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• (4) Where a loan has a term of less than 10 years, the lender may renew it for additional terms, at an interest rate not exceeding the maximum rate calculated under section 14 as at the renewal date, to an aggregate maximum term of ten years, calculated as of the date of the first scheduled principal instalment under the loan.

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• (6) A loan made with an interest rate calculated in accordance with paragraph 14(b) may, with the consent of the borrower, be converted to a loan with an interest rate calculated in accordance with paragraph 14(a) and the lender may impose a charge for the conversion in an amount not exceeding the greater of

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  • (b) the amount by which

    • (i) the net present value of the loan for the remainder of its term calculated at the date of prepayment and discounted at the Bank of Canada Bank Rate as of the date of the calculation,

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    • (ii) the net present value of a loan of the outstanding balance that would be made on the prepayment date for the remainder of the term of the loan and discounted at the Bank of Canada Bank Rate as of the date of the calculation.

• (7) Where the borrower prepays the loan other than by means of instalments of up to 10 per cent per annum of the original amount of the loan on the anniversary date of the loan and on a non-cumulative basis, the lender may charge a prepayment penalty in an amount not exceeding the greater of

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  • (b) the amount by which

    • (i) the net present value of the loan for the remainder of its term calculated at the date of prepayment and discounted at the Bank of Canada Bank Rate as of the date of the calculation,

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    • (ii) the net present value of a loan of the outstanding balance that would be made on the prepayment date for the remainder of the term of the loan and discounted at the Bank of Canada Bank Rate as of the date of the calculation.

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• 19 (1) A lender may not submit a claim to the Minister for loss sustained as a result of a loan of a prescribed class before taking all of the applicable steps described in subsection 18(2).

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• (5) A loss sustained by the lender in respect of a loan of a prescribed class shall be calculated by determining the aggregate of the following and deducting from that aggregate any proceeds realized from the steps taken that are referred to in subsection 18(2):

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  • (f) legal fees and disbursements, other than the costs referred to in paragraph (e), incurred by the lender for services rendered to the lender by persons other than employees of the lender, for the purpose of collecting, or attempting to collect, the loan from the borrower or the guarantor, as the case may be; and

  • (g) other costs incurred by the lender for the purpose of collecting, or attempting to collect, the loan from the borrower or the guarantor, as the case may be, other than costs incurred by the lender or its employees in the administration of the loan prior to default.

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• 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

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• (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.

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• 16 (1) Subject to subsection (2) a lender shall, at the time of making a loan of a prescribed class other than a fees loan, take, as security for the repayment of the loan, a mortgage, conditional sales contract, pledge, debenture, general security agreement or other similar security on the assets of the business enterprise that will be financed by the loan.

• (2) Where the loan is a land or premises loan and the borrower is a tenant, the lender may take, as security for the repayment of the loan, security on any other assets of the business enterprise.

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• (2) Where an insurance premium is expressed as a percentage of the outstanding amount of a loan of a prescribed class, it may be combined with the rate of interest, where the resultant rate of interest, as set out in the promissory note referred to in subsection 12(1), does not exceed the maximum rate prescribed in section 14.

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