Cost of Borrowing (Trust and Loan Companies) Regulations

6 (1) For the purpose of subsection 436(1) of the Act, a company that grants credit must, in writing, provide the borrower with a disclosure statement that provides the information required by these Regulations to be disclosed.

(2) A disclosure statement may be a separate document or may be part of a credit agreement or an application for a credit agreement.

(3) Information disclosed in a disclosure statement may be based on an assumption or estimate if the assumption or estimate is reasonable and the information disclosed by it

• (a) cannot be known by the company when it makes the statement; and

• (b) is identified to the borrower as an assumption or estimate.

(4) A disclosure statement, or a consent in relation to a disclosure statement, must be in plain language that is clear and concise. It must be presented in a manner that is logical and likely to bring to the borrower’s attention the information required by these Regulations to be disclosed.

(5) If the borrower consents, in writing, the disclosure statement may be provided by electronic means in an electronic form that the borrower can retrieve and retain.

(6) A disclosure statement is deemed to be provided to the borrower

• (a) on the day recorded as the time of sending by the company’s server, if provided by electronic means;

• (b) on the day recorded as the time of sending by a fax machine, if provided by fax and the borrower has consented to receive it by fax;

• (c) five days after the postmark date, if provided by mail; and

• (d) when it is received, in any other case.