Apprentice Loans Regulations

Marginal note:New loan, interest-free period, repayment assistance

• 7 (1) Subject to subsection (6), a borrower who has been subject to a measure taken under subsection 6(3) or (4) because of the occurrence of an event described in paragraph 6(2)(a) or (h), is entitled to a new apprentice loan, another interest-free period and further repayment assistance under section 10 or 12 if

  • (a) an event described in paragraph 6(2)(g) or (i) has not occurred in respect of the borrower’s apprentice loans; and

  • (b) the borrower, in respect of an apprentice loan agreement for which a judgment has not been obtained, paid the interest accrued under the apprentice loan agreement and fulfilled the terms of a repayment arrangement entered into with the Minister, and that arrangement imposes no monetary obligation on the borrower more onerous than the equivalent of six consecutive payments made subsequent to that day in accordance with the apprentice loan agreement.

• Marginal note:Rights in subsection (1) apply

  (2) Subject to subsection (6), a borrower who is subject to a measure taken under subsection 6(3) because of the occurrence of an event described in any of paragraphs 6(2)(b) to (f) has the rights referred to in subsection (1) if

  • (a) an event described in paragraph 6(2)(g) or (i) has not occurred in respect of the borrower’s apprentice loans;

  • (b) the borrower has complied with paragraph (1)(b), if the borrower’s consumer proposal has been annulled or deemed annulled or the borrower is no longer subject to a provincial law relating to the orderly payment of debts for a reason other than full compliance with that law, and none of the events described in paragraph 6(2)(b), (c) and (e) has occurred;

  • (c) the borrower has been released from their apprentice loans for any reason other than one described in paragraph (b); or

  • (d) the borrower is released from their apprentice loans by virtue of an absolute order of discharge that has been granted under the Bankruptcy and Insolvency Act and three years have passed since the date of the order.

• Marginal note:Rights in subsection (1) apply

  (3) Subject to subsection (6), a borrower who is subject to a measure taken under subsection 6(3) or (4) because of the occurrence of the event described in paragraph 6(2)(g) has the rights referred to in subsection (1) if

  • (a) an event described in paragraph 6(2)(i) has not occurred in respect of the borrower’s apprentice loans;

  • (b) the borrower has been released from their apprentice loans that were outstanding on the day of the finding of guilt;

  • (c) in the event that the release referred to in paragraph (b) occurs by operation of an order of absolute discharge granted under the Bankruptcy and Insolvency Act, three years have passed since the date of the order; and

  • (d) five years have passed since the day of the finding of guilt or a pardon has been granted in respect of that finding.

• Marginal note:Rights in subsection (1) apply

  (4) A borrower, who has been the subject of a measure taken under subsection 6(3) or (4), has received an apprentice loan as a minor and has refused to ratify that loan as an adult, has the rights referred to in subsection (1) if

  • (a) the borrower ratifies the loan; and

  • (b) to the extent that they apply, the requirements set out in subsection (1), (2) or (3) are met.

• Marginal note:Rights in subsection (1) apply

  (5) Subject to subsection (6), a borrower who is subject to a measure taken under subsection 6(3) or (4) because of the occurrence of an event described in paragraph 6(2)(i) has the rights referred to in subsection (1) if the borrower has paid in full the outstanding balance of their apprentice loans.

• Marginal note:Judgment

  (6) If a judgment has been obtained against a borrower, the borrower is not entitled to the rights referred to in subsection (1) unless, in addition to fulfilling the requirements set out in subsection (1), (2) or (3), the borrower has been released from that judgment.