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Cost of Borrowing (Banks) Regulations

Version of section 7 from 2010-01-01 to 2014-11-20:

  •  (1) A bank that proposes to enter into a credit agreement with a borrower must provide the borrower with the initial disclosure statement required by these Regulations on or before the earlier of the making of a payment, other than a disbursement charge, in relation to the credit agreement by the borrower and

    • (a) two clear business days before the entering into the credit agreement by the borrower and the bank, in the case of a credit agreement for a mortgage or hypothec; or

    • (b) the entering into the credit agreement by the borrower and the bank, in any other case.

  • (2) Paragraph (1)(a) does not apply if

    • (a) the borrower consents to being provided with the initial disclosure statement for the credit agreement in accordance with paragraph (1)(b);

    • (b) the borrower obtains independent legal advice;

    • (c) a rescission period is provided in the credit agreement; or

    • (d) favourable terms, such as imposing no penalty or fee for early payment, are provided in the credit agreement.

  • SOR/2009-258, s. 4

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