Trust and Loan Companies Act

Marginal note:Additional disclosure

• 438 (1) Where a company makes a loan in respect of which the disclosure requirements of section 436 are applicable and the loan is required to be repaid either on a fixed future date or by instalments, the company shall disclose to the borrower, in accordance with the regulations,

  • (a) whether the borrower has the right to repay the amount borrowed before the maturity of the loan and, if applicable,

    • (i) any terms and conditions relating to that right, including the particulars of the circumstances in which the borrower may exercise that right, and

    • (ii) whether, in the event that the borrower exercises the right, any portion of the cost of borrowing is to be rebated, the manner in which any such rebate is to be calculated or, if a charge or penalty will be imposed on the borrower, the manner in which the charge or penalty is to be calculated;

  • (b) in the event that an amount borrowed is not repaid at maturity or, if applicable, an instalment is not paid on the day the instalment is due to be paid, particulars of the charges or penalties to be paid by the borrower because of the failure to repay or pay in accordance with the contract governing the loan;

  • (c) at such time and in such manner as may be prescribed, any changes respecting the cost of borrowing or the loan agreement as may be prescribed;

  • (d) particulars of any other rights and obligations of the borrower; and

  • (e) any other prescribed information, at such time and in such form and manner as may be prescribed.

• Marginal note:Disclosure in credit card applications

  (1.1) A company shall, in accordance with the regulations, at such time and in such manner as may be prescribed, provide prescribed information in any application forms or related documents that it prepares for the issuance of credit, payment or charge cards and provide prescribed information to any person applying to it for a credit, payment or charge card.

• Marginal note:Disclosure re credit cards

  (2) Where a company issues or has issued a credit, payment or charge card to a natural person, the company shall, in addition to disclosing the costs of borrowing in respect of any loan obtained through the use of the card, disclose to the person, in accordance with the regulations,

  • (a) any charges or penalties described in paragraph (1)(b);

  • (b) particulars of the person’s rights and obligations;

  • (c) any charges for which the person becomes responsible by accepting or using the card;

  • (d) at such time and in such manner as may be prescribed, any changes respecting the cost of borrowing or the loan agreement as may be prescribed; and

  • (e) any other prescribed information, at such time and in such form and manner as may be prescribed.

• Marginal note:Additional disclosure re other loans

  (3) Where a company enters into or has entered into an arrangement, including a line of credit, for the making of a loan in respect of which the disclosure requirements of section 436 apply and the loan is not a loan in respect of which subsection (1) or (2) applies, the company shall, in addition to disclosing the costs of borrowing, disclose to the person to whom the loan is made, in accordance with the regulations,

  • (a) any charges or penalties described in paragraph (1)(b);

  • (b) particulars of the person’s rights and obligations;

  • (c) any charges for which the person is responsible under the arrangement;

  • (d) at such time and in such manner as may be prescribed, any changes respecting the cost of borrowing under the arrangement as may be prescribed; and

  • (e) any other prescribed information, at such time and in such form and manner as may be prescribed.