HOW IS A MIC REGULATED?
• Investing MIC funds in mortgages and not owning, managing or developing any property. • Distributing 100% of the net income to investors in the form of dividends; dividends are tax deductible for MICs. • Maintaining certain debt-to-equity ratios for liquidity protection. • Accepting property as security which is located in Canada and lending in BC & AB only • Investing in both residential & commercial mortgages with at least 50% allocated for residential property. • Investing any temporary surplus of funds at a CDIC insured institution. HOW DOES A MIC REMAIN CONSISTENT WITH INCOME TAX REGULATIONS? FIRST ISLAND’S investment policies are consistent with the Income Tax regulations. We have defined our MIC policies as: Containing only first mortgages registered on the real property. Being RRSP and RRIF eligible through a no-fee self-directed plan; Only financing to a maximum of 75% of the appraised project value; (often times the ratio is much lower.) Not borrowing any funds to leverage
