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Canada Small Business Financing Regulations

Version of section 27 from 2009-04-01 to 2014-03-31:

  •  (1) If the conditions set out in subsection (2) have been met, the Minister must pay the 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    • (a) [Repealed, SOR/2009-102, s. 17]

    • (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, when the charge or premium is expressed as a percentage of the outstanding amount of the loan and when the percentage that is attributable to the charge or premium is not clearly set out in the loan agreement.

  • (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;

    • (b) the lender has reimbursed the borrower for any resultant overcharges, unless the lender has provided the Minister with documentation that substantiates the fact that it is unable to locate the borrower; and

    • (c) the lender has otherwise remedied the non-compliance.

  • SOR/2009-102, ss. 17, 24(F)

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