Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Canada Small Business Financing Regulations (SOR/99-141)

Regulations are current to 2022-11-16 and last amended on 2022-07-04. Previous Versions

  •  (1) A lender, in addition to the primary security referred to in section 14, may take one or more unsecured personal guarantees or suretyships for an amount of not more than the aggregate of

    • (a) in the case of a loan made before April 1, 2014, 25% of the original amount of the loan, and in the case of a loan made after March 31, 2014, the original amount of the loan,

    • (b) interest on any judgment against the guarantor or surety,

    • (c) taxed costs for, or incidental to, the legal proceedings against the guarantor or surety, and

    • (d) legal fees and disbursements — other than costs referred to in paragraph (c) — and other costs incurred by the lender for services rendered to it by persons other than its employees for the purpose of the legal proceedings against the guarantor or surety.

  • (2) If a lender takes more than one personal guarantee or suretyship, the guarantees or suretyships must state that the aggregate liability of the guarantors or sureties may not exceed the aggregate amount referred to in subsection (1).

  • SOR/2014-7, s. 12
Date modified: