Trust and Loan Companies Act
Marginal note:Restriction on charges to borrowers
418.1 (1) Subject to any regulations made under subsection (2), a company that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the company of the insurance or guarantee.
(2) The Governor in Council may make regulations
(a) respecting the determination of the actual cost to a company for the purposes of subsection (1);
(b) respecting the circumstances in which a company is exempt from the application of subsection (1);
(c) respecting, in relation to insurance or a guarantee against default on a loan made by a company in Canada on the security of residential property,
(d) respecting any other matters necessary to carry out the purposes of subsection (1).
Marginal note:Regulations — disclosure
(3) The Governor in Council may make regulations respecting the disclosure by a company of information relating to insurance or a guarantee against default on a loan made by the company in Canada on the security of residential property, including regulations respecting
(a) the information that must be disclosed, including information relating to
(i) the person who benefits from the insurance or guarantee,
(ii) the arrangements between the company, its representatives or its employees and the insurer or the insurer’s affiliates, and
(iii) the payments and benefits that the company, its representatives and its employees accept from an insurer or the insurer’s affiliates;
(b) the time, place and manner in which and the persons to whom information is to be disclosed; and
(c) the circumstances under which a company is not required to disclose information.
- 2009, c. 2, s. 290
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