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Cost of Borrowing (Trust and Loan Companies) Regulations

Version of section 6 from 2006-03-22 to 2009-12-31:

  •  (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.


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