Budget Implementation Act, 2009 (S.C. 2009, c. 2)

• (c) 10%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it before April 1, 2009 that exceeds $500,000, and

• (d) 12%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it after March 31, 2009 that exceeds $500,000.

Marginal note:Maximum loan size

• 7. (1) The Minister is not liable to make any payment to a lender, in respect of any loss sustained by it as a result of a loan made to a borrower, if the borrower has disclosed to the lender the outstanding amount of the loan or the lender has actual knowledge of that amount and if the outstanding loan amount in relation to the borrower is more than

  • (a) in the case of a loan made before April 1, 2009, $250,000 or any prescribed lesser amount; and

  • (b) in the case of a loan made after March 31, 2009, $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner.

• d) l’émission de cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, l’exploitation d’un système de telles cartes.

Marginal note:Restriction on charges to borrowers

• 418.1 (1) Subject to any regulations made under subsection (2), a bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the bank of the insurance or guarantee.

• Marginal note:Regulations

  (2) The Governor in Council may make regulations

  • (a) respecting the determination of the actual cost to a bank for the purposes of subsection (1);

  • (b) respecting the circumstances in which a bank is exempt from the application of subsection (1);

  • (c) respecting, in relation to insurance or a guarantee against default on a loan made by a bank in Canada on the security of residential property,

    • (i) the arrangements into which the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not enter, and

    • (ii) the payments or benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not accept from an insurer or the insurer’s affiliates; and

  • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

• Marginal note:Regulations — disclosure

  (3) The Governor in Council may make regulations respecting the disclosure by a bank of information relating to insurance or a guarantee against default on a loan made by the bank in Canada on the security of residential property, including regulations respecting

  • (a) the information that must be disclosed, including information relating to

    • (i) the person who benefits from the insurance or guarantee,

    • (ii) the arrangements between

      • (A) the bank or any affiliates that it controls, or the representatives or the employees of each, and

      • (B) the insurer or the insurer’s affiliates, and

    • (iii) the payments and benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, accept from an insurer or the insurer’s affiliates;

  • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

  • (c) the circumstances under which a bank is not required to disclose information.