Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations (SOR/2001-527)

19 Before entering into and administering a capital lease, the lessor shall apply the same due diligence and business procedures as those applicable to a capital lease of the same amount that is not subject to these Regulations, including

• (a) obtaining credit references or conducting a credit check on the lessee;

• (b) completing an assessment of the ability of the lessee to pay, taking into account all other financial obligations of the lessee;

• (c) providing for a term similar to the term of a capital lease of the same amount that is not subject to these Regulations; and

• (d) in the case of used equipment, substantiating in writing the fair market value and economic life of the equipment on the day on which the capital lease is entered into.