Canada Trustco Mortgage Company v. The Queen, 2004 TCC 792 -- summary under Supply

By dwpv, 28 November, 2015

The appellant ("CTM") sold mortgage loans made by it to securitization trusts and serviced the sold mortgages including collecting and accounting for payments, and dealing with renewals and defaults. It did not explicitly charge the trusts for these services, but recorded fees from such services in its financial statements. In finding that there was a single supply of a financial service by CTM (failing which, the rule in s. 138 or 139 would have applied), Bowman ACJ stated (at para. 20):

Here we have a sale of mortgages of which the servicing is not only an integral part but is requisite as a matter of commercial exigency. … For someone other than CTM to service the mortgages would, as a practical matter, be commercially infeasible and would be inimical to the raison d'être of the transaction.

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sale of mortgages on fully-serviced basis
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