SOR/92-32219925

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20196

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TRUST AND LOAN COMPANIES ACTDisclosure of Interest (Trust and Loan Companies) RegulationsRegulations Respecting the Disclosure of Interest Rates Relating to Deposit Accounts and Debt ObligationsP.C.1992-1097 19925

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His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 427 to 429 of the Trust and Loan Companies Act*, is pleased hereby to make the annexed Regulations respecting the disclosure of interest rates relating to deposit accounts and debt obligations, effective June 1, 1992.*S.C. 1991, c. 45Short Title

1These Regulations may be cited as the Disclosure of Interest (Trust and Loan Companies) Regulations.

Interpretation

2In these Regulations,Act means the Trust and Loan Companies Act; (Loi)deposit account means an interest-bearing deposit account. (compte de dépôt)point of service means a physical location to which the public has access and at which a company carries on business with the public and opens or initiates the opening of deposit accounts through natural persons in Canada. (point de service)SOR/2009-47, s. 1

Disclosure in Respect of Deposit Accounts

3(1)Subject to subsection (1.1), a company shall disclose to a person who requests the company to open a deposit account the rate of interest applicable to the deposit account and how the amount of interest to be paid is to be calculated(a)where a statement of account is provided in respect of the deposit account, by means of a written statement delivered to that person, at or before the time the deposit account is opened; or(b)where no statement of account is provided in respect of the deposit account, by means of(i)a written statement copies of which are available and displayed in each branch of the company where deposit accounts are kept, or(ii)a general notice that is displayed in each of the company’s branches where deposit accounts are kept, at each of the company’s points of service and on the company’s websites through which it offers deposit accounts in Canada.(1.1)In the case of the opening of a deposit account on a telephone request as contemplated by subsection 431(3) of the Act, a company must, not later than seven business days after the account is opened, provide to the customer a written statement that sets out the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.(2)A written statement and a general notice referred to in subsection (1) or a written statement referred to in subsection (1.1) shall include(a)the annual rate of interest;(b)the frequency of payment of interest;(c)the manner, if any, in which the balance in the deposit account affects the rate of interest; and(d)any other circumstance that affects the rate of interest.(3)A written statement referred to in subsection (1.1) that is sent to a customer by mail is deemed to be provided to the customer on the fifth day after the postmark date on the statement.SOR/2001-470, s. 1; SOR/2009-47, s. 2; SOR/2014-273, s. 37(F)

4Where there is a change in the rate of interest, or in the manner of calculating the amount of interest, that is applicable to a deposit account, the company shall disclose the changes by means of(a)a written statement delivered to the person in whose name the account is maintained;(b)a written statement copies of which are available and displayed in each branch of the company where deposit accounts are kept; or(c)a general notice that is displayed in each of the company’s branches where deposit accounts are kept, at each of the company’s points of service and on the company’s websites through which it offers deposit accounts in Canada.SOR/2009-47, s. 3; SOR/2014-273, s. 38(F)

5[Repealed, SOR/2009-47, s. 4]

Disclosure in Respect of Advertising

6For the purposes of section 428 of the Act, in all advertisements in respect of interest-bearing deposits or debt obligations, a company shall disclose how the amount of interest applicable to each deposit and debt obligation is to be calculated by means of a statement in the advertisement that clearly discloses(a)in respect of interest-bearing deposits, the manner, if any, in which the balance of a deposit account will affect the rate of interest; and(b)any other circumstance that will affect the rate of interest.