|B.C. Reg. 189/2000|
British Columbia Securities Commission
|Deposited June 8, 2000|
effective September 1, 2000
[includes amendments up to B.C. Reg. 67/2015, May 5, 2015]
|3||Syndicated mortgages — registration not required for trades to institutional investors|
|4||Syndicated mortgages — prospectus not required for distributions to institutional investors|
|5||Exemption from registration and prospectus requirements|
1 In this rule:
"institutional investor" means
(d) a cooperative credit society as defined in the Cooperative Credit Associations Act (Canada) or a savings and credit union, federation or confederation as defined in the Savings and Credit Unions Act (Quebéc),
(j) a person registered under the Securities Act or the securities legislation of another province as an investment dealer or equivalent, acting as principal or as an agent or trustee for accounts that are fully managed by it,
(k) a person registered under the Securities Act or the securities legislation of another province as a portfolio manager or equivalent, acting as principal or as an agent or trustee for accounts that are fully managed by it,
(l) a mutual fund or non-redeemable investment fund, if the investment portfolio of the fund is managed by a person that is registered under the Securities Act or the securities legislation of another province as a portfolio manager or equivalent, or
"mortgage broker" means a person who is registered under the Mortgage Brokers Act;
"qualified syndicated mortgage" means a syndicated mortgage if
(e) at the time of issue, the amount of the debt secured by the syndicated mortgage, together with all other debt secured by mortgages on the property that have priority over, or the same priority as, the syndicated mortgage, does not exceed 90 percent of the fair market value of the property, excluding any value that may be attributed to proposed or pending development on the property,
"syndicated mortgage" means a mortgage in which two or more persons participate, directly or indirectly, as lenders in the debt obligation that is secured by the mortgage.
[am. B.C. Reg. 226/2009, Sch. D, s. 1.]
2 Unless otherwise defined in this rule, a term used in this rule that is defined or interpreted in the Securities Act, the Securities Rules or National Instrument 14-101 Definitions has the meaning set out in the Securities Act, Securities Rules or National Instrument, respectively.
3 Despite section 8.12 (3) of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, the dealer registration requirement does not apply in respect of a trade in a syndicated mortgage made to an institutional investor.
[en. B.C. Reg. 226/2009, Sch. D, s. 2; am. B.C. Reg. 238/2014, App. D, s. 5.]
4 Despite section 2.36 (3) of National Instrument 45-106 Prospectus Exemptions, the prospectus requirement does not apply in respect of a distribution of a syndicated mortgage to an institutional investor.
[en. B.C. Reg. 226/2009, Sch. D, s. 3; am. B.C. Reg. 67/2015, Sch. B, s. 1 (h).]
5 Sections 34 and 61 of the Securities Act do not apply to a trade in a qualified syndicated mortgage if, before the agreement of purchase and sale is entered into, the purchaser is provided with the form of investor disclosure required by the Mortgage Brokers Act.
[Provisions relevant to the enactment of this regulation: Securities Act, R.S.B.C. 1996, c. 418, section 184]