Office of the Registrar of Regulations. Web version. 412

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Part II - Regulations Vol. 44, No. 21 Exemption from requirement for licence to act as mortgage broker or administrator 7

(1) Subject to subsection (2), all of the following persons are exempted from the requirement to hold a licence to act as a mortgage broker or mortgage administrator: (

a) a practising lawyer as defined in the Legal Profession Act, but only while engaged in an activity that they are insured for under their professional liability insurance; (

b) a trustee in bankruptcy; (

c) a person acting under an order of the Court; (

d) a person acting on behalf of Her Majesty the Queen in Right of the Province of Nova Scotia, Canada or another province of Canada, but only if the person is not otherwise required to be licensed.

(2) A person is exempted under subsection (1) only if the person meets all of the following: (

a) the person is acting in its professional capacity on behalf of a client; (

b) the person is not holding itself out as being a mortgage broker or administrator. Exemption from requirement for licence to act as mortgage lender 8 A person to which any of the following applies is exempted from the requirement to hold a licence to act as a mortgage lender and is exempted from

Section 25 of the Act respecting designating compliance officers: (

a) in any period of 12 consecutive months, the person lends its own money on the security of 4 or fewer mortgages with an aggregate amount of not more than $1 000 000, and the person does not hold itself out as being a mortgage lender; (

b) the person is a director, officer, employee or other representative of a person that is exempted under clause (a), and is acting solely on behalf of the person. © NS Office of the Registrar of Regulations. Web version. 413

N.S. Reg. 121/2020 Royal Gazette

Part II - Regulations Vol. 44, No. 21 N.S. Reg. 121/2020 Made: September 16, 2020 Filed: September 17, 2020 Mortgage Lender, Brokerage, Broker and Administrator Licensing Regulations Order dated September 16, 2020 Regulations made by the Minister of Service Nova Scotia and Internal Services pursuant to

Section 90 of the Mortgage Regulation Act In the matter of

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act -and- In the matter of new regulations respecting licensing of mortgage lenders, mortgage brokerages, mortgage brokers, associate mortgage brokers and mortgage administrators made by the Minister of Service Nova Scotia and Internal Services Order I, Patricia Arab, Minister of Service Nova Scotia and Internal Services for the Province of Nova Scotia, pursuant to

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, hereby make new regulations respecting licensing of mortgage lenders, mortgage brokerages, mortgage brokers, associate mortgage brokers and mortgage administrators, in the form set forth in the attached

Schedule “A”. This order is effective on and after the date that

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, comes into force. Dated and made September 16, 2020, at Halifax Regional Municipality, Province of Nova Scotia. sgd. P. Arab Honourable Patricia Arab Minister of Service Nova Scotia and Internal Services

Schedule “A” Regulations Respecting the Licensing of Mortgage Lenders, Mortgage Brokerages, Mortgage Brokers, Associate Mortgage Brokers and Mortgage Administrators made by the Minister of Service Nova Scotia and Internal Services under

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act Citation 1 These regulations may be cited as the Mortgage Lender, Brokerage, Broker and Administrator Licensing Regulations.

Definitions 2 In these regulations, “Act” means the Mortgage Regulation Act; “educational program” means an educational program, including a continuing education program, © NS Office of the Registrar of Regulations. Web version. 414

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Part II - Regulations Vol. 44, No. 21 that meets the criteria of

Section 12; “errors and omissions insurance” means insurance that provides extended coverage for loss resulting from fraudulent Acts in the amount required by

Section 10; “former Act” means

Chapter 291 of the Revised Statutes of Nova Scotia, 1989, the Mortgage Brokers’ and Lenders’ Registration Act; “public register” means a public register required to be created and maintained by the Registrar under subsection 7(1) of the Act. Application for mortgage lender licence 3

(1) In addition to meeting the applicable licensing requirements in the Act for issuing or renewing licence under subsection 14(2) of the Act, an applicant for a mortgage lender licence or licence renewal must meet all of the following requirements: (

a) for an applicant that is (

i) a corporation, the applicant is incorporated or continued under the laws of any jurisdiction in Canada, (ii) a partnership or a limited partnership, the applicant is formed under the laws of any jurisdiction in Canada, (iii) a sole proprietor, the applicant is a resident of Canada; (

b) the applicant has appointed an agent resident in the Province who (

i) is able to accept service of notice and documents on behalf of the applicant, and (ii) has a mailing address that is not a post office box and that is suitable to permit personal service and service by registered mail; (

c) the applicant has errors and omissions insurance; (

d) the results of any criminal record check conducted under

Section 11 do not, in the Registrar’s opinion, raise any issues concerning the appropriateness of issuing or renewing the licence; (

e) for a licence renewal application, the applicant is in compliance with the Act and its regulations; (

f) the applicant does not demonstrate anything that would cause the Registrar to refuse the application under subsection 14(3) of the Act.

(2) An application for a mortgage lender licence or licence renewal must be accompanied by all of the following: (

a) proof satisfactory to the Registrar that the applicant meets all of the requirements in subsection (1), including errors and omissions insurance referred to in clause (1)(c); (

b) proof satisfactory to the Registrar that the individual who is or will be designated as the applicant’s compliance officer meets the criteria prescribed in the Compliance Officer Regulations made under the Act, as required by subsection 25(1) of the Act; © NS Office of the Registrar of Regulations. Web version. 415

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c) the results of the criminal record check referred to in clause (1)(d); (

d) any additional information or documentation required by the Registrar under

Section 20 of the Act. Application for mortgage brokerage licence 4

(1) In addition to meeting the applicable licensing requirements in the Act for issuing or renewing licence under subsection 14(2) of the Act, an applicant for a mortgage brokerage licence or licence renewal must meet all of the following requirements: (

a) for an applicant that is (

i) a corporation, the applicant is incorporated or continued under the laws of any jurisdiction in Canada, (ii) a partnership or a limited partnership, the applicant is formed under the laws of any jurisdiction in Canada, (iii) a sole proprietor, the applicant is a resident of Canada; (

b) the applicant has appointed an agent resident in the Province who (

i) is able to accept service of notice and documents on behalf of the applicant, and (ii) has a mailing address that is not a post office box and that is suitable to permit personal service and service by registered mail; (

c) the applicant has errors and omissions insurance; (

d) the results of any criminal record check conducted under

Section 11 do not, in the Registrar’s opinion, raise any issues concerning the appropriateness of issuing or renewing the licence; (

e) for a licence renewal application, the applicant is in compliance with the Act and its regulations; (

f) the applicant does not demonstrate anything that would cause the Registrar to refuse the application under subsection 14(3) of the Act.

(2) An application for a mortgage brokerage licence or licence renewal must be accompanied by all of the following: (

a) proof satisfactory to the Registrar that the applicant meets all of the requirements in subsection (1), including errors and omissions insurance referred to in clause (1)(c); (

b) proof satisfactory to the Registrar that the individual who is or will be designated as the applicant’s principal broker meets the criteria prescribed in the Principal Broker Regulations made under the Act, as required by subsection 28(1) of the Act; (

c) the results of the criminal record check referred to in clause (1)(d); (

d) any additional information or documentation required by the Registrar under

Section 20 of the Act. © NS Office of the Registrar of Regulations. Web version. 416

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Part II - Regulations Vol. 44, No. 21 Application for mortgage broker licence 5

(1) In addition to meeting the applicable licensing requirements in the Act for issuing or renewing a licence under subsection 14(2) of the Act, an applicant for a mortgage broker licence or licence renewal must meet all of the following requirements: (

a) the applicant is (

i) at least 19 years old, and (ii) a resident of Canada; (

b) the results of the criminal record check required by

Section 11 do not, in the Registrar’s opinion, raise any issues concerning the appropriateness of issuing or renewing the licence; (

c) unless deemed to meet this requirement under subsection (3), the applicant has successfully completed an educational program and a regulatory information program conducted by or on behalf of the Registrar in the 2 years immediately before the date of the application; (

d) for an initial application, unless deemed to meet this requirement under subsection (3), the applicant has held an associate mortgage broker licence for at least 12 of the 24 months immediately before the date of the application; (

e) the application is authorized by the licensed mortgage brokerage that will be named on the applicant’s licence to broker mortgages on behalf of that licensed mortgage brokerage; (

f) for a licence renewal application, the applicant is in compliance with the Act and its regulations; (

g) the applicant does not demonstrate anything that would cause the Registrar to refuse the application under subsection 14(3) of the Act.

(2) An application for a mortgage broker licence or licence renewal must be accompanied by all of the following: (

a) proof satisfactory to the Registrar that the applicant meets the requirements in subsection (1), including (

i) completion of the applicable education program requirement referred to in clause (1)(

c) or (d), and (ii) confirmation, in a form satisfactory to the Registrar, of the authorization from the mortgage brokerage that the applicant is, or will be, authorized to broker mortgages on behalf of the mortgage brokerage; (

b) confirmation, in a form satisfactory to the Registrar, that the applicant has read and understands the Act and its regulations and agrees to be bound by their provisions; (

c) the results of the criminal record check referred to in clause (1)(b); (

d) any additional information or documentation required by the Registrar under

Section 20 of the Act. © NS Office of the Registrar of Regulations. Web version. 417

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(3) An applicant for an initial mortgage broker licence who meets any of the following criteria is deemed to meet the education requirement in clause (1)(

c) and the requirement in clause (1)(

d) of having held an associate mortgage broker licence: (

a) the applicant has successfully completed a regulatory information program about the Act and its regulations conducted by or on behalf of the Registrar and undertakes to successfully complete an educational program before the date their licence expires and, for at least 24 of the 36 months immediately before the date of their application, at least 1 of the following applies: (

i) the applicant held a permit to broker mortgages under the former Act, (ii) the applicant was employed to broker mortgages on behalf of a mortgage brokerage that held a permit under the former Act during the time of that employment, (iii) the applicant brokered mortgages and was exempt from the requirement to hold a permit under the Act or the former Act; (

b) the applicant holds a valid licence from 1 of the following provinces that is of a type that corresponds with a mortgage broker licence class set out in subsection 12(1) of the Act and the applicant has successfully completed a regulatory information program about the Act and regulations conducted by or on behalf of the Registrar: (

i) British Columbia, (ii) Alberta, (iii) Saskatchewan, (iv) Manitoba, (

v) Ontario, (vi) Quebec, (vii) New Brunswick. Application for associate mortgage broker licence 6

(1) In addition to meeting the applicable licensing requirements in the Act for issuing or renewing a licence under subsection 14(2) of the Act, an applicant for an associate mortgage broker licence or licence renewal must meet all of the following requirements: (

a) the applicant is (

i) at least 19 years old, and (ii) a resident of Canada; (

b) the results of the criminal record check required by

Section 11 do not, in the Registrar’s opinion, raise any issues concerning the appropriateness of issuing or renewing the licence; (

c) the applicant has successfully completed an educational program in the 2 years immediately before the date of the application, © NS Office of the Registrar of Regulations. Web version. 418

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d) the application is authorized by the licensed mortgage brokerage that will be named on the applicant’s licence to broker mortgages on behalf of that licensed mortgage brokerage and the authorization is limited to brokering mortgages while acting under the supervision of a licensed mortgage broker; (

e) for a licence renewal application, the applicant is in compliance with the Act and its regulations; (

f) the applicant does not demonstrate anything that would cause the Registrar to refuse the application under subsection 14(3) of the Act.

(2) An application for an associate mortgage broker licence or licence renewal must be accompanied by all of the following: (

a) proof satisfactory to the Registrar that the applicant meets the requirements in subsection (1), including (

i) completion of the education program referred to in clause (1)(c), and (ii) confirmation from the mortgage brokerage, in a form satisfactory to the Registrar, that the applicant is or will be authorized to broker mortgages on behalf of the mortgage brokerage under the supervision of a licensed mortgage broker; (

b) confirmation, in a form satisfactory to the Registrar, that the applicant has read and understands the Act and its regulations and agrees to be bound by their provisions; (

c) the results of the criminal record check referred to in clause (1)(b); (

d) any additional information or documentation required by the Registrar in accordance with

Section 20 of the Act. Application for mortgage administrator licence 7

(1) In addition to meeting the applicable licensing requirements in the Act for issuing or renewing licence under subsection 14(2) of the Act, an applicant for a mortgage administrator licence or licence renewal must meet all of the following requirements: (

a) for an applicant that is (

i) a corporation, the applicant is incorporated or continued under the laws of any jurisdiction in Canada, (ii) a partnership or a limited partnership, the applicant is formed under the laws of any jurisdiction in Canada, (iii) a sole proprietor, the applicant is a resident of Canada; (

b) the applicant has appointed an agent resident in the Province who (

i) is able to accept service of notice and documents on behalf of the applicant, and (ii) has a mailing address that is not a post office box and that is suitable to permit personal service and service by registered mail; © NS Office of the Registrar of Regulations. Web version. 419

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c) the applicant has errors and omissions insurance; (

d) the results of any criminal record check conducted under

Section 11 do not, in the Registrar’s opinion, raise any issues concerning the appropriateness of issuing or renewing the licence; (

e) for a licence renewal application, the applicant is in compliance with the Act and its regulations; (

f) the applicant does not demonstrate anything that would cause the Registrar to refuse the application under subsection 14(3) of the Act.

(2) An application for a mortgage administrator licence or licence renewal must be accompanied by all of the following: (

a) proof satisfactory to the Registrar that the applicant meets all of the requirements in subsection (1), including errors and omissions insurance referred to in clause (1)(c); (

b) proof satisfactory to the Registrar that the applicant holds a trust account as required by

Section 51 of the Act and in accordance with the regulations made under the Act, including all of the following information: (

i) the name and branch address of the financial institution where the account is held, (ii) the name in which the account is held, (iii) the account number, (iv) a list of the authorized signing officers for the account; (

c) proof satisfactory to the Registrar that the individual who is or will be designated as the applicant’s compliance officer meets the criteria prescribed in the Compliance Officer Regulations made under the Act, as required by subsection 35(1) of the Act; (

d) the results of the criminal record check referred to in clause (1)(d); (

e) any additional information or documentation required by the Registrar under

Section 20 of the Act. Expiry date of licences 8 A licence expires on October 31 in the calendar year immediately after the year it was issued or renewed. Deadline for renewing licence 9 An application for a licence renewal must be submitted to the Registrar at least 10 days before the date the current licence expires. Errors and omissions insurance 10

(1) A licensed mortgage lender, mortgage brokerage and mortgage administrator must maintain errors and omissions insurance at all times while their licence is in force.

(2) The coverage provided by errors and omissions insurance must be sufficient to pay all of the following: © NS Office of the Registrar of Regulations. Web version. 420

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a) at least $500 000 in respect of any 1 occurrence involving the licensee, including, for a mortgage brokerage, any mortgage broker or associate mortgage broker authorized to broker mortgages on its behalf; (

b) at least $1 000 000 in respect of the aggregate of all occurrences during a 365-day period involving the licensee, including, for a mortgage brokerage, any mortgage broker or associate mortgage broker authorized to broker mortgages on its behalf. Criminal record check 11

(1) Except as provided in subsection (2), an applicant for a licence or renewal of a licence must obtain a criminal record check from the Royal Canadian Mounted Police, a Canadian municipal police force or the Canadian military police that is dated no earlier than 3 months before the date of the application and is conducted on all of the following: (

a) for an applicant that is a corporation, each officer of the corporation; (

b) for an applicant that is a limited partnership, each officer of each general partner; (

c) for an applicant that is a partnership, each partner or, in the case of a partner which is a corporation, on each officer of the corporation; (

d) for an applicant that is a sole proprietorship, the sole proprietor; and (

e) for an applicant that is an individual, the individual.

(2) A criminal record check is not required for an application for renewal of a licence if the applicant confirms in writing that there has been no change in the information shown on the most recent criminal record check provided to the Registrar and the Registrar is satisfied that no further verification is required. Educational programs for mortgage brokers and associate mortgage brokers 12

(1) An educational program for an initial mortgage broker licence or initial associate mortgage broker licence must satisfy all of the following criteria: (

a) the program curriculum covers the competencies for mortgage brokers established by the Mortgage Broker Regulators’ Council of Canada; (

b) the Registrar is satisfied that the program provider uses effective teaching and evaluation methods.

(2) An educational program for renewal of a mortgage broker licence or associate mortgage broker licence must satisfy all of the following criteria: (

a) the program curriculum covers topics relevant to at least 2 competencies for mortgage brokers established by the Mortgage Broker Regulators’ Council of Canada and the program is offered as a continuing education program; (

b) the Registrar is satisfied that the program provider uses effective teaching and evaluation methods. Prescribed circumstances for reinstatement of suspended licence 13

(1) The following are the prescribed circumstances required to be met for reinstatement of a suspended licence under clause 18(3)(

a) of the Act: © NS Office of the Registrar of Regulations. Web version. 421

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a) for reinstatement of a mortgage brokerage licence suspended under subsection 18(1) of the Act, a mortgage broker becomes authorized by the mortgage brokerage to broker mortgages on behalf of the mortgage brokerage and the mortgage brokerage is named in the mortgage broker’s licence; (

b) for reinstatement of a mortgage broker or associate mortgage broker licence suspended under clause 18(2)(

a) of the Act, either (

i) the mortgage broker or associate mortgage broker becomes authorized to act on behalf of the mortgage brokerage named in the mortgage broker’s licence or associate mortgage broker’s licence at the time of suspension, or (ii) the mortgage broker or associate mortgage broker becomes authorized to act on behalf of another mortgage brokerage and the mortgage broker’s licence or associate mortgage broker’s licence is amended to name the new mortgage brokerage; (

c) for reinstatement of a mortgage broker or associate mortgage broker licence suspended under clause 18(2)(

b) of the Act, either (

i) the mortgage brokerage named in the mortgage broker’s licence or the associate mortgage broker’s licence has its licence reinstated or is issued a new mortgage brokerage licence, or (ii) the mortgage broker or associate mortgage broker becomes authorized to broker mortgages on behalf of another mortgage brokerage and the mortgage broker’s licence or associate mortgage broker’s licence is amended to name the new mortgage brokerage. Prescribed period for reinstatement 14 The 30-day period immediately after the date a licence is suspended is prescribed as the period after which the Registrar may cancel a suspended licence under clause 18(3)(

b) of the Act if it has not been reinstated. Public register of mortgage brokerages, lenders and administrators 15

(1) All of the following information about each licensed mortgage brokerage, mortgage lender and mortgage administrator is prescribed as the information required to be contained in the public register under subsection 7(2) of the Act: (

a) each name in which the licensee is licensed and the corresponding licence number; (

b) the type of licence held and whether the licensee is in good standing or the licence suspended; (

c) the licensee’s mailing address for service in the Province, as it appears in the records kept by the Registrar; (

d) the licensee’s telephone number, as it appears in the records kept by the Registrar; (

e) any conditions that apply to the licence; (

f) for a mortgage brokerage, the name of the principal broker; (

g) for a mortgage lender or mortgage administrator, the name of the compliance officer; (

h) the details of any administrative or other penalties imposed by the Registrar under subsection 73(1) of the Act. © NS Office of the Registrar of Regulations. Web version. 422

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(2) All of the following information about each formerly licensed mortgage brokerage, mortgage lender or mortgage administrator is prescribed as the information required to be contained in the public register under subsection 7(2) of the Act: (

a) each name in which the former licensee was licensed and the corresponding former licence number; (

b) the type of licence held; (

c) the date the former licensee ceased to be licensed; (

d) whether the licence expired, renewal of the licence was refused, the licence was surrendered or the licence was revoked; (

e) the details of any administrative or other penalties imposed by the Registrar under subsection 73(1) of the Act.

(3) The information recorded under subsection (2) must be kept in the public register for at least 2 years after the date the licensee ceased to be licensed. Public register of mortgage brokers and associate mortgage brokers 16

(1) All of the following information about each licensed mortgage broker and associate mortgage broker is prescribed as the information required to be contained in the public register under subsection 7(2) of the Act: (

a) the name in which the licensee is licensed and the corresponding licence number; (

b) the type of licence held, its expiry date and whether the licensee is in good standing or the licence is suspended; (

c) the name of the mortgage brokerage on whose behalf the licensee is authorized to broker mortgages; (

d) the details of any administrative or other penalties imposed by the Registrar under subsection 73(1) of the Act; (

e) any conditions that apply to the licence, other than conditions relating to educational requirements.

(2) All of the following information about each formerly licensed mortgage broker and associate mortgage broker is prescribed as the information required to be contained in the public register under subsection 7(2) of the Act: (

a) the name in which the former licensee was licensed and the corresponding former licence number; (

b) the type of licence held; (

c) the name of the mortgage brokerage on whose behalf the former licensee was authorized to broker mortgages immediately before ceasing to be licensed; (

d) the date the former licensee ceased to be licensed; © NS Office of the Registrar of Regulations. Web version. 423

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Part II - Regulations Vol. 44, No. 21 (

e) the details of any administrative or other penalties imposed by the Registrar under subsection 73(1) of the Act; (

f) whether the licence expired, renewal of the licence was refused, the licence was surrendered or the licence was revoked.

(3) The information recorded under subsection (2) must be kept in the public register for at least 2 years after the date the mortgage broker or associate mortgage broker it pertains to ceased to be licensed. N.S. Reg. 122/2020 Made: September 16, 2020 Filed: September 17, 2020 Principal Broker Regulations Order dated September 16, 2020 Regulations made by the Minister of Service Nova Scotia and Internal Services pursuant to

Section 90 of the Mortgage Regulation Act In the matter of

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act -and- In the matter of new regulations respecting principal brokers made by the Minister of Service Nova Scotia and Internal Services Order I, Patricia Arab, Minister of Service Nova Scotia and Internal Services for the Province of Nova Scotia, pursuant to

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, hereby make new regulations respecting principal brokers, in the form set forth in the attached

Schedule “A”. This order is effective on and after the date that

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, comes into force. Dated and made September 16, 2020, at Halifax Regional Municipality, Province of Nova Scotia. sgd. P. Arab Honourable Patricia Arab Minister of Service Nova Scotia and Internal Services © NS Office of the Registrar of Regulations. Web version. 424

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Part II - Regulations Vol. 44, No. 21

Schedule “A” Regulations Respecting Principal Brokers made by the Minister of Service Nova Scotia and Internal Services under

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act Citation 1 These regulations may be cited as the Principal Broker Regulations.

Definitions 2 In these regulations, “Act” means the Mortgage Regulation Act; “principal broker” means an individual required by the Act to be designated to fulfill the duties set out in subsection 28(2) of the Act and in these regulations. Prescribed criteria for designation as principal broker 3 All of the following are the criteria an individual is required to satisfy to be designated as a principal broker under

Section 28 of the Act: (

a) the individual is a licensed mortgage broker who is authorized by the brokerage to broker mortgages on its behalf; (

b) the individual has the following status in relation to the mortgage brokerage: (

i) for a mortgage brokerage that is a corporation, the individual is a director or officer of the corporation, (ii) for a mortgage brokerage that is a partnership other than a limited partnership, the individual is a partner, (iii) for a mortgage brokerage that is a limited partnership, the individual is a general partner or is a director or officer of a corporation that is a general partner, (iv) for a mortgage brokerage that is a sole proprietorship, the individual is the sole proprietor; (

c) the individual has demonstrated competence to carry out the duties and responsibilities of a principal broker on behalf of the mortgage brokerage. Duties of principal broker 4

(1) In this Section, “authorized mortgage broker” or “authorized associate mortgage broker”, in relation to a mortgage brokerage, means a mortgage broker or associate mortgage broker who is authorized by the brokerage to broker mortgages on its behalf.

(2) In addition to the duties set out in clauses 28(2)(

a) to (

c) of the Act, all of the following are prescribed as duties of a principal broker: © NS Office of the Registrar of Regulations. Web version. 425

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a) acting as a liaison or contact person with the Registrar for all matters concerning the operation of the mortgage brokerage, including all of the following: (

i) licensing matters, (ii) complaints, (iii) inspections, (iv) responding to directions, orders, demands or requirements of the Registrar, (

v) annual returns provided to the Registrar under

Section 54 of the Act; (

b) establishing, maintaining and periodically reviewing policies and procedures for the mortgage brokerage to assist the brokerage and each of its authorized mortgage brokers and authorized associate mortgage brokers in complying with the Act and its regulations; (

c) ensuring that (

i) each authorized mortgage broker and authorized associate mortgage broker is competent to carry out their duties and responsibilities under the Act and its regulations, and (ii) each authorized associate mortgage broker is adequately supervised; (

d) ensuring that regular audits are carried out on the work of the mortgage brokerage and of each authorized mortgage broker and authorized associate mortgage broker, and investigate and respond to any complaints made to the brokerage; (

e) advising the Registrar immediately on becoming aware of any contravention of the Act or its regulations by the mortgage brokerage or an authorized mortgage broker or authorized associate mortgage broker; (

f) advising the Registrar in writing immediately if any mortgage broker or associate mortgage broker ceases to be authorized to broker mortgages on behalf of the mortgage brokerage; (

g) ensuring that the mortgage brokerage immediately notifies the Registrar in writing of any change to a business address, facsimile number or electronic address provided in an application for a licence or licence renewal, as required by

Section 21 of the Act; (

h) ensuring that the mortgage brokerage notifies the Registrar in writing of any change of circumstances as required by

Section 22 of the Act in accordance with, and within the time period prescribed by, the Reporting Requirements Regulations made under the Act. © NS Office of the Registrar of Regulations. Web version. 426

N.S. Reg. 123/2020 Royal Gazette

Part II - Regulations Vol. 44, No. 21 N.S. Reg. 123/2020 Made: September 16, 2020 Filed: September 17, 2020 Compliance Officers Regulations Order dated September 16, 2020 Regulations made by the Minister of Service Nova Scotia and Internal Services pursuant to

Section 90 of the Mortgage Regulation Act In the matter of

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act -and- In the matter of new regulations respecting compliance officers made by the Minister of Service Nova Scotia and Internal Services Order I, Patricia Arab, Minister of Service Nova Scotia and Internal Services for the Province of Nova Scotia, pursuant to

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, hereby make new regulations respecting compliance officers, in the form set forth in the attached

Schedule “A”. This order is effective on and after the date that

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, comes into force. Dated and made September 16, 2020, at Halifax Regional Municipality, Province of Nova Scotia. sgd. P. Arab Honourable Patricia Arab Minister of Service Nova Scotia and Internal Services

Schedule “A” Regulations Respecting Compliance Officers made by the Minister of Service Nova Scotia and Internal Services under

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act Citation 1 These regulations may be cited as the Compliance Officers Regulations.

Definitions 2 In these regulations, “Act” means the Mortgage Regulation Act; “compliance officer” means a compliance officer required by the Act to be designated to fulfill the duties set out in subsection 25(2) or 35(2) of the Act; “designated” means designated in accordance with subsection 25(1) or 35(1) of the Act. © NS Office of the Registrar of Regulations. Web version. 427

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Part II - Regulations Vol. 44, No. 21 Prescribed criteria for designation as compliance officer 3 All of the following are the criteria an individual is required to satisfy to be designated as a compliance officer: (

a) the individual is (

i) at least 19 years old, and (ii) a resident of Canada; (

b) the individual is engaged with the activities of the licensee to the extent that the individual is capable of carrying out their duties and responsibilities under the Act and its regulations; (

c) the individual has the following status in relation to the licensee: (

i) for a licensee that is a corporation, the individual is a director or officer of the corporation, (ii) for a licensee that is a partnership other than a limited partnership, the individual is a partner, (iii) for a licensee that is a limited partnership, the individual is a general partner or is a director or officer of a corporation that is a general partner, or (iv) for a licensee that is a sole proprietorship, the individual is the sole proprietor; (

d) criminal record checks are conducted on the individual no earlier than 3 months before the date of the designation and every 2 years while the designation is in force and the checks (

i) disclose no evidence of any conviction for fraud or theft, and (ii) generally do not raise any issues concerning the appropriateness of the designation. Information submitted to Registrar 4 Before being designated as a compliance officer, and every 2 years while the designation is in force, an individual must submit all of the following to the Registrar: (

a) the results of the criminal record checks referred to in clause [3](1)(d); (

b) confirmation in writing, in a form satisfactory to the Registrar, that the individual has read and understands the Act and its regulations and agrees to carry out their duties and responsibilities under the Act and its regulations. © NS Office of the Registrar of Regulations. Web version. 428

N.S. Reg. 124/2020 Royal Gazette

Part II - Regulations Vol. 44, No. 21 N.S. Reg. 124/2020 Made: September 16, 2020 Filed: September 17, 2020 General Disclosure Regulations Order dated September 16, 2020 Regulations made by the Minister of Service Nova Scotia and Internal Services pursuant to

Section 90 of the Mortgage Regulation Act In the matter of

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act -and- In the matter of new regulations respecting general disclosure made by the Minister of Service Nova Scotia and Internal Services Order I, Patricia Arab, Minister of Service Nova Scotia and Internal Services for the Province of Nova Scotia, pursuant to

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, hereby make new regulations respecting general disclosure, in the form set forth in the attached

Schedule “A”. This order is effective on and after the date that

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, comes into force. Dated and made September 16, 2020, at Halifax Regional Municipality, Province of Nova Scotia. sgd. P. Arab Honourable Patricia Arab Minister of Service Nova Scotia and Internal Services

Schedule “A” Regulations Respecting General Disclosure made by the Minister of Service Nova Scotia and Internal Services under

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act Citation 1 These regulations may be cited as the General Disclosure Regulations.

Definitions 2 In these regulations, “Act” means the Mortgage Regulation Act; “disclosure” means a disclosure of information required to be provided or disclosed under the Act or its regulations; “Form 1—Mortgage Brokerage Disclosure” means Form 1—Mortgage Brokerage Disclosure as prescribed in the Forms Regulations made under the Act; © NS Office of the Registrar of Regulations. Web version. 429

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Part II - Regulations Vol. 44, No. 21 “Form 2—Mortgage Brokerage Recommendation and Assessment” means Form 2—Mortgage Brokerage Recommendation and Assessment as prescribed in the Forms Regulations made under the Act; “Form 4—Investor Disclosure Statement” means Form 4—Investor Disclosure Statement as prescribed in the Forms Regulations made under the Act; “Form 5—Investor Renewal Disclosure” means Form 5—Investor Renewal Disclosure as prescribed in the Forms Regulations made under the Act. General Disclosure Requirements Written disclosure 3

(1) Every disclosure must be in writing.

(2) If a borrower consents in writing, in paper or electronic form, to receiving disclosures in electronic form, the disclosures referred to in Sections 7 and 9 may be provided to and returned by the borrower in an electronic form that the borrower can retrieve and retain.

(3) If a private investor consents in writing, in paper or electronic form, the disclosures required by Sections 12 and 13 may be provided to and returned by the private investor in an electronic form that the private investor can retrieve and retain. Disclosure based on estimate or assumption 4

(1) A disclosure may be an estimate or may be based on an assumption if, when the disclosure is made, (

a) the actual information to be disclosed cannot be known; and (

b) the estimate or assumption is reasonable.

(2) If a disclosure is an estimate or is based on an assumption, the disclosure must include a statement to that effect. Clarity of disclosure, acknowledgment, consent 5 Every disclosure, consent or acknowledgment required by the Act or its regulations must be (

a) expressed in plain language that is clear and concise; and (

b) presented in a manner that is logical and is likely to bring to the attention of the borrower, lender or investor the information that is required to be conveyed. Disclosures by Mortgage Brokerages to Borrowers Application of Sections 7 to 10 6 Sections 7 to 10 apply to every mortgage brokerage that is required by

Section 31 of the Act to act in the best interests of a borrower. Prescribed contents, timing and manner of disclosure 7

(1) For the purposes of clause 32(1)(

a) of the Act, (

a) the information contained in Form 1—Mortgage Brokerage Disclosure is prescribed as the information that a mortgage brokerage is required to provide to a borrower; and © NS Office of the Registrar of Regulations. Web version. 430

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b) a completed Form 1—Mortgage Brokerage Disclosure must be provided to a borrower before the mortgage brokerage provides any services to the borrower.

(2) Before providing any services to a borrower, a mortgage brokerage must receive and retain a copy of the Form 1—Mortgage Brokerage Disclosure that is signed and dated by the borrower. Criteria for determining most suitable mortgage loan 8 The assessment criteria set out under the heading “Assessment Criteria” in Form 2—Mortgage Brokerage Recommendation and Assessment are prescribed as the criteria that a mortgage brokerage is required by clause 32(1)(

b) of the Act to use in determining a suitable mortgage loan for a borrower. Recommendation and assessment 9 The information set out in Form 2—Mortgage Brokerage Recommendation and Assessment is prescribed as the information that is required by clause 32(1)(

c) of the Act to be contained in a written assessment of the determination of a suitable mortgage that must be provided by a mortgage brokerage to a borrower. Ensuring initial cost of borrowing disclosure 10 A mortgage brokerage must ensure that an initial disclosure statement of the cost of borrowing to be provided to a borrower by a mortgage lender in accordance with the Cost of Borrowing Regulations made under the Act has been provided to a borrower by or on behalf of the borrower’s mortgage lender within the time period prescribed in those regulations.

Disclosures by Mortgage Lenders or Mortgage Brokerages to Private Investors Application of Sections 12 to 14 11 Sections 12 to 14 apply to every mortgage lender dealing with a private investor and every mortgage brokerage that is required by

Section 33 of the Act to act in the best interests of a private investor. Disclosure to private investor about mortgage 12

(1) A mortgage lender or mortgage brokerage must provide each private investor with all of the following information and documents for any investment in a mortgage that the mortgage lender or mortgage brokerage presents for the consideration of the private investor: (

a) a completed Form 4—Investor Disclosure Statement signed by 1 of the following: (

i) an authorized representative of the mortgage lender, (ii) a mortgage broker authorized by the mortgage brokerage; (

b) for an investment in an existing mortgage, a copy of the mortgage; (

c) a copy of any appraisal of the property completed in the previous 12 months and available to the mortgage lender or mortgage brokerage; (

d) if an appraisal of the property as described in clause (

c) is not available, documentary evidence of the value of the property other than an agreement of purchase and sale; (

e) a copy of any agreement of purchase and sale for the property entered into in the previous 12 months and available to the mortgage lender or mortgage brokerage, together with copies of all related schedules, amendments and waivers; (

f) documentary evidence of the borrower’s ability to meet the mortgage payments; © NS Office of the Registrar of Regulations. Web version. 431

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g) a copy of the borrower’s application for the mortgage and of any document submitted in support of the application; (

h) for a new mortgage, documentary evidence of any down payment made by the borrower for the purchase of the property; (

i) a copy of any agreement that the private investor may be asked to enter into with the mortgage lender or mortgage brokerage; (

j) for an investment in an existing mortgage, a certificate of insurance or other documentary evidence confirming the insurance coverage for the property; (

k) all additional information that an investor of ordinary prudence would consider to be material to a decision about whether to lend money on the security of the property or to invest in the mortgage.

(2) A mortgage lender or mortgage brokerage must obtain the private investor’s written acknowledgment that the mortgage lender or mortgage brokerage has disclosed the information and documents required by this Section. Disclosure to private investor with respect to mortgage renewal 13

(1) A mortgage lender or mortgage brokerage must provide each private investor with all of the following information and documents for any renewal of a mortgage that the mortgage lender or mortgage brokerage presents for the consideration of the private investor: (

a) a completed Form 5—Investor Renewal Disclosure, signed by 1 of the following: (

i) an authorized representative of the mortgage lender, or (ii) a mortgage broker authorized by the mortgage brokerage; (

b) a copy of any appraisal of the property completed in the previous 12 months and available to the mortgage lender or mortgage brokerage; (

c) a copy of any agreement of purchase and sale for the property entered into in the previous 12 months and available to the mortgage lender or mortgage brokerage, together with copies of all related schedules, amendments and waivers; (

d) a certificate of insurance or other documentary evidence confirming the insurance coverage on the property; (

e) all additional information that an investor of ordinary prudence would consider to be material to a decision about whether to renew the mortgage.

(2) A mortgage lender or mortgage brokerage must obtain the private investor’s written acknowledgment that the mortgage lender or mortgage brokerage has disclosed the information and documents required by this Section. Deadlines for Disclosures to Investors Deadline for disclosure by mortgage lender or mortgage brokerage 14

(1) Except as provided in subsection (2), a disclosure of information required by the Act or its regulations to be made by a mortgage lender or a mortgage brokerage to an investor must be made at © NS Office of the Registrar of Regulations. Web version. 432

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Part II - Regulations Vol. 44, No. 21 least 2 business days before the earliest of the following events: (

a) the mortgage lender or mortgage brokerage receives money from the investor; (

b) the mortgage lender or mortgage brokerage enters into an agreement to receive money from the investor; (

c) the mortgage lender enters into an agreement to enter into the mortgage or the investor enters into an agreement to purchase, exchange or sell the mortgage; (

d) the money is advanced to the borrower under the mortgage; (

e) the investment completion date.

(2) If an investor consents in writing, in paper or electronic form, to receiving a disclosure after the deadline set out in subsection (1), the disclosure may instead be made (

a) no later than 1 business day before the earliest of the events set out in subsection (1); or (

b) if the investor has received independent legal advice, at any time before the earliest of the events set out in subsection (1). Deadline for disclosure by mortgage administrator 15

(1) Except as provided in subsection (2), a disclosure of information required by the Act or its regulations to be made by a mortgage administrator to an investor must be made at least 2 business days before the mortgage administrator and the investor enter into a mortgage administration agreement for the mortgage.

(2) If an investor consents in writing, in paper or electronic form, to receiving a disclosure about a mortgage after the deadline set out in subsection (1), the disclosure may instead be made (

a) no later than 1 business day before the mortgage administrator and the investor enter into a mortgage administration agreement for the mortgage; or (

b) if the investor has received independent legal advice, at any time before the mortgage administrator and the investor enter into a mortgage administration agreement for the mortgage. © NS Office of the Registrar of Regulations. Web version. 433

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Part II - Regulations Vol. 44, No. 21 N.S. Reg. 125/2020 Made: September 16, 2020 Filed: September 17, 2020 Cost of Borrowing Disclosure Regulations Order dated September 16, 2020 Regulations made by the Minister of Service Nova Scotia and Internal Services pursuant to

Section 90 of the Mortgage Regulation Act In the matter of

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act -and- In the matter of new regulations respecting cost of borrowing disclosure made by the Minister of Service Nova Scotia and Internal Services Order I, Patricia Arab, Minister of Service Nova Scotia and Internal Services for the Province of Nova Scotia, pursuant to

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, hereby make new regulations respecting cost of borrowing disclosure, in the form set forth in the attached

Schedule “A”. This order is effective on and after the date that

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, comes into force. Dated and made September 16, 2020, at Halifax Regional Municipality, Province of Nova Scotia. sgd. P. Arab Honourable Patricia Arab Minister of Service Nova Scotia and Internal Services

Schedule “A” Regulations Respecting Disclosure of the Cost of Borrowing made by the Minister of Service Nova Scotia and Internal Services under

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act

Interpretation and Application Citation 1 These regulations may be cited as the Cost of Borrowing Disclosure Regulations .

Definitions 2 In these regulations, “APR” means the cost of borrowing expressed as an annual rate on the principal, calculated in accordance with

Section 5; “disclosure statement” means a statement containing the information to be provided by a mortgage lender to a borrower as required by

Section 27 of the Act and in accordance with these regulations; © NS Office of the Registrar of Regulations. Web version. 434

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Part II - Regulations Vol. 44, No. 21 “high-ratio mortgage” means a mortgage under which the amount advanced, together with the amount outstanding under any other mortgage that ranks equally with, or prior to, the mortgage loan exceeds 80% of the market value of the property securing the mortgage loan; “initial disclosure statement” means a disclosure statement provided to a borrower with whom a mortgage lender proposes to enter into a mortgage; “principal” means the amount borrowed under a mortgage, but does not include any cost of borrowing; “public index” means an interest rate, or a variable base rate for an interest rate, that is published at least weekly in a newspaper or magazine of general circulation, or in some media of general circulation or distribution, in areas where borrowers whose mortgages are governed by that interest rate reside.

Application of regulations 3

(1) These regulations apply to all mortgages other than a mortgage described in subsection (2).

(2) These regulations do not apply to either of the following mortgages: (

a) a mortgage entered into with a borrower who is not a natural person; (

b) a mortgage that a borrower enters into for business purposes.

Application of Sections 5 to 21 4 Sections 5 to 21 do not apply to a mortgage if the borrower is given a disclosure statement on behalf of a person acting as the mortgage lender and the disclosure statement meets the disclosure requirements of the corresponding legislation, as set out in the following table: Person Acting as Mortgage Lender Corresponding Legislation a bank or an authorized foreign bank as defined in the Bank Act (Canada) Bank Act (Canada) a retail association as defined in the Cooperative Credit Associations Act (Canada) Cooperative Credit Associations Act (Canada) an insurance company Insurance Companies Act (Canada) a body corporate to which the Trust and Loan Companies Act (Canada) applies Trust and Loan Companies Act (Canada) Cost of Borrowing Calculation of APR 5

(1) For the purpose of a disclosure statement, the cost of borrowing for a mortgage is the APR as calculated using the following formula: APR = (C ÷ (T × P)) x 100 in which: © NS Office of the Registrar of Regulations. Web version. 435

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Part II - Regulations Vol. 44, No. 21 APR = the annual percentage rate cost of borrowing, C = the cost of borrowing, as described in

Section 7, over the term of the mortgage, P = the average of the principal of the mortgage outstanding at the end of each period for the calculation of interest under the mortgage, before subtracting any payment that is due at that time, and T = the term of the mortgage in years, expressed to at least 2 decimal points of significance.

(2) In calculating the cost of borrowing under subsection (1), all of the following apply: (

a) the APR may be rounded off to the nearest 1/8 of a percent; (

b) each instalment payment made on the mortgage must be applied first to the accumulated cost of borrowing and then to the outstanding principal; (

c) a period of (i) 1 month is 1/12 of a year, (ii) 1 week is 1/52 of a year, and (iii) 1 day is 1/365 of a year; (

d) if the annual interest rate underlying the calculation is variable over the period of the mortgage, it must be set as the annual interest rate that applies on the date that the calculation is made; (

e) if there are no instalment payments under the mortgage, then the APR must be calculated on the basis that the outstanding principal is to be repaid in 1 lump sum at the end of the term of the mortgage; (

f) a mortgage for an amount that comprises, in whole or in part, an outstanding balance from a prior mortgage is a new mortgage for the purpose of the calculation.

(3) The cost of borrowing for a line of credit or credit card that is secured by a mortgage is as follows: (

a) for a mortgage that has a fixed annual interest rate, that annual interest rate; (

b) for a mortgage that has a variable annual interest rate, the annual interest rate that applies on the date of the disclosure. Annual interest rate as APR 6

(1) The APR for a mortgage is the annual interest rate if there is no cost of borrowing other than interest.

(2) If an interest rate is disclosed in accordance with

section 6 of the Interest Act (Canada), the APR must be calculated in a manner that is consistent with that section. Included and excluded charges 7

(1) Except as provided in subsection (2), the cost of borrowing for a mortgage, other than one that secures a line of credit, consists of the aggregate of all the costs of borrowing under the mortgage © NS Office of the Registrar of Regulations. Web version. 436

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Part II - Regulations Vol. 44, No. 21 over its term, and includes all of the following charges: (

a) administrative charges, including charges for services, transactions or any other activity in relation to the mortgage, but excluding any charges paid to the mortgage brokerage directly by the borrower and disclosed to the borrower by the mortgage brokerage; (

b) charges for the services or disbursements of a lawyer or notary hired by the mortgage lender that are payable by the borrower; (

c) insurance charges other than those excluded under clauses (2)(a), (

f) and (h); (

d) brokerage charges paid by the mortgage lender to a mortgage brokerage in relation to the mortgage, if the borrower is required to reimburse the mortgage lender for the charges; (

e) charges for appraisal, inspection or surveying services provided directly to the borrower in relation to property that is security for the mortgage, if those services are required by the mortgage lender.

(2) The cost of borrowing for a mortgage does not include any of the following charges: (

a) charges for insurance on the mortgage, if either of the following applies: (

i) the insurance is optional, (ii) the borrower is the beneficiary of the insurance and the amount insured reflects the value of an asset that is security under the mortgage; (

b) charges for an overdraft; (

c) charges to register documents or obtain information from a public registry about security interests related to property given as security; (

d) penalty charges for the prepayment of the mortgage; (

e) charges for the services or disbursements of a lawyer or notary, other than those mentioned in clause (1)(b); (

f) charges for insurance against defects in title to real property, if all of the following apply: (

i) the borrower selects the insurer, (ii) the insurance is paid for directly by the borrower, (iii) the borrower is the beneficiary of the insurance; (

g) charges for appraisal, inspection or surveying services provided directly to the borrower in relation to property that is security for the mortgage, if the borrower receives a report from the person providing the service and is entitled to give the report to third parties; (

h) charges for insurance against default on a high-ratio mortgage; (

i) charges to maintain a tax account that is required for a high-ratio mortgage or that is optional; © NS Office of the Registrar of Regulations. Web version. 437

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j) any charges to discharge a security interest; (

k) default charges. Disclosure to Borrowers Content, manner and timing of disclosure prescribed for

Section 27 of Act 8 The information required to be provided by a mortgage lender to a borrower under

Section 27 of the Act must be in the form of a written disclosure statement that (

a) includes the information required by these regulations; and (

b) is given to the borrower within the time period and in the manner specified in these regulations. Manner of providing information 9

(1) A disclosure statement may be in Form 3 of the Forms Regulations made under the Act or another separate document, or it may be part of another document.

(2) If a borrower consents in writing, in paper or electronic form, a disclosure statement may be provided to the borrower in an electronic form that the borrower can retrieve and retain. Disclosure based on estimate or assumption 10 Information disclosed in a disclosure statement may be based on an assumption or estimate if all of the following conditions are met: (

a) the assumption or estimate is reasonable; (

b) the actual information cannot be known by the mortgage lender when the mortgage lender makes the statement; (

c) the information in the statement is identified to the borrower as based on an assumption or estimate. Clarity of disclosure, acknowledgment, consent 11 A disclosure statement, or a consent in relation to a disclosure statement, must be (

a) expressed in plain language that is clear and concise; and (

b) presented in a manner that is logical and likely to bring to the borrower’s attention the information that is required to be disclosed. Timing for providing initial disclosure statement 12

(1) Except as provided in subsection (2), the prescribed time for when an initial disclosure statement to a borrower must be provided is at least 2 business days before the earlier of the following dates: (

a) the day on which the borrower signs the mortgage; (

b) the day on which the borrower makes any payment in connection to the mortgage, excluding any application fee paid by the borrower in connection with the mortgage.

(2) A borrower who receives legal advice may waive in writing the requirement for an initial disclosure statement to be provided within the period in subsection (1). © NS Office of the Registrar of Regulations. Web version. 438

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Part II - Regulations Vol. 44, No. 21 Disclosure statement information—fixed interest mortgage for fixed amount 13

(1) An initial disclosure statement for a mortgage with a fixed interest rate for a fixed amount that is to be repaid on a fixed future date or by instalment payments must include all of the following information: (

a) the principal amount of the mortgage; (

b) the amount of each advance of the principal and when each advance is to be made; (

c) the total amount of all payments; (

d) the cost of borrowing over the term of the mortgage, expressed in dollars and cents; (

e) the term of the mortgage, and the period of amortization if it is different from the term; (

f) the annual interest rate and any circumstances under which it is compounded; (

g) the APR, if it differs from the annual interest rate; (

h) the date on and after which interest is charged and information concerning any period during which interest does not accrue; (

i) the amount of each payment and when it is due; (

j) the fact that each payment made on the mortgage must be applied first to the accumulated cost of borrowing and then to the outstanding principal; (

k) an amortization

schedule for the term of the mortgage showing all of the following: (

i) the principal amount, (ii) the due date and amount of each periodic payment, (iii) the portion of each periodic payment that is charged as interest or is applied on principal, (iv) the outstanding balance of the mortgage after each periodic payment, (

v) the principal amount at maturity; (

l) information about any optional service in relation to the mortgage that the borrower accepts, the charges for each optional service and the conditions under which the borrower may cancel the service, unless the information is disclosed in a separate statement before the optional service is provided; (

m) the information about the mortgage terms and conditions required by

Section 8 of the Act, including a description of any components of a formula used to calculate a rebate, charge or penalty to be imposed on the borrower if the borrower exercises a right to repay the amount borrowed before the maturity of the mortgage; (

n) if

Section 21 respecting providing optional services applies to the mortgage, the formula set out in subsection 21(3); © NS Office of the Registrar of Regulations. Web version. 439

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o) the particulars of the 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 date the instalment is due to be paid, including default charges that may be imposed under

Section 22; (

p) identifying information about the property in which the mortgage lender takes a security interest under the mortgage; (

q) any charge for a mortgage brokerage, if the brokerage charges are included in the amount borrowed and are paid directly by the mortgage lender to the brokerage; (

r) the fact that there is a charge to discharge a security interest and the amount of the charge on the date that the statement is provided; (

s) the nature and amount of any charge other than an interest charge.

(2) If the outstanding balance of a mortgage referred to in subsection (1) is increased because the borrower has missed a scheduled instalment payment or because a default charge is levied on the borrower for missing a scheduled instalment payment, and consequently the amount of each of the subsequently scheduled instalment payments does not cover the interest accrued during the period each payment is scheduled for, the mortgage lender must, no later than 30 days after the date the missed payment was scheduled or the default charge imposed, give the borrower a subsequent disclosure statement that describes the situation and its consequences.

Disclosure statement information—variable interest mortgage for fixed amount 14

(1) An initial disclosure statement for a mortgage with a variable interest rate for a fixed amount to be repaid on a fixed future date or by instalment payments must include all of the following information: (

a) the information prescribed in subsection 13(1) for a fixed interest rate mortgage; (

b) the annual rate of interest that applies on the date of the disclosure statement; (

c) the method for determining the annual interest rate that applies after the date of the disclosure statement and when that determination is made; (

d) the amount of each payment based on the annual interest rate that applies on the date of the disclosure statement and the dates when those payments are due; (

e) the total amount of all payments and of the cost of borrowing based on the annual interest rate that applies on the date of the disclosure statement; (

f) if the loan is to be paid by instalment payments and the amount to be paid is not adjusted automatically to reflect changes in the annual interest rate that apply to each instalment payment, (

i) the annual interest rate above which the amount of a scheduled instalment payment on the initial principal does not cover the interest due on the instalment payment, and (ii) the fact that negative amortization is possible; (

g) if the loan does not have regularly scheduled payments, © NS Office of the Registrar of Regulations. Web version. 440

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i) the conditions that must occur for the entire outstanding balance, or part of it, to become due, or (ii) a description of the provisions of the mortgage that set out the conditions referred to in subclause (i).

(2) If the variable interest rate for a mortgage referred to in subsection (1) is determined by adding or subtracting a fixed percentage rate of interest to or from a public index that is a variable rate, the mortgage lender must give the borrower an additional disclosure statement at least once every 12 months that contains all of the following information: (

a) the annual interest rate at the beginning and end of the period covered by the disclosure statement; (

b) the outstanding balance at the beginning and end of the period covered by the disclosure statement; (

c) the amount of each instalment payment due under a payment

schedule and the time when each payment is due, based on the annual interest rate that applies at the end of the period covered by the disclosure statement.

(3) If the variable interest rate for a mortgage referred to in subsection (1) is determined by a method other than that referred to in subsection (2), the mortgage lender must give the borrower an additional disclosure statement that contains all of the following information no later than 30 days after increasing the annual interest rate by more than 1% above the most recently disclosed rate: (

a) the new annual interest rate and the date on which it takes effect; (

b) the amount of each instalment payment and the time when each payment is due, for payments that are affected by the new annual interest rate. Disclosure statement information—mortgage securing line of credit 15

(1) An initial disclosure statement for a mortgage that secures a line of credit or any other open credit facility must include all of the following information: (

a) the initial credit limit, if it is known at the time the disclosure is made; (

b) the annual interest rate, or the method for determining it if it is variable; (

c) the nature and amounts of any non-interest charges; (

d) the minimum payment during each payment period or the method for determining it; (

e) each period a statement of account is to be provided; (

f) the day on and after which interest accrues, and information concerning any grace period that applies; (

g) particulars of the 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, including default charges that may be imposed under

Section 22; © NS Office of the Registrar of Regulations. Web version. 441

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h) identifying information about the property in which the mortgage lender takes a security interest under the mortgage; (

i) information about any optional service in relation to the mortgage that the borrower accepts, the charges for each optional service and the conditions under which the borrower may cancel the service, unless that information is disclosed in a separate statement before the optional service is provided; (

j) a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the borrower may use to get information about the account during the mortgage lender’s regular business hours; (

k) any charge for a mortgage brokerage, if the brokerage’s charges are included in the amount borrowed and are paid directly by the mortgage lender to the brokerage.

(2) If the initial credit limit is not known when the initial disclosure statement referred to in subsection (1) is made, the mortgage lender must disclose it (

a) in the first statement of account provided to the borrower; or (

b) in a separate statement that the borrower receives on or before the date on which the borrower receives the first statement of account.

(3) Except as provided in subsection (4), in addition to the initial disclosure statement referred to in subsection (1), a mortgage lender must give a borrower a disclosure statement at least once a month that contains all of the following information: (

a) the period covered by the disclosure statement and the opening and closing balances in the period; (

b) an itemized statement of account that discloses each amount credited or charged, including interest, and the dates when those amounts were posted to the account; (

c) the sum for payments and the sum for credit advances and interest and other charges; (

d) the annual interest rate that applied on each day in the period and the total of interest charged at those rates in the period; (

e) the credit limit and the amount of credit available at the end of the period; (

f) the minimum payment and its due date; (

g) the borrower’s rights and obligations regarding any billing error that may appear in the statement of account; (

h) a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the borrower may use to get information about the account during the mortgage lender’s regular business hours.

(4) The additional disclosure statement described in subsection (3) is not required for a period during which there are no advances or payments if either of the following applies: (

a) there is no outstanding balance at the end of the period; © NS Office of the Registrar of Regulations. Web version. 442

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b) the borrower has been given notice that the line of credit secured by the mortgage is suspended or cancelled due to default and the mortgage lender has demanded payment of the outstanding balance. Information to be disclosed in credit card application 16

(1) Except as otherwise provided in this Section, a mortgage lender that issues a credit card secured by a mortgage must specify all of the following information in the credit card application form or in a document accompanying it, including the date on which each of the matters mentioned takes effect: (

a) for a credit card with a fixed rate of interest, the annual interest rate; (

b) for a credit card with no fixed rate of interest, the fact that the variable interest rate is determined by adding or subtracting a fixed percentage rate of interest to or from a public index, a description of the public index and the fixed percentage rate to be added or subtracted from it; (

c) the day on and after which interest accrues, and information concerning any grace period that applies; (

d) the amount of any charges other than interest charges. (2) Subsection (1) does not apply if the mortgage lender prominently discloses all of the following on the credit card application form or in a document accompanying it: (

a) a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the borrower may use to get information otherwise required by subsection (1) during the mortgage lender’s regular business hours; (

b) the fact that the applicant may obtain the information otherwise required by subsection (1) at the telephone number provided.

(3) For an individual who applies for a credit card by telephone or any electronic means, the information required by clauses (1)(

a) and (

d) must be disclosed to the applicant when the application is made.

(4) For a mortgage lender that solicits applications for credit cards secured by a mortgage in person, by mail, by telephone or by any electronic means, the information required by clauses (1)(

a) and (

d) must be disclosed at the time of the solicitation. Disclosure statement information—mortgage secured by credit card 17

(1) An initial disclosure statement for a mortgage secured by a credit card must include all of the following information: (

a) the information prescribed in subsection 15(1) for mortgages securing a line of credit; (

b) the manner in which interest is calculated and the information about the interest rate prescribed in clause 16(1)(

a) or (b); (

c) if the credit agreement requires the borrower to pay the outstanding balance in full on receiving a statement of account, (

i) a statement of that requirement, © NS Office of the Registrar of Regulations. Web version. 443

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Part II - Regulations Vol. 44, No. 21 (ii) the grace period by the end of which the borrower must have paid that balance, and (iii) the annual interest rate charged on any outstanding balance not paid when due; (

d) the fact that if a lost or stolen credit card is used in an unauthorized manner, the maximum liability of the borrower is the lesser of the following: (i) $50, (ii) the maximum set by the credit agreement; (

e) the fact that, despite clause (d), if an unauthorized transaction is entered into at an automated teller machine by using the borrower’s personal identification number, the borrower’s maximum liability is the liability incurred by the transaction; (

f) the fact that if the mortgage lender receives a written or verbal report from the borrower of a lost or stolen credit card, the borrower is not liable for any transaction entered into through the use of the card after the mortgage lender receives the report.

(2) If the initial credit limit is not known when the initial disclosure statement is given, it must be disclosed (

a) in the first statement of account provided to the borrower; or (

b) in a separate statement that the borrower receives on or before the date that the borrower receives that first statement of account.

(3) Despite the disclosure requirements in

Section 18 for an amendment to a mortgage, if a credit agreement for a credit card that secures a mortgage is amended, the mortgage lender must give the borrower a written statement at least 30 days before the amendment takes effect that sets out the changes to the information that was included in the initial disclosure statement for the mortgage, except that information is not required to be given about any of the following changes: (

a) any change in the credit limit; (

b) any extension of the grace period; (

c) any decrease in charges other than interest charges and default charges referred to in clauses 15(1)(

c) and (g); (

d) any change concerning any optional service referred to in clause 15(1)(

i) in relation to the credit agreement; (

e) any change in a variable interest rate referred to in clause 16(1)(

b) as a result of a change in the public index referred to in that clause.

(4) A change described in clauses (3)(

a) to (

d) must be disclosed in the first periodic disclosure statement that is given to the borrower after the amendment to the credit agreement is made.

(5) In addition to the initial disclosure statement referred to in subsection (1), a mortgage lender that issues credit cards must give each borrower additional disclosure statements on a regular periodic basis, at least once a month, that contain all of the following information: © NS Office of the Registrar of Regulations. Web version. 444

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a) the information prescribed in subsections 15(3) and (4), other than clauses 15(3)(

b) and (c); (

b) an itemized statement of account that describes each transaction and discloses each amount credited or charged, including interest, and the dates when those amounts were posted to the account; (

c) the amount that the borrower must pay, on or before a specified due date, in order to have the benefit of a grace period; (

d) the sum for payments and the sum for purchases, credit advances and interest and other charges.

(6) An itemized statement of account required by clause (5)(

b) is adequate if it permits the borrower to verify each transaction described by linking it with a transaction record provided to the borrower. Disclosure statement—amendment to mortgage 18

(1) If a mortgage is amended by a subsequent agreement, the mortgage lender must give the borrower a written statement no later than 30 days after the date the borrower enters into the subsequent agreement that sets out the changes to the information that was included in the initial disclosure statement for the mortgage.

(2) If a mortgage for a fixed amount has a

schedule for instalment payments and the

schedule is amended by a subsequent agreement, the mortgage lender must give the borrower a written statement no later than 30 days after the borrower enters into the subsequent agreement that sets out the new payment

schedule and any increase in the total amount to be paid or the cost of borrowing. Disclosure statement information—renewal of mortgage 19

(1) If a mortgage is to be renewed on a specified date, the mortgage lender must give the borrower a subsequent disclosure statement at least 21 days before the specified renewal date that contains the information required by the following: (

a) Section 13, for a mortgage that is for a fixed interest rate; (

b) Section 14, for a mortgage that is for a variable interest rate.

(2) A disclosure statement referred to in subsection (1) must specify all of the following: (

a) that the cost of borrowing will not be increased after the disclosure statement is given to the borrower and before the mortgage is renewed; (

b) that the borrower’s rights under the mortgage continue, and the renewal does not take effect, until the date that is the later of the following: (

i) the specified renewal date, (ii) the 21st day after the borrower receives the statement.

(3) A mortgage lender that does not intend to renew a mortgage after its term ends must notify the borrower of that intention at least 21 days before the end of the term. Disclosures when mortgage lender offers to waive payment 20

(1) A mortgage lender that offers to waive a payment under a mortgage for a fixed amount without waiving the accrual of interest during the period covered by the payment must disclose to the © NS Office of the Registrar of Regulations. Web version. 445

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Part II - Regulations Vol. 44, No. 21 borrower in a prominent manner in the offer that interest will continue to accrue during that period if the borrower accepts the offer.

(2) A mortgage lender that offers to waive a payment under a mortgage that secures a line of credit or a credit card must disclose to the borrower in a prominent manner in the offer whether interest will continue to accrue during any period covered by the offer if the borrower accepts the offer. Disclosure statement information—cancellation of optional services 21

(1) This

Section applies to a mortgage lender that provides optional services, including insurance services, to a borrower on an ongoing basis in connection with the mortgage.

(2) A disclosure statement in relation to a mortgage must specify all of the following: (

a) that the borrower may cancel an optional service by notifying the mortgage lender that the service is to be cancelled effective as of the earlier of the following dates: (i) 1 month after the date that the disclosure statement was provided to the borrower, (ii) the last date of the notice period provided for in the mortgage; (

b) that the mortgage lender must, without delay, refund or credit the borrower with the proportional amount, calculated in accordance with the formula set out in subsection (3), of any charges for the service paid for by the borrower and added to the balance of the mortgage loan, but unused as of the cancellation date referred to in the notice.

(3) The proportion of charges to be refunded or credited to a borrower after an optional service is cancelled are calculated using the following formula R = A × ((n ! m) ÷

n) in which R = the amount to be refunded or credited A = the amount of the charges n = the period between the imposition of the charge and the time when the services were, before the cancellation, scheduled to end m = the period between the imposition of the charge and the cancellation. Default Charges Default charges to recover costs 22 If a borrower fails to make a payment when it becomes due or fails to comply with an obligation under the mortgage, in addition to interest, the mortgage lender may impose charges for the sole purpose of recovering any of the following costs that are reasonably incurred: (

a) the cost of legal services required to collect or attempt to collect the payment; (

b) expenses incurred to realize on a security interest taken under the mortgage or to protect such a security interest, including the cost of legal services required for that purpose; © NS Office of the Registrar of Regulations. Web version. 446

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c) expenses incurred to process a cheque or other payment instrument that the borrower used to make a payment under the mortgage but that was dishonoured. Advertising Advertising—mortgage for a fixed amount 23 An advertisement of a mortgage for a fixed amount must meet all of the following requirements if it includes a representation about the interest rate or the amount of any payment or of any charge other than interest: (

a) the advertisement must also include the APR and the term of the mortgage; (

b) the APR must be provided at least as prominently as the representation and in the same manner as the representation, whether visually or aurally, or both; (

c) if the APR or the term of the mortgage is not the same for all mortgages to which the advertisement relates, the advertisement must be based on an example of a mortgage that fairly depicts all those mortgages and is identified as a representative example of them. Advertising—line of credit 24 An advertisement of a mortgage that secures a line of credit must meet all of the following requirements if it includes a representation about the annual interest rate or the amount of any payment or of any charge other than interest: (

a) the advertisement must also include the annual rate of interest on the date of the advertisement and any initial or periodic charges other than interest; (

b) the information required by clause (

a) must be provided at least as prominently as the representation and in the same manner as the representation, whether visually or aurally, or both. Advertising—interest-free periods 25

(1) An advertisement of a mortgage must meet all of the following requirements if it includes a representation, express or implied, that a period of the mortgage is free of any interest charges: (

a) the advertisement must indicate whether interest accrues during the period and is payable after the period; (

b) the information required by clause (

a) must be provided at least as prominently as the representation, if it was express, or in a prominent manner, if it was implied; (

c) if interest does not accrue during the period, the advertisement must also disclose any conditions that apply to the forgiving of the accrued interest and the APR, or the annual interest rate in the case of a mortgage that secures a credit card or line of credit, for a period when those conditions are not met. Purchasing Insurance Disclosure of information if borrower required to purchase insurance 26

(1) A mortgage lender that requires a borrower to purchase insurance and offers to provide or arrange the insurance must at the same time clearly disclose to the borrower in writing that the borrower may purchase the required insurance through any insurer who may lawfully provide that type of insurance. © NS Office of the Registrar of Regulations. Web version. 447

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(2) A mortgage lender may reserve the right to disapprove on reasonable grounds an insurer selected by the borrower, and if that is the case, the disclosure required by subsection (1) must state that the mortgage lender reserves that right to disapprove. N.S. Reg. 126/2020 Made: September 16, 2020 Filed: September 17, 2020 Standards of Conduct for Mortgage Brokerages Regulations Order dated September 16, 2020 Regulations made by the Minister of Service Nova Scotia and Internal Services pursuant to

Section 90 of the Mortgage Regulation Act In the matter of

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act -and- In the matter of new regulations respecting standards of conduct for mortgage brokerages made by the Minister of Service Nova Scotia and Internal Services Order I, Patricia Arab, Minister of Service Nova Scotia and Internal Services for the Province of Nova Scotia, pursuant to

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, hereby make new regulations respecting standards of conduct for mortgage brokerages, in the form set forth in the attached

Schedule “A”. This order is effective on and after the date that

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, comes into force. Dated and made September 16, 2020, at Halifax Regional Municipality, Province of Nova Scotia. sgd. P. Arab Honourable Patricia Arab Minister of Service Nova Scotia and Internal Services

Schedule “A” Regulations Respecting Standards of Conduct for Mortgage Brokerages made by the Minister of Service Nova Scotia and Internal Services under

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act Citation 1 These regulations may be cited as the Standards of Conduct for Mortgage Brokerages Regulations .

Definitions 2 In these regulations, © NS Office of the Registrar of Regulations. Web version. 448

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Part II - Regulations Vol. 44, No. 21 “Act” means the Mortgage Regulation Act; “Cost of Borrowing Disclosure Regulations ” means the Cost of Borrowing Disclosure Regulations made under the Act; “investment completion date”, in relation to a mortgage, means the earlier of the following dates: (

i) the date that an investor, or a mortgage brokerage on behalf of an investor, enters into an agreement to invest in the mortgage, (ii) the date that the investment in the mortgage is completed. Duties to mortgage lenders and investors in syndicated mortgages 3 If there is more than 1 lender under a mortgage or if more than 1 investor invests in a mortgage, a mortgage brokerage owes to each of the mortgage lenders and investors the duties imposed by these regulations in respect of the mortgage or investment.

Standards of conduct 4 The requirements set out in these regulations are prescribed as standards of conduct for every licensed mortgage brokerage. Information to be contained in advertisement 5

(1) All of the following information is prescribed as the information required by clause 58(2)(

b) of the Act to be contained in an advertisement of a mortgage brokerage: (

a) for a mortgage brokerage whose name as set out on its licence is, or includes, a franchise name that the mortgage brokerage is permitted to use under a franchise agreement, a statement clearly indicating that the mortgage brokerage is independently owned and operated; (

b) for an advertisement that identifies a mortgage broker or associate mortgage broker by name, the name set out on the mortgage broker’s or associate mortgage broker’s licence; (

c) for an advertisement that refers to a mortgage broker or associate mortgage broker, at least 1 reference to the mortgage broker or associate mortgage broker that includes 1 of the following titles: (

i) for a mortgage broker, the title “mortgage broker” or “broker” or an abbreviation of either of those titles, (ii) for an associate mortgage broker, the title “associate mortgage broker”, “associate broker” or “associate” or an abbreviation of any of those titles.

(2) In addition to the titles prescribed by clause (1)(c), an advertisement may include an equivalent title in another language. Information to be disclosed in correspondence 6

(1) All of the following information is prescribed as the information required to be disclosed under subsection 60(1) of the Act by a mortgage brokerage in all correspondence and other written material prepared or used in the course of the business: (

a) the mortgage brokerage’s name as set out on its licence; (

b) the mortgage brokerage’s licence number; © NS Office of the Registrar of Regulations. Web version. 449

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c) for a mortgage brokerage whose name as set out on its licence is, or includes, a franchise name that the mortgage brokerage is permitted to use under a franchise agreement, a statement clearly indicating that the mortgage brokerage is independently owned and operated.

(2) The name and licence number referred to in clauses (1)(

a) and (

b) must be clearly and prominently displayed wherever they are required to be disclosed. Duty to provide licence information 7

(1) When requested, a mortgage brokerage must give a person all of the following information: (

a) the licence number of the mortgage brokerage; (

b) subject to subsection (2), the name and licence number of a mortgage broker or associate mortgage broker who (

i) is authorized to broker mortgages on behalf of the mortgage brokerage, and (ii) is relevant to the nature of the request. (2) Clause (1)(

b) does not require a mortgage brokerage to give a person the names and licence numbers of all or substantially all of its mortgage brokers or associate mortgage brokers. Duty to respond to complaint 8 On receiving a written complaint about the mortgage business activities of the mortgage brokerage or of any mortgage broker or associate mortgage broker authorized to broker mortgages on its behalf, a mortgage brokerage must give the complainant a written response that contains all of the following: (

a) the mortgage brokerage’s proposed resolution of the complaint; (

b) a statement that, if the complainant is not satisfied with the proposed resolution and believes that the complaint relates to a contravention of the Act or a regulation made under the Act, the complainant may refer the complaint to the Registrar. Entering into unlawful transaction 9 A mortgage brokerage must not act as a representative of a borrower, lender or investor in respect of a mortgage if the mortgage brokerage has reasonable grounds to believe that the mortgage, its renewal or the investment in it is unlawful. Restriction on tied selling 10

(1) A mortgage brokerage must not coerce a borrower, mortgage lender or investor to obtain a product or service from a particular person, including the mortgage brokerage, as a condition for obtaining another service from the mortgage brokerage.

(2) A mortgage brokerage is not coercing a borrower, mortgage lender or investor as prohibited by subsection (1) if it offers the borrower, mortgage lender or investor more favourable terms for a product or service than it would otherwise offer, and the more favourable terms are offered on the condition that the borrower, mortgage lender or investor obtain another product or service from a particular person, including the mortgage brokerage. Duty to return certain documents 11 A mortgage brokerage must promptly, without charge, return a deed, instrument or other document to its owner. © NS Office of the Registrar of Regulations. Web version. 450

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Part II - Regulations Vol. 44, No. 21 Representing status of payment 12

(1) Except as provided in subsection (2), a mortgage brokerage must not, directly or indirectly, represent to any person or entity that any amount payable to the mortgage brokerage in connection with carrying on the business of a mortgage brokerage is set or approved by any government authority. (2) Subsection (1) does not apply with respect to disbursements that may be made by a mortgage brokerage for fees payable to record instruments under the Land Registration Act.

Duty to ensure suitability of mortgage for private investor 13 A mortgage brokerage required to act in the best interests of a private investor must take reasonable steps to ensure that any investment in a mortgage that it presents for the consideration of the private investor is suitable for the private investor having regard to the needs and circumstances of the private investor. Duty to verify identity 14

(1) A mortgage brokerage must take reasonable steps to verify the identity of each borrower, investor and lender in a mortgage transaction that it offers to a borrower, investor or lender.

(2) To verify the identity of a borrower or investor, a mortgage brokerage may rely on confirmation from (

a) a mortgage lender; or (

b) a mortgage brokerage that represents the borrower or investor.

(3) A mortgage brokerage that is unable to verify the identity of another party to a mortgage transaction that it offers to a borrower must advise the borrower of this before the borrower enters into the mortgage agreement or mortgage renewal agreement with the mortgage lender.

(4) A mortgage brokerage that is unable to verify the identity of another party to a mortgage transaction that it offers to an investor must advise the investor of this before the investment completion date.

(5) A mortgage brokerage that is unable to verify the identity of another party to a mortgage transaction that it offers to a mortgage lender must advise the mortgage lender of this before (

a) submitting the borrower’s mortgage application to the mortgage lender; or (

b) arranging for a mortgage renewal agreement with the mortgage lender. Duty to disclose information to investors 15

(1) A mortgage brokerage must disclose all of the following to a lender or investor, or a potential lender or investor: (

a) the nature of any relationship between the mortgage brokerage and any other person involved in the mortgage transaction; (

b) any conflicts or potential conflicts of interest in connection with the mortgage transaction; (

c) any material risks of a mortgage or investment in a mortgage.

(2) A mortgage brokerage must disclose to a lender or potential lender the information required by subsection (1) before the lender provides a written commitment to fund the mortgage. © NS Office of the Registrar of Regulations. Web version. 451

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Part II - Regulations Vol. 44, No. 21 Duty to provide information about remuneration for referral 16 A mortgage brokerage that refers a borrower or private investor or a prospective borrower or private investor to another person for a fee or other remuneration must give all of the following information in writing to the borrower or private investor or prospective borrower or private investor either before or when making the referral: (

a) a description of the nature of the relationship between the mortgage brokerage and the other person; (

b) a statement of whether the mortgage brokerage has received, may receive or will receive a fee or other remuneration, directly or indirectly, for making the referral. Duty to advise respecting borrower’s legal authority 17 A mortgage brokerage that has reason to doubt a borrower’s legal authority to mortgage a property must advise each prospective lender and investor of this at the earliest opportunity.

Duty to advise of inaccuracy of mortgage application 18 A mortgage brokerage that has reason to doubt the accuracy of information contained in a borrower’s mortgage application, or in a document submitted in support of the application, must advise each prospective lender and investor of this at the earliest opportunity.

Duty to inform if mortgage previously in default 19 A mortgage brokerage must not sell or attempt to sell, or arrange or attempt to arrange the sale of, a mortgage that has been in default at any time in the previous 12 months unless the mortgage brokerage clearly discloses the default and the amount and duration of the default. Duties to private investor after completing mortgage transaction 20 Promptly after completing a mortgage transaction with a private investor, a mortgage brokerage must ensure that the private investor is provided with a copy of each of the following: (

a) the recorded mortgage; (

b) the printout of the parcel register at the land registration office for the property affected by the mortgage, showing the recording of the mortgage; (

c) the lawyer’s report, if any, with respect to the recording of the mortgage and the effect of the mortgage transaction; (

d) the written disclosure provided to the borrower as required by the Cost of Borrowing Disclosure Regulations. Duties respecting reverse mortgages 21

(1) In this Section, “reverse mortgage” means a mortgage that satisfies both of the following conditions: (

a) the money that is advanced under the mortgage does not have to be repaid until the occurrence of 1 or more of the following events: (

i) the borrower’s death or, if there is more than 1 borrower, the death of the last surviving borrower, (ii) the acquisition by the borrower or, if there is more than 1 borrower, the last surviving borrower of another dwelling to use as their principal residence, © NS Office of the Registrar of Regulations. Web version. 452

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Part II - Regulations Vol. 44, No. 21 (iii) the sale of the mortgaged property, (iv) the borrower or, if there is more than 1 borrower, the last surviving borrower vacating the mortgaged property to live elsewhere with no reasonable prospect of returning, (

v) an event of default under the conditions of the mortgage; (b) 1 or more of the following conditions applies while the borrower or, if there is more than 1 borrower, the last surviving borrower continues to occupy the mortgaged property as their principal residence and otherwise complies with the terms of the mortgage: (

i) no instalment repayments of the principal and no payment of interest on the principal are due or capable of becoming due, (ii) although interest payments may become due, no repayment of all or part of the principal is due or capable of becoming due, (iii) although interest payments and repayment of part of the principal may become due, repayment of all of the principal is not due or capable of becoming due.

(2) A mortgage brokerage must not arrange a reverse mortgage with a borrower unless the mortgage brokerage receives from the borrower a written statement signed by a lawyer stating that the lawyer has given the borrower independent legal advice about the proposed reverse mortgage.

(3) Each mortgage brokerage that arranges a reverse mortgage must provide written documentation to the borrower that illustrates the annual accumulation of interest under the proposed reverse mortgage and the corresponding effect on the equity of the borrower in the mortgaged property, for the period from the advancing of funds until all of the equity of the borrower in the property is exhausted, with respect to all of the following scenarios: (

a) the interest rate and the value of the property remain the same over the period set out in the illustration; (

b) the interest rate remains the same over the period set out in the illustration and the value of the property increases by 1% per year; (

c) if the interest rate is capable of increasing under the mortgage, the interest rate increases by 2% per year after the 2nd year and remains the same for the remaining period set out in the illustration, and the value of the property increases by 1% per year; (

d) if the interest rate is capable of increasing under the mortgage, the interest rate increases by 2% per year after the 2nd year and remains the same for the remaining period set out in the illustration, and the value of the property remains the same over the period set out in the illustration.

(4) In preparing the written documentation required by subsection (3), a mortgage brokerage must assume that the borrower makes no payments under the mortgage during the period set out in the illustration other than the payments required to be paid under the mortgage. Advance payment by borrower 22

(1) Except as provided in subsection (2), a mortgage brokerage must not charge, collect or attempt to collect a fee from a borrower in relation to a mortgage to which the Cost of Borrowing Disclosure Regulations apply until all of the following have occurred: © NS Office of the Registrar of Regulations. Web version. 453

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Part II - Regulations Vol. 44, No. 21 (

a) the mortgage lender has provided a written confirmation to fund the mortgage; (

b) the commitment has been accepted by the borrower in writing; (

c) a copy of the signed commitment has been provided to the borrower.

(2) This

Section does not apply with respect to actual fees disbursed by a mortgage brokerage to third parties for credit reports, registration fees, courier services or appraisal services if there is an existing written agreement between the mortgage brokerage and the borrower that provides for the borrower to reimburse the mortgage brokerage for these costs. Receiving money from mortgage lender or investor 23

(1) A mortgage brokerage must not receive money from a lender or enter into an agreement to receive money from a lender for any activity requiring a mortgage brokerage licence unless an application has been made for a mortgage on a specific property.

(2) A mortgage brokerage must not receive money from an investor or enter into an agreement to receive money from an investor in connection with any activity requiring a mortgage brokerage licence unless an existing mortgage is available on a specific property. Duty to establish policies and procedures 24

(1) A mortgage brokerage must establish and implement policies and procedures that are reasonably designed to ensure that the mortgage brokerage and each mortgage broker and associate mortgage broker who is authorized to broker mortgages on its behalf complies with the requirements of the Act and its regulations, including all of the following: (

a) describing the role of the mortgage brokerage in relation to borrowers, lenders and investors and disclosing to a borrower, lender or investor the mortgage brokerage’s relationship with each party to a transaction; (

b) taking steps to verify the identity of borrowers, lenders and investors; (

c) determining the suitability of a mortgage or investment in a mortgage for a borrower, lender or private investor; (

d) identifying the material risks of a mortgage or investment in a mortgage for a borrower, lender or investor and disclosing the material risks to the borrower, lender or investor; (

e) identifying potential conflicts of interest between the mortgage brokerage or any mortgage broker or associate mortgage broker authorized to broker mortgages on its behalf and a borrower, lender or investor that is represented by the mortgage brokerage, and disclosing a potential conflict of interest to the borrower, lender or investor; (

f) any incentives other than money provided by other persons to its mortgage brokers and associate mortgage brokers for brokering mortgages, if the mortgage brokerage permits any of its mortgage brokers or associate mortgage brokers to receive those incentives; (

g) resolving complaints about its mortgage brokerage activities or those of any mortgage broker or associate mortgage broker authorized to broker mortgages on its behalf.

(2) A mortgage brokerage must establish and implement policies and procedures providing for the adequate supervision of every mortgage broker and associate mortgage broker who is authorized to broker mortgages on its behalf. © NS Office of the Registrar of Regulations. Web version. 454

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Part II - Regulations Vol. 44, No. 21 Authorizing mortgage brokers 25

(1) A mortgage brokerage must not authorize an individual to broker mortgages on its behalf unless the mortgage brokerage takes reasonable steps to satisfy itself that the individual is eligible to be licensed as a mortgage broker or associate mortgage broker.

(2) A mortgage brokerage must immediately notify the Registrar on becoming aware that there may be reasonable grounds for the Registrar to determine that a mortgage broker or associate mortgage broker is not eligible to be licensed as a mortgage broker or associate mortgage broker. Fees and remuneration paid to unlicensed persons 26

(1) A mortgage brokerage must not pay a fee or other remuneration to an unlicensed person for any activity requiring a licence unless the other person is exempt from the requirement to hold a licence for that activity under the Exemption Regulations made under the Act.

(2) A mortgage brokerage must not pay a fee or other remuneration to an individual licensed to broker mortgages on behalf of another mortgage brokerage. Duty to act with integrity, independence and competence 27 A mortgage brokerage must always act with integrity, independence and competence when carrying on the business of brokering mortgages. N.S. Reg. 127/2020 Made: September 16, 2020 Filed: September 17, 2020 Standards of Conduct for Mortgage Brokers and Associate Mortgage Brokers Regulations Order dated September 16, 2020 Regulations made by the Minister of Service Nova Scotia and Internal Services pursuant to

Section 90 of the Mortgage Regulation Act In the matter of

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act -and- In the matter of new regulations respecting standards of conduct for mortgage brokers and associate mortgage brokers made by the Minister of Service Nova Scotia and Internal Services Order I, Patricia Arab, Minister of Service Nova Scotia and Internal Services for the Province of Nova Scotia, pursuant to

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, hereby make new regulations respecting standards of conduct for mortgage brokers and associate mortgage brokers, in the form set forth in the attached

Schedule “A”. This order is effective on and after the date that

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act, comes into force. Dated and made September 16, 2020, at Halifax Regional Municipality, Province of Nova Scotia. © NS Office of the Registrar of Regulations. Web version. 455

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Part II - Regulations Vol. 44, No. 21 sgd. P. Arab Honourable Patricia Arab Minister of Service Nova Scotia and Internal Services

Schedule “A” Regulations Respecting Standards of Conduct for Mortgage Brokers and Associate Mortgage Brokers made by the Minister of Service Nova Scotia and Internal Services under

Section 90 of

Chapter 11 of the Acts of 2012, the Mortgage Regulation Act Citation 1 These regulations may be cited as the Standards of Conduct for Mortgage Brokers and Associate Mortgage Brokers Regulations.

Definitions 2 In these regulations, “Act” means the Mortgage Regulation Act; “authorizing mortgage brokerage”, in relation to a mortgage broker or associate mortgage broker, means the mortgage brokerage on whose behalf the mortgage broker or associate mortgage broker is authorized to broker mortgages. Standards of conduct 3 The requirements set out in these regulations are prescribed as standards of conduct for every licensed mortgage broker and licensed associate mortgage broker.

Duty toward authorizing brokerage 4 A mortgage broker or associate mortgage broker must not do or omit to do anything if the action or omission might reasonably be expected to result in the authorizing mortgage brokerage contravening or failing to comply with the Act or its regulations.

Dishonesty, fraud, crime or illegal conduct 5 A mortgage broker or associate mortgage broker must not act, or do or omit to do anything, in circumstances in which the mortgage broker or associate mortgage broker ought to know that by acting, doing the thing or omitting to do the thing the mortgage broker or associate mortgage broker is being used by a borrower, mortgage lender, investor or any other person to facilitate dishonesty, fraud, crime or illegal conduct. Remuneration other than from authorizing mortgage brokerage 6

(1) Except as provided in Sec