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Part II .

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Record-Keeping Regulations

made under

Section 90 of the

Mortgage Regulation Act

S.N.S. 2012, c. 11

N.S. Reg. 130/2020 (effective November 1, 2021)

Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.

Click here to go to the text of the regulations .

Citation

Definitions

Prescribed records

Mortgage administrator’s monthly record of payments

Mortgage administrator’s trust records

Monthly trust account reconciliation records

Mortgage administrator’s records of mortgages

Prescribed manner of retaining records

Prescribed periods for retaining records

Prescribed locations for retaining records

Citation

1 These regulations may be cited as the Record-Keeping Regulations .

Definitions

2 In these regulations,

“Act” means the Mortgage Regulation Act ”.

Prescribed records

3 In addition to the records required by clauses 42(2)(

a) to (

d) of the Act and, for a

mortgage administrator,

Section 48 of the Act, all of the following are the prescribed

records that a mortgage lender, mortgage brokerage or mortgage administrator is

required by clause 42(2)(

e) of the Act to keep:

(

a) forms, reports, disclosures or other documents required to be completed

under the Act and regulations;

(

b) complete and accurate records of all documents, correspondence and written

information of any type other than documents or correspondence, whether in

electronic form or otherwise, that a licensee provides to or receives from

another person with respect to a mortgage transaction or a mortgage

application;

(

c) for a mortgage administrator, all of the following:

(

i) monthly records of payments as described in

Section 4,

(ii) trust records as described in subsections 5(1) and (2),

(iii) monthly trust account reconciliation records as described in

subsection 5(3) [Section 6],

(iv) records of mortgages as described in

Section 7.

Mortgage administrator’s monthly record of payments

(1) A monthly record of payments prescribed by subclause 3(c)(

i) must be prepared

monthly and set out all of the following:

(

a) a reconciliation of the following with respect to mortgages being

administered, as the balances appear in the records of the mortgage

administrator for the month:

(

i) the total of outstanding principal balances due from borrowers,

(ii) the total amount of principal balances owing to the lenders or the

investors;

(

b) any difference between the balances referred to in clause (

a) as of the last

day of the month, and a description of the reasons for the difference.

(2) A monthly record of payments referred to in subsection (1) must be signed and

dated by an officer of the mortgage administrator to indicate that they have

reviewed the record and certify that it is accurate.

Mortgage administrator’s trust records

(1) Trust records prescribed by subclause 3(c)(iii) must show all of the following:

(

a) all trust money received and all transactions relating to the trust money;

(

b) the unexpended balance of trust money held by the mortgage administrator

(

i) in total, and

(ii) separately for each person on whose behalf the trust money is held.

(2) Trust records referred to in subsection (1) must include all of the following:

(

a) a separate trust ledger for each person on whose behalf the mortgage

administrator holds trust money that shows all of the following in

chronological order:

(

i) all receipts of trust money and all disbursements made out of trust

money with respect to the person,

(ii) for each receipt,

(

A) the person the trust money was received from,

(

B) the form or manner the trust money was received in, and

(

C) the purpose the money was received for, including particulars

of the mortgage the trust money relates to,

(iii) for each disbursement,

(

A) the person the trust money was disbursed to,

(

B) the number of the cheque, or the confirmation number of the

electronic transfer, the trust money was disbursed by, and

(

C) the purpose for the disbursement, including particulars of the

mortgage the disbursement relates to,

(iv) the unexpended balance held on behalf of the person immediately

after each receipt and disbursement;

(

b) copies of all of the following:

(

i) the deposit slip for each deposit to the trust account,

(ii) all cheques with respect to the account, including cancelled cheques,

(iii) all bank statements or passbooks for the trust account,

(iv) any documentary evidence of deposits and withdrawals with respect

to the trust account in addition to those referred to in subclauses (

i) to

(iii).

Monthly trust account reconciliation records

6 Monthly trust account reconciliation records prescribed by subclause 3(c)(iii) must

reconcile the trust records referred to in

Section 5 for each trust administered by the

mortgage administrator and must meet all of the following conditions:

(

a) it must be reviewed by an officer of the mortgage administrator, who must

certify that it is accurate by signing and dating it;

(

b) it must be prepared and reviewed by different individuals;

(

c) it must be prepared, reviewed and certified monthly, no later than,

(

i) if the mortgage administrator receives a monthly account statement

from the financial institution where the account is maintained, 30

days after the date the monthly statement is received, or

(ii) if subclause (

i) does not apply, 30 days after the end of the month it

relates to.

Mortgage administrator’s records of mortgages

(1) Records of mortgages prescribed by subclause 3(c)(iv) must show all of the

following:

(

a) all mortgages being administered on behalf of investors by the mortgage

administrator, and the original amount of each mortgage;

(

b) separately for each mortgage being administered, all receipts and

disbursements of funds and all liabilities, income and expenses with respect

to the mortgage;

(

c) for each mortgage being administered, the fractional interest or percentage

owned by any person.

(2) Records of mortgages referred to in subsection (1) must include a trust ledger for

each mortgage being administered that shows all of the following in chronological

order:

(

a) the amount of money received from each person who has an interest in the

mortgage, the form or manner the trust money was received in and the date

the trust money was received;

(

b) the amount of trust money advanced on the mortgage or the purchase price

of the mortgage, the form and manner the trust money was advanced or paid

in and the date the trust money was advanced or paid;

(

c) the dates and amounts of any repayments received on the mortgage and the

name of the person the repayments are received from;

(

d) the date and amount of any disbursement of trust money received under the

mortgage and the name of the person it was disbursed to;

(

e) any liabilities, income and expenses relating to the mortgage other than

those referred to in clauses (

a) to (d);

(

f) the receipt or disbursement of any other trust money in connection with the

mortgage other than those referred to in clauses (

a) to (d);

(

g) the outstanding balance of the mortgage

(

i) in total, and

(ii) separately for each person who has an interest in the mortgage.

Prescribed manner of retaining records

(1) The manner for retaining records set out in this

Section is prescribed as the manner

required by subclause 42(3)(a)(ii) of the Act for retaining records.

(2) Each mortgage lender, mortgage brokerage and mortgage administrator must take

adequate precautions, appropriate to the form of its records to ensure the integrity,

security and accuracy of its records.

(3) Records must be filed and indexed in a manner that clearly identifies all of the

following for each mortgage transaction or mortgage application:

(

a) the date and nature of the transaction or application;

(

b) a description of the property affected by the mortgage that is sufficient to

identify the property;

(

c) the names of all of the parties to the transaction or application.

(4) A mortgage lender, mortgage brokerage or mortgage administrator may retain their

records electronically if they do so in compliance with the Electronic Commerce

Act .

Prescribed periods for retaining records

9 All of the following are the prescribed time periods required by subclause 42(3)(a)(

i) of

the Act for retaining records:

(

a) for a mortgage transaction, at least 2 years after the expiry of the mortgage

loan or mortgage loan renewal that the records relate to;

(

b) for a mortgage application with no corresponding mortgage transaction, at

least 2 years after the date of the application.

Prescribed locations for retaining records

10 The following are prescribed as the locations under subclause 42(3)(a)(iii) of the Act for

retaining records:

(

a) the place of business of the mortgage lender, mortgage brokerage or

mortgage administrator in the Province; or

(

b) a secure location in Canada, as disclosed to the Registrar in the licensee’s

licence application or annual return required by

Section 54 of the Act.

Legislative History

Reference Tables

Record-Keeping Regulations

N.S. Reg.

130/2020

Mortgage Regulation Act

Note: The

information in these tables does not form part of the regulations and is

compiled by the Office of the Registrar of Regulations for reference only.

Source Law

The current consolidation of the Record-Keeping Regulations made under the Mortgage Regulation Act includes all of the following

regulations:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

130/2020

Nov 1, 2021

date

specified (date that Act comes into force on proclamation)

Oct 9, 2020

The following regulations are not yet in force

and are not included in the current consolidation:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

*See subsection 3(6) of the Regulations Act for

rules about in force dates of regulations.

Amendments by Provision

ad. = added

am. = amended

fc. = fee change

ra. = reassigned

rep. = repealed

rs . = repealed and substituted

Provision affected

How affected

..........................................................

Note that changes to headings are not

included in the above table.

Editorial Notes and Corrections

Note

Effective

date

Repealed and Superseded

N.S.

Regulation

Title

In force

date

Repealed

date

Note: Only

regulations that are specifically repealed and replaced appear in this

table. It may not reflect the entire

history of regulations on this subject matter.