Thank you, Mr. Chairman. I have some opening comments about this bill. It contains an amendment to the Real Estate Agents' Licensing Act which will provide that a security other than a bond may be provided by an agent to the Superintendent of Real Estate when the agent applies for, or wishes to obtain, an agent's licence. This alternative security will be in the amount of $25,000, the same as the bond. It also adds powers to make regulations respecting those other securities.

Mr. Chairman, applicants for a real estate agent's licence, in addition to other requirements, must furnish a bond in the amount of $25,000. The bonds are issued by insurance companies for an annual premium. Although consultations over the amount of the bond and the wording of the bond form took place with a representative of the insurance industry prior to the legislation coming into force, real estate companies experienced some difficulty in obtaining the required bond. This was partly due to the newness of the legislation, but also companies that had been in business for less than two years found that insurance companies were not

interested in writing this type of bond. Another factor is the small number of insurance companies licensed in the NWT who are prepared to write this type of bond.

This amendment will permit the superintendent of real estate to accept another form of security which may be more easily accessible to the agent. Regulations will prescribe the form of security which will be acceptable as well as any conditions respecting the forfeiture or surrender of such security and the payout of money as a result of the forfeiture or surrender.

An irrevocable letter of credit from a financial institution is one alternative which the local industry would prefer over the bond. Firstly, they can be obtained locally from a bank, and the criteria used by banks is slightly different from that used by insurance companies. They are also a little cheaper to obtain, and the government can access the funds more quickly than with a bond in the event of a claim. Bonds issued by insurance companies are also subject to a two-year discovery period, which means that no money can be obtained until the two year period has expired, but letters of credit can be drawn on by the government by simply a letter once the government is satisfied there is a legitimate claim. This amendment will not lessen consumer protection available with a bond. Thank you, Mr. Chairman.