Application of Act
 1.1 (1) In this section, “consumer” means an individual acting for personal, family or household purposes and does not include a person who is acting for business purposes. O. Reg. 351/13, s. 2. (2) Subject to subsection (4), a loan is prescribed for the purposes of subsection 2 (2) of the Act if it is a loan under which a lender, except an entity or individual described in subsection (3), extends credit to a borrower who is a consumer so that the borrower may take one or more advances for up to an aggregate amount of principal and to which at least one of the following criteria applies: 1.  The borrower is not entitled to take an advance without obtaining authorization, approval or permission of any kind from the lender or any other person for taking the advance, whether or not there is a charge for obtaining the authorization, approval or permission. 2.  The amount that the borrower is required to pay in any 30-day period under the loan, except for the last such period, includes one or more payments totalling at least 20 per cent of the principal amount outstanding at the time of the last advance. O. Reg. 351/13, s. 2. (3) The following are the entities and individuals to which the exception mentioned in subsection (2) applies: 1.  A corporation without share capital to which Part III of the Corporations Act, the Not-for-Profit Corporations Act, 2010, Part II of the Canada Corporations Act, the Canada Not-for-Profit Corporations Act or comparable legislation of another province or territory of Canada applies. 2.  A registered charity within the meaning of the Income Tax Act (Canada). 3.  An individual, partnership, trust or an unincorporated body or association that does not carry on his, her or its activities for the purpose of gain or profit. 4.  A bank, authorized foreign bank or federal credit union within the meaning of section 2 of the Bank Act (Canada), a trust or loan corporation authorized under the Trust and Loan Companies Act (Canada), an association to which the Cooperative Credit Associations Act (Canada) applies, or an insurance company or fraternal benefit society incorporated or formed under the Insurance Companies Act (Canada). 5.  A registrant under the Securities Act, the Commodity Futures Act or comparable legislation of another province or territory of Canada. 6.  Credit unions to which the Credit Unions and Caisses Populaires Act, 2020 or comparable legislation of another province or territory of Canada applies. 7.  Insurers licensed under the Insurance Act or comparable legislation of another province or territory of Canada. O. Reg. 351/13, s. 2; O. Reg. 133/22, s. 1. (4) Subsection (2) does not apply to, (a)  a lease of real property; (b)  a loan that is secured against real property; (c)  a margin loan; (d)  a loan that meets the following conditions, if the lender does not have any other such loan outstanding with the borrower who is a consumer: (i)  there is only one advance, (ii)  the advance is for a fixed amount that is equal to the credit granted, (iii)  there is a fixed maturity date that is no earlier than six months after the making of the loan, and (iv)  the amount that the borrower is required to pay in any 30-day period under the loan, except for the last such period, does not include one or more payments totalling at least 20 per cent of the principal amount of the loan; (e)  an agreement under which a borrower who is a consumer, (i)  acquires goods or services by way of sale, lease or otherwise, where the goods or services are not an extension of credit or a loan of money, and (ii)  pays for the goods or services by instalments or lease payments, either directly to the provider of the goods or services or to a third party; or (f)  a loan that is secured against a borrower’s legal claim if, (i)  the security interest is registered, (ii)  the borrower has entered into a contingency fee agreement with a lawyer in respect of the claim, (iii)  a court action in respect of the claim was or will be commenced as a condition of the making of the loan, and (iv)  the amount of the claim is more than $25,000. O. Reg. 351/13, s. 2.