CHAPTER 66.

An Act to Amend The Loan Companies' Act, 1922.

(Passed the 17th dayof April, A. D., 1923).

Be it enacted by the Governor, Council, and Assembly, as follows:

s. s. 2, Sec.

1. (1) Sub-section 2 of Section 3 of Chapter 5: 2; S223, 4 of the Acts of 1922, is amended by striking out the amended. words and figures 34, 52, 53, 62, 63, 83, 84, 85, 87, 88 and 89 in the first and second lines thereof and substituting the words and figures 14 (d), 34, 52 to 70, inclusive, 75 to 81, inclusive, and 83 to 89, inclusive, therefor.

(2) Sub-section 3 of said Section 3 is amended by s. s. 3, Sec. 3, striking out the words and figures 34, 52, 53, 62, 63, amended. 83, 84, 85, 87, 88 and 89 in the first and second lines thereof and substituting the words and figures 14(d), 34, 52 to 70, inclusive, 75 to 81, inclusive, and 83 to 89, inclusive, therefor.

.1, Sec. 11, Ch.

amended.

2. (1) Clause (b) of Sub-section 1 of Section 11 Clause (b) s. s. of said Chapter 4 is amended by striking out all of 4, 1922. the words after the words "twenty-one" in the third line thereof and substituting therefor the following: "When the number of the Directors does not exceed thirteen a majority shall be a quorum; when the number of Directors exceeds thirteen the quorum shall be seven.

Sec. 14,

(2) Clause (d) of Section 14 of said Chapter 4 Clause (d), is amended by striking out all of the words after the amended. word "twenty-one" in the second line thereof and substituting therefor the following: "When the number of the Directors does not exceed thirteen a majority shall be a quorum; when the number exceeds thirteen the quorum shall be seven.

3. Section 14 of said Chapter 4 is further amended Sub-section by adding thereto the following sub-section:

added to Section 11.

ectors and

(2) Nothing in this Act shall operate to reduce the Number of dir number of Directors or increase the number of Direct- quorum unors forming a quorum of Directors of any Company

affected.

Section 54, repealed; substituted.

permitted under the laws applicable to such Company on the first day of May A. D., 1923.

4. Section 54 of the said Chapter 4 is repealed, and the following is substituted therefor:

Investment of 54. (1) The Company may invest its funds in:

funds.

(a) the debentures, bonds, stocks or other securities of or guaranteed by the Government of the Dominion of Canada; of or guaranteed by the Government of any Province of Canada; or of or guaranteed by the Government of the United Kingdom, or of any Colony or dependency thereof; or of or guaranteed by the Government of the United States or of any State thereof; or of any Municipal or School Corporation in Canada; or guaranteed by any Municipal Corporation in Canada; or secured by rates or taxes, levied under the authority of the Government of any Province of Canada on property situated in such Province and collectable by the Municipalities in which such property is situated; or,

(b) the bonds, debentures, debenture stock or other securities of any Company incorporated under the laws of Canada or of any Province of Canada, or of any former Province now forming part of Canada, which are secured by a mortgage to trustees or a Trust Corporation or otherwise, upon improved real estate of such Company or other assets of such Company of the classes mentioned in paragraph (a) hereof; or,

(c) the bonds, debentures, notes or other obligations whether secured or unsecured of any such Company which has earned and paid regular cash dividends of not less than four per cent per annum on its issued stock for a term of at least five years immediately preceding the date of investment in such bonds, debentures, notes or other obligations; or,

(d) the preferred stocks of any such Company which has paid regular dividends upon such stocks or upon its common stocks for not

less than five years immediately preceding the
purchase of such preferred stocks, or the stocks
of any such Company which are guaranteed by a
Company incorporated as aforesaid which has
paid regular dividends upon its preferred or com-
mon stocks for not less than five years immediate-
ly preceding the purchase of such guaranteed
stocks; provided, that the amount of stocks so
guaranteed is not in excess of fifty per cent of the
amount of the preferred or common stocks, as the
case may be, of the guaranteeing Company; or,

(e) the common stocks of any such Company
or of any chartered bank in Canada upon which
regular cash dividends of at least four per cent
per annum have been paid for the seven years
immediately preceding the purchase of such
stocks; provided that not more than thirty per
cent of the common stocks and not more than
thirty per cent of the total issue of the stocks of
any Company or bank shall be purchased by the
Company; or,

(f) mortgages on improved real estate or leaseholds, provided that the amount paid for any such mortgage shall in no case exceed sixty per cent of the value of the real estate or leaseholds covered thereby, and provided further, that in the case of a mortgage the principal of which is payable by instalments, and the amount thereof would, if the terms of the mortgage are complied with, be reduced in two years from the date thereof to at least sixty per cent of such value, such mortgage may be for more than sixty per cent, but not more than seventy per cent of such value, and provided further, that nothing in this sub-section shall be deemed to affect any of the provisions of Chapter 10 of the Acts of 1912, entitled, "An Act for the encouragement of settlement on Farm Lands," as amended.

(2) The Company may lend its money on the Loans. security of,

(a) any of the securities mentioned in paragraphs (a) and (b) of Sub-section 1 hereof; or,

authorize pur

(b) the bonds, debentures, notes, stocks, or other securities of any chartered bank in Canada or of any Company incorporated under the laws of Canada or of any Province of Canada, or of any former Province now forming part of Canada, other than those mentioned in paragraph (b) of Sub-section 1 hereof, provided that the market value of the securities on which the loan is made shall exceed the amount of the loan by at least twenty per cent of such market value or twenty per cent of the par value, whichever is the less; and provided further, that the amount loaned on the security of the stocks of any such Company or bank shall not exceed twenty-five per cent of the market value of the total stocks of such Company or bank; or,

(c) improved real estate or leaseholds; provided, however, that no such loan shall exceed sixty per cent of the value of the real estate or leaseholds which forms the security for such loan, but this proviso shall not prohibit a Company from accepting as part payment for real estate sold by it, a mortgage thereon for more than sixty per cent of the sale price of such real estate, and provided further, however, that in the case of a morgage the principal of which is payable by instalments and the amount thereof would, if the terms of the mortgage are complied with, be reduced in two years from the date thereof be at least sixty per cent of such value, such mortgage may be for more than sixty per cent, but not more than seventy per cent of such value, and provided further, however, that nothing in this sub-section shall be deemed to affect any of the provisions of Chapter 10 of the Acts of 1912, entitled, "An Act for the encouragement of settlement on Farm Lands" as amended.

Minister may (3) The Minister may authorize the Company chase or invest-to purchase or invest in stocks and securities not fulment in certain 'filling the foregoing requirements of this section:

cases.

(a) for the bona fide purpose of protecting investments previously made by the Company;

or,

(b) obtained under a bona fide arrangement for the reorganization of a Company whose stocks or securities were previously owned by the Company; or,

(c) obtained through the exercise of rights conferred by investments made prior to the first day of May, A. D., 1923.

company not

of issue.

(4) Notwithstanding anything in this section Investment in contained, the amount of the Company's investment securities of a under the authority of this section in or upon the to exceed 20% security of the debentures, bonds, stock and other securities of a Company incorporated as aforesaid shall not exceed twenty per cent of the debentures, bonds, stock or other securities issued by such Company.

(5) The Company may take personal or other Colateral. security as collateral for an advance or for any debt due to the Company.

curity of va

(6) The Company shall not lend any of its funds No loans on seon the security of vacant land not used for agricul- cant land. tural purposes.

5. Section 58 of said Chapter 4 is repealed and Section 58, rethe following is substituted therefor:

pealed; substituted.

posit.

58. (1) The Company may receive money on May receive deposit upon such terms as to interest, security, money on de. time and mode of repayment and otherwise as may be agreed upon, but the amount held on deposit shall not at any time, except as authorized by Subsection 2 of this section, exceed the aggregate amount of its then actually paid up and unimpaired capital stock and of its cash actually in hand or deposited in any chartered bank in Canada, or such larger amount as may be authorized by the Company's Act of Incorporation.

pass by-law to

amount on de

(2) (a) The Company may, by by-law passed Company may by the Directors and approved by at least a three- increase fourths vote of the shareholders present or represented posit. by proxy at the annual or other general meeting of the proxy