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

Act current to 2017-09-14 and last amended on 2016-06-22. Previous Versions

PART I.1Covered Bonds

Definitions

Marginal note:Definitions

 The following definitions apply in this Part.

affiliate

groupe

affiliate means an affiliate as defined in section 2 of the Bank Act. (groupe)

covered bond

obligation sécurisée

covered bond means, except in paragraph 21.53(b), a debt obligation in relation to which the principal and interest owing are guaranteed to be paid from the loans or other assets held by a guarantor entity. (obligation sécurisée)

covered bond collateral

garantie d’obligations sécurisées

covered bond collateral means the loans or other assets that secure the payment of principal, interest and any other amounts owing in relation to the covered bonds that are issued under a registered program. (garantie d’obligations sécurisées)

derivatives agreement

contrat dérivé

derivatives agreement means a financial agreement whose obligations are derived from, referenced to, or based on, one or more underlying reference items. (contrat dérivé)

guarantor entity

societé garante

guarantor entity means an entity that is created and organized for the principal purpose of holding loans or other assets as the covered bond collateral for a registered program with the intention of legally isolating those loans or other assets from the registered issuer. (societé garante)

registered issuer

émetteur inscrit

registered issuer means an institution that is registered in the registry under section 21.53. (émetteur inscrit)

registered program

programme inscrit

registered program means a program that is registered in the registry under section 21.55. (programme inscrit)

registry

registre

registry means the registry established under section 21.51. (registre)

  • R.S., 1985, c. 8 (1st Supp.), s. 1;
  • 1992, c. 32, s. 28;
  • 1999, c. 27, s. 3;
  • 2012, c. 19, s. 356.

Establishment of Legal Framework

Marginal note:Registry
  •  (1) The Corporation must establish and maintain a registry containing

    • (a) the names and business addresses of registered issuers;

    • (b) a list of registered programs and information relating to those programs, including the name of each essential service provider to the guarantor entity;

    • (c) a list of registered issuers whose right to issue covered bonds is suspended under subsection 21.62(1) and the reasons for the suspension;

    • (d) any other information that, in the Corporation’s opinion, is necessary; and

    • (e) any prescribed information.

  • Marginal note:Accessible to public

    (2) The Corporation must make the registry accessible to the public through the Internet and by any other means that it considers appropriate.

  • 2012, c. 19, s. 356.
Marginal note:Application for registration of issuers
  •  (1) Any of the following institutions may apply for registration as a registered issuer:

    • (a) a federal financial institution as defined in section 2 of the Bank Act; and

    • (b) a cooperative credit society that is incorporated and regulated by or under an Act of the legislature of a province.

  • Marginal note:Requirements

    (2) The applicant must provide the Corporation, in the time, manner and form required by the Corporation, with the required fees and any information that, in the Corporation’s opinion, is required for the purposes of the registration.

  • 2012, c. 19, s. 356.
Marginal note:Registration of issuers

 The Corporation may register an institution in the registry if

  • (a) in the Corporation’s opinion, all of the requirements under this Part have been met; and

  • (b) the institution gives an undertaking to not issue any debt obligation that is commonly known as a covered bond except under a registered program.

  • 2012, c. 19, s. 356.
Marginal note:Application for registration of program
  •  (1) A registered issuer may apply for registration of a program under which covered bonds are to be issued.

  • Marginal note:Requirements

    (2) The registered issuer must provide the Corporation, in the time, manner and form required by the Corporation, with the required fees and the information referred to in subsection (3).

  • Marginal note:Contents of program

    (3) An application must contain a complete description of the program, including the following information:

    • (a) the name of the entity that will act as the guarantor entity and the type of entity;

    • (b) a description of the loans or other assets to be held as the covered bond collateral and their value;

    • (c) the minimum and maximum ratio required under the program of the value of the covered bonds to be issued to the value of the loans or other assets to be held as covered bond collateral;

    • (d) a description of the contractual relationships between the registered issuer and the entity that will act as the guarantor entity;

    • (e) the names of all essential service providers to the entity that will act as the guarantor entity, a description of the services to be provided and, if a registered issuer or one of its affiliates is acting as a service provider, the circumstances in which it must be replaced;

    • (f) the names of any parties to a derivatives agreement with the entity that will act as the guarantor entity; and

    • (g) any other information that, in the Corporation’s opinion, is required.

  • 2012, c. 19, s. 356.
Marginal note:Registration of programs

 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.

  • 2012, c. 19, s. 356.
Marginal note:Application — issuer or program
  •  (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.

  • 2012, c. 19, s. 356.
Marginal note:Deregistration of program
  •  (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.

  • 2012, c. 19, s. 356.
Marginal note:Conditions and restrictions

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

  • 2012, c. 19, s. 356.
Marginal note:Fees
  •  (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.

  • 2012, c. 19, s. 356.
 
Date modified: