Canada Small Business Financing Regulations

13 (1) A lender may require the borrower to pay to the lender, in addition to the registration fee referred to in section 11 of the Act,

• (a) any charge that would be charged by the lender for taking security in respect of a conventional loan of the same amount; and

• (b) any premium under a life or disability insurance policy that provides that a benefit is or may become payable to the lender, if the lender pays the premium under the loan agreement.

(2) A charge referred to in paragraph (1)(a) may not be expressed as a percentage of the outstanding amount of the loan.

(3) If a premium referred to in paragraph (1)(b) is expressed as a percentage of the outstanding amount of the loan, the premium may not be combined with the rate of interest payable in respect of the loan.