National Housing Act (R.S.C., 1985, c. N-11)

Marginal note:Registration of programs

21.55 The Corporation may register the program in the registry if, in the Corporation’s opinion, all of the requirements under this Part have been met.

Marginal note:Application — issuer or program

• 21.56 (1) The Corporation must notify the applicant in writing of its decision with respect to the application to register the applicant or the program.

• Marginal note:Withdrawal of application

  (2) An applicant may withdraw the application for registration by so notifying the Corporation in writing at any time before the day on which the applicant receives notice of the Corporation’s decision.

Marginal note:Deregistration of program

• 21.57 (1) The Corporation may deregister a registered program on the request of the registered issuer only if there are no covered bonds outstanding under the program.

• Marginal note:Deregistration of issuer

  (2) The Corporation may deregister a registered issuer on the request of the issuer only if the issuer has no registered programs.

Marginal note:Conditions and restrictions

21.58 The Corporation may, at any time, establish conditions or restrictions applicable to registered issuers and registered programs.

Marginal note:Fees

• 21.59 (1) The Corporation may establish fees for registration applications under subsection 21.52(1) and subsection 21.54(1) as well as other fees to be paid by registered issuers.

• Marginal note:Limitation

  (2) The fees must be established, in accordance with any regulations, to be commensurate with the costs incurred by the Corporation in exercising its powers and performing its duties and functions under this Part.

Marginal note:Eligible assets

• 21.6 (1) Only the following assets may be held as covered bond collateral:

  • (a) loans made on the security of residential property that is located in Canada and consists of not more than four residential units; or

  • (b) any prescribed assets.

• Marginal note:Substitute assets

  (2) Despite subsection (1), covered bond collateral may include securities that are issued by the Government of Canada and any prescribed assets.

• Marginal note:Maximum ratio

  (3) Unless regulations have been made under paragraph 21.66(g), the value of the assets described in subsection (2) must not exceed 10 per cent of the total value of the loans or other assets held as covered bond collateral.

• Marginal note:Exceptions

  (4) Despite subsections (1) and (2), the following loans must not be held as covered bond collateral:

  • (a) a loan made on the security of residential property if the loan is insured by the Corporation;

  • (b) a loan made on the security of residential property if the loan is insured and that insurance is protected under the Protection of Residential Mortgage or Hypothecary Insurance Act; and

  • (c) a loan made on the security of residential property if the amount of the loan, together with the amount then outstanding of any mortgage or hypothecary loan having an equal or prior claim against the property, exceeds 80 per cent of the value of the property at the time of the loan.