REVISION OF PAYMENT TERMS
21. (1) A lessor and a lessee may, at any time, agree to revise the payment terms of a capital lease.
(2) If a lessor and a lessee agree to revise the payment terms of a capital lease by extending the term beyond the maximum period specified in section 5, it is a condition of the Minister’s liability under these Regulations that the approval of the Minister shall be obtained in writing prior to the extension. The Minister shall approve the extension if it is likely to decrease the risk of default by the lessee on the capital lease.
22. (1) A lessor and a lessee may, at any time, agree to improve the original equipment that is the subject of a capital lease. The improvements do not include the replacement of the original equipment in its entirety.
(2) If a lessor and a lessee agree to improve the original equipment that is the subject of a capital lease and to amend the capital lease, the Minister’s liability under these Regulations continues if the capital lease is amended accordingly and if
(a) the capital lease as amended has a term that does not extend beyond the maximum period specified in section 5;
(b) the annual imputed rate of interest used in the calculation of the scheduled payments is the same as the annual imputed rate of interest used in the original capital lease;
(c) the lessor notifies the Minister in writing of the improvements made to the equipment within three months of the day on which the amendment to the capital lease was made, and provides the Minister with the following information, namely,
(i) the detailed cost of the improvements,
(ii) a detailed calculation of the revised payments,
(iii) the additional cost of the equipment that has been financed, and
(iv) the new outstanding balance of the capital lease; and
(d) the lessor sends to the Minister, with the notice referred to in paragraph (c), an additional registration fee that is calculated on the basis of the additional cost of the equipment that has been financed.
FORMS OF SECURITY
23. (1) Subject to subsection (2), a lessor shall, when entering into or amending a capital lease, register a security interest in the leased equipment, within the time and in accordance with the form prescribed under the applicable provincial law.
(2) Where applicable, the lessor shall make a publication of their rights in the registry office within the time and in accordance with the form prescribed in the province to set up their rights against any third party.
24. A lessor may take additional security in the assets of the lessee’s small business.
25. The lessor may release any additional security if the capital lease is in good standing.
GUARANTEES AND SURETYSHIPS
26. (1) A lessor may, in addition to the forms of security referred to in sections 23 and 24, take one or more unsecured personal guarantees or suretyships for an amount that does not exceed the aggregate of
(a) 25% of the total financing amount of the capital lease,
(b) the interest on any judgment against the surety,
(c) taxed costs for, or incidental to, legal proceedings against the surety, and
(d) legal fees and disbursements, other than the costs referred to in paragraph (c), and other costs incurred by the lessor for services rendered by persons other than their employees for the purpose of legal proceedings against the surety.
(2) If a lessor takes more than one personal guarantee or suretyship, they shall state that the aggregate liability of the sureties may not exceed the aggregate amount referred to in subsection (1).
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