A mortgage brokerage receives a cheque for $7,500 from a client as a deposit for an upcoming mortgage application. The regulations require the broker to deposit this cheque into the trust account 'forthwith' or 'as soon as practicable'. If the cheque was received on a Friday afternoon, and the bank is closed until Monday morning, by when should the funds ideally be deposited?

Question: A mortgage brokerage receives a cheque for $7,500 from a client as a deposit for an upcoming mortgage application. The regulations require the broker to deposit this cheque into the trust account 'forthwith' or 'as soon as practicable'. If the cheque was received on a Friday afternoon, and the bank is closed until Monday morning, by when should the funds ideally be deposited?

Answer options: ✅ By Monday morning, as soon as the bank opens on the next business day.

• By the following Friday, within five business days of receipt.
• The broker can hold the cheque in their office until the application is approved.
• Within 24 hours of receipt, even if it requires an after-hours deposit.

Correct answer: By Monday morning, as soon as the bank opens on the next business day.

Explanation: Client funds received by a mortgage brokerage must be deposited into a trust account as soon as practicable, which typically means by the next business day if received outside banking hours, to ensure timely safeguarding of client money as per provincial trust account rules (e.g., O. Reg. 187/08, s. 12).