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Protection of Residential Mortgage or Hypothecary Insurance Act (S.C. 2011, c. 15, s. 20)

Act current to 2020-09-09 and last amended on 2016-06-22. Previous Versions

Sanctions (continued)

Marginal note:Punishment

  •  (1) Every person who is guilty of an offence under this Act is liable to

    • (a) on conviction on indictment, a fine of not more than $5,000,000; or

    • (b) on summary conviction, a fine of not more than $500,000.

  • Marginal note:Order to comply

    (2) If a corporation has been convicted of an offence under this Act, the court may, in addition to any punishment it may otherwise impose, order it to comply with the provisions of this Act and the regulations.

  • Marginal note:Additional fine

    (3) If a corporation has been convicted of an offence under this Act, the court may, if it is satisfied that as a result of the commission of the offence the corporation acquired any monetary benefits, order the corporation to pay, despite the maximum amount of any fine that may otherwise be imposed under this Act, an additional fine in an amount equal to three times the court’s estimation of the amount of those monetary benefits.

Marginal note:Liability of officers, directors, etc.

 If a corporation commits an offence under this Act, any of its officers, directors, agents or mandataries who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable, whether or not the corporation has been prosecuted or convicted, to

  • (a) on conviction on indictment, a fine of not more than $1,000,000 or imprisonment for a term of not more than five years, or both; or

  • (b) on summary conviction, a fine of not more than $100,000 or imprisonment for a term of not more than one year, or both.

Marginal note:Limitation period or prescription

  •  (1) Proceedings by way of summary conviction in respect of an offence under this Act may be commenced at any time within, but not later than, two years after the day on which the subject matter of the proceedings became known to the Minister.

  • Marginal note:Certificate of Minister

    (2) A document appearing to have been issued by the Minister certifying the day on which the subject matter of any proceedings became known to the Minister is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and is, in the absence of evidence to the contrary, proof of the matter asserted in it.

Marginal note:Appeal with leave

 An appeal lies to the court of appeal of a province from any order made under this Act by a court of that province, only with leave of the court of appeal in accordance with the rules applicable to that court.

Marginal note:Recovery and application of fines

 All fines payable under this Act are recoverable and enforceable, with costs, at the suit of Her Majesty, instituted by the Attorney General of Canada, and, when recovered, belong to Her Majesty.

Legal Proceedings

Marginal note:No liability

 No action lies against Her Majesty, the Minister, the Superintendent or any employee or agent of Her Majesty for anything done or omitted to be done in good faith in the exercise or performance of any powers, duties or functions that under this Act are intended or authorized to be exercised or performed.

Regulations

Marginal note:Regulations

 The Governor in Council may make regulations for carrying out the purposes and provisions of this Act, including regulations

  • (a) imposing conditions on an approved mortgage insurer in order to mitigate the risks to Her Majesty that arise from the provision of mortgage or hypothecary insurance protection under this Act;

  • (b) respecting the payment of fees under section 9, including the amount of those fees or the manner of calculating them;

  • (c) respecting the designation, by approved mortgage insurers, of mortgage or hypothecary lenders as qualified mortgage lenders;

  • (d) prescribing the exceptions to each of the requirements under section 11;

  • (e) prescribing the exceptions to each of the prohibitions under section 14;

  • (f) prescribing, for the purposes of subsection 15(1), the manner in which books and records are to be kept and retained and the manner in which information is to be retained;

  • (g) prescribing, for the purposes of subsection 15(5), the manner in which the books, records and information are to be made available to the public; and

  • (h) prescribing anything that is required or authorized by this Act to be prescribed.

Marginal note:Ministerial regulations

  •  (1) The Minister may, after consulting with the Governor of the Bank of Canada and the Superintendent, make regulations establishing criteria that a mortgage or hypothecary loan must meet in order for it to be an eligible mortgage loan.

  • Marginal note:Criterion  — guarantee

    (1.1) Any criterion established by a regulation made under subsection (1) that relates to a guarantee of payment referred to in subsection 14(1) of the National Housing Act may apply to an existing insured mortgage or hypothecary loan.

  • Marginal note:Ministerial regulations — agreements and undertakings

    (2) The Minister may make regulations specifying, for the purposes of paragraph 43(k), agreements entered into by Her Majesty and a company in respect of mortgage or hypothecary insurance, and undertakings given by a company under an agreement as defined in section 43.

  • Marginal note:Coming into force

    (3) A regulation made under this section comes into force on the day on which it is published in the Canada Gazette or on any later day that is specified in the regulation unless the regulation provides otherwise and it gives effect to a budgetary or other public announcement, in which case the regulation must not come into force before the day on which the announcement was made.

  • 2011, c. 15, s. 20 “42”
  • 2014, c. 20, s. 315

Termination of Agreements

Definition of agreement

 In sections 44 to 48, agreement means

  • (a) the agreement entered into by Her Majesty and The Mortgage Insurance Company of Canada that was made on January 1, 1991 and subsequently assigned to GE Capital Mortgage Insurance Company (Canada);

  • (b) the Management Agreement entered into by Her Majesty, The Mortgage Insurance Company of Canada, Royal Bank Investment Management Inc., and Royal Trust Corporation of Canada that was made on November 1, 1991;

  • (c) the agreement entered into by Her Majesty and AIG United Guaranty Mortgage Insurance Company Canada that was made on November 21, 2006;

  • (d) the Custody and Security Agreement entered into by Her Majesty, AIG United Guaranty Mortgage Insurance Company Canada and RBC Dexia Investor Services Trust that was made on November 21, 2006;

  • (e) the Management Agreement entered into by Her Majesty, AIG United Guaranty Mortgage Insurance Company Canada and RBC Dominion Securities Inc. that was made on November 21, 2006;

  • (f) the agreement entered into by Her Majesty and PMI Mortgage Insurance Company Canada that was made on July 12, 2007;

  • (g) the Custody and Security Agreement entered into by Her Majesty, PMI Mortgage Insurance Company Canada and Citibank Canada that was made on July 12, 2007;

  • (h) the Management Agreement entered into by Her Majesty, PMI Mortgage Insurance Company Canada and TD Asset Management Inc. that was made on July 12, 2007;

  • (i) the Management Agreement entered into by Her Majesty, Canada Guaranty Mortgage Insurance Company and Phillips, Hager & North Investment Management Ltd. that was made on May 5, 2010;

  • (j) any reinsurance agreement to which Her Majesty and a company or a predecessor to a company are parties;

  • (k) any agreement or undertaking specified in regulations made under subsection 42(2); or

  • (l) any amendment to an agreement referred to in any of paragraphs (a) to (k).

Marginal note:Agreements are terminated

 The agreements are terminated and all obligations and liabilities arising out of the agreements and all rights acquired under them are extinguished.

Marginal note:No liability

 No action or other proceeding, including any action or proceeding in restitution, or for damages of any kind, that is based on or is in relation to any agreement, lies or may be instituted by anyone against Her Majesty or any minister or any employee or agent of Her Majesty, or any person engaged to provide advice or services to Her Majesty in relation to any agreement, for anything done or omitted to be done or for anything purported to have been done or omitted to be done, in the exercise or performance of their powers, duties and functions.

Marginal note:No compensation

 No one is entitled to any compensation from Her Majesty in connection with the coming into force of section 44.

 
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