And Request for Disbursement

Name of Law Firm

Address

LAWYER’S REPORT ON MORTGAGE

AND REQUEST FOR DISBURSEMENT

ATTENTION: MANAGER – NATIONAL BANK OF CANADA Date:

(Address of branch or Mortgage Processing Centre) (Address of branch from where the Loan was transferred if applicable)

Dear Mesdames/Sirs,

Re: / Mortgage/Charge (the“Mortgage”) from (individually
or collectively the “Borrower”) to National Bank of Canada (the “Bank”) in the amount of $
over the property (the“Property”) located at:
and legally described as follows: .

In accordance with your instructions and the information provided, we have acted as your legal counsel in the above transaction. To this end, we examined the Borrower’s title to the Property and complied with all the conditions set out in your Instructions to the Lawyer and the Mortgage Commitment. We prepared and arranged for the Borrower to execute the Mortgage, using your standard forms. We ensure that you will have good and valid security in the Property in accordance with the rank and amount specified in the Mortgage Commitment.

We ensure the following:

1) The Borrower has or will have good and marketable title in fee simple or
(if otherwise) to the Property free and clear of all liens, charges, encumbrances or adverse claims, except the ones listed below in paragraphs 2 and 3.

2) The following liens, charges, encumbrances, easements, encroachments, adverse claims or other restrictions (in any such case an “Encumbrance”) affecting the marketability of the Property or the rights of the Bank under the Mortgage or its priority are to be discharged or released:

The following Encumbrances are to be registered:

The following discrepancies in the legal description of the Property and title defects are to be corrected:

3) The Bank will have a good and valid ranking security on the Property for the full amount indicated above, as long as the Encumbrances are discharged or released or appropriate agreements are registered as mentioned in paragraph 2.

The following Encumbrances rank prior to your Mortgage:

4) The provisions of applicable matrimonial property legislation and subdivision control legislation have been met.

5) All taxes and levies on the Property will be paid up to the date of disbursement of funds or, if taxes are paid under a tax installment payment plan program, all such taxes are current.

6) We arranged for a true copy of the Mortgage, including any applicable standard terms, to be given to each Borrower and for the Borrower to acknowledge receipt.

7) We have arranged for each Borrower to be given a copy of the Statement of Disclosure on the day the credit agreements are signed.

8) There are no construction liens registered against the Property.

18433-002 (2006-09-06) (Canada except Quebec) Page 3 of 3

PLAN OF SURVEY OR SURVEYOR’S CERTIFICATE OR REAL PROPERTY REPORT (the “Certificate”)
– / We have examined the Certificate prepared by ,
land surveyor, dated / with respect to the Property.
– / The Certificate disclosed no title defects, encroachments or other discrepancies with respect to the Property, which, individually or taken together, could have a material adverse effect on the marketable title to the Property.
INSURANCE
– / We confirm that 1) the amount of fire insurance covering the Property is equal to or greater than the full insurable value; 2) the policy contains a standard mortgage clause in the form approved by the Insurance Bureau of Canada and 3) the policy states that the loss is payable to the Bank as mortgagee.
– / The Property is insured as follows:
– / Broker (name and address):
– / Company (name):
– / Policy No.:
– / Amount of fire insurance: $
– / Effective date of Policy:
In the case of a condominium, the insurance certificate for the unit and common areas indicates the following:
– / Company (name):
– / Policy No.:
– / Amount of fire insurance: $
– / Effective date of Policy:
We have notified the insurance trustee designated for that purpose and, if applicable, the condominium corporation that the Bank is the mortgagee of such unit.
PURCHASE PRICE OF IMMOVABLE
If the Loan is for purposes of purchasing the Property, the price of the Property is the same as the price indicated in the Mortgage Commitment or, if different, the amount is $ .
OPINIONS AND UNDERTAKINGS
We undertake to have the Mortgage and the credit agreements signed no later than the day of the disbursement as interest will begin to accrue as of that date. We also undertake to give a copy of the Mortgage, credit agreements and the Statement of Disclosure to each Borrower on the day the credit agreements are signed.
Following the registration of the Mortgage and the disbursement, you will be able to consider that we are of the opinion that:
• The Borrower has absolute ownership of the Property by valid title;
• Your Mortgage is valid and binding and the amount and rank are as indicated above;
• No registration which could affect your rights was made against the Property between the date hereof and the time your Mortgage was registered; and
• The actions to be taken with respect to the above-mentioned Encumbrances and agreements, if applicable, have been carried out.
We also undertake to make the disbursements only when all the undertakings listed herein have been fulfilled. In the event that we are unable to deliver these amounts within 10 days of the date hereof, we undertake to notify you and to return such an amount on request.
REQUEST FOR DISBURSEMENT
Consequently, you are requested to disburse the mortgage loan within 3 business days of the date hereof by depositing the amount:
in full $ / or in part $ / to my in-trust account, held at
(Name of financial institution)
transit No. / account No. / no later than / (time)
on / (date); OR
by issuing a bank draft which we will pick up at the branch located at:
, on / (date).
OR
Consequently, please activate the line of credit in the amount of $ / .

As soon as possible after the registration of the Mortgage, and in any event no later than 10 days after the registration of the Mortgage, we will fax the documents below to the transit initiating the request:

Letter confirming the registration of the Mortgage in accordance with your instructions, including the details of the registration (i.e., the date, registration number and identification of the registration office)

For Newfoundland/Labrador only: duly signed Statement of Disclosure (under section 450 of the Bank Act)

Copy of the acknowledgement of receipt of standard mortgage clauses (does not apply to the provinces of Alberta, Saskatchewan, Nova Scotia, Prince Edward Island or Newfoundland/Labrador)

Duly signed credit agreement(s)

Signed letter of guarantee, if required

The duplicate of the insurance policy or the “MORTAGEE’S COPY”, only if (i) the Mortgage is for $500,000or more and where the building consists of a single-family, duplex or multi-unit property of not more than 6 units, or (ii) the Mortgage is for $1,000,000or more on a multi-unit property with 7 units or more

Title insurance policy, if applicable (to be obtained prior to any disbursement)