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Marginal note:Prescribed rates of interest

3 For the purposes of Part 1 of the Act, the prescribed rate of interest in effect during a particular quarter is

• (a) in the case of interest to be paid to the Receiver General, the sum of the basic rate in respect of the particular quarter and 4%;

• (b) in the case of interest to be paid or applied on an amount payable by the Minister to a person (other than a corporation), the sum of the basic rate in respect of the particular quarter and 2%;

• (c) in the case of interest to be paid or applied on an amount payable by the Minister to a corporation, the basic rate in respect of the particular quarter; and

• (d) in any other case, the sum of the basic rate in respect of the particular quarter and 4%.

2 The following definitions apply in this Part.

basic rate

basic rate , in respect of a particular quarter, means the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage if the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter. (taux de base)

quarter

quarter means any period of three consecutive months beginning on January 1, April 1, July 1 or October 1. (trimestre)