H-1 - Family Housing Act

Section 2 Disposition versions

1999-10-22

2. (1)  The Government is authorized to guarantee and to pay the portion of interest in excess of 2% on all the loans made, for the building of new dwellings, by a credit union or a loan society, either to individuals, to syndicates, associations or cooperative building societies, provided that:

(a)  the rate of interest does not exceed 5% per annum on each loan;

(b)  if the amount loaned exceeds $6,000 for a self-contained dwelling and $10,000 for a two-unit dwelling, the Government pays such portion of interest only up to the extent of a capital sum of $6,000 or $10,000, as the case may be;

(c)  these new dwellings are to be constructed for the use of the borrower and of his family or, as the case may be, for the members of such syndicates, associations or building societies and their families; or, in either case, with a tenement used for that purpose in the case of two-unit dwellings.

(2)  The Government may however, on the recommendation of the Société and whenever it deems it expedient by reason of the increased cost of borrowed money, guarantee and pay part of the interest exacted by the lender, computed at the rate of 3% per annum, even though the interest so exacted exceeds the annual rate of 5%, provided it does not exceed that of 6 3/4%, and this up to a capital sum of not more than $7,000 in the case of a self-contained dwelling and $12,000 in the case of a two-unit dwelling.

(3)  The provisions of the preceding subsection 2 shall apply:

(a)  to the renewal or prolongation, after maturity but before 1 June 1966, of any loan granted prior to 18 March 1960 and which until then profited by the government’s contribution of interest authorized by this Act;

(b)  to any new loan granted after 18 March 1960 but before 1 June 1966 by a society within the meaning of paragraph e of section 1 and which meets the requirements of the other provisions of this Act;

(c)  to any loan or balance of any loan granted, by a society within the meaning of paragraph e of section 1 prior to 18 March 1960 and which meets the requirements of the other provisions of this Act, but only, as regards such loans or balances of loans, with respect to the interest falling due after 18 March 1960.

(4)  This section is applicable to the balance due on 6 July 1962 of a loan made before 10 June 1961, although such loan exceeds the maximum then contemplated in section 5 if it does not exceed the maximum now fixed by that section.

R. S. 1964, c. 110, s. 2; 1966-67, c. 43, s. 2; 1966-67, c. 55, s. 75; 1977, c. 5, s. 14; 1999, c. 40, s. 144.

1977-12-31

2. (1)  The Government is authorized to guarantee and to pay the portion of interest in excess of 2% on all the loans made, for the building of new dwellings, by a credit union or a loan society, either to individuals, to syndicates, associations or cooperative building societies, provided that:

(a)  the rate of interest does not exceed 5% per annum on each loan;

(b)  if the amount loaned exceeds $6 000 for a self-contained dwelling and $10 000 for a two-unit dwelling, the Government pays such portion of interest only up to the extent of a capital sum of $6 000 or $10 000, as the case may be;

(c)  these new dwellings are to be constructed for the use of the borrower and of his family or, as the case may be, for the members of such syndicates, associations or building societies and their families; or, in either case, with a tenement used for that purpose in the case of two-unit dwellings.

(2)  The Government may however, on the recommendation of the Corporation and whenever it deems it expedient by reason of the increased cost of borrowed money, guarantee and pay part of the interest exacted by the lender, computed at the rate of 3% per annum, even though the interest so exacted exceeds the annual rate of 5%, provided it does not exceed that of 63/4%, and this up to a capital sum of not more than $7 000 in the case of a self-contained dwelling and $12 000 in the case of a two-unit dwelling.

(3)  The provisions of the preceding subsection 2 shall apply:

(a)  to the renewal or prolongation, after maturity but before 1 June 1966, of any loan granted prior to 18 March 1960 and which until then profited by the government’s contribution of interest authorized by this act;

(b)  to any new loan granted after 18 March 1960 but before 1 June 1966 by a society within the meaning of paragraph e of section 1 and which meets the requirements of the other provisions of this act;

(c)  to any loan or balance of any loan granted, by a society within the meaning of paragraph e of section 1 prior to 18 March 1960 and which meets the requirements of the other provisions of this act, but only, as regards such loans or balances of loans, with respect to the interest falling due after 18 March 1960.

(4)  This section is applicable to the balance due on 6 July 1962 of a loan made before 10 June 1961, although such loan exceeds the maximum then contemplated in section 5 if it does not exceed the maximum now fixed by that section.

R. S. 1964, c. 110, s. 2; 1966-67, c. 43, s. 2; 1966-67, c. 55, s. 75; 1977, c. 5, s. 14.