Application
This procedure is applicable to authorized Québec trust companies or Québec savings companies (“regulated corporations”) that apply to the AMF for authorization to grant a hypothec or other security on its movable property for purposes not already provided for by law.
Application for authorization
Under section 187 of the TCSCA, no regulated corporation may, without the AMF’s authorization, grant a hypothec or other security on its movable property, except to secure a short-term loan contracted to meet liquidity requirements.
To comply with the requirements of section 187 of the TCSCA, an application for authorization that contains the information and documents indicated in the checklists below must be submitted to the AMF.
The provisions pertaining to applying for authorization to grant a hypothec or other security on movable property are found in section 187 of the Trust Companies and Savings Companies Act 
This link will open in a new window (“TCSCA”), s‑29.02.
Checklists
The following checklists summarize the information and documents to be included in or with the application for authorization to grant a hypothec or other security on movable property (hereinafter, the “security”).
| Information/Documents | Source | Clarification by the AMF |
|---|---|---|
| 1. The context in which the application is being made and the objective of the security | s. 273 TCSCA | n/a |
| 2. The intended purpose(s) for which authorization to grant security is being sought (description and circumstances) | s. 273 TCSCA | n/a |
| 3. The limits provided for each purpose and the overall limit | s. 273 TCSCA | Provide evidence that the parameters used to establish the limits are reasonable. |
| 4. A description of the maximum impact on the regulated corporation’s financial position, including on liquidity and capital | s. 273 TCSCA | n/a |
| 5. The corporate approvals required for each purpose (for exceptions, etc.) | s. 273 TCSCA | n/a |
| 6. Monitoring and control measures such as reports detailing the security and security beneficiaries | s. 273 TCSCA | n/a |
| Information/Documents | Source | Clarification by the AMF |
|---|---|---|
| If applicable, attach the latest version of the security policy or any other document establishing a governance framework for the granting of security. | s. 273 TCSCA | The AMF considers adopting a security policy a sound and prudent management practice. |
Granting of authorization
The AMF will grant its authorization when the following conditions have been met:
- The applicant has provided the required information and documents
- The applicant has demonstrated that:
- The granting of security will not materially affect the regulated corporation’s financial position and the capital adequacy requirements will continue to be met; and
- Mechanisms have been implemented to provide a clear framework for the granting, and ensure adequate monitoring, of the security.
The AMF may, in granting its authorization, require any undertaking it considers necessary to ensure compliance with the TCSCA (s. 187, 2nd par. TCSCA).
The AMF, after rendering its decision, will send the regulated corporation a document evidencing the decision.
Fees and costs payable
Refer to the full list of fees and costs payable to the AMF.
Processing time
Except in specific circumstances, the AMF will process the application within 90 days from the date the application is complete.