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;

• (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; and

• (c) any charge for the conversion of a conventional fixed rate loan to a conventional floating rate loan of the same amount, or a conventional floating rate loan to a conventional fixed rate loan of the same amount, or any charge for the prepayment of all or part of a loan that would be charged by the lender in respect of a conventional loan of the same amount.

(2) If a charge referred to in paragraph (1)(a) or a premium referred to in paragraph (1)(b) is expressed as a percentage of the outstanding amount of the loan, the charge or premium must not be combined with the rate of interest payable in respect of the loan unless the percentage that is attributable to the charge or premium is clearly set out in the loan agreement.

(3) [Repealed, SOR/2009-102, s. 13]