13. Every capital lease is subject to the condition that no fee or charge is payable by a lessee other than
(a) the registration fee referred to in subsection 14(1);
(b) the administration fee referred to in subsection 14(2); and
(c) any other fee or charge authorized by these Regulations.
14. (1) A registration fee in respect of a capital lease shall be paid by the lessor to the Minister when the capital lease is submitted for registration. This fee, which is 2% of the financed cost of the equipment, may be included in the total financing amount of the capital lease.
(2) An administration fee in respect of a capital lease shall be paid by the lessor to the Minister. It is calculated at the end of each month at the annual rate of 1.25% applied to the outstanding balance of the capital lease minus the present value of the lesser of
(a) the residual value of the equipment set out in the registration form referred to in subsection 12(1), and
(b) the bargain purchase option price of the equipment set out in the capital lease.
(3) The administration fee is payable quarterly, within two months after the end of each quarter.
(4) With each payment under subsection (3), the lessor shall submit to the Minister a statement that substantiates the basis on which the payment was calculated.
(5) When the lessor is unable to provide one or more of the statements required by subsection (4) in respect of a year, the Minister shall notify the lessor
(a) that for that year, the lessor may make the payments referred to in subsection (3), except the payment for the last quarter, on the basis of estimates of the amounts payable; and
(b) that for that year, the lessor shall submit the statement required by subsection (6) rather than the statements required by subsection (4).
(6) On or before June 1 following a year in respect of which a lessor makes the payments referred to in subsection (5), the lessor shall pay any amount owing for the year, or claim any overpayment for the year, and submit to the Minister a statement that substantiates the basis on which the amount of the administration fee was calculated.
(7) On application by a lessor within one year after a capital lease registered with the Minister in accordance with these Regulations is entered into, the Minister shall
(a) if the lessor has not provided to the lessee all of the equipment that is the subject of the capital lease, refund to the lessor that portion of the registration fee paid that is attributable to the portion of the equipment and subtract the value of that portion of the equipment from the total financing amount of the capital lease; or
(b) if the lessor determines that the capital lease is not in compliance with the requirements of these Regulations, refund to the lessor the registration fee and the administration fee and delete the total financing amount of the capital lease from the registry, which terminates the Minister’s liability in respect of the capital lease.
(8) The lessor shall not charge the lessee for the administration fee except through the imposition of an annual imputed rate of interest.
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