June 2, 1939

LIB

Louis-Prudent-Alexandre Robichaud

Liberal

Mr. ROBICHAUD:

Subsection 2 of section 16 says "bearing interest at 3i per centum per annum". Is that the maximum or the minimum? Can it not be lower than that, or must it be exactly 3J per cent?

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

The debentures referred to in subsection 2 are debentures which may be bought by the bank from the mortgage company for the purpose of making the adjustment. The debentures referred to in section 18 are debentures which have to do with new money for future operations, and involve the laying down of that basis.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Louis-Prudent-Alexandre Robichaud

Liberal

Mr. ROBICHAUD:

That is the explanation, but still it is not clear. It says "issued or to be issued" in both cases.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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CON

Grote Stirling

Conservative (1867-1942)

Mr. STIRLING:

In the matter of a new mortgage, would it not be a simple matter for a lending company to decide: "Yes, this is borowed money;" or, "No, this is our own funds?"

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

Oh, yes.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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CON

Grote Stirling

Conservative (1867-1942)

Mr. STIRLING:

It does not look easy to me.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

They will have to show that.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Donald Alexander McNiven

Liberal

Mr. McNIYEN:

I attended the meetings of the committee but unfortunately was not there when subsection (k) of section 16 of the old bill was under discussion. Subsection (k) of the old bill dealt with provincial legislation. Did the minister have in mind what might subsequently be regarded as unduly impeding, restricting or penalizing the right of action of the mortgagee?

Central Mortgage Bank

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

I could not undertake to answer that. The variety of legislation across this dominion is so great that any statement by myself might be taken to have authority with respect to provincial legislation which I have not in mind at all. What we shall have to do is to sit down with each province and examine their legislation and endeavour to work out what is reasonable. I think there is every indication that this will be possible.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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CON

John Ritchie MacNicol

Conservative (1867-1942)

Mr. MacNICOL:

It may be wrong, but I have heard the statement made that the Farmers' Creditors Arrangement Act dried up the sources of supply of money for farm mortgages. Will this bill have the effect of drying up the sources of supply for private loans in urban communities?

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

My own view is that it will tend in exactly the opposite direction.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
Permalink
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

There is great difference of opinion in regard to that.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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CON

John Ritchie MacNicol

Conservative (1867-1942)

Mr. MacNICOL:

Did the Farmers' Creditors Arrangement Act dry up the sources of supply for farm loans?

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

I must refuse to be drawn into a debate on the Farmers' Creditors Arrangement Act. It has no bearing on this. I am sure my hon. friend will not press the question.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
Permalink
LIB

Donald Alexander McNiven

Liberal

Mr. McNIVEN:

Is it essential, even though it may be desirable, that there should be in all the provinces uniform legislation applicable to these mortgages with respect to provincial debt adjustment? We have in Saskatchewan some types of debt adjustment legislation that do not exist in other provinces, and some other provinces may have provisions that we have not. I am thinking particularly of the elimination in our province of the personal covenant, in which regard I think we are alone. I was present when the minister referred to his personal experience and hazarded the opinion that the personal covenant was only a detail in the granting of the mortgage.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
Permalink
LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

That was not I, was it? When you say "the minister" you do not mean me?

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Donald Alexander McNiven

Liberal

Mr. McNIVEN:

I was there when the minister did so; I was present when he made reference to the fact that some thirty years ago he had placed a mortgage on his homestead

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

Oh, yes; giving my personal experience.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Donald Alexander McNiven

Liberal

Mr. McNIVEN:

-and said he was quite certain that the appraisers valued the property in accordance with the locality and without much reference to the personal covenant.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

No, I said without much reference to my character. If my hon. friend will permit me, when that discussion took place in committee we were discussing not the personal covenant as such but the character element in respect to raising money by way of mortgage, as I am sure my hon. friend from Kootenay East (Mr. Stevens) will remember. I related my own experience in the early days in the west simply as typical of the methods by which business was conducted in those days; and I stressed the view that my personal character did not have nearly so much to do with their desire to lend me money as their belief in the constantly expanding economy of western Canada. That really was the point; I do not want to be taken as expressing opinions with regard to the legislation of any province.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
Permalink

June 2, 1939