Query: Canadian Owner maintenance

What is going to kill OM in Canada is the rediculous requirement
(currently - and just implemented) that the plane MUST PASS INSPECTION
before being converted to OM. You cannot take a non flying,
non-airworthy plane and place it in OM, then replace the engine with a
non-certified unit.

I don't see that in the CARs. I do see, in CAR Std
507.02(3) that an OM airplane, if it's to be put back into certified
condition, will need that inspection. CAR Std 507.03(6) deals with the
OM and it doesn't say anything about needing any certification before
registering as OM. Am I missing something here?

Dan