Short Title

Marginal note:Short title

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

Interpretation

Marginal note:Definitions

2 In this Act,

Board of Directors or Board

conseil

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

Chairman

Version anglaise seulement

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

Corporation

Société

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

director

administrateur

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

Executive Committee

comité de direction

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

Housing Acts

lois sur l’habitation

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)

lending institution

établissement de crédit

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)

Minister

ministre

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)

mortgage

hypothèque

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

President

président

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

PART IConstitution of the Corporation

Establishment of the Corporation

Marginal note:Corporation established

3 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.

Marginal note:Head office

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

Marginal note:Agent 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.

• Marginal note:Directions

  (2) 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.

• Marginal note:Applicable provisions

  (3) 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.

Marginal note:Board of Directors

• 6 (1) The Board of Directors shall consist of the Chairman, the President and eight other members.

• Marginal note:Appointment of Chairman of the Board

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

• Marginal note:Duties

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

• Marginal note:Appointment of directors

  (4) Each director, other than the Chairman 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 three 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.

• Marginal note:Vacancy

  (5) 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.

• Marginal note:Substitute directors

  (6) Where a director is a member of the public service of Canada, the Governor in Council may authorize another member of the public service of Canada to act as director in his stead and the member of the public service while so acting shall be deemed to be a director.

• Marginal note:Directors’ fees

  (7) Any director appointed from outside the public service of Canada is entitled to receive for attendance at directors’ meetings and Executive Committee meetings the fees that may be fixed by the Governor in Council.

Marginal note:Appointment 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.

• Marginal note:Salary of President

  (2) The Governor in Council shall fix the salary of the President.

• Marginal note:Appointment and salary of Vice-Presidents

  (3) The Board, with the approval of the Governor in Council, shall appoint three Vice-Presidents and fix their salaries.

• Marginal note:Term of office of Vice-Presidents

  (4) The Vice-Presidents hold office during good behaviour for a term of seven years but are removable by the Governor in Council, on a resolution of the Board, for incapacity or for other cause.

• Marginal note:Re-appointment

  (5) The President and Vice-Presidents on the expiration of their terms of office may, if eligible, be re-appointed.

Marginal note:Ineligibility

• 8 (1) No person shall be appointed as President or Vice-President or as a director from outside the public service of Canada and no person shall continue to hold any such office, if that person

  • (a) is a director, officer or employee of a lending institution;

  • (b) is not a Canadian citizen or otherwise a British subject ordinarily resident in Canada;

  • (c) has reached the age of seventy years; or

  • (d) is employed in any capacity in the public service of Canada or 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.

• Marginal note:Shareholder in lending institution

  (2) A person appointed as President or Vice-President or as a director from outside the public service of Canada who is a shareholder of a lending institution shall divest himself of ownership of his shares of the lending institution within three months after the date of his appointment and shall not thereafter during the term of office of that person have an interest either directly or indirectly as a shareholder in a lending institution.

• Marginal note:Failure to comply

  (3) A person appointed as President or Vice-President or as a director from outside the public service of Canada who fails to comply with subsection (2) ceases to hold office.

• Marginal note:Exception

  (4) 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).

Marginal note:Executive Committee

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

Conduct of Business of Corporation

Marginal note:Board 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.

• Marginal note:Voting

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

• Marginal note:By-laws

  (3) The Board may make by-laws with respect to

  • (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

  • (b) the conduct of the affairs of the Corporation.

• Marginal note:By-laws

  (4) 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.

Marginal note:Executive Committee powers

11 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.

Marginal note:President

• 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 Chairman of the Board.

• Marginal note:Absence or incapacity of President

  (2) 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.

Marginal note:Officers 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.

• Marginal note:Oath of office

  (2) 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.

• Marginal note:Pension fund

  (3) 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.

• Marginal note:Authorized investments

  (4) 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.

Marginal note:Branches and agents

14 The Corporation may establish branches and employ agents.

Marginal note:President’s authority

15 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 Chairman of the Board.

Capital

Marginal note:Capital of Corporation

16 The capital of the Corporation is twenty-five million dollars, or such greater amount as may be determined by the Governor in Council from time to time.

PART IIObjects and Powers of the Corporation

Business and Powers of the Corporation

Marginal note:Transfer of authority from Housing Acts

17 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.

Marginal note:Functions vested in Corporation

18 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.

Marginal note:Corporation may make loans and payments

19 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.

Marginal note:Moneys 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.

• Marginal note:Moneys paid into C.R.F.

  (2) 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.

Marginal note:Borrowing from the Crown

• 21 (1) Subject to such limits as may be established by the Governor in Council, the Corporation may borrow money from the Crown.

• Marginal note:Borrowing otherwise than from the Crown

  (2) 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

  • (a) fifteen billion dollars, and

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

• Marginal note:Issuing obligations

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

• Marginal note:Apportioning costs of borrowing

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

Marginal note:Advances to the Corporation

22 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.

Marginal note:Reimbursement for losses, payments and expenditures

23 The Minister shall reimburse the Corporation

• (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;

• (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

• (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.

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

24 [Repealed, 1992, c. 32, s. 2]

Marginal note:Research and information

25 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.

Marginal note:Agreement with lending institution

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

• (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

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

Marginal note:Powers 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

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

  • (b) if the lending institution is a trust or loan company,

    • (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

    • (ii) buy the debentures or other evidences of indebtedness, guaranteed investment receipts or guaranteed investment certificates of the company.

• Marginal note:Sale of mortgages by Corporation

  (2) 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.

• Marginal note:Acquisition and disposal of collateral security

  (3) 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.

Ancillary Powers

Marginal note:Ancillary powers

• 28 (1) The Corporation may

  • (a) manage, acquire, hold, lend, lease and dispose of real and personal property;

  • (b) give guarantees with respect to any property disposed of by the Corporation;

  • (b.1) procure the incorporation, dissolution or amalgamation of a corporation;

  • (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

    • (i) a currency or interest rate swap agreement,

    • (ii) a basis swap agreement,

    • (iii) a spot, future, forward or other foreign exchange agreement,

    • (iv) a cap, collar or floor transaction,

    • (v) a financial swap,

    • (vi) a forward rate agreement,

    • (vii) a sale and repurchase agreement, a purchase and resale agreement, a reverse purchase agreement or a reverse sale agreement,

    • (viii) a spot, future, forward or other financial contract,

    • (ix) an agreement to buy or sell or borrow or lend securities,

    • (x) an agreement to issue securities on the basis of assets or investments,

    • (xi) a guarantee agreement,

    • (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

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

  • (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;

  • (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

  • (f) do any act or thing incidental to the conduct of the business of the Corporation.

• Marginal note:Funds

  (1.01) 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.

• Marginal note:Vesting

  (1.1) 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.

• Marginal note:Idem

  (1.2) 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.

• Marginal note:Payments in lieu of taxes

  (2) 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.

• Marginal note:Steps to safeguard

  (3) 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.

Cooperation

Marginal note:Cooperation

• 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.

• Marginal note:Agreements

  (2) 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

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

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

Reserve

Marginal note:Reserve fund

• 29 (1) The Corporation shall establish a reserve fund.

• Marginal note:Profits credited to fund

  (2) 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).

• Marginal note:Maximum amount of fund

  (3) 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.

PART IIIAudit and General

Audit

Marginal note:Auditor

• 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.

• Marginal note:Qualifications of auditor

  (2) The auditor must be

  • (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

  • (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).

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

Fiscal Year of Corporation

Marginal note:Fiscal year

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

General

Marginal note:Insolvency or winding-up not applicable

32 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.

Marginal note:Approval of Governor in Council on recommendation of Minister

33 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.

Marginal note:Assistance from government services

34 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.