Headnote

National Policy 11-203 Process For Exemptive Relief Applications in Multiple Jurisdictions -Issuer of mortgage pass-through securities previously granted an exemption from the requirements to file annual and interim financial statements, subject to certain conditions. Issuer granted an exemption from the requirements in Multilateral Instrument 52-109 to file interim and annual certificates, subject to certain conditions, including the requirement to file alternative forms of annual and interim certificates.

Ontario Rules

Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings.

July 18, 2008

In the Matter of the Securities Legislation of Ontario (the Jurisdiction)

and

In the Matter of the Process for Exemptive Relief Applications in Multiple Jurisdictions

and

In the Matter of

Schooner Trust (the Filer)

Decision

Background

The principal regulator in the Jurisdiction has received a further application from the Filer for a decision under the securities legislation of the Jurisdiction of the principal regulator (the Legislation) for an exemption from the provisions of Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (MI 52-109) to file interim and annual certificates (the Exemption Sought).

Under the Process for Exemptive Relief Applications in Multiple Jurisdictions (for a passport application):

(a) the Ontario Securities Commission is the principal regulator for this application, and

(b) the Filer has provided notice that section 4.7(1) of Multilateral Instrument 11-102 Passport System (MI 11-102) is intended to be relied upon in Alberta, British Columbia, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Saskatchewan and Quebec.

Interpretation

Defined terms contained in National Instrument 14-101 Definitions, MI 11-102, the Original Decision (as defined below) and Previous Decision (as defined below) have the same meaning if used in this decision, unless otherwise defined.

Representations

This decision is based on the following facts represented by the Filer:

1. The Filer was created pursuant to a declaration of trust dated July 5, 2000 under the laws of the Province of Ontario. The File was created under the name of Solar Trust. By a declaration of change of name dated November 17, 2003, the name of the Filer was changed to Schooner Trust.

2. The head office of the Filer is located in Toronto, Ontario.

3. The issuer trustee of the Filer is CIBC Mellon Trust Company, whose principal office is located in Toronto, Ontario. The head office of The Toronto-Dominion Bank, the administrative agent of the Filer, is located in Toronto, Ontario.

4. The Filer is a reporting issuer, or the equivalent, in each of the provinces of Canada that provides for a reporting issuer regime.

5. The Filer is a “venture issuer” as defined in National Instrument 51-102 Continuous Disclosure Obligations (NI 51-102).

6. The Filer is not in default of any of the requirements of securities legislation in any jurisdiction of Canada.

7. The Filer does not carry on any activities other than issuing asset-backed securities and purchasing assets in connection thereto.

8. The Filer has no material assets or liabilities other than its rights and obligations arising from issuing asset-backed securities and acquiring assets in connection thereto.

9. Pursuant to an MRRS decision document dated May 20, 2005 and an order dated November 29, 2004 of the New Brunswick Securities Commission (collectively, the Previous Decision), the Filer is exempted, on certain terms and conditions, from the requirements of the securities legislation in the Jurisdictions concerning, inter alia, the preparation, filing and delivery of interim and annual financial statements (the Financial Statements).

10. Pursuant to an MRRS decision document dated May 31, 2005 (the Original Decision), the Filer is exempted, on certain terms and conditions, from the requirements in MI 52-109 to file interim and annual certificates, which relief terminated on June 1, 2008.

11. The representations contained in the Original Decision and Previous Decision remain true and accurate and are incorporated by reference into this decision document as representations of the Filer, with the exception that the Filer has issued (i) $516,700,000 aggregate amount of Commercial Mortgage Pass-Through Certificates, Series 2005-4, designated as Classes A-1, A-2, XP-1, XC-1, B and C pursuant to a short form prospectus dated September 21, 2005, (ii) $34,452,678 aggregate amount of Commercial Mortgage Pass-Through Certificates, Series 2005-4, designated as Classes XP-2, XC-2, D, E, F, G, H, J, K, L and M on a private placement basis in Canada, (iii) $453,140,000 aggregate amount of Commercial Mortgage Pass-Through Certificates, Series 2006-5, designated as Classes A-1, A-2, XP, XC, B and C pursuant to a short form prospectus dated February 21, 2006, (iv) $33,472,070 aggregate amount of Commercial Mortgage Pass-Through Certificates, Series 2006-5, designated as Classes D, E, F, G, H, J, K, L and M on a private placement basis in Canada, (v) $331,100,000 aggregate amount of Commercial Mortgage Pass-Through Certificates, Series 2006-6, designated as Classes A-1, A-2, XP, B and C pursuant to a short form prospectus dated September 18, 2006, (vi) $24,102,281 aggregate amount of Commercial Mortgage Pass-Through Certificates, Series 2006-6, designated as Classes XC, D, E, F, G, H, J, K, L and M on a private placement basis in Canada, (vii) $399,100,000 aggregate amount of Commercial Mortgage Pass-Through Certificates, Series 2007-7, designated as Classes A-1, A-2, XP, B and C pursuant to a short form prospectus dated February 21, 2007, (viii) $28,472,194 aggregate amount of Commercial Mortgage Pass-Through Certificates, Series 2007-7, designated as Classes XC, D, E, F, G, H, J, K, L and M on a private placement basis in Canada, (ix) $480,577,000 aggregate amount of Commercial Mortgage Pass-Through Certificates, Series 2007-8, designated as Classes A-1, A-2, XP, XC, A-J, B and C pursuant to a short form prospectus dated June 15, 2007, and (x) $37,567,936 aggregate amount of Commercial Mortgage Pass-Through Certificates, Series 2007-8, designated as Classes D, E, F, G, H, J, K, L and M on a private placement basis in Canada, since the date of the Original Decision.

Decision

The principal regulator is satisfied that the decision meets the test set out in the Legislation for the principal regulator to make the decision.

The decision of the principal regulator under the Legislation is that the Exemption Sought is granted provided that:

(a) the Filer is not required to prepare, file and deliver Financial Statements under the securities legislation of any jurisdiction in Canada, whether pursuant to exemptive relief or otherwise;

(b) for each financial year of the Filer, within 120 days of the end of the financial year (or within 90 days of the end of a financial year of the Filer if the Filer is not a venture issuer at the end of such financial year), the Filer or its duly appointed representative or agent will file through SEDAR an annual certificate in the form set out in Schedule “A” of this decision document and personally signed by a person who, at the time of filing of the annual certificate, is a senior officer of the Filer, a Servicer or an administrative agent of the Filer;

(c) if the Filer voluntarily files an AIF, as defined in NI 51-102, for a financial year after it has filed the annual certificate referred to in paragraph (b) above for the financial year, the Filer will file through SEDAR a second annual certificate that:

(i) is in the form set out in Schedule “A” of this decision document;

(ii) is personally signed by a person who, at the time of filing of the second annual certificate, is a senior officer of the same person or company of which the senior officer who signed the annual certificate referred to in paragraph (b) is an officer; and

(iii) certifies the AIF in addition to the other documents identified in the annual certificate;

(d) for each interim period, within 60 days of the end of the interim period (or within 45 days of the end of an interim period of the Filer if the Filer is not a venture issuer at the end of such interim period), the Filer or its duly appointed representative or agent will file through SEDAR an interim certificate in the form set out in Schedule “B” of this decision document and personally signed by a person who, at the time of filing of the interim certificate, is a senior officer of the Filer, a Servicer or an administrative agent of the Filer; and

(e) the Exemption Sought will cease to be effective in a jurisdiction of Canada on the earlier of:

(i) June 1, 2013, and

(ii) the date on which a rule regarding the continuous disclosure requirements for asset-backed securities issuers comes into force in that jurisdiction.

“Jo-Anne Matear”

_______________________

Jo-Anne Matear

Assistant Manager, Corporate Finance

SCHEDULE “A”

Certification of annual filings for issuers of asset-backed securities

I, ‹identify (i) the certifying individual, (ii) his or her position in relation to the issuer and (iii) the name of the issuer›, certify that:

1. I have reviewed the following documents of ‹identify issuer› (the issuer):

(a) the servicer reports for each month in the financial year ended (the servicer reports);

(b) annual MD&A in respect of the issuer’s pool(s) of assets for the financial year ended (the annual MD&A);

(c) AIF for the financial year ended (the AIF); [if applicable] and

(d) each annual statement of compliance regarding fulfillment of the obligations of the servicer(s) under the related servicing agreement(s) for the financial year ended (the annual compliance certificate(s)),

(the servicer reports, the annual MD&A, the AIF [if applicable] and the annual compliance certificate(s) are together the annual filings);

2. Based on my knowledge, the annual filings, taken as a whole, do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make the statements not misleading in light of the circumstances under which they were made, with respect to the periods covered by the annual filings;

3. Based on my knowledge, all of the distribution, servicing and other information and all of the reports on assessment of compliance with servicing criteria for asset-backed securities and the annual accountant’s report respecting compliance by the servicer(s) with servicing criteria for asset-backed securities required to be filed under the decision(s) <identify the decision(s)> as of the date of this certificate, other than material change reports and press releases, have been filed with the securities regulatory authorities through SEDAR;

4. Option #1

I am responsible for reviewing the activities performed by the servicer(s) and based on my knowledge and the compliance review(s) conducted in preparing the annual compliance certificate(s), and except as disclosed in the annual filings, the servicer(s) [has/have] fulfilled [its/their] obligations under the servicing agreement(s); and

Option #2

Based on my knowledge and the annual compliance certificate(s), and except as disclosed in the annual filings, the servicer(s) [has/have] fulfilled [its/their] obligations under the servicing agreement(s); and

5. The annual filings disclose all material instances of noncompliance with the servicing criteria based on the [servicer’s/servicers’] assessment of compliance with such criteria.

[In giving the certifications above, I have reasonably relied on information provided to me by the following unaffiliated parties <insert name of issuer, servicer, sub-servicer, co-servicer, administrative agent, reporting agent or trustee >.]

Date:

_______________________

[Signature]

[Title]

< indicate the capacity in which the certifying officer is providing the certificate >

SCHEDULE “B”

Certification of interim filings for issuers of asset-backed securities

I, ‹identify (i) the certifying individual, (ii) his or her position in relation to the issuer and (iii) the name of the issuer›, certify that:

1. I have reviewed the following documents of ‹identify issuer› (the issuer):

(a) the servicer reports for each month in the interim period ended (the servicer reports); and

(b) interim MD&A in respect of the issuer’s pool(s) of assets for the interim period ended (the interim MD&A),

(the servicer reports and the interim MD&A are together the interim filings);

2. Based on my knowledge, the interim filings, taken as a whole, do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make the statements not misleading in light of the circumstances under which they were made, with respect to the periods covered by the interim filings; and

3. Based on my knowledge, all of the distribution, servicing and other information required to be filed under the decision(s) <identify the decision(s)> as of the date of this certificate, other than material change reports and press releases, have been filed with the securities regulatory authorities through SEDAR.

[In giving the certifications above, I have reasonably relied on information provided to me by the following unaffiliated parties <insert name of issuer, servicer, sub-servicer, co-servicer, administrative agent, reporting agent or trustee >.]

Date:

_______________________

[Signature]

[Title]

< indicate the capacity in which the certifying officer is providing the certificate >