Canada Mortgage and Housing Corporation Act (R.S.C., 1985, c. C-7)

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 Chairperson of the Board.

Capital

Marginal note:Capital 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).

• Marginal note:Authority to make capital payments

  (2) 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

  • (a) ten billion dollars, and

  • (b) any additional amounts that may be authorized from time to time under an appropriation Act.

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:Loans 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.

• 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.