Financial Leasing Entity Regulations (SOR/2001-389)

Marginal note:Restrictions and limitations on activities

5 No financial leasing entity may

• (a) direct its customers or potential customers to particular dealers in respect of personal property that is conditionally sold, or that is to be conditionally sold, under a conditional sales agreement with the financial leasing entity;

• (b) enter into, or accept assignment of, a conditional sales agreement in respect of a motor vehicle having a gross vehicle weight that is less than 21 tonnes;

• (c) enter into, or accept assignment of, a conditional sales agreement with a natural person in respect of personal household property;

• (d) enter into, or accept assignment of, a financial lease agreement or conditional sales agreement other than a financial lease agreement or conditional sales agreement the primary purpose of which is the extending of credit to a lessee or purchaser;

• (e) enter into a financial lease agreement or a conditional sales agreement in respect of personal property, including personal property that is affixed to real property, that is to be leased or purchased, but not including personal property that was

  • (i) selected by the lessee or purchaser and acquired by the financial leasing entity at the request of the lessee or purchaser, or

  • (ii) previously acquired by the financial leasing entity in respect of another financial lease agreement or conditional sales agreement; or

• (f) enter into a financial lease agreement or conditional sales agreement that entails responsibility on the part of the financial leasing entity to install, promote, service, clean, maintain or repair the property that is the subject of the agreement.