Budget Implementation Act, 2006

Marginal note:Mortgage or hypothec insurance protection agreement

• 193 (1) The Minister of Finance may, with respect to an insurance policy held by a mortgagee, enter into an agreement with any person, including a mortgage insurer or the mortgagee, to do any of the following:

  • (a) provide an indemnity to the mortgagee;

  • (b) provide a guarantee or suretyship to the mortgagee; and

  • (c) purchase a replacement insurance policy for the mortgagee.

• Marginal note:Payment to be made

  (2) The agreement shall provide that, if the mortgage insurer with whom the mortgagee holds an insurance policy becomes insolvent or is liquidated, a payment shall be made to the mortgagee, or to another mortgage insurer if the agreement provides for a replacement insurance policy.

• Marginal note:Amount of payment

  (3) Subject to regulations made under paragraph 194(1)(a), the payment shall be equal to the benefits payable under the insurance policy held with the mortgage insurer less 10 per cent of the original principal amount of the mortgage or hypothec that is subject to the insurance policy.

• Marginal note:Limitation

  (4) The aggregate outstanding principal amount of all mortgages or hypothecs to which insurance policies that are subject to such agreements apply shall not at any time exceed $200,000,000,000 or any other amount that may be authorized for the purposes of this subsection under an appropriation Act.

• Marginal note:Deeming

  (5) An agreement having the same purpose as an agreement referred to in subsection (1) and that is entered into by the Minister of Finance before the coming into force of that subsection is deemed to be an agreement referred to in this section.