FAQS

Who runs the company/decides what the MIC will invest in?

1. Essentially the Manager of the Mortgage Investment Corporation, under the direction and control of the Board of Directors (B of D), runs the operation of the MIC on a day to day basis.

2. The Manager of Trillium-Accessible Investment Fund (MIC) Inc. is Trillium-Accessible Mortgage Corporation, a mortgage broker operating in Vancouver, British Columbia. Trillium-Accessible Mortgage Corp.

3. The Manager, in conjunction with the MIC's Loan Committee, sets policy for loan administration and underwriting, with the Loan Committee approving specific mortgages above a specified amount or percentage of the mortgage investment fund.

In British Columbia, where Trillium-Accessible Investment Fund (MIC) is based there are a number of regulatory authorities that oversea various aspects of the operations or management.

1. The MIC is responsible to The Canada Revenue Agency CRA to operate the company within the framework of the regulations (as outlined below) and must complete audited annual financial statements.

2. Both MIC and the Manager are regulated mortgage brokers in the Province of British Columbia, The Financial Institutions Commission (FICOM) the MIC as a lender and the Manager as a full service mortgage broker and administrator. The designated individual in both the MIC and the Manager is Donald Bruce Edward Wilson who is a licensed sub-broker employed by the Manager.

3. The MIC securities and investments are sold in British Columbia under the terms of an Offering Memorandum, and shares purchased under exemptions under an Offering Memorandum are reported to the BC Securities Commission BCSC under a National Policy Statement. Any investment in the securities of the company is sold by way of an exemption of both registration and prospectus in British Columbia, Alberta, or the Yukon Territories.

4. Purchasers outside of BC. AB and YK must seek the advise of an advisor in their own jurisdiction to determine if the company and the investment meet the exemptions for investment in their own jurisdictions.

5. For example, in Hong Kong, the company has prepared appropriate documents to permit the sale of its investment securities to qualified individuals by agents of the company.

How does the company decide what to make the minimum amount?

1. The company sets no minimum investment amount although there are probably some practicable minimums, based on various cost incurred by an investor when they make an investment in the shares of the company.

2. We don't set a minimum investment amount because we feel that it is important for people at any age and under any circumstances to be able to take advantage of this type of investment.

3. We wouldn't recommend that an investor invest less than $1,000 in shares through a self-directed RSP unless they had other investments to dilute the effect of the expenses of maintaining a self-directed RSP account at a trust company or other holder.

Income Tax Act, Section 130.1: Salient Rules

1. A Mortgage Investment Corporation must have at least 20 shareholders.

2. A MIC is generally widely held. No shareholder may hold more than 25% of the MIC's total capital.

3. At least 50% of a MIC’s assets must be comprised of residential mortgages, and/or cash and insured deposits at Canada Deposit Insurance Corporation member financial institutions.

4. A MIC may invest up to 25% of its assets directly in real estate, but may not develop land or engage in construction. This ceiling on real estate holdings does not include real estate acquired as a result of mortgage default.

5. A MIC is a flow-through investment vehicle, and distributes 100% of its net income to its shareholders.

6. All MIC investments must be in Canada, but a MIC may accept investment capital from outside of Canada.

7. A MIC is a tax-exempt corporation.

8. Dividends received with respect to directly held shares, not held within RRSPs or RRIFs, are taxed as interest income in the shareholder’s hands. Dividends may be received in the form of cash, or additional shares.

9. MIC shares are qualified RRSP and RRIF investments.

10. A MIC may distribute income dividends, typically interest from mortgages and revenue from property holdings, as well as capital gain dividends, typically from the disposition of its real estate investments.

11. A MIC’s annual financial statements must be audited.

12. A MIC may employ financial leverage by using debt to partially fund assets.