Office of the Superintendent of Financial Institutions
The purpose of this return is to provide a consolidated balance sheet of the institution as at the last day of each month. The balance sheet categories reflect the information required by the major users - the Office of the Superintendent of Financial Institutions, the Bank of Canada, Canada Deposit Insurance Corporation and Statistics Canada - for purposes of analyzing and monitoring the individual and aggregate financial condition of institutions. The return also requires the separation of assets and liabilities into total and foreign currencies.
Sections 628 and 600 of the Bank Act and Section 495 of the Trust and Loan Companies Act.
This return applies to all deposit-taking institutions.
Information from this return is available on a total and institution-by-institution basis on the OSFI website at
www.osfi-bsif.gc.ca and is published in the Bank of Canada Banking and Financial Statistics on a total-for-all- institutions basis.
Provide name and phone number of person to contact regarding any questions about this return.
The return is to be completed as of the last day of each month and submitted within 30 days of the reporting date.
The form of the consolidated balance sheet is identical for all institutions regardless of size and type. Consequently, certain balance sheet categories may not be applicable to some institutions because of the nature of their operations.
Where these instructions indicate that a certain category includes particular items, the particular items listed do not limit the generality of the heading but indicate the kind of items that are to be reported there.
Assets under administration are not to be included in the balances reported on the balance sheet.
Assets are to be reported net of the allowance for expected credit losses (ECL), if any.
All allowances are to be netted from the appropriate assets in the same currency in which the relevant assets are denominated, regardless of whether the allowances are booked in Canadian or foreign currency. Where allowances for expected credit losses against groups of loans have been established against assets denominated in both Canadian dollars and foreign currency, the allowances should be allocated proportionately according to the gross amounts of the assets outstanding in the various currencies.
Interest should be accrued on loans; the accrual is to be included in Asset 6. Debts purchased at a premium or discount are to be reported net of the premium or discount. The net reported amount of such loans will be increased or decreased as the discounts or premiums are taken into income over the term of the loan. Fixed-term loans on which the interest for the term is pre-computed and added to the principal are to be reported net of the pre-computed interest.
Deposits with regulated financial institutions include all non-interest-bearing balances and interest-bearing balances, including correspondent relationships in Canada and elsewhere placed in the normal course of market trading where the only documentation exchanged is a confirmation of contract and the rates applied are the bid and offer of the market.
Insurance-related Assets comprise of asset categories from Insurance Subsidiaries that do not readily fall into the asset categories used in a deposit-taking institution’s financial statements.
Assets of Insurance Subsidiaries such as securities and mortgages that readily fall into the asset categories used by deposit-taking institutions should be reported in their respective categories.
All amounts are to be expressed in thousands of Canadian dollar equivalents.
Gold, bank notes, deposits with Bank of Canada, cheques and other items in transit
Notes on hand and coin include those in transit between any units of the institution. Units of the institution include any branches or offices of the institution's subsidiaries.
Gold should be valued by translating to a Canadian dollar equivalent (using the month-end rate published by the Bank of Canada) the U.S. dollar value set at the second London gold "fixing".
Component deposit balances used to produce total deposits at the Bank of Canada must agree with the balance reports provided by the Bank of Canada at reporting date.
For items that meet the criteria for offsetting in accordance with IFRS, report the net balance (when that balance is a debit) of all accounts representing outstanding inter-institution and inter-branch entries, settlements and other items in transit.
If the foreign currency items in transit are a credit, although the total transit figure is a debit, report the foreign currency credit amount with a minus sign.
Deposits With Regulated Financial Institutions, Less Allowance for Expected Credit Losses
Overdrafts in deposit accounts with regulated financial institutions, which are deposit-taking, are to be included in Liability 1(c) - Demand Deposits of Deposit-taking Institutions.
Overdrafts in deposit accounts of and loans to regulated financial institutions, including loans to foreign central banks or foreign official monetary institutions are to be included in Asset 11(b) - Non-Mortgage Loans to Regulated Financial Institutions.
Securities issued or guaranteed by Canada are to be reported on the basis of remaining term-to-maturity.
Securities held at amortized cost.
Securities accounted for as Fair Value Through Profit or Loss, Fair Value Through Other Comprehensive Income, Fair Value Hedge, and securities designated as "Fair Value Option" should be fair valued in accordance with IFRS.
Amortization - see Glossary
Where these Instructions provide optional methods of computing amortization, the practices followed by the institution should be consistent.
Securities Issued or Guaranteed by Canada/Canadian Province/Canadian Municipal or School Coporation, less allowance for expected credit losses where applicable
Treasury Bills and other short term paper
Other Securities, less allowance for expected credit losses where applicable
Retained interests are assets that arise on the date related assets (receivables) are sold to a special purpose entity and securitized. These assets are retained by the selling institution and they are related to the assets sold to the SPE. Retained interests also include any purchased beneficial interests from third parties. They include interest-only strips, subordinated notes, residual interests, cash collateral, loans and other receivables. They are to be accounted for, under IFRS.
Debt and equity securities of clubs and like local not for profit organizations purchased for other than investment purposes, are to be included under Asset 6.
Debt and equity securities that normally would be included in Other Securities but have been guaranteed by Canada, provinces, or municipal or school corporations should be reported as Asset 2(a).
Fixed-term equity securities held at amortized cost are to be adjusted for the amortization of related premium or discount.
The cost at which holdings of individual securities are carried is to be adjusted to reflect anticipated permanent losses in the underlying values.
Issues of securities where there is a put option or an offer to purchase present, at a price higher than the carrying value of the security, should be recorded at cost. Increases in the carrying value and the accrual of the gain into income are to be permitted only in those circumstances where there is virtual certainty that the gain arising from the put option or the offer to purchase will be realized. Virtual certainty must be demonstrated to the satisfaction of the Office of the Superintendent of Financial Institutions. Normally the prospective purchaser of the securities would be either the Government of Canada or an organization controlled by the Government of Canada.
Non-Mortgage Loans, less allowance for expected credit losses
Call and Other Short Loans to Investment Dealers and Brokers, Secured
If a loan of this type becomes under-secured, transfer the items to Asset 3(a)(ii).
To Regulated Financial Institutions
To Canadian Federal Government, Provinces, Municipal or School Corporations
Loans to separately constituted boards or commissions that have borrowing authority and that carry on business enterprises are to be included under Asset 3(a)(vii).
To Foreign Governments
Loans to separately constituted boards or commissions that have borrowing authority and that carry on business enterprises are to be included under Asset 3(a)(viii).
To Individuals for Non-Business Purposes
Of which: secured by residential property
Secured by residential real property
Loans secured by residential real property include loans secured wholly or partially by collateral mortgages on residential real property, as well as any rights or interests in these. Examples of loans secured by residential real property include home equity lines of credit (HELOCs).
Real property (or immovable property, in Quebec) means land, including mines and minerals, and buildings, structures, improvements and other fixtures on, above or below the surface of the land, and includes an interest therein.
Secured by residential real property should be consistent with Section I- Memo Items 20 (a)(i).
Of which: secured by other than residential property
Secured by non-residential real property
Loans secured by non-residential real property include loans secured wholly or partially by collateral mortgages or charges on land and/or buildings and other structures, as well as any rights or interests in these. Examples of loans secured by non-residential real property include loans secured by corporate real estate.
Secured by non-residential real property should be consistent with Section I- Memo Items 20 (a)(ii).
Secured by other than real property
Secured loans that are not secured by residential real property or non-residential real property as specified above.
Secured by other than real property should be consistent with Section I- Memo Items 20 (a)(iii).
Reverse Repurchase Agreements
To Individuals and Others for Business Purposes
Exclude corporate promissory notes and other bills of exchange or instruments, commonly referred to as commercial paper, purchased for investment, and report these items under Asset 2(b)(i).
Where, on a reporting date, the balances of an operating or demand loan account (including an overdraft) and a deposit account of the same individual, partnership or corporate entity may be partially or wholly offset by legal set-off and by a written customer agreement and the off-setting balances are in the same currency and bear the same or no rate of interest, the account balances may be reported net. However, term loans and fixed-term deposits may not be offset for regulatory reporting purposes.
Loan and deposit accounts that may be combined for such purposes as computing customer interest, service charges, etc. may not be reported net.
Net unamortized amounts of fees and costs associated with lending activities are to be included in the balances of the respective loan categories. When net unamortized fees and costs are immaterial, these amounts may be included in Liability 6 - Other Liabilities.
Secured by residential real property should be consistent with Section I- Memo Items 20 (b)(i).
Secured by non-residential real property should be consistent with Section I- Memo Items 20 (b)(ii).
Secured by other than real property should be consistent with Section I- Memo Items 20 (b)(iii).
Mortgages, Less Allowance for Expected Credit Losses
Advances made to finance development and construction that are not secured by a mortgage (i.e., bridge financing) are to be included in Asset 3(a)(vi) or 3(a)(viii).
Mortgages acquired at a premium or discount are to be reported net of the premium or discount. The net reported amount of such mortgages will be increased or decreased as the premiums or discounts are taken into income over the term of the mortgages.
A mortgage secured by buildings defined as residential in appendix 2 is to be included under Asset 3(b)(i).
Consumer or business loans secured by residential or non-residential property are to be included in Asset 3(a)(vi) or 3(a)(viii) respectively.
Reverse mortgages are to be reported in Asset 3 (b) (i) (D).
Tax prepayments are to be included under either Liability 1(d) or 1(e). Cheques issued for mortgages advances are to be included under Asset 1(a) until charged to the mortgage account.
These instructions apply to all mortgage loans, not only to first mortgages.
Net unamortized amounts of fees and costs associated with lending activities are to be included in the balances of the respective loan categories. When net unamortized fees and costs are immaterial, these amounts may be included in Liability 9 - Other Liabilities.
Of which: NHA MBS Pooled and Unsold
Dividends on term-preferred shares should be accounted for on the accrual basis, unless there are questions of collectability involved. Where collection is not in doubt, dividend income related to this type of preferred share should be accrued prior to the declaration of the dividends by the issuer.
Dividends on common shares and on preferred shares (other than term-preferred shares) should not be accrued until they are clearly payable by the issuer.
Interest on income debentures should be accounted for on the accrual basis, unless there are questions of collectability involved.
Prepaid and Deferred Charges
Goodwill is carried at the amount initially recognized less any write-down for impairment.
with definite lives
Less deductions for amortization charges.
with indefinite lives
Carried at amount initially recognized less any write-down for impairment.
Deferred Tax Assets
Derivative Related Amounts
Due from Head Office and related Canadian regulated Financial Institutions (to be completed by Foreign Bank Branches only)
Report on a gross basis:
Amounts due from foreign affiliates of the bank should be treated as third party assets and reported separately in the appropriate balance sheet line items.
The sum of the amounts reported on asset memo item lines 3(a)(i), (ii) and (iii) must equal the total amount reported in asset 6(g).
Please refer to the glossary section in this manual for the definition of "Regulated Financial Institution".
Interests in associates and joint ventures
Include investments carried using the equity method.
Unrecognized securitizations should be interpreted as securitized assets that are not reported on the balance sheet.
Institution's own assets (bank originated or purchased)
Report the outstanding balances of SPE assets.
Credit card loans
Residential mortgages, insured
Of which: NHA MBS pooled and sold
Residential mortgages, uninsured
Report the nominal/notional balances for all securitization vehicles sponsored/administered by the institution.
Third Party Assets - Institution sponsored/administered
Report the outstanding balances of debt issued for all securitization vehicles sponsored/administered by the institution. The line references are the same as in section (i).
Recognized securitizations should be interpreted as securitized assets that are reported on the balance sheet and included in their underlying asset categories.
Report the outstanding balances of SPE assets that are reported on the balance sheet under IFRS. The line references are the same as in section 1(a)(i).
Report the outstanding balances of debt issued for all securitization vehicles sponsored/administered by the institution. The line references are the same as in section 1(a)(i).
Securitized residential mortgages included in securities
Other Securitized assets included in securities
Due from Head Office and related Canadian regulated Financial Institutions
Related Canadian regulated deposit-taking institutions
Related Canadian regulated financial institutions
Please refer to the glossary section in this manual for the definition of Deposit-Taking Institutions and Financial Institutions.
Claims on residents of the Home Country included in Assets
Report the net carrying value under IFRS. For example, this could be the dollar value of loans less write- offs or provisions.
Report dollar value (carrying value) of all Power of Sale loans related to real estate on which notice has been given or further legal action undertaken.
Institution holdings of securities issued directly by the Government of Canada. Amounts to be reported are the par values of the securities held by institutions and all of their consolidated subsidiaries as included in Asset item 2(a) of the monthly balance sheet.
Trust and Loan companies are not required to submit this line item.
Assets booked in Canada are those transactions with Canadian or foreign customers that are recorded in either Canadian branches, Canadian subsidiaries or Canadian head office accounts. This reflects the bank's operations in Canada. It excludes those transactions of foreign branches or subsidiaries, whether Canadian or foreign customers, that are recorded in their foreign branches or foreign subsidiaries accounts. As an example, loans by Canadian branches or Canadian head offices to resident or non-resident customers are included in booked-in-Canada. Loans by the foreign branch, subsidiary or agency outside Canada, for example, are excluded as they are recorded in the accounts of the branch or agency.
Report the month-end outstanding balance of loans to individuals for non-business purposes for the following items as reported in Section 1 3(vi).
Personal loan plans
Credit card (interest and non-interest bearing)
Made under personal lines of credit
Other personal loans
Covered bonds are debt instruments backed by the assets of the financial institution. Covered bonds are secured by a priority claim on collateral of high quality, on-balance sheet assets. The assets are typically, but not limited to, a pool of prime residential mortgages or public sector debt that remains on the issuer's balance sheet but acts as collateral to "cover" the bonds.
month-end outstanding balances of assets pledged for covered bonds.
Reported assets (AUC, AUA and AUM) are beneficially owned by clients and therefore are not reported on the balance sheet of the financial institution. Amounts should be reported in Canadian dollars at market value.
The value of assets for which the FI provides investment management services (decisions when to sell, buy, or leverage the assets)
Of which: Deposits in transit
Of which: Items in transit (other than deposits)
Report the gross debit balance (before netting) of all accounts representing all items in transit other than deposits (e.g. outstanding inter-company and inter-branch transactions).
This section provides additional detail on personal lines of credit secured by borrowers' homes, or Home Equity Lines of Credit (HELOC's). These loans are typically comprised of a revolving facility or a combination of revolving and non-revolving (amortizing) facilities tied to a common authorized limit which are secured by a residential property.
Made under Non-Mortgage Loans to individuals for non-business purposes secured by residential property:
Made under Mortgages, Residential:
Report the fair value of defined benefit plan assets gross of the present value of defined benefit plan obligations.
Reporting of part 16 is only required of internationally active banks and foreign bank branches, where internationally active is defined as banks with positions in any currency vis-à-vis non-residents and/or positions in foreign currency vis-à-vis residents. These lines are intended to compliment the Geographical Distribution of Assets and Liabilities return. The reported values are expected be consistent with that return and to be completed by the same institutions.
A1b, A2, and A3 refer to items reported in the M4: Asset 1 (b) – Deposits with regulated financial institutions, Asset 2 – Securities, Asset 3 – Loans.
Non-resident banks are defined as institutions that are regarded as banks in the countries in which they are incorporated and supervised.
By number of units:
By readvanceable status:
By property type:
Of which: secured by residential real property
Loans secured by residential real property include loans secured wholly or partially by collateral mortgages on residential real property, as well as any rights or interests in these.Footnote 1 Examples of loans secured by residential real property include home equity lines of credit (HELOCs).
Of which: secured by non-residential real property
Of which: secured by other than real property
Secured loans that are not covered in lines 17(a)(i) and 17(a)(ii).
Of which: not secured
Loan that are not secured.
Of which: secured by residential real property
Of which: secured by non-residential real property
Secured loans that are not covered in lines 17(b)(i) and 17(b)(ii).
Include in the appropriate deposit category, liabilities of subsidiaries that are similar in nature and characteristics to, and that, if issued by the institution, would rank equally with deposit liabilities of the institution.
Liabilities of subsidiaries other than those reported under Liability 1 or 2 and other than those that by their nature should be reported under Liability 6(a) or 6(b) are to be reported under Liability 6(c) to 6(k).
Deposits from an associated corporation that is a foreign deposit-taking institution are to be reported under Liability 1(c) or 2(c), as appropriate, and deposits from any other associated corporation are to be reported under Liability 1(e) or 2(e), as appropriate.
Except where offset is provided for in these Instructions, overdrafts in Liability 1 are to be included in the appropriate asset category.
Debit items should not be used to reduce reported deposit liabilities unless the charge has been shown in the customer's account as of the same date.
Federal and Provincial
Include deposits of:
Deposits of government boards, corporations and commissions that are separately constituted and carry on business enterprises are to be reported under Deposits - Others, as appropriate.
Municipal or school corporations
Include demand and notice deposits of:
Settlements due to deposit-taking institutions are to be reported under Asset 6(a) or Liability 3.
Include fixed-term deposits of:
(a) Of which are advances from the Standing Liquidity Facility (SLF)
Refer to Asset 4.
Liabilities of Subsidiaries, Other Than Deposits
Call and Other Short Loans Payable
Accrue interest to date on deposit liabilities on a monthly basis or accrue to the most recent quarter-end of the financial year, provided that the institution follows a consistent policy in this regard. The appropriate rate to be used when accruing interest on deposit instruments should be the effective rate if outstanding to maturity.
Mortgages and Loans Payable
Refer to Section II – Memo Items 3.
Obligations Related to Borrowed Securities
Obligations Related to Assets Sold Under Repurchase Agreements
Of which obligations are to the Bank of Canada or other organizations of the federal government.
Of which are repos with Federal and Provincial public pension plans (CPP and QPP):
Only include Canada Pension Plan (CPP) managed by Canada Pension Plan Investment Board and Quebec Pension Plan (QPP) managed by Caisse de dépôt et placement du Québec (CDPQ). Do not include pension plans of public sector employees.
Due to Head Office and related Canadian regulated Financial Institutions (to be completed by Foreign Bank Branches only)
Amounts due to foreign affiliates of the bank should be treated as third party liabilities and reported separately in the appropriate balance sheet line items.
The sum of the amounts reported on liability memo item lines 2(a)(i), (ii) and (iii) must equal the total amount reported in liability 6(j).
Report all amounts at par.
Unamortized discounts, if any, are to be reported under Asset 6.
Unamortized premiums, if any, are to be reported under Liability 6.
Note: Do not report foreign currency split for retained earnings. The entire balance of the amount is deemed to be Canadian currency.
Accumulated Other Comprehensive Income (Loss)
Due to Head Office and related Canadian regulated Financial Institutions
Related Canadian regulated deposit-taking institutions
Related Canadian regulated financial institutions
Mortgages and Loans Payable
Securitization Notes Payable (Institutions Own Assets)
Liabilities related to securitized assets (bank originated and assets purchased) reported on financial institution balance sheet under Liabilities 6(d).
Mortgages - report the liabilities that are related to securitized mortgage assets.
Securitization Notes Payable (third party assets)
Liabilities related to securitized assets (third party originated) reported on financial institution balance sheet under Liabilities 6(d).
month-end outstanding balances of liabilities recorded as deposits or other liabilities.
Recorded as deposit liabilities
Recorded in liabilities other than deposits
Report the amount of brokered deposits (or deposits obtained through agents) that is outstanding as of the end of the reporting period. Report all deposits obtained through agents/brokers. This amount must equal the deposit amount reported on datapoint 6984 of the Deposit Liabilities (K4) Report.
Of which: Deposits in transit
Report the gross credit balance (before netting) of all accounts representing items in transit which are specifically related to deposits (e.g. cheques, money orders, etc.).
Report the gross credit balance (before netting) of all accounts representing all items in transit other than deposits (e.g. outstanding inter-company and inter-branch transactions).
When combined together, these four items (items in transit under Memo Items – Assets and items in transit under Memo Items – Liabilities) correspond to the net balance of all items in transit included in Cash and Cash Equivalent on the asset side of the balance sheet (when such net balance is a debit) or to the net balance of all items in transit included in Cheques and Other Items in Transit on the liabilities side of the balance sheet (when such balance is a credit), in accordance with offsetting criteria set out in IFRS.
Report the present value of defined benefit plan obligations gross of the fair value of defined benefit plan assets.
Reporting of part 8 is only required of internationally active banks and foreign bank branches, where internationally active is defined as banks with positions in any currency vis-à-vis non-residents and/or positions in foreign currency vis-à-vis residents. These lines are intended to compliment the Geographical Distribution of Assets and Liabilities return. The reported values are expected be consistent with that return and to be completed by the same institutions.
Report liabilities incurred as a result of extraordinarily Bank of Canada operations. Examples include operations from the 2007-2009 period such as: the term loan facility, the term PRA facility (not term PRA's for balance sheet management), and the term PRA for private sector instruments. This line should be reported as zero by all institutions for the foreseeable future.
The purpose of this return is to provide supplementary information on the impacts of IFRS. It requires certain assets and liabilities, as reported in Section I and Section II of the M4, to be presented in accordance with classifications.
(Report quarterly fiscal only. Monthly reporting between fiscal quarter-ends, is not required. Deposit taking institutions that are subsidiaries of federally regulated Banks, Trust or Loan companies, are not required to complete Section III.)
Within each asset and liability category listed in Section III, institutions are required to separate out those items held at amortized cost from those items measured at fair value. The total Balance Sheet amount of assets and liabilities measured at amortized cost are to be reported in the corresponding cell located the column 'Held at Amortized Cost'. Similarly, for assets and liabilities measured at fair value, filers are to report the total Balance Sheet amount within the appropriate fair value classification columns of 'Fair Value Through Profit or Loss', 'Fair Value Through Other Comprehensive Income', 'Fair Value Hedges', 'Cash Flow Hedges', and/or 'Fair Value Option'. The line totals appearing in the column 'Total' for each category of asset and liability listed in Section III, except for 'Other Assets' and 'Other Liabilities', must equal the totals for these same asset and liability categories reported in Section I and Section II of the M4.
The "Total" for each category of assets and liabilities should be reported by valuation methodology of quoted price, pricing models with observable parameters, pricing models with significant unobservable parameters, other method and in the appropriate fair value classification columns.
For a Fair Value Hedge, report the Balance Sheet value of both the hedged item and the hedging derivative in this column according to the appropriate asset and/or liability category presented. The entire position accounted for as a Fair Value Hedge is to be reported in this column.
The fair value of derivatives used to hedge cash flows are to be reported in this schedule in line A6 'Other Assets' and/or L4 'Other Liabilities'.
Report the Balance Sheet value of financial instruments which are managed together on a fair value basis and which are designated as Held for Trading ("Fair Value Option") in accordance with IFRS and with OSFI's Accounting Guideline D-10 "Accounting for Financial Instruments Designated as Fair Value Option".
Report the before tax year-to-date realized and unrealized gain/(loss) recorded in earnings for each category of assets and liabilities classified under the 'Fair Value Option' column.
Report only those assets and liabilities affected by the Financial Instruments standard and classified as Other Assets or Other Liabilities. This should only include derivative related amounts.
The re-advanceable amount of a loan is a portion of the drawn amount (not an authorized undrawn amount) and defined below:
Principal that when repaid does not permanently reduce the authorized limit (applicable to Combined Loan Plan or standalone products) and can be re-drawn by the client without further adjudication.
For reporting purposes re-advanceable is to be calculated using bullets 1- 4, examples are provided below. It is accepted that in some situations the calculations can deviate from the spirit of the definition articulated above.
A simple LOC or HELOC is 100% re-advanceable (see example 1).
A simple mortgage is 100% non re-advanceable (see example 2).
The re-advanceable / non re-advanceable portion of a combined mortgage-HELOC loan plan is determined in two steps (see examples 3-9).
HELOC allowable limit would normally be 65% LTV or a lower limit set by the FI's policy.
Return to footnote *
The remaining O/S balance will be re-advanceable regardless of P+I or I-only structure.
Return to footnote **
A mortgage with the option to increase the outstanding balance to the beginning of term amount at the customer's discretion without an approval or appraisal is 100% re-advanceable (see example 12).
The reference table below classifies common property types residential or non-residential. The general principle is that residential properties are non-institutional facilities for the long term lodging of individuals.
(1) The intention with the term 'retirement home' is to refer to institutional establishments. Mortgages on institutional retirement homes are to be classified as non-residential, whereas mortgages on individual condo units within buildings marketed to the elderly are to be classified as residential. The agencies acknowledge that this distinction may not always be simple to identify. As a result the agencies will accept retirement home being classified as either residential or non-residential for the time being; however, filing institutions are encouraged to move towards the intended classification.
(2) Construction financing can include a wide range of products that have historically been classified inconsistently and recorded under three categories (business loans, residential mortgages, and non-residential mortgages). The agencies do not require this reporting practice to be changed. As a result it will be considered acceptable to record construction financing under any of the three categories; provided that the categorization is re-examined once the construction activity is complete.
(3) The preferred reporting practice for mortgages on multi-unit residential properties is to include them under residential. However, it is acknowledged that some institution's legacy systems have included these mortgages under the non-residential category. Both approaches will be accepted for the time being; however, filing institutions are encouraged to move towards the intended classification.
(4) Mortgages on mixed office residential condo buildings are to be classified as non-residential. This is because individual condo units have separate ownership from the office portion of the building and therefore a mortgage on the office portion of the building should be classifies as non-residential.
The reference table below classifies various counterparty entities as individuals or corporations, where corporate is defined to include 'not for profit' organizations and quasi-corporations. The general principle is that counterparties are classified using a credit counterparty perspective. In the case of a default of the ultimate guarantor is an individual the loan should be classified as have an individual as the counterparty; however; if the ultimate guarantor is a non-individual (e.g. corporation, trust, co-operative) the loan should be classified as having a "corporation as the counterparty.
Using the credit counterparty principle, partnerships where the ultimate guarantor is an individual should be classified under the individual category; however, partnerships with a corporation as the ultimate guarantor should be classified as corporations.
Return to footnote ***
Conventional mortgages on residential property are reported at 3(b)(1)
Return to footnote 1