Northern Ontario Loan Insurance Regulations (SOR/88-503)

9 (1) Where a loan insurance agreement is entered into, an insurance fee is payable in advance by the lender to the Minister in accordance with the following formulae:

• (a) fee payable at the time of the first disbursement:

  A × B × 0.01

• (b) fee payable at the time of each subsequent disbursement:

  A × B × C ÷ 365 × 0.01

• (c) fee payable on each anniversary of the date of the first disbursement until the earlier of the date of formal demand and the date the loan is repaid:

  A × D × 0.01

  where

  “A”

  is the percentage of the loan that is insured under the loan insurance agreement,

  “B”

  is the amount of the disbursement,

  “C”

  is the number of days remaining between the date of the disbursement and the next anniversary date of the first disbursement, and

  “D”

  is the outstanding amount of the loan under the loan agreement on the anniversary date.

(2) An insurance fee paid by the lender under subsection (1) is not refundable.