Cost of Borrowing (Banks) Regulations (SOR/2001-101)
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Regulations are current to 2012-05-14 and last amended on 2011-06-01. Previous Versions
Cost of Borrowing (Banks) Regulations
SOR/2001-101
Registration 2001-03-15
Cost of Borrowing (Banks) Regulations
P.C. 2001-367 2001-03-15
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 449 to 456Footnote a, 458Footnote b and 668Footnote c of the Bank ActFootnote d, hereby makes the annexed Cost of Borrowing (Banks) Regulations.
Return to footnote aS.C. 1997, c. 15, ss. 49 to 53
Return to footnote bS.C. 1999, c. 28, s. 24
Return to footnote cS.C. 1999, c. 28, s. 64, c. 31, s. 16
Return to footnote dS.C. 1991, c. 46
INTERPRETATION
1. The definitions in this section apply in these Regulations.
- “Act”
“Act” means the Bank Act. (Loi)
- “APR”
“APR” means the cost of borrowing for a loan under a credit agreement expressed as an annual rate on the principal referred to in subsection 3(1). (TAC)
- “borrower”
“borrower” includes a person to whom a loan is proposed to be made and a holder, or an applicant to become a holder, of a credit card. (emprunteur)
- “credit agreement”
“credit agreement” includes an agreement for a line of credit, a credit card or any kind of loan. (convention de crédit)
- “disbursement charge”
“disbursement charge” means a charge, other than one referred to in subsection 5(1), to recover an expense incurred by a bank to arrange, document, insure or secure a credit agreement. It includes a charge referred to in paragraphs 5(2)(c) and (f) to (h). (frais de débours)
- “hypothec”
“hypothec” means a hypothec on immovable property. (hypothèque)
- “principal”
“principal” means the amount borrowed under a credit agreement but does not include any cost of borrowing. (capital)
- “public index”
“public index” means an interest rate, or a variable base rate for an interest rate, that is published at least weekly in a newspaper or magazine of general circulation, or in some media of general circulation or distribution, in areas where borrowers whose credit agreements are governed by that interest rate reside. (indice publié)
APPLICATION
2. These Regulations apply to credit agreements, other than a credit agreement entered into
(a) for business purposes of a borrower;
(b) with a borrower that is not a natural person;
(c) under the terms of the Canada Student Loans Act; or
(d) under the terms of any Act of Parliament or of the legislature of a province that relates to student loans and that requires the rate of interest or the discount that may apply to the borrower to be disclosed to the borrower.
- SOR/2009-258, s. 1.