To encourage secondary (private) investment in the Canadian residential mortgage market, the Federal government passed legislation in 1973 establishing special companies called Mortgage Investment Corporations, or MICs.
Premiere Canadian Mortgage Corp. is a Mortgage Investment Corporation as defined in Subsection 130.1 (6) of the Canadian Income Tax Act (“the act”). As such, shares of the company are a qualified investment for a trust governed by a registered retirement savings plan or registered retirement income fund pursuant to section 146 (1) and regulation 4900 (1)(C) of the Act.