Canada Student Loans Act — S-23 19.2
Application 19.2 (1) This section applies only in respect of the recovery of money that became due and payable under a guaranteed student loan before the coming into force of this section. Limitation period (2) Subject to this section, no action or proceedings shall be taken to recover money owing under a guaranteed student loan more than six years after the day on which the limitation period that applied before the coming into force of this section started to run. Prior acknowledgments (3) For the purposes of subsection (2), the day of the most recent acknowledgment of a borrower’s liability in respect of money owing under a guaranteed student loan is deemed to be the day on which the limitation period started to run if (a) the acknowledgment was made before the coming into force of this section; and (b) under the law applicable at the time of the acknowledgment, the time during which the limitation period ran before the acknowledgment did not count in the calculation of that period. Deduction and set-off (4) Money owing under a guaranteed student loan may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the borrower or the estate or succession of the borrower. Acknowledgment of liability (5) If, on or after the day on which this section comes into force, a borrower’s liability for money owing under a guaranteed student loan is acknowledged in accordance with subsection (6), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period. Types of acknowledgments (6) For the purposes of subsections (5) and (7), an acknowledgment of liability means (a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative; (b) a written acknowledgment of the money owing, signed by the borrower or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay; (c) a part payment by the borrower or his or her agent or other representative of any money owing; or (d) any acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts. Acknowledgment after expiry of limitation period (7) If, after the expiry of the limitation period in respect of a guaranteed student loan — including any limitation period that expired before the coming into force of this section — and on or after the day on which this section comes into force, a borrower’s liability for money owing under the loan is acknowledged in accordance with subsection (6), an action or proceedings to recover the money may, subject to subsections (5) and (8), be brought within six years after the date of the acknowledgment. Limitation period suspended (8) The running of a limitation period in respect of a guaranteed student loan is, commencing on the day on which this section comes into force, suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan. Statutory bar (9) Subject to subsection (7), if the limitation period in respect of a guaranteed student loan expired before the coming into force of this section, no action or proceeding shall be taken to recover money owing under the loan. Enforcement proceedings (10) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment. 2003, c. 15, s. 13