Canada Mortgage and Housing Corporation Act

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Sections153

• 1Short title

  This Act may be cited as the Canada Mortgage and Housing Corporation Act.

• 2Definitions

  In this Act,

• 2[p2]

  Board of Directors or Board means the Board of Directors of the Corporation referred to in subsection 6(1); (conseil)

• 2[p3]Repealed

  Chairman[Repealed, 2006, c. 9, s. 231]

• 2[p4]

  Chairperson means the Chairperson of the Board, appointed pursuant to subsection 6(2); (Version anglaise seulement)

• 2[p5]

  Corporation means the Canada Mortgage and Housing Corporation established by section 3; (Société)

• 2[p6]

  director means a member of the Board of Directors; (administrateur)

• 2[p7]

  Executive Committee means the Executive Committee of the Board established by section 9; (comité de direction)

• 2[p8]

  Housing Acts means the National Housing Act, the National Housing Act, chapter N-10 of the Revised Statutes of Canada, 1970, the National Housing Act, 1954, and the National Housing Act, chapter 188 of the Revised Statutes of Canada, 1952; (lois sur l’habitation)

• 2[p9]

  lending institution means a loan, insurance, trust or other company or corporation, trustee of trust funds, building society, credit union or other cooperative credit society authorized to lend money on the security of real property; (établissement de crédit)

• 2[p10]

  Minister means such member of the Queen’s Privy Council for Canada as is designated by the Governor in Council as the Minister for the purposes of this Act; (ministre)

• 2[p11]

  mortgage includes a hypothec and an agreement for sale; (hypothèque)

• 2[p12]

  President means the President of the Corporation, appointed pursuant to subsection 7(1). (président)

• 3Corporation established

  There is hereby established a corporation to be called the “Canada Mortgage and Housing Corporation” consisting of the Minister and those persons who compose the Board of Directors.

• 4Head office

  The head office of the Corporation shall be in the city of Ottawa.

• 5Agent of Her Majesty
• 5(1)

  Except as provided in section 13, the Corporation is for all purposes an agent of Her Majesty in right of Canada.

• 5(2)Directions

  The Corporation shall comply with any directions given to it from time to time by the Minister respecting the exercise or performance of its powers, duties and functions.

• 5(3)Applicable provisions

  Subsections 89(2) to (6) and section 153 of the Financial Administration Act apply, with such modifications as the circumstances require, to a direction given under subsection (2) as though it were a directive referred to in those provisions.

• 6Board of Directors
• 6(1)

  The Board of Directors shall consist of

• 6(1)(a)

  the Chairperson;

• 6(1)(b)

  the President;

• 6(1)(c)

  the Minister’s Deputy Minister;

• 6(1)(d)

  the Deputy Minister of Finance; and

• 6(1)(e)

  eight other directors.

• 6(1.1)Exception

  Subsections (4) to (6) do not apply to the directors referred to in paragraphs (1)(c) and (d).

• 6(1.2)Alternate director

  A director referred to in paragraph (1)(c) or (d) may designate an alternate to attend in the director’s absence at any meeting of the Board of Directors.

• 6(2)Appointment of Chairperson of the Board

  The Chairperson shall be appointed by the Governor in Council to hold office during pleasure for such term as the Governor in Council considers appropriate.

• 6(3)Duties

  The Chairperson shall perform such duties and carry out such functions as may be assigned to that office by the by-laws of the Corporation.

• 6(4)Appointment of directors

  Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors.

• 6(5)Vacancy

  Where the office of a director becomes vacant during the term of the director appointed thereto, the Governor in Council shall appoint a director for the remainder of that term.

• 6(6)Substitute directors

  Where a director is a member of the federal public administration, the Governor in Council may authorize another member of the federal public administration to act as director in the director’s stead and that member of the federal public administration while so acting is deemed to be a director.

• 6(7)Directors’ fees

  Any director appointed from outside the federal public administration is entitled to receive for attendance at directors’ meetings and Executive Committee meetings the fees that may be fixed by the Governor in Council.

• 7Appointment of President
• 7(1)

  The President shall be appointed by the Governor in Council to hold office during pleasure for such term as the Governor in Council considers appropriate.

• 7(2)Salary of President

  The Governor in Council shall fix the salary of the President.

• 7(3)Re-appointment

  The President on the expiration of his or her term of office may, if eligible, be re-appointed.

• 7(4) and (5)Repealed

  [Repealed, 2010, c. 12, s. 1665]

• 8Ineligibility
• 8(1)

  No person shall be appointed or continue as President or as a director from outside the federal public administration if that person

• 8(1)(a)

  is a director, officer or employee of a lending institution;

• 8(1)(b)

  is not a Canadian citizen or otherwise a British subject ordinarily resident in Canada; or

• 8(1)(c)Repealed

  [Repealed, 2012, c. 31, s. 315]

• 8(1)(d)

  is employed in any capacity in the federal public administration or the public service of a province or holds any office or position for which a salary is payable out of public moneys, but nothing in this paragraph prohibits such a person from holding office while performing temporary services for the Government of Canada or of a province.

• 8(2)Shareholder in lending institution

  A person appointed as President or as a director from outside the federal public administration who is a shareholder of a lending institution shall divest themselves of ownership of their shares of the lending institution within three months after the date of their appointment and afterwards shall not during their term of office have an interest or right either directly or indirectly as a shareholder in a lending institution.

• 8(3)Failure to comply

  A person appointed as President or as a director from outside the federal public administration who fails to comply with subsection (2) ceases to hold office.

• 8(4)Exception

  Subsection (2) does not apply to an interest arising out of the lawful investment of all or part of a pension fund established under subsection 13(3).

• 9Executive Committee

  There shall be an Executive Committee of the Board consisting of the Chairperson, the President and three other directors selected by the Board.

• 10Board to manage affairs of Corporation
• 10(1)

  The Board shall manage the affairs of the Corporation and conduct its business and may for such purposes exercise all powers of the Corporation.

• 10(2)Voting

  Each director has one vote in the transaction of the business of the Board and if the number of votes is equally divided the Chairperson of the Board has an additional vote.

• 10(3)By-laws

  The Board may make by-laws with respect to

• 10(3)(a)

  the calling of meetings of the Board and of the Executive Committee, the number of persons that shall constitute a quorum in each case, and the manner in which questions considered at such meetings shall be determined; and

• 10(3)(b)

  the conduct of the affairs of the Corporation.

• 10(4)By-laws

  For greater certainty, all by-laws relating to the pension fund referred to in subsection 13(3) are deemed to be or to have been by-laws made with respect to the conduct of the affairs of the Corporation.

• 11Executive Committee powers

  The Executive Committee may exercise the powers of the Board and shall submit at each meeting of the Board minutes of its proceedings since the last preceding meeting of the Board.

• 12President
• 12(1)

  The President is the chief executive officer of the Corporation and has on behalf of the Board the direction and control of the business of the Corporation with authority to act in the conduct of the business of the Corporation in all matters that are not by this Act or by the by-laws of the Corporation specifically reserved to the Board, the Executive Committee or the Chairperson of the Board.

• 12(2)Absence or incapacity of President

  In the event of the absence or incapacity of the President, or if the office of President is vacant, the director or officer of the Corporation that the Board designates has and may exercise and perform all the powers and functions of the President, including those as a member of the Board and of the Executive Committee.

• 13Officers and employees
• 13(1)

  The Corporation may on its own behalf employ such officers and employees for such purposes and on such terms and conditions as may be determined by the Executive Committee and such officers and employees are not officers or servants of Her Majesty.

• 13(2)Oath of office

  Each officer or employee employed by the Corporation shall, before entering on his duties, take, before a justice of the peace or a commissioner for oaths, an oath of fidelity and secrecy in the form set out in the schedule.

• 13(3)Pension fund

  The Board may establish a pension fund for the officers and employees of the Corporation and their dependants and may contribute to it out of the funds of the Corporation.

• 13(4)Authorized investments

  The pension fund established under subsection (3) shall be invested in securities in which the funds of a pension plan may be invested under the Pension Benefits Standards Act, 1985.

• 14Branches and agents

  The Corporation may establish branches and employ agents.

• 15President’s authority

  The President may authorize any officer, agent or employee of the Corporation to act in the conduct of the business of the Corporation in all matters that are not by this Act or by the by-laws of the Corporation specifically reserved to the Board, the Executive Committee or the Chairperson of the Board.

• 16Capital of Corporation
• 16(1)

  The capital of the Corporation consists of the amount obtained by adding twenty-five million dollars and the aggregate of any amounts paid under subsection (2).

• 16(2)Authority to make capital payments

  At the request of the Corporation, the Minister of Finance may, with the approval of the Governor in Council, pay to the Corporation, out of the Consolidated Revenue Fund, amounts not exceeding the aggregate of

• 16(2)(a)

  ten billion dollars, and

• 16(2)(b)

  any additional amounts that may be authorized from time to time under an appropriation Act.

• 17Transfer of authority from Housing Acts

  Subject to section 33 of this Act and to section 100 of the National Housing Act, the Corporation shall, on behalf of Her Majesty and in the place of the Minister, have, exercise and perform all rights, powers, duties, liabilities and functions of the Minister under the Housing Acts or under any contract entered into under those Acts, except the authority of the Minister under those Acts to pay money out of the Consolidated Revenue Fund.

• 18Functions vested in Corporation

  Wherever in any contract, agreement, guarantee or mortgage made or entered into under The Dominion Housing Act, 1935, The Home Improvement Loans Guarantee Act, 1937, The National Housing Act, 1938, or under The National Housing Act, 1944 prior to January 1, 1946, it is provided that any right, power, duty, liability or function is vested in or to be exercised or performed by the Minister of Finance or by any officer of the Department of Finance or by any person acting on behalf of the Minister of Finance, that right, power, duty, liability or function shall be vested in and exercised or performed by the Corporation.

• 19Corporation may make loans and payments

  The Corporation may, in the place of the Minister, make, out of moneys received by it under this Act or otherwise made available to it by Parliament, all loans or payments that Her Majesty or the Minister may make or is liable to make under or pursuant to the Housing Acts.

• 20Moneys owing to the Crown
• 20(1)

  All moneys owing to Her Majesty under or pursuant to the Housing Acts shall be paid to the Corporation and payment thereof to the Corporation is payment to Her Majesty.

• 20(2)Moneys paid into C.R.F.

  Where any moneys owing to Her Majesty under or pursuant to the Housing Acts are paid to the Receiver General or to any other person on behalf of Her Majesty or are in any way paid into the Consolidated Revenue Fund, those moneys shall be paid to the Corporation.

• 21Loans to the Corporation
• 21(1)

  At the request of the Corporation, the Minister of Finance may, out of the Consolidated Revenue Fund, lend money to the Corporation on any terms and conditions that that Minister may fix.

• 21(2)Borrowing otherwise than from the Crown

  The Corporation may borrow money otherwise than from the Crown and is hereby authorized to so borrow money in amounts such that the total indebtedness outstanding at any time in respect of such borrowings does not exceed the aggregate of

• 21(2)(a)

  fifteen billion dollars, and

• 21(2)(b)

  any additional amounts authorized by Parliament for the purposes of this subsection under an appropriation Act or any other Act of Parliament.

• 21(3)Issuing obligations

  The Corporation may issue or reissue, sell or pledge debt securities or obligations, secured or unsecured, of the Corporation.

• 21(4)Apportioning costs of borrowing

  For the purposes of determining the costs of its activities, the Corporation may apportion the costs related to its borrowings as it considers appropriate.

• 22Advances to the Corporation

  Subject to such terms and conditions as the Governor in Council may approve, the Minister may, from time to time, make advances out of the Consolidated Revenue Fund to the Corporation for the purposes of the Corporation.

• 23Reimbursement for losses, payments and expenditures

  The Minister shall reimburse the Corporation

• 23(a)

  for losses sustained by it in respect of Her Majesty’s share of loans made by Her Majesty jointly with any other person, or in respect of loans made by Her Majesty alone, under the Housing Acts, out of moneys appropriated under those Acts for the making of those loans by the Minister;

• 23(b)

  for payments made by it to discharge liabilities of Her Majesty under any contract, agreement or guarantee made or entered into under the Housing Acts, out of moneys appropriated for the payment by the Minister of such liabilities under those Acts; and

• 23(c)

  for expenditures incurred by the Corporation under any contract not referred to in paragraph (a) or (b) entered into under the Housing Acts, out of moneys appropriated for the payment of those expenditures by the Minister under those Acts or otherwise appropriated by Parliament therefor.

• 23(d)Repealed

  [Repealed, R.S., 1985, c. 25 (4th Supp.), s. 33]

• 24Repealed

  [Repealed, 1992, c. 32, s. 2]

• 25Research and information

  The Corporation shall conduct research into the business of lending money on the security of mortgages and for that purpose shall compile information relating thereto.

• 26Agreement with lending institution

  The Corporation may enter into an agreement with a lending institution under which

• 26(a)

  the lending institution agrees to furnish the Corporation with information in respect of interest rates, losses on loans secured by mortgages, costs of construction and of land, comparative rentals, availability of money for loans on the security of mortgages in different parts of Canada, costs of operation of the business of lending money on the security of mortgages, methods of appraising real property and such other information as may assist the Corporation in research into the conduct of the business of lending money on the security of mortgages; and

• 26(b)

  the Corporation agrees to furnish the lending institution with information and material relating to the lending of money on the security of mortgages.

• 27Powers under agreement with lending institution
• 27(1)

  Where the Corporation has entered into an agreement with a lending institution under section 26, the Corporation may out of its capital and reserve fund established under section 29 or out of such other moneys as may be appropriated by Parliament for that purpose

• 27(1)(a)

  purchase all right or interest of the lending institution in a mortgage and take an assignment of the mortgage; and

• 27(1)(b)

  if the lending institution is a trust or loan company,

• 27(1)(b)(i)

  make loans to the company on such terms and conditions, including the rate of interest, as the Board may determine, on the security of an assignment of or an agreement to assign mortgages held by the company, and

• 27(1)(b)(ii)

  buy the debentures or other evidences of indebtedness, guaranteed investment receipts or guaranteed investment certificates of the company.

• 27(2)Sale of mortgages by Corporation

  The Corporation may sell to any person all right or interest of the Corporation in any mortgage held by it as a consequence of a transaction made pursuant to subsection (1) and assign the mortgage to that person.

• 27(3)Acquisition and disposal of collateral security

  The Corporation may acquire, hold and dispose of collateral security for the repayment of loans or the payment of debentures, other evidences of indebtedness, guaranteed investment receipts or guaranteed investment certificates, made or purchased by the Corporation under this section.

• 28Ancillary powers
• 28(1)

  The Corporation may

• 28(1)(a)

  manage, acquire, hold, lend, lease and dispose of real and personal property;

• 28(1)(b)

  give guarantees with respect to any property disposed of by the Corporation;

• 28(1)(b.1)

  procure the incorporation, dissolution or amalgamation of a corporation;

• 28(1)(c)

  enter into any kind of transaction for the financial management of the Corporation and make any investment, including transactions and investments that are insured or guaranteed by the Corporation and, without restricting the generality of the foregoing, enter into

• 28(1)(c)(i)

  a currency or interest rate swap agreement,

• 28(1)(c)(ii)

  a basis swap agreement,

• 28(1)(c)(iii)

  a spot, future, forward or other foreign exchange agreement,

• 28(1)(c)(iv)

  a cap, collar or floor transaction,

• 28(1)(c)(v)

  a financial swap,

• 28(1)(c)(vi)

  a forward rate agreement,

• 28(1)(c)(vii)

  a sale and repurchase agreement, a purchase and resale agreement, a reverse purchase agreement or a reverse sale agreement,

• 28(1)(c)(viii)

  a spot, future, forward or other financial contract,

• 28(1)(c)(ix)

  an agreement to buy or sell or borrow or lend securities,

• 28(1)(c)(x)

  an agreement to issue securities on the basis of assets or investments,

• 28(1)(c)(xi)

  a guarantee agreement,

• 28(1)(c)(xii)

  any derivative, combination or option in respect of, or agreement similar to, an agreement, transaction or contract referred to in any of subparagraphs (i) to (xi), or

• 28(1)(c)(xiii)

  any master agreement in respect of any agreement, transaction or contract referred to in any of subparagraphs (i) to (xii);

• 28(1)(d)

  borrow from the Minister and expend moneys appropriated by Parliament to be lent by the Minister to the Corporation or expend any moneys appropriated by Parliament to be expended by the Corporation, for the purposes for which those moneys are appropriated;

• 28(1)(e)

  exercise or perform any other powers, duties or functions conferred on or required to be performed by the Corporation under any other Act or order in council; and

• 28(1)(f)

  do any act or thing incidental to the conduct of the business of the Corporation.

• 28(1.01)Funds

  For greater certainty, the power of the Corporation referred to in paragraph (1)(c) may be exercised in relation to any fund referred to in any of the Housing Acts.

• 28(1.1)Vesting

  The Governor in Council may, by order, transfer to the Corporation any land and interests in land the title to which is vested in Her Majesty, and the title thereto vests in the Corporation on the date fixed in the order or, where no date is so fixed, on the date of the order.

• 28(1.2)Idem

  There shall be deemed to be vested in the Corporation title to land and interests in land acquired pursuant to The Dominion Housing Act, 1935, The National Housing Act, 1938, The National Housing Act, 1944 or the Housing Acts and title to which, apart from this subsection, is vested in Her Majesty.

• 28(2)Payments in lieu of taxes

  The Corporation may pay to a municipality or other taxing authority, in respect of land and interests in land title to which is vested in the Corporation, an amount equivalent to the taxes that would be payable in respect of the property were it not the property of Her Majesty.

• 28(3)Steps to safeguard

  The Corporation may, to protect its security in respect of any indebtedness to it, make loans to the debtor and take such other measures and steps as may be required in accordance with normal mortgage practice to safeguard the interests of the Corporation.

• 28.1Cooperation
• 28.1(1)

  The Corporation may cooperate with any person, group of persons, organization, municipality or department or agency of the government of Canada or a province in the exercise of any of the Corporation’s powers and functions, and for that purpose may participate in joint ventures.

• 28.1(2)Agreements

  The Corporation may enter into agreements with a party that is a person, group of persons, organization, municipality or department or agency of the government of Canada or a province

• 28.1(2)(a)

  for that party to have any of the powers, duties, functions, rights, obligations and liabilities of the Corporation; or

• 28.1(2)(b)

  for the Corporation to have any of the powers, duties, functions, rights, obligations and liabilities of that party.

• 29Reserve fund
• 29(1)

  The Corporation shall establish a reserve fund.

• 29(2)Profits credited to fund

  Subject to subsection (3), the profits of the Corporation in each fiscal year remaining after such provision as the Board thinks proper for bad and doubtful debts, depreciation in assets, anticipated future losses and all other matters whatever that in the opinion of the Board should be provided for in carrying out the purposes of the Corporation shall be credited to the reserve fund established under subsection (1).

• 29(3)Maximum amount of fund

  When the reserve fund established under subsection (1) has reached a total of an amount designated from time to time by the Governor in Council, any profits of the Corporation that would be credited to the reserve fund shall be paid to the Receiver General.

• 30Auditor
• 30(1)

  The auditor of the Corporation shall be appointed annually by the Governor in Council and may be removed at any time by the Governor in Council.

• 30(2)Qualifications of auditor

  The auditor must be

• 30(2)(a)

  an accountant who is a member in good standing of an institute or association of accountants incorporated by or under an Act of the legislature of a province and who has for at least six years preceding the date of the appointment practised the profession of accountant; or

• 30(2)(b)

  a partnership of accountants, one of whom is designated by the partnership, with the approval of the Corporation, to conduct the audit on behalf of the partnership and who meets the requirements of paragraph (a).

• 30(3)Repealed

  [Repealed, R.S., 1985, c. 1 (4th Supp.), s. 4]

• 31Fiscal year

  The fiscal year of the Corporation is the calendar year unless the Governor in Council otherwise directs.

• 32Insolvency or winding-up not applicable

  No Act relating to the insolvency or winding-up of any corporation applies to the Corporation and in no case shall the affairs thereof be wound up unless Parliament so provides.

• 33Approval of Governor in Council on recommendation of Minister

  Notwithstanding section 17, where under the Housing Acts any act, matter or thing to be done by the Minister requires the approval of the Governor in Council or where the Governor in Council may make any orders or regulations on the recommendation of the Minister, the approval may be given or the orders or regulations may be made on a recommendation of the Minister.

• 34Assistance from government services

  The minister of any department or the officer in charge of any other portion of the Government of Canada, or any agent of Her Majesty in right of Canada, may, on request of the Corporation and with the approval of the Governor in Council, agree to assist the Corporation on such terms and conditions as may be approved by the Governor in Council by providing such services as the Executive Committee may deem advisable for carrying out the business of the Corporation.

• 35Deposit accounts
• 35(1)

  The Corporation may maintain in its own name one or more accounts with the Bank of Canada.

• 35(2)Interest may be paid

  The Bank of Canada may pay interest on any money that the Corporation deposits with it.