Cost of Borrowing (Trust and Loan Companies) Regulations

10 (1) A company that enters into a credit agreement for a line of credit must provide the borrower with an initial disclosure statement that includes the following information:

• (a) the initial credit limit, if it is known at the time the disclosure is made;

• (b) the annual interest rate, or the method for determining it if it is variable;

• (c) the nature and amounts of any non-interest charges;

• (d) the minimum payment during each payment period or the method for determining it;

• (e) each period for which a statement of account is to be provided;

• (f) the date on and after which interest accrues and information concerning any grace period that applies;

• (g) the particulars of the charges or penalties referred to in paragraph 438(1)(b) of the Act, including default charges that may be imposed under section 18 of these Regulations;

• (h) the property, if any, over which the company takes a security interest under the credit agreement;

• (i) information about any optional service in relation to the credit agreement that the borrower accepts, the charges for each optional service and the conditions under which the borrower may cancel the service if that information is not disclosed in a separate statement before the optional service is provided;

• (j) a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the borrower may use to get information about the account during the company’s regular business hours; and

• (k) any charge for a broker, if the broker’s fees are included in the amount borrowed and are paid directly by the company to the broker.

(2) If the initial credit limit is not known when the initial disclosure statement is made, the company must disclose it in

• (a) the first statement of account provided to the borrower; or

• (b) a separate statement that the borrower receives on or before the date on which the borrower receives that first statement of account.

(3) Subject to subsections (4) and (5), the company must, at least once a month, provide the borrower with a subsequent disclosure statement that contains the following information:

• (a) the period covered and the opening and closing balances in the period;

• (b) an itemized statement of account that discloses each amount credited or charged, including interest, and the dates when those amounts were posted to the account;

• (c) the sum for payments and the sum for credit advances and non-interest and interest charges;

• (d) the annual interest rate that applied on each day in the period and the total of interest charged under those rates in the period;

• (e) the credit limit and the amount of credit available at the end of the period;

• (f) the minimum payment and its due date;

• (g) the borrower’s rights and obligations regarding any billing error that may appear in the statement of account; and

• (h) a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the borrower may use to get information about the account during the company’s regular business hours.

(4) The subsequent periodic disclosure statement is not required to be provided for a period during which there have been no advances or payments and

• (a) there is no outstanding balance at the end of the period; or

• (b) the borrower has notice that their credit agreement has been suspended or cancelled due to default and the company has demanded payment of the outstanding balance.

(5) The subsequent periodic disclosure statement may be provided once in a three-month period, either in respect of that period or in respect of the last month of that period, if, during that period,

• (a) there have been no advances or payments;

• (b) there is an outstanding balance of less than $10; and

• (c) no interest or fee is being charged or accrued.