CDIC to Pay Deposit Insurance Claims to Security Home Mortgage Corporation Depositors.

OTTAWA--(BUSINESS WIRE)--June 4, 1996--More than 99 percent of deposits at Security Home Mortgage Corporation (Security Home) are insured by Canada Deposit Insurance Corporation (CDIC), according to Jean Pierre Sabourin, CDIC President and Chief Executive Officer. "CDIC will make full payment of insured deposits at this institution within three weeks. No action on the part of depositors is required," stated Mr. Sabourin.

The announcement follows CDIC's termination of Security Home's Policy of Deposit Insurance and subsequent action by the Superintendent of Financial Institutions to take control of the company. An application will be made to the Court of Queen's Bench of Alberta for an order to wind up Security Home.

During its monitoring process, CDIC had determined that Security Home was not following CDIC By-laws respecting the Standards of Sound Business and Financial Practices. This situation, in turn, led to a notice being issued to Security Home advising that its Policy of Deposit Insurance would terminate on June 4, 1996, unless the company made substantial progress to meet the Capital Management Standard, which it was unable to do.

Security Home has its head office in Calgary. It holds deposits totalling approximately $42 million, all in term deposits. The company sold its products mainly through deposit brokers. There are approximately 2,600 depositors.

Under the terms of the Canada Deposit Insurance Corporation Act, eligible Canadian currency deposits, which include term deposits for a period not exceeding five years, are insured to a maximum of $60,000 per depositor, including principal and interest earned to the date of the Winding-up Order. In keeping with its policy decision made in June 1993, the CDIC Board of Directors has decided that no interest will be paid from the date of the winding-up of Security Home to the date of payment of the insured deposit claims.

While no action is necessary on the part of Security Home depositors to receive their insured deposit payments, depositors with specific inquiries may call the CDIC toll-free information line at 1-800-461-CDIC (1-800-461- 2342). Extended hours of operation will be in effect this week from Tuesday to Friday, allowing depositors to contact CDIC between 8:00 a.m. and 8:00 p.m. (Eastern Time).

Created in 1967, CDIC is the Crown corporation responsible for providing deposit insurance against the loss of part or all of the deposits held in 116 member institutions - banks, trust companies and loan companies.

Fact Sheet Security Home Mortgage Corporation

Head Office:

No. 530, 140 - 4th Avenue S.W. Calgary, Alberta

Branches:

The company sold term deposits through its offices in Calgary and Toronto, but it had no full-service branches. The majority of its products were sold through deposit brokers.

History:

Registered as Fidmor Mortgage Investors Corporation on April 15, 1976. The company changed its name to Security Home Mortgage Investment Corporation on July 5, 1985, and to Security Home Mortgage Corporation on November 1, 1994.

Governing Statute:

Trust and Loan Companies Act (Canada)

Primary Regulator:

Office of the Superintendent of Financial Institutions (OSFI)

Number of Depositors:

approximately 2,600 customers as of April 30, 1996

Total Deposit Liabilities:

approximately $42 million as of April 30, 1996

Percentage of Deposit Liabilities Insured:

over 99 per cent of deposits are insured by CDIC

Total of Uninsured Deposits:

approximately $5,000

Canada Deposit Insurance Corporation (CDIC) will make payment of insured deposits to Security Home Mortgage Corporation depositors within three weeks. Inquiries concerning deposit insurance can be made by contacting CDIC at the following toll-free number:

1-800-461-CDIC

(1-800-461-2342)

CDIC is a federal Crown corporation responsible for providing deposit insurance against the loss of part or all Canadian currency deposits held in member institutions - banks, trust companies and loan companies.

For further information, or to arrange an interview with CDIC President and Chief Executive Officer Jean Pierre Sabourin, please contact Margaret Pearcy, Director, Communications and Public Affairs at [phone]

CONTACT: CDIC

Margaret Pearcy, 613/943-1971