Tag: mortgage investment corporations
Tag: mortgage investment corporations
The Complexities of the Offering Memo Exemption, Ongoing Requirements and Pitfalls
Offering Memorandum Exemption under NI 45‑106 (Ontario) Eligibility & Purpose NI 45‑106 section 2.9 allows non‑reporting issuers to raise capital from the public via an Offering Memorandum (OM) distributed to...
Do MICs need to file an exempt distribution report for shares issued under a DRIP?
Should a Mortgage Investment Corporation ("MIC"), include exempt distributions of shares or other securities issued under a reinvestment plan (i.e. a DRIP or Dividend Reinvestment Plan),...
Can a lawyer act for both the lender and borrower?
In most conventional cases where the mortgage is not a "private" mortgage or loan transaction, there are no hard rules rather than good judgement and a...
Do Private Lenders need a brokerage license to lend in Ontario?
Do Private Lenders need a brokerage license to lend in Ontario? The Mortgage Brokerages, Lenders and Administrators Act, 2006 establishes that anyone acting as a mortgage lender...
Challenges in Starting a MIC: Paying Dividends
One of the biggest challenges in running a MIC is when you first realize that the investors who were once your private lenders are now expecting...
A MIC does not simply allow you to raise money from the public!
Mortgage Investment Corporations ("MICs") are on the rise in Canada. With many of these MICs the founders and managers are confused over what regulators may or...
Annual Maintenance and Reporting Requirements of a MIC, a Mortgage Investment Corporation
Annually a MIC that issues its shares through a prospectus and registration exemption under securities law and regulations (e.g. not publicly traded companies), will be responsible...
What If A Mortgage Goes Bad In A MIC? What are the Investment Benefits In A MIC?
Management of the MIC must be vigilant and selective with whom they lend to, and investors can inquire about whether the MIC in question will allow...
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...
Taxation of a MIC, a Mortgage Investment Corporation
The MIC itself will not pay income tax so long as the profits are flowed through to the shareholders and taxed in their hands. This is...
