There are two types of loan and trust companies: provincially incorporated companies and extra-provincial incorporated companies. A provincial loan or trust company comes into existence by application to the Superintendent by one or more persons and, upon approval of the Lieutenant-Governor in Council, letters patent may be issued.
An extra-provincial loan or trust company is incorporated under federal legislation or the legislation of another province. For further information on incorporating or licensing under the Loan and Trust Companies Act, contact the Office of the Superintendent of Loan and Trust Companies.
The following capital base is required prior to incorporating or licensing such companies:
- loan company - $3,000,000
- trust company - $5,000,000
- restricted trust company - $100,000
No person other than a licensed loan company or licensed trust company shall conduct, undertake or transact the business of a loan company or trust company in New Brunswick. The required licence is obtained upon the submission of an application to the Superintendent. This application should be filed with the Superintendent along with designated information under the Act and any additional information requested by the Superintendent.
No licensed loan or trust company is permitted to accept deposits in New Brunswick unless the company is a member institution within the meaning of the Canada Deposit Insurance Corporation Act. The regulations under the Loan and Trust Companies Act set out various requirements, fees, and responsibilities of such companies incorporated or licensed under this Act.