128A—Obligations of mortgagee
(1) A person must not
enter into a mortgage as mortgagee without first verifying the authority of
the intended mortgagor to enter into the mortgage in accordance with the
verification of authority guidelines.
Maximum penalty: $10 000 or imprisonment for 2 years.
(2) A mortgagee must
retain a copy of any document used for the purpose of fulfilling his or her
obligations under subsection (1) for the period prescribed by the
regulations.
Maximum penalty: $10 000 or imprisonment for 2 years.
(3) This section does
not apply in relation to a mortgage that is not intended to be lodged for
registration in the Lands Titles Registration Office.