Generic filters
Exact matches only
Search in title
Search in excerpt
Search in content
Filter by Practice Category
Business Setup & Contracts
Commercial & Business Transactions
Land Assembly & Real Estate Development
Mortgage and Loan Enforcement
Mortgage Syndication
Private Mortgage Closings & Administration
Real Estate Closings & Property Law
Wills, Estates & Tax
Filter by Practice Industry Category
Business & Finance
Estates & Tax
Real Estate

Tag: Accredited Investor

Changes to the Mortgage Syndication Rules

As of July 1, 2018, the Financial Services Commission of Ontario (FSCO) will begin enforcing the changes to the O. Regulation 188/08 Mortgage Brokerages Standards of Practice under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) that affect non-qualified syndicated mortgages.To recap a qualified syndicated mortgage is a syndicated mortgage (a mortgage where there is more than one lender) that meets ALL of the following requirements:A licensed mortgage brokerage was involved in negotiating or arranging it.The mortgaged property secured was:Primarily used for residential purposes;Did not contain more than four (4) dwelling units (remember sometimes lenders will classify multiplexes as commercial or entirely residential depending on the number of dwelling units disregarding actual zoning and use);Did not contain more than one non-residential (commercial) unit, if within a mixed use building with other residential units (again up to four (4) in total).

Read more

Securities Law & Regulations of a MIC, a Mortgage Investment Corporation

A “Trade” (i.e. selling shares to investors in this case) triggers the “Registration” requirement, even if the trade is not a “distribution”. Just because there is not a prospectus requirement does not mean there is no registration requirement to sell the shares to an investor. However, most prospectus exemptions will come with a registration exemption to sell the shares.Assembling a prospectus is usually not cost-effective for most MICs, hence raising funds through selling shares needs to fall under an exemption under securities law, which will depend more so in which province your shareholders are located. Thus, most MICs will distribute their shares based on an exemption catered to the province they intend to solicit investors/shareholders from. Common Prospectus Exemptions Include:Accredited Investor:  Those investors who are sophisticated or deemed to be, such as institutions, governments, persons or companies who meet an income and asset test.“Private Issuer”, i.e. Closely-held Issuer Exemption: The shares are all subject to restrictions on transfer found in the Articles of Incorporation, and all the shares cannot be owned by more than 50 persons, not including employees, former employees, or corporate affiliates.  The purchasers must be a director/officer/employee of the MIC or Affiliate of the MIC, or close family, friends and business

Read more