Small Business Loans Regulations, 1993 (SOR/93-169)

24 (1) Where a lender who has made loans of a prescribed class discontinues its lending business and sells all loans of the prescribed class outstanding on its books to another lender who is the successor lender, or amalgamates with one or more other lenders so as to form a new lender, the Minister’s liability under the Act continues in favour of that successor lender or the new lender, and on the day of the sale or the amalgamation

• (a) the loans made under these Regulations, and the Small Businesses Loans Regulations by the selling lender and successor lender, or by the amalgamating lenders, if previously registered by the Minister pursuant to section 23 of the Small Businesses Loans Regulations or section 23 of these Regulations are consolidated and transferred to the successor lender or the new lender; and

• (b) all claims for loss already paid by the Minister to the selling lender and the successor lender, or to the amalgamating lenders, under these Regulations and the Small Businesses Loans Regulations are consolidated and are losses paid to the successor lender or the new lender.

(2) A lender may, at the request of the borrower, transfer to another lender a land, premises or equipment loan and its related fees loan, which when taken with all other loans transferred to or by each of the lenders do not exceed respectively in the aggregate the greater of 20 loans and one per cent of the number of loans outstanding for each lender as of the last preceding March 31.

(3) A lender who acquires a loan under subsection (2) shall, within three months after the acquisition of the loan, notify the Minister of the acquisition and of the amount outstanding on the loan.

(4) The liability of the Minister under the Act continues to the lender who acquires the loan.