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Canada Small Business Financing Regulations

Version of section 29 from 2006-03-22 to 2014-03-31:

  •  (1) A lender may assign a loan to another lender at the request of the borrower if

    • (a) the Minister’s liability under subsection 6(2) of the Act in relation to the remaining loans of the transferor does not, as a result of the transfer, exceed the amount already paid by the Minister to the transferor; and

    • (b) the total number of loans transferred by the transferor under this section, during the period beginning at the start of the current five-year period referred to in subsection 6(1) of the Act and ending on the date of the transfer, does not exceed the greater of 20 and 1% of the number of loans made by the transferor during that period.

  • (2) The transferee must notify the Minister of the transfer in the form referred to in subsection (3). The Minister must determine whether the requirements set out in subsection (1) have been met and must notify both lenders of the determination.

  • (3) A form must be signed by the borrower and by both lenders and must include the loan registration number and the borrower’s acknowledgement that it has requested the transfer.

  • (4) The Minister’s liability under the Act continues in respect of any loss sustained by the transferee in respect of the loan.

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