Land Title Practice Manual

111 Strata Corporation May Borrow

In This Volume

  • 111 (1) The strata corporation may, after approval by a resolution passed by a 3/4 vote at an annual or special general meeting, borrow money required by it to exercise its powers and perform its duties and, subject to section 81, may secure the repayment of money borrowed by it, and the payment of interest on that money.
  • (2) Without limiting subsection (1), the strata corporation may secure the repayment of money borrowed by it, and the payment of interest, by one or more of the following:
  • (a) a mortgage of property, other than common property;
  • (b) an assignment of unpaid strata fees or special levies;
  • (c) a negotiable instrument.

1998-43-111, effective July 1, 2000 (B.C. Reg. 43/2000).

CROSS REFERENCES AND OTHER SOURCES OF INFORMATION

Borrowing Powers Limited

Section 81 of the Act provides that a strata corporation must not mortgage common property, and s. 253(1) of the Act provides that a strata corporation cannot dispose of common property by way of a transfer or lease without first subdividing it. Thus, a strata corporation’s borrowing powers under s. 111 are restricted.

Mortgage of Common Assets

See s. 79 of the Act, which provides that a strata corporation may mortgage a common asset. To effect the mortgage, the strata corporation files a Form E, Certificate of Strata Corporation, in the land title office.

Submissions

The Form E must be attached to the Form B Mortgage. To attach the Form E to the Form B, use the Strata Property Act Filing form, select Form E, Certificate of Strata Corporation, and attach an image of the original Form E, or use the Declaration form, describe the Form E and attach an image of the original form E.

Where Form E is required in support of a mortgage of land that is a common asset, the Declaration or Strata Property Act Filing form with the attached image of the Form E is submitted immediately following the electronic document.