30 (1) A lender, on the request of the borrower, may make a loan for the purpose of repaying a loan made by another lender in an amount not greater than the outstanding amount of the loan of the other lender if
(a) the loan term is not longer than the applicable maximum term specified in subsection 6(2); and
(b) security of the same rank is maintained or taken by the lender on the assets that were used to secure the loan of the other lender.
(2) For the purposes of the Act and these Regulations, a loan that is made under subsection (1) is considered to be a loan of the same class as the loan of the other lender.
(3) For the purpose of paragraph (1)(a),
(a) the loan term for a loan referred to in any of paragraphs 5(1)(a) to (d) is the period beginning on the day on which the first payment of principal and interest is due in respect of the loan of the other lender and ending on the day on which the last payment of principal and interest is due in respect of the new loan; and
(b) the loan term for a loan referred to in paragraph 5(1)(e) is the period beginning on the day on which the loan is opened by the other lender.
(4) A lender that makes a loan under subsection (1) must notify the Minister of the making of the loan in the form referred to in subsection 29(3). The Minister must determine whether the requirements set out in subsection 29(1) have been met and must notify both lenders of the determination.
(5) Subsections 29(3) and (4) apply, with any modifications that the circumstances require, in respect of a loan made under this section.
- SOR/2009-102, s. 19
- SOR/2016-18, s. 8
- SOR/2022-157, s. 18
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