Securities Law & Instruments


Mutual Reliance Review System -- Mortgage mutual fund approval to change in the fund's method of acquisition of mortgages from the lender's rate to the modified lender's rate.

Rules & Policies Cited

National Policy Statement No. 29.

March 18, 2004

National Bank Securities Inc.

Attention : Frédéric Bombardier

Re :
National Bank Securities Inc.
National Bank Mortgage Fund (the "Fund")
MRRS application for approval of the change in the method of acquisition of mortgages for the Fund pursuant to Part III of National Policy 29 ("National Policy 29")

By letter dated February 25, 2004, (the "Application"), you requested, on behalf of the Fund, the approval of the regulator or regulatory authority in each of the provinces and territories of Canada (the "Decision Makers"), pursuant to part III of National Policy 29, to permit a change in the Fund's method of acquisition of mortgages from National Bank of Canada by using in future the modified lender's rate rather than the lender's rate (the "Change") as such terms are defined under part III of National Policy 29.

This letter confirms that based on the information and representations contained in the Application and for the purposes described in the Application, the Decision Makers hereby approve the Change.

"Daniel Laurion"