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Canada Small Business Financing Regulations

Version of section 27 from 2006-03-22 to 2009-03-31:

  •  (1) If the conditions set out in paragraphs (2)(a) and (b) have been met, the Minister must pay to a lender the amount of any loss, calculated in accordance with subsection 38(7), sustained in respect of a loan despite any of the following non-compliances:

    • (a) the loan term is longer than the maximum period specified in paragraph 6(b);

    • (b) a fee or charge is payable, other than a fee or charge referred to in section 10 of the Act;

    • (c) the rate of interest payable in respect of the loan is greater than the rate provided by section 12; or

    • (d) a charge or premium referred to in section 13 is combined with the rate of interest payable in respect of the loan.

  • (2) The Minister must make a payment to a lender under subsection (1) if

    • (a) the loss was not affected by the non-compliance and the non-compliance was inadvertent; and

    • (b) the lender has reimbursed the borrower for any resultant overcharges and has otherwise remedied the non-compliance.

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