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Apprentice Loans Regulations (SOR/2014-255)

Regulations are current to 2022-05-02 and last amended on 2021-06-30. Previous Versions

Apprentice Loans Regulations

SOR/2014-255

APPRENTICE LOANS ACT

CANADA STUDENT FINANCIAL ASSISTANCE ACT

Registration 2014-11-07

Apprentice Loans Regulations

P.C. 2014-1245 2014-11-06

His Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development with the concurrence of the Minister of Finance, pursuant to section 12 of the Apprentice Loans ActFootnote a and section 15Footnote b of the Canada Student Financial Assistance ActFootnote c, makes the annexed Apprentice Loans Regulations.

Interpretation

Marginal note:Definitions — Act and Regulations

  •  (1) The following definitions apply in the Act and in these Regulations.

    acknowledgment of liability

    acknowledgment of liability means

    • (a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;

    • (b) a written acknowledgement of the money owing, signed by the borrower or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

    • (c) a part payment by the borrower or his or her agent or other representative of any money owing; or

    • (d) an acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts. (reconnaissance de responsabilité)

    apprentice

    apprentice means

    • (a) other than in section 5, a person who

      • (i) is a Canadian citizen, a person registered as an Indian under the Indian Act, a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act or a protected person as described in subsection 95(2) of that Act,

      • (ii) is not a high school student, and

      • (iii) is registered with a province as an apprentice in an eligible trade; and

    • (b) in section 5, a person who is described in subparagraphs (a)(i) and (ii) and who is enrolled in a program of study that is mandatory in order to enable the person to register as an apprentice with a province. (apprenti)

    apprentice loan

    apprentice loan means a debt obligation incurred by an eligible apprentice on entering into an apprentice loan agreement that is owed to Her Majesty in right of Canada, as represented by the Minister. (prêt aux apprentis)

    borrower

    borrower means a person to whom an apprentice loan is made under the Act. (emprunteur)

    eligible apprentice

    eligible apprentice means an apprentice who is enrolled at a technical training provider for technical training in an eligible trade and whose primary occupation during the technical training period is to participate in that technical training. (apprenti admissible)

    severe permanent disability

    severe permanent disability means a functional limitation caused by a physical or mental impairment that prevents a borrower from performing the daily activities necessary to participate in substantially gainful employment, as defined in section 68.1 of the Canada Pension Plan Regulations, and is expected to remain with them for their expected life. (invalidité grave et permanente)

    technical training

    technical training means formal instruction or training that is offered by a technical training provider and that is determined by a province to be an essential element of an apprenticeship program in that province and required for the practice of an eligible trade. (formation technique)

    technical training period

    technical training period means a continuous period of technical training that begins on the first day of the month in which technical training begins and ends on the last day of the month in which the training ends. (période de formation technique)

  • Marginal note:Definitions — Regulations

    (2) The following definitions apply in these Regulations.

    Act

    Act means the Apprentice Loans Act. (Loi)

    apprentice loan agreement

    apprentice loan agreement means an agreement entered into between an eligible apprentice and the Minister under section 4 of the Act that is in the form determined by the Minister and includes the social insurance number of the apprentice. (contrat de prêt aux apprentis)

    apprenticeship program

    apprenticeship program means a program of practical experience, technical training and certification examination that must be undertaken — as determined by the province — by an apprentice in an eligible trade. (programme d’apprentissage)

    common-law partner

    common-law partner, in respect of a borrower, means a person who is cohabiting with the borrower in a conjugal relationship, having so cohabited for a period of at least one year. (conjoint de fait)

    confirmation of continued apprenticeship

    confirmation of continued apprenticeship means proof that a borrower is still registered with a province as an apprentice in an eligible trade. (confirmation d’apprentissage continu)

    confirmation of enrolment

    confirmation of enrolment means proof that an apprentice is enrolled in technical training with a technical training provider. (confirmation d’inscription)

    family income

    family income means the aggregate income — including income from employment, social programs, investments and monetary gifts — of the borrower and their spouse or common-law partner, as the case may be. (revenu familial)

    financial assistance

    financial assistance means any form of financial aid provided under the Act, including apprentice loans. (aide financière)

    fiscal year

    fiscal year means the one-year period that begins on April 1 in any year. (exercice)

    guaranteed student loan

    guaranteed student loan has the same meaning as in subsection 2(2) of the Canada Student Financial Assistance Regulations. (prêt garanti)

    permanent disability

    permanent disability means a functional limitation caused by a physical or mental impairment that restricts the ability of a person to perform the daily activities necessary to participate in an apprenticeship program or the labour force and that is expected to remain with them for their expected life. (invalidité permanente)

    provincial loan

    provincial loan has the same meaning as in subsection 2(2) of the Canada Student Financial Assistance Regulations. (prêt provincial)

    student loan

    student loan has the same meaning as in subsection 2(1) of the Canada Student Financial Assistance Regulations. (prêt d’études)

  • Marginal note:Schedule 1 — Eligible trades

    (3) For the purposes of subsection 2(1) of the Act, eligible trades are those that are listed in Schedule 1 to these Regulations.

Obtaining an Apprentice Loan

Marginal note:Conditions

 Subject to section 6, the Minister may make an apprentice loan to an eligible apprentice if the following conditions are met:

  • (a) the apprentice has entered into an apprentice loan agreement for a technical training period on or before the last day of technical training;

  • (b) confirmation of enrolment is submitted to the Minister;

  • (c) in the event that interest started accruing prior to the first day of the current technical training period, the apprentice pays to the Minister the unpaid interest accrued under their apprentice loan agreement to the day before the first day of that technical training period; and

  • (d) in the event that interest started accruing prior to the day on which the apprentice enters into an apprentice loan agreement for the current technical training period that began on the day on which interest started accruing, the apprentice

    • (i) pays to the Minister the unpaid interest accrued under their apprentice loan agreement to the day before the day on which the apprentice enters into the current apprentice loan agreement, or

    • (ii) directs the addition of the interest referred to in subparagraph (i) to the outstanding principal.

Interest-Free Period

Marginal note:No interest accrues

 Subject to section 6, no interest accrues under a borrower’s apprentice loan in respect of the following periods:

  • (a) in the event that no interest has accrued when a technical training period begins for which confirmation of enrolment is submitted to the Minister, the period that begins on the first day of the technical training period and ends on the day that is 18 months after the last day of that technical training period;

  • (b) [Repealed, SOR/2019-215, s. 3]

  • (c) in the event that interest started accruing prior to the first day of a technical training period for which confirmation of enrolment is submitted to the Minister, the period that began on the day that the technical training period begins and ends on the day that is 18 months after the last day of that technical training period, in the case where the apprentice pays to the Minister the unpaid interest accrued to the day before the first day of that technical training period;

  • (d) in the event that interest started accruing prior to the day on which confirmation of enrolment is submitted to the Minister for a technical training period that began prior to the day on which interest started accruing, the period that begins on the day on which confirmation of enrolment is submitted and ends on the day that is 18 months after the last day of that technical training period in the case where the apprentice

    • (i) pays to the Minister the unpaid interest accrued under their apprentice loan agreement to the day before the day on which confirmation of enrolment is submitted to the Minister, or

    • (ii) directs the addition of the interest referred to in subparagraph (i) to the outstanding principal;

  • (e) in the event that no interest has accrued when confirmation of continued apprenticeship is submitted to the Minister, the period that begins on the day that confirmation of continued apprenticeship was submitted and ends on the day that is 18 months after the last day of the month in which the confirmation of continued apprenticeship is submitted; and

  • (f) in the event that interest started accruing prior to the day on which confirmation of continued apprenticeship is submitted to the Minister, the period that begins on the day on which the confirmation of continued apprenticeship is submitted and ends on the day that is 18 months after the last day of the month in which the confirmation of continued apprenticeship is submitted, in the case where the apprentice

    • (i) pays to the Minister the unpaid interest accrued under their apprentice loan agreement to the day before the day on which confirmation of continued apprenticeship is submitted, or

    • (ii) directs the addition of the interest referred to in subparagraph (i) to the outstanding principal.

Payment of Principal and Interest

Marginal note:Payment begins

 The borrower must begin to repay the principal amount of any apprentice loan made to them, and interest, on the last day of the month in which interest started accruing.

Special Payments

Marginal note:Amount determined by Minister

  •  (1) For the purposes of section 7 of the Act, the special payment amount for a province as determined by the Minister after consultation with the Chief Statistician of Canada is the amount for the fiscal year that is obtained by multiplying the total costs for the fiscal year for provinces where apprentices registered with those provinces are able to enter into apprentice loan agreements for the fiscal year, by the ratio of the estimated number of persons in the province in question who are at least 16 years of age but less than 65, to the estimated number of persons of those ages in provinces where apprentices registered with those provinces are able to enter into apprentice loan agreements.

  • Marginal note:Total costs

    (2) In this section, total costs for a fiscal year means the amount determined by the formula

    A + B - C

    where

    A
    is the estimated aggregate of all amounts paid by the Minister in that fiscal year to service providers under the Act and to collection agencies in respect of apprentice loans;
    B
    is the estimated aggregate of
    • (a) the amount of interest calculated at the rate of interest referred to in subsection (3) in that fiscal year in respect of outstanding apprentice loans referred to in the description of A made under an apprentice loan agreement,

    • (b) the amount by which the outstanding principal in respect of all apprentice loans referred to in paragraph (a) has been reduced in that fiscal year in accordance with these Regulations,

    • (c) the amount of the outstanding principal and interest in respect of all apprentice loans referred to in paragraph (a) for which the borrower’s obligations have terminated in that fiscal year as a result of the death or severe permanent disability of the borrower, and

    • (d) the amount of the outstanding principal and interest in respect of all apprentice loans referred to in paragraph (a) for which the Minister has commenced collection action in that fiscal year, minus the amount of the outstanding principal and interest in respect of apprentice loans referred to in that paragraph for which the Minister has ended collection action in that fiscal year due to the occurrence of an event described in section 7 that resulted in the removal of restrictions to financial assistance; and

    C
    is the estimated aggregate of
    • (a) the amount of interest received by or on behalf of Her Majesty in right of Canada in that fiscal year in respect of apprentice loans, and

    • (b) any amounts received by or on behalf of Her Majesty in right of Canada in that fiscal year pursuant to collection action taken by the Minister in respect of apprentice loans.

  • Marginal note:Rate of interest

    (3) The rate of interest for the purposes of paragraph (a) of the description of B in subsection (2) is the average percentage yield, during the fiscal year in question, of Benchmark Bonds issued by the Government of Canada maturing in 10 years, as published by the Bank of Canada.

Restrictions on Obtaining Financial Assistance

Marginal note:Denial of loan

  •  (1) An apprentice loan is to be denied to an eligible apprentice who

    • (a) in the 36 months before the day on which they make their application for an apprentice loan, has been in default — in at least three instances — for over 90 days in paying an instalment under at least three loans or other debts each in an amount over $1000; or

    • (b) is in receipt of a student loan for the same technical training period.

  • Definition of applicable day

    (2) For the purposes of this section, applicable day means

    • (a) if the Minister is informed that the borrower has failed to make a payment within the two-month period after the day on which the payment is required under their apprentice loan agreement or these Regulations and they do not fulfil the requirements either of section 2, or of section 3 in respect of an interest-free period, the day following the day on which interest starts accruing in accordance with section 3;

    • (b) if the borrower makes an assignment under the Bankruptcy and Insolvency Act that is filed and not cancelled, is deemed under that Act to have made an assignment, or is the subject of a receiving order, the earlier of the day on which a receiving order is made or the assignment is filed with the official receiver;

    • (c) if the borrower makes a proposal under Division I of Part III of the Bankruptcy and Insolvency Act that is approved by a court under that Act, the day on which that proposal is approved;

    • (d) if the borrower makes a consumer proposal under Division II of Part III of the Bankruptcy and Insolvency Act that is approved or deemed approved by a court under that Act, the day on which the consumer proposal is approved or deemed approved;

    • (e) if the borrower applies for a consolidation order under Part X of the Bankruptcy and Insolvency Act that includes an apprentice loan, the day on which that order is issued;

    • (f) if the borrower seeks relief under a provincial law relating to the orderly payment of debts that includes an apprentice loan, the day on which the document seeking relief is filed;

    • (g) if the borrower is, by reason of his or her conduct in obtaining or repaying an apprentice loan, found guilty of an offence under any Act of Parliament, the day of the finding of guilt;

    • (h) if the borrower fails to comply with subsection 11(1) or 13(1), section 15 or subsection 17(3), the 30th day after the last day of the applicable repayment assistance period;

    • (i) if the borrower has been granted repayment assistance under subsection 13(2), the day on which the repayment assistance period begins;

    • (j) if the borrower has been granted interest-free periods for a cumulative period of six years, the day after the last day of that period;

    • (k) if any of paragraphs 15(1)(b) to (i) of the Canada Student Financial Assistance Regulations apply to the borrower, the applicable day set out in the paragraph in question;

    • (l) if a measure is taken in respect of the borrower under subsection 20(1) of the Act or under section 17.1 of the Canada Student Financial Assistance Act, the day after the day on which 60 days’ notice given under subsection 20(2) of the Act or subsection 17.1(3) of the Canada Student Financial Assistance Act expires;

    • (m) if five disbursements have already been made to the borrower under these Regulations, the day after the day on which the borrower received the last disbursement under an apprentice loan agreement; or

    • (n) the day on which the obligations of the borrower are terminated under section 10 of the Act or under section 11 or 11.1 of the Canada Student Financial Assistance Act.

  • Marginal note:Denial of loan or termination of interest-free period

    (3) Subject to subsections (5) and (7),

    • (a) if an event described in any of paragraphs (2)(a) to (n) occurs, the Minister may, effective on the applicable day for that event, deny the borrower a new apprentice loan; and

    • (b) if an event described in any of paragraphs (2)(a) to (l) occurs, the Minister may, effective on the applicable day for that event, terminate any interest-free period under all outstanding apprentice loans made to the borrower.

  • Marginal note:Termination of repayment assistance

    (4) If an event described in paragraph 2(g) or (h) occurs, the Minister must terminate any repayment assistance granted to the borrower under section 10 or 12 and refuse to grant further repayment assistance.

  • Marginal note:Loan received erroneously

    (5) If an event described in paragraph (2)(a) occurs in respect of an apprentice loan made to a borrower and, subsequent to that event, the borrower erroneously receives an apprentice loan,

    • (a) the borrower is entitled to the apprentice loan; and

    • (b) the measure referred to in paragraph (3)(b) takes effect on the last day of the technical training period for which the apprentice loan was made.

  • Marginal note:New loan or interest-free period

    (6) If, before the last day of the apprenticeship program in which the borrower is registered at the time the event occurs, an event described in any of paragraphs (2)(b) to (f) occurs in respect of an apprentice loan made to a borrower, the borrower is entitled, if otherwise eligible, to a new apprentice loan or an interest-free period for that apprenticeship program.

  • Marginal note:Subsection (3) measures delayed

    (7) If the borrower receives a new apprentice loan or an interest-free period under subsection (6), the measures referred to in subsection (3) take effect on the earlier of

    • (a) the last day of the apprenticeship program, and

    • (b) the day that is three years after the applicable day for the event or, if that day falls during a technical training period, the last day of that period.

 
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