Bill 88 (Legislature 15, Session 3)

L15 S3 1394

Alberta — Bills

No. 88 3rd Session, 15th Legislature, Alberta 14 Elizabeth II BILL 88 A Bill to amend The Mortgage Brokers Regulation Act HON. MR. MANNING Printed by L. S. WALL, Printer to the Queen's Most Excellent Majesty, Edmonton, Alberta, 1966

Explanatory Note I. This Bill amends

chapter 55 of the Statutes of Alberta, 1964.

Section 2, clause (

c) of the Act defines "mortgage broker" as follows: (c) "mortgage bI'oker" means (

i) a person who carries on the business of lending money on the security of land or any interest in land, whether the money is his own or that of another person, or who holds himself out as or who by an advertisement, notice or sign indicates that he is a mortgage brokeT, or (ii) a person who carries on the business of dealing in mort gages, or (iii) the agent of a person referred to in subclause (

i) or (ii); The purpose of the new

section is to provide a guide line to the Securities Commission and the public, in determining whether registration under the Act is required. At present the Securities Commission must decide on the facts of any particular case whether or not an individual could be said to be in the mortgage brokerage business. 3. The new clauses (h), (i), (

j) are taken from the regulations which now describe certain classes as exempted. The new clause (

k) is added to cover the case of solicitors who are often called upon to negotiate mortgages on behalf of clients. Clause (1) is self-explanatory. The present clause (

m) is a re-enactment of clause (h).

BILL No. 88 of 1966

An Act to amend The Mortgage Brokers Regulation Act (Assented to , 1966) HER MAJESTY, by and with the advice and consent-of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. The Mortgage Brokers Regulation Act is hereby amended. 2. The following

section is added after

section 2: 2a. For the purposes of clause (

c) of

section 2, any per son (

a) who, in anyone calendar year, receives an amount of one thousand dollars or more in fees or other consideration, excluding legal fees, for arranging mortgages for other persons, or (

b) who, during any one calendar year, lends his own money on the security of ten or more mortgages, shall he deemed to be carrying on a business as a mortgage broker.

Section 3 is amended by striking out clause (

h) and by substituting the following: (

h) a person who does not participate in the negoti ations of a mortgage transaction with the mort gagor, (

i) a corporation registered as a loan corporation or as a loaning land corporation under The Loan and Trust Corporations Act (Ontario), (

j) a loan company to which

Part I of the Loan Com panies Act (Canada) applies or a British loan com pany to which

Part II of the Loan Companies Act (Canada) applies, (

k) a member of The Law Society of Alberta in the course of his practice as a barrister and solicitor, (

l) any person acting for the Crown or for a Crown corpora tion, or (

m) any person or class of persons exempted by the regulations.

4. (

a) Section 8 commences with the words "No person shall", The new clause (

c) creates a new offence. (b) Subsection (3) makes it an offence to contravene sub section (1). The amendment will make a contravention of sub

section (2.) also an offence. Subsection (2) reads: Co) No mortgage broke,r shall make or cause to be made any repre sentation in writing that he is registered under this Act.

Section 17 deals with investigations by the Securities Com mission of the conduct of registered mortgage brokers in the circumstances enumerated in subsection (1) . Experience has shown this provision to be too restrictive. By the amendment, the Commission will have the power to examine the activities of persons apparently engaged in the mortgage brokerage business, but who are not so registered. In some instances, the Commission cannot determine whether a person should be registered or not, without the right to make inquiries and conduct an investigation. G. Commencement of Act. 2

Section 8 is amended (

a) as to subsection (1) by adding the word "or" at the end of clause (

b) and by adding the following clause: (

c) unless he isa registered mortgage broker, advertise himself as, or in any manner repre sent that he is a mortgage broker. (

b) as to subsection (3) by adding after the words "contravenes subsection (1)" the words "or (2)".

Section 17, subsection (1) is amended by striking 'Out the words Hany registered mortgage broker" and by sub stituting the words "any person". 6. This Act comes into force on the day upon which it is assented to. 2

No. 88 THIRD SESSION FIFTEENTH LEGISLATURE 14 ELIZABETH II 1966 BILL

An Act to amend The Mortgage Brokers R,egula tion Act Received and read the First time ........................ . Second time . Third time. HON. MR. MANNING Title: 1966 (15th, 3rd) Bill 88,

An Act to amend The Mortgage Brokers Regulation Act

Document details

Collection	Alberta — Bills
Citation	L15 S3 1394
Type	bill
Volume / chapter	L15 S3 1394
Language	en
Format	json
Source	PROVINCIAL
Identifier	a8ada259c2d3a41c063a50a656b9d162d90ab7cc

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