jswizzle3737/ontario_laws_and_regs huggingface dataset:
Application
 1. (1) This Regulation applies to every credit agreement entered into by a credit union, other than a credit agreement entered into for the business purposes of a borrower or a credit agreement entered into with a borrower who is not a natural person.  O. Reg. 238/09, s. 1 (1). (2) This Regulation applies to the renewal or on-going administration of a credit agreement entered into before this Regulation comes into force.  O. Reg. 238/09, s. 1 (2).
Definitions
 2. In this Regulation, “APR” means the cost of borrowing for a loan under a credit agreement expressed as an annual rate on the principal referred to in subsection 3 (1); (“TAC”) “borrower” includes a person to whom a loan is proposed to be made and a holder, or an applicant to become a holder, of a credit card; (“emprunteur”) “credit agreement” includes an agreement for a line of credit, a credit card or any kind of loan; (“convention de crédit”) “disbursement charge” means a charge, other than one referred to in subsection 5 (1), to recover an expense incurred by a credit union to arrange, document, insure or secure a credit agreement, and includes a charge referred to in clauses 5 (2) (c) and (f) to (h); (“frais de débours”) “high-ratio mortgage” means a mortgage under which the amount advanced, together with the amount outstanding under another mortgage that ranks equally with, or prior to, the mortgage loan exceeds 80 per cent of the market value of the property securing the loan; (“hypothèque à ratio élevé”) “principal” means the amount borrowed under a credit agreement but does not include any cost of borrowing; (“capital”) “public index” means an interest rate, or a variable base rate for an interest rate, that is published at least weekly in a newspaper or magazine of general circulation, or in some media of general circulation or distribution, in areas where borrowers whose credit agreements are governed by that interest rate reside. (“indice publié”)  O. Reg. 238/09, s. 2. Cost of Borrowing
Calculation of the APR
 3. (1) The cost of borrowing for a loan under a credit agreement, other than a loan obtained through the use of a credit card or line of credit, is the annual rate on the principal as calculated using the formula,  APR = 100 × C / (T × P) in which, “APR” is the annual percentage rate cost of borrowing, “C”  is the cost of borrowing within the meaning of section 5 over the term of the loan, “P”  is the average of the principal of the loan outstanding at the end of each period for the calculation of interest under the credit agreement, before subtracting any payment that is due at that time, and “T”  is the term of the loan in years, expressed to at least two decimal points of significance. O. Reg. 238/09, s. 3 (1). (2) For the purposes of subsection (1), (a)  the APR may be rounded off to the nearest eighth of a per cent; (b)  each instalment payment made on a loan must be applied first to the accumulated cost of borrowing and then to the outstanding principal; (c)  a period of, (i)  one month is 1/12 of a year, (ii)  one week is 1/52 of a year, and (iii)  one day is 1/365 of a year; (d)  if the annual interest rate underlying the calculation is variable over the period of the loan, it must be set as the annual interest rate that applies on the day that the calculation is made; (e)  if there are no instalment payments under a credit agreement, then the APR must be calculated on the basis that the outstanding principal is to be repaid in one lump sum at the end of the term of the loan; and (f)  a credit agreement for an amount that comprises, in whole or in part, an outstanding balance from a prior credit agreement is a new credit agreement for the purpose of the calculation.  O. Reg. 238/09, s. 3 (2). (3) The cost of borrowing for a loan obtained under a credit card agreement or line of credit is, (a)  if the loan has a fixed annual interest rate, that annual interest rate; or (b)  if the loan has a variable interest rate, the annual interest rate that applies on the date of the disclosure.  O. Reg. 238/09, s. 3 (3).
Annual interest rate as APR
 4. (1) The APR for a credit agreement is the annual interest rate if there is no cost of borrowing other than interest.  O. Reg. 238/09, s. 4 (1). (2) If an interest rate is disclosed in accordance with section 6 of the Interest Act (Canada), the APR must be calculated in a manner that is consistent with that section.  O. Reg. 238/09, s. 4 (2).
Included and excluded charges
 5. (1) Subject to subsection (2), the cost of borrowing for a loan under a credit agreement, other than an agreement for a credit card or line of credit, consists of all the costs of borrowing under the loan over its term, in particular the interest or discount that applies to the loan and includes the following charges: 1.  Administrative charges, including charges for services, transactions or any other activity in relation to the loan. 2.  Charges for the services, or disbursements, of a lawyer or notary that a credit union required the borrower to retain. 3.  Insurance charges other than those excluded under clauses (2) (a), (f) and (h). 4.  Charges for a broker, if the broker’s charges are included in the amount borrowed and are paid directly by the credit union to the broker. 5.  Charges for appraisal, inspection or surveying services, other than those mentioned in clause (2) (g), related to property that is security for a loan, if those services are required by the credit union.  O. Reg. 238/09, s. 5 (1). (2) The cost of borrowing for a loan does not include, (a)  charges for insurance on the loan, (i)  if the insurance is optional, or (ii)  if the borrower is its beneficiary and the amount insured reflects the value of an asset that is security for the loan; (b)  charges for an overdraft; (c)  charges paid to register documents or obtain information from a public registry about security interests related to property given as security; (d)  penalty charges for the prepayment of a loan; (e)  charges for the services, or disbursements, of a lawyer or notary, other than those mentioned in paragraph 2 of subsection (1); (f)  charges for insurance against defects in title to real property, (i)  if the borrower selects the insurer, (ii)  if the insurance is paid for directly by the borrower, and (iii)  if the borrower is the beneficiary of the insurance; (g)  charges for appraisal, inspection or surveying services provided directly to the borrower in relation to property that is security for a loan, if the borrower receives a report from the person providing the service and is entitled to give the report to third parties; (h)  charges for insurance against default on a high-ratio mortgage; (i)  charges to maintain a tax account that are required for a high-ratio mortgage or that are optional; (j)  any charge to discharge a security interest; or (k)  default charges.  O. Reg. 238/09, s. 5 (2). Disclosure to Borrowers
Manner of making disclosures
 6. (1) A credit union that grants credit must give the borrower a written disclosure statement that provides the information required by this Regulation.  O. Reg. 238/09, s. 6 (1). (2) A disclosure statement may be a separate document or may be part of a credit agreement or an application for a credit agreement.  O. Reg. 238/09, s. 6 (2). (3) Information disclosed in a disclosure statement may be based on an assumption or an estimate if the assumption or estimate is reasonable and if the information, (a)  cannot be known by the credit union when it makes the statement; and (b)  is identified to the borrower as an assumption or estimate.  O. Reg. 238/09, s. 6 (3). (4) A disclosure statement, or a consent in relation to a disclosure statement, must be written in plain language that is clear and concise and it must be presented in a manner that is logical and likely to bring to the borrower’s attention the information that is required to be disclosed.  O. Reg. 238/09, s. 6 (4). (5) If the borrower consents in writing, the disclosure statement may be provided by electronic means in an electronic form that the borrower can retrieve and retain.  O. Reg. 238/09, s. 6 (5).
Timing of initial disclosure
 7. (1) A credit union that proposes to enter into a credit agreement with a borrower must give the initial disclosure statement required by this Regulation to the borrower on or before the day that is the earlier of the day on which the borrower makes the first payment, other than a disbursement charge, in relation to the credit agreement and, (a)  two clear business days before the borrower and the credit union enter into the credit agreement, in the case of a credit agreement for a mortgage; or (b)  the day on which the borrower and the credit union enter into the credit agreement, in any other case.  O. Reg. 238/09, s. 7 (1). (2) Clause (1) (a) does not apply if the borrower consents in writing to being given the initial disclosure for the credit agreement on the day on which the borrower and the credit union enter into the credit agreement.  O. Reg. 238/09, s. 7 (2).
Disclosure – fixed interest loans for a fixed amount
 8. (1) A credit union that enters into a credit agreement for a loan for a fixed interest rate for a fixed amount, to be repaid on a fixed future date or by instalment payments, must give the borrower an initial disclosure statement that includes the following information: 1.  The principal amount of the loan. 2.  The amount of each advance of the principal and when each advance is to be made. 3.  The total amount of all payments. 4.  The cost of borrowing over the term of the loan, expressed in dollars and cents. 5.  The term of the loan, and the period of amortization if it is different from the term. 6.  The annual interest rate and the circumstances, if any, under which interest is compounded. 7.  The APR, if it differs from the annual interest rate. 8.  The date on and after which interest is charged and information concerning any period during which interest does not accrue. 9.  The amount of each payment and when it is due. 10.  The fact that each payment made on a loan must be applied first to pay the accumulated cost of borrowing and then to pay the outstanding principal. 11.  Information about any optional service in relation to the credit agreement that the borrower accepts, the charges for each optional service and the conditions under which the borrower may cancel the service, if that information is not disclosed in a separate statement before the optional service is provided. 12.  The information required by section 197.4 of the Act, including default charges that may be imposed under section 18 of this Regulation. 13.  The property, if any, in which the credit union takes a security interest under the credit agreement. 14.  Any charge paid for a broker, if the broker’s charges are included in the amount borrowed and are paid directly by the credit union to the broker. 15.  The fact that there is a charge to discharge a security interest and the amount of the charge on the day that the statement was provided. 16.  The nature and amount of any charge other than an interest charge.  O. Reg. 238/09, s. 8 (1). (2) If the outstanding balance of the loan is increased because the borrower has missed a scheduled instalment payment or because a default charge is levied on the borrower for missing a scheduled instalment payment, such that the amount of each of the subsequently scheduled instalment payments does not cover the interest accrued during the period for which a payment is scheduled, the credit union must give the borrower an additional disclosure statement within 30 days after the payment is missed or the default charge is levied and the disclosure statement must describe what occurred and  the consequences.  O. Reg. 238/09, s. 8 (2).
Disclosure – variable interest loans for a fixed amount
 9. (1) A credit union that enters into a credit agreement for a loan with a variable interest rate for a fixed amount, to be repaid on a fixed future date or by instalment payments, must give the borrower an initial disclosure statement that includes the following information: 1.  The information required by section 8. 2.  The annual rate of interest that applies on the date of the disclosure statement. 3.  The method for determining the annual interest rate that applies after the date of the disclosure statement and when that determination is made. 4.  The amount of each payment based on the annual interest rate that applies on the date of the disclosure statement and the dates when those payments are due. 5.  The total amount of all payments and of the cost of borrowing based on the annual interest rate that applies on the date of the disclosure statement. 6.  If the loan is to be paid by instalment payments and the amount to be paid is not adjusted automatically to reflect changes in the annual interest rate that apply to each instalment payment, i.  the annual interest rate above which the amount of a scheduled instalment payment on the initial principal does not cover the interest due on the instalment payment, and ii.  the fact that negative amortization is possible. 7.  If the loan does not have regularly-scheduled payments, i.  the conditions that must occur for the entire outstanding balance, or part of it, to become due, or ii.  the provisions of the credit agreement that set out those conditions.  O. Reg. 238/09, s. 9 (1). (2) If the variable interest rate for the loan is determined by adding or subtracting a fixed percentage rate of interest to or from a public index that is a variable rate, the credit union must give the borrower an additional disclosure statement at least once every 12 months that contains the following information: 1.  The annual interest rate at the beginning and end of the period covered by the disclosure statement. 2.  The outstanding balance at the beginning and end of the period covered by the disclosure statement. 3.  The amount of each instalment payment due under a payment schedule and the time when each payment is due, based on the annual interest rate that applies at the end of the period covered by the disclosure statement.  O. Reg. 238/09, s. 9 (2). (3) If the variable interest rate for the loan is determined by a method other than that referred to in subsection (2), the credit union must give the borrower an additional disclosure statement no more than 30 days after increasing the annual interest rate by more than 1 per cent above the most recently disclosed rate and the disclosure statement must contain the following information: 1.  The new annual interest rate and the date on which it takes effect. 2.  The amount of each instalment payment and the time when each payment is due, for payments that are affected by the new annual interest rate.  O. Reg. 238/09, s. 9 (3).
Disclosure – credit card applications
 11. (1) A credit union that issues credit cards and that distributes an application form for credit cards must specify the following information in the form or in a document accompanying it, including the date on which each of the matters mentioned takes effect: 1.  The annual interest rate for a credit card with a fixed rate of interest. 2.  If the credit card does not have a fixed rate of interest, the fact that the variable interest rate is determined by adding or subtracting a fixed percentage rate of interest to or from a public index, the public index and the fixed percentage rate to be added or subtracted from it. 3.  The day on and after which interest accrues and information concerning any grace period that applies. 4.  The amount of any charges other than interest charges.  O. Reg. 238/09, s. 11 (1). (2) Subsection (1) does not apply if, on the application form or in a document accompanying it, the credit union prominently discloses, (a)  a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the borrower may use to get information required by subsection (1) during the credit union’s regular business hours; and (b)  the fact that the applicant may obtain the information otherwise required by subsection (1) at that telephone number.  O. Reg. 238/09, s. 11 (2). (3) If an individual applies for a credit card by telephone or any electronic means, the  credit union must give the applicant the information required by paragraphs 1, 2 and 4 of subsection  (1) when the application is made.  O. Reg. 238/09, s. 11 (3). (4) If a credit union that issues credit cards solicits applications for them in person, by mail, by telephone or by any electronic means, the information required by paragraphs 1, 2 and 4 of subsection (1) must be disclosed at the time of the solicitation.  O. Reg. 238/09, s. 11 (4).
Disclosure after amendment to a credit agreement
 13. (1) Subject to subsection (2), if a credit agreement is amended by a subsequent agreement, the credit union must give the borrower a written statement within 30 days after the subsequent agreement is entered into, and the statement must describe the changes to the information in the initial disclosure statement for the credit agreement.  O. Reg. 238/09, s. 13 (1). (2) If a credit agreement for a fixed amount has a schedule for instalment payments and the schedule is amended by a subsequent agreement, the credit union must give the borrower a written statement within 30 days after the subsequent agreement is entered into, and the statement must set out the new payment schedule and any increase in the total amount to be paid or the cost of borrowing.  O. Reg. 238/09, s. 13 (2).
Disclosure – renewal of a mortgage
 14. (1) If a credit agreement for a loan secured by a mortgage is to be renewed on a specified date, the credit union must give the borrower an additional disclosure statement at least 21 days before the specified renewal date and the statement must contain the information required by, (a)  section 8, if the credit agreement is for a fixed interest rate; or (b)  section 9, if the credit agreement is for a variable interest rate.  O. Reg. 238/09, s. 14 (1). (2) The additional disclosure statement must specify that, (a)  the cost of borrowing will not be increased after the disclosure statement is given to the borrower and before the credit agreement is renewed; and (b)  the borrower’s rights under the credit agreement continue, and the renewal does not take effect, until the day that is the later of the specified renewal date and the day that is 21 days after the borrower receives the statement.  O. Reg. 238/09, s. 14 (2). (3) A credit union that does not intend to renew a credit agreement for a loan secured by a mortgage after its term ends shall notify the borrower of its intention at least 21 days before the end of the term.  O. Reg. 238/09, s. 14 (3).
Disclosure – offer to waive payment
 15. (1) If, under a credit agreement for a loan for a fixed amount, a credit union offers to waive a payment without waiving the accrual of interest during the period covered by the payment, the credit union must disclose to the borrower in a prominent manner in the offer that interest will continue to accrue during that period if the borrower accepts the offer.  O. Reg. 238/09, s. 15 (1). (2) If a credit union offers to waive a payment under a credit agreement for a line of credit or a credit card, the credit union must disclose to the borrower in a prominent manner in the offer whether interest will continue to accrue during any period covered by the offer if the borrower accepts the offer.  O. Reg. 238/09, s. 15 (2).
Disclosure – cancellation of optional services
 16. (1) A disclosure statement made in relation to a credit agreement under which optional services, including insurance services, are provided on an on-going basis must specify that, (a)  the borrower may cancel the optional service by notifying the credit union that the service is to be cancelled effective on the earlier of, (i)  one month after the day that the credit union gave the borrower the disclosure statement, and (ii)  the last day of the notice period, if any, provided for in the credit agreement; and (b)  the credit union shall, without delay, refund or credit the borrower with the proportional amount, calculated in accordance with the formula set out in subsection (2), of any charges for the service paid for by the borrower or added to the balance of the loan, but unused as of the cancellation date described in clause (a).  O. Reg. 238/09, s. 16 (1). (2) The proportion of charges to be refunded or credited to a borrower are calculated using the formula, R = A × (n – m) / n in which, “R”  is the amount to be refunded or credited, “A”  is the amount of the charges, “n”  is the period between the imposition of the charge and the time when the services were, before the cancellation, scheduled to end, and “m”  is the period between the imposition of the charge and the cancellation. O. Reg. 238/09, s. 16 (2). Payments and Charges
Prepayment of loans
 17. (1) This section applies to loans for fixed amounts of credit, except mortgage loans.  O. Reg. 238/09, s. 17 (1). (2) A borrower may prepay the outstanding balance under a credit agreement, at any time, without incurring any charge or penalty for making the prepayment.  O. Reg. 238/09, s. 17 (2). (3) If the borrower prepays the outstanding balance, the credit union must refund to the borrower or credit the borrower with the proportional amount of any charges, other than interest charges and disbursement charges, paid by the borrower or added to the balance, calculated in accordance with the formula set out in subsection (6).  O. Reg. 238/09, s. 17 (3). (4) A borrower may prepay part of the outstanding balance under a credit agreement, (a)  on the date of any scheduled payment, if payments are scheduled once a month or more often; or (b)  at any time but only once a month, in any other case.  O. Reg. 238/09, s. 17 (4). (5) A borrower who prepays part of the outstanding balance is not entitled to a refund or to a credit for charges other than interest charges.  O. Reg. 238/09, s. 17 (5). (6) The proportion of the charges to be refunded or credited to a borrower under this section is determined using the formula, R = A × (n – m) / n in which, “R”  is the amount to be refunded or credited, “A”  is the amount of the charges other than interest charges, “n”  is the period between the imposition of the charge and the scheduled end of the term of the loan, and “m”  is the period between the imposition of the charge and the prepayment. O. Reg. 238/09, s. 17 (6).
Default charges
 18. If a borrower under a credit agreement fails to make a payment when it becomes due or fails to comply with an obligation in the agreement, in addition to interest, the credit union may impose charges for the sole purpose of recovering the costs reasonably incurred, (a)  for legal services required to collect or attempt to collect the payment; (b)  for expenses incurred to realize on a security interest taken under the credit agreement or to protect such a security interest, including the cost of legal services required for that purpose; or (c)  for expenses incurred to process a cheque or other payment instrument that the borrower used to make a payment under the loan but that was dishonoured.  O. Reg. 238/09, s. 18. Advertising
Advertising – loan for a fixed amount
 19. (1) If a credit union advertises a loan involving a fixed amount of credit and if the advertisement includes a representation about the interest rate or the amount of any payment or of any charge other than interest, the advertisement must also include the APR and the term of the loan, and the APR must be provided at least as prominently as the representation and in the same manner as the representation is made, whether visually or aurally or both.  O. Reg. 238/09, s. 19 (1). (2) If the APR or the term of the loan is not the same for all loans to which the advertisement relates, the disclosure must be based on an example of a loan that fairly depicts those loans and is identified as a representative example of them.  O. Reg. 238/09, s. 19 (2).
Advertising – line of credit
 20. If a credit union advertises a loan involving a line of credit and if the advertisement includes a representation about the annual interest rate or the amount of any payment or of any charge other than interest, the advertisement must also include the annual rate of interest on the date of the advertisement and any initial or periodic charges other than interest and that information must be provided at least as prominently as the representation and in the same manner as the representation is made, whether visually or aurally or both.  O. Reg. 238/09, s. 20.
Advertising – credit card
 21. If a credit union advertises a credit card and if the advertisement includes a representation about the annual interest rate or the amount of any payment or of any charge other than interest, the advertisement must include the annual rate of interest on the date of the advertisement and any initial or periodic charges other than interest and that information must be provided at least as prominently as the representation and in the same manner as the representation is made, whether visually or aurally or both.  O. Reg. 238/09, s. 21.
Advertising – interest-free periods
 22. (1) If a credit union advertises that it will finance a transaction and if the advertisement includes a representation, express or implied, that a period of the loan is free of any interest charges, the advertisement must indicate whether interest accrues during the period and is payable after the period and that information must be provided at least as prominently as the representation, if it was express, or in a prominent manner, if it was implied.  O. Reg. 238/09, s. 22 (1). (2) If interest does not accrue during the period, the advertisement must also disclose any conditions that apply to the forgiving of the accrued interest and the APR, or the annual interest rate in the case of credit cards or lines of credit, for a period when those conditions are not met.  O. Reg. 238/09, s. 22 (2). Purchasing Insurance
Insurance
 23. (1) A borrower who is required by a credit union to purchase any insurance may purchase it from any insurer who may lawfully provide that type of insurance, except that the credit union may reserve the right to disapprove, on reasonable grounds, an insurer selected by the borrower.  O. Reg. 238/09, s. 23 (1). (2) A credit union who offers to provide or to arrange insurance referred to in subsection (1) must at the same time clearly disclose to the borrower in writing that the borrower may purchase the required insurance through an agent and from an insurer of the borrower’s choice.  O. Reg. 238/09, s. 23 (2). 24. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 238/09, s. 24.  Français