Bank Act (S.C. 1991, c. 46)

Act current to 2013-04-29 and last amended on 2013-03-13. Previous Versions

Borrowing Costs

Definition of “cost of borrowing”

567. For the purposes of this section and sections 567.1 to 574, “cost of borrowing” in respect of a loan made by an authorized foreign bank means

  • (a) the interest or discount applicable to the loan;

  • (b) any amount charged in connection with the loan that is payable by the borrower to the authorized foreign bank; and

  • (c) any charge prescribed to be included in the cost of borrowing.

For those purposes, however, “cost of borrowing” does not include any charge prescribed to be excluded from the cost of borrowing.

  • 1991, c. 46, s. 567;
  • 1997, c. 15, s. 93;
  • 1999, c. 28, s. 35;
  • 2001, c. 9, s. 153.
Marginal note:Rebate of borrowing costs

  • 567.1 (1) Where an authorized foreign bank makes a loan in respect of which the disclosure requirements of section 568 apply, and the loan is not secured by a mortgage on real property and is required to be repaid either on a fixed future date or by instalments, the authorized foreign bank shall, if there is a prepayment of the loan, rebate to the borrower a portion of the charges included in the cost of borrowing in respect of the loan.

  • Marginal note:Exception

    (2) The charges to be rebated do not include the interest or discount applicable to the loan.

  • Marginal note:Regulations

    (3) The Governor in Council may make regulations governing the rebate of charges under subsection (1). The rebate shall be made in accordance with those regulations.

  • 1999, c. 28, s. 35.
Marginal note:Disclosing borrowing costs

  • 568. (1) An authorized foreign bank shall not make a loan to a natural person that is repayable in Canada unless the cost of borrowing, as calculated and expressed in accordance with section 569, and other prescribed information have been disclosed by the authorized foreign bank to the borrower at the prescribed time and place and in the prescribed form and manner.

  • Marginal note:Non-application

    (2) Subsection (1) does not apply in respect of a loan that is of a prescribed class of loans.

  • 1991, c. 46, s. 568;
  • 1999, c. 28, s. 35;
  • 2012, c. 5, s. 65.
Previous Version
Marginal note:Calculating borrowing costs

569. The cost of borrowing shall be calculated, in the prescribed manner, on the basis that all obligations of the borrower are duly fulfilled and shall be expressed as a rate per annum and, in prescribed circumstances, as an amount in dollars and cents.

  • 1991, c. 46, s. 569;
  • 1999, c. 28, s. 35.