3. These Regulations do not apply to

• (a) amounts owed to a Crown corporation; or

• (b) amounts owing by a department.

4. This Part does not apply to

• (a) capital market transactions and, except as provided in section 7, interest-bearing loans, including hypothecary loans, or mortgages;

• (b) amounts owing to Her Majesty pursuant to the Income Tax Act, or any Act of Parliament that imposes a tax or duty; or

• (c) amounts referred to in any other Act of Parliament or regulation, or any order, contract or arrangement, that provides for the charging of interest on those amounts.

• 5. (1) For the purpose of subsection 155.1(1) of the Act and subject to sections 6 to 8, in all cases where an amount is owing to Her Majesty, interest calculated and compounded monthly at the average bank rate plus 3% is payable on that amount and accrues during the period beginning on the due date and ending on the day before the day on which payment is received by Her Majesty or an agent of Her Majesty.

• (2) If a partial payment is made, the period for which interest is payable in respect of the amount paid ends on the day before the day on which the partial payment is received by Her Majesty or an agent of Her Majesty.

• 6. (1) If a person has received an overpayment or erroneous payment, interest is payable by the person on any amount that is not repaid by its due date and accrues as specified in section 5, during the period beginning on the due date and ending on the day before the day on which repayment is received by Her Majesty or an agent of Her Majesty.

• (2) If a person has received an overpayment or erroneous payment as a result of fraud, falsification of documents, wilful misrepresentation or any other offence committed by that person or by any other person acting on behalf of that person, unless provided otherwise by an order of a court, interest is payable by that person on the amount owing on account of the overpayment or erroneous payment and accrues as specified in section 5, during the period beginning on the day on which the overpayment or erroneous payment is made and ending on the day before the day on which repayment is received by Her Majesty or an agent of Her Majesty.

• (3) Nothing in subsection (1) shall be construed as preventing a department from entering into an arrangement with a person that calls for repayment to be made in instalments and interest to accrue and be paid on the total amount outstanding.

• 7. (1) Subject to subsection (2), in the case of a late or missed payment on a concessionary loan, interest is payable on the amount of the late or missed payment and accrues during the period beginning on the due date and ending on the day before the day on which payment is received by Her Majesty or an agent of Her Majesty, at a rate equal to the difference between the rate set out in section 5 and the concessionary rate set out in the loan agreement.

• (2) Subsection (1) does not apply to

  • (a) concessionary loans that are made to sovereign states and to which a multilateral debt relief agreement or undertaking to which Canada is a party applies; or

  • (b) concessionary loans that are made to international organizations or sovereign states for the purpose of developmental assistance.