Apprentice Loans Regulations
Marginal note:Denial of loan
6 (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),
(i) in the case of a borrower who has a permanent disability, the day that is 60 months after the day on which interest starts accruing under section 3; or
(ii) in any other case, the day on which the repayment assistance 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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