34. A lender must provide the Minister, before every June 1, with a detailed report on all loans outstanding with that lender as at March 31 in the year of the report, including the following information with respect to each loan:
(a) the registration number;
(b) the borrower’s name;
(c) the amount of principal that is outstanding and not yet due and payable as at March 31 in that year; and
(d) the amounts, if any, of principal and interest that are due and payable as at March 31 in that year.
- SOR/2009-102, s. 20.
35. If the lender does not provide a report in accordance with section 34, the Minister is not liable after the day on which the report was due for any loss sustained by the lender as a result of a loan in respect of which the information specified in any of paragraphs 34(1)(a) to (d) was not provided.
36. Subject to section 11, the outstanding amount of the loan becomes due and payable and the borrower is in default as of the day on which the borrower fails to comply with a material condition of the loan agreement.
PROCEDURE ON DEFAULT
37. (1) If a borrower is in default under section 36, the lender may give the borrower notice of default and demand that the borrower comply with a material condition within the period specified in the notice.
(2) Before submitting a claim for loss sustained as a result of a loan under section 38, the lender must demand repayment of the outstanding amount of the loan within the period specified in the demand.
(3) If the outstanding amount of the loan is not repaid within the period specified, the lender must take any of the following measures that will minimize the loss sustained by it in respect of the loan or that will maximize the amount recovered:
(a) collect the principal and interest outstanding on the loan;
(b) fully realize any security, guarantee or suretyship;
(c) realize on any insurance policy under which the lender is the beneficiary;
(d) fully implement a compromise settlement with the borrower or with a guarantor or surety or any other person on behalf of the borrower, guarantor or surety; and
(e) subject to subsection (4), take legal proceedings, including the enforcement of any resulting judgment, if the estimated cost of the proceedings is not greater than the estimated amount that may be recovered.
(4) If the borrower is a partnership or a sole proprietor, the lender may not execute a judgment by realizing on the assets (other than the assets of the small business in respect of which the loan is made) of the partners or sole proprietor, in an amount greater than the sum of
(a) 25% of the original amount of the loan,
(b) interest on the judgment,
(c) taxed costs for, or incidental to, the legal proceedings against the borrower, and
(d) legal fees and disbursements — other than costs referred to in paragraph (c) — and other costs incurred by the lender for services rendered to it by persons other than its employees for the purpose of the legal proceedings against the borrower.
- SOR/2009-102, s. 21.
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