Forfeiture of Bonds
22. (1) In this section, “denominator” means the sum of the balances of the obligation at the beginning of the contract and at the end of each period in accordance with the schedule of payments required as originally required as originally scheduled; (“dénominateur”) “lender” includes any assignee of the lender; (“prêteur”) “numerator” means the sum of the balances at the beginning of the contract and the balances unpaid at the end of each period up to the date of full payment of the total obligation; (“numérateur”) “obligation” means the total amount payable when the contract was entered into; (“engagement”) “period” means an interval of time not in excess of thirty-one days; (“période”) “unit” means the amount produced by dividing the obligation by the number of months in the contract. (“unité”) R.R.O. 1990, Reg. 176, s. 22 (1). (2) Subject to subsections (4), (5), (6), (7), (8), (9) and (10), where an amount, due under an extension of credit wherein the cost of borrowing is precomputed, is paid in advance of the due date, the lender may retain a proportion of the cost of borrowing calculated, when the amount of the obligation is fully paid, by dividing the numerator by the denominator, so long as the period in the numerator is equal to the period in the denominator, to produce a fraction, which fraction shall be multiplied by the cost of borrowing and the resultant sum is the amount to be retained by the lender. R.R.O. 1990, Reg. 176, s. 22 (2). (3) Where the original term of the transaction is varied by one or more extensions of payment, the extended payment or payments shall be deemed to have been made as originally scheduled. R.R.O. 1990, Reg. 176, s. 22 (3). (4) Subject to subsections (5) and (6), the lender shall allow the borrower a rebate of the cost of borrowing less the retention allowed the lender under subsection (2). R.R.O. 1990, Reg. 176, s. 22 (4). (5) Except where the prepayment is made under an arrangement for refinancing or for the extension of additional credit, the lender is entitled, in addition to the amount allowed under subsection (2), to retain an amount equal to not more than $20 or one-half of the rebate as computed in subsection (4), whichever is the lesser, and the borrower is entitled to a rebate of the remainder of the cost of borrowing. R.R.O. 1990, Reg. 176, s. 22 (5). (6) Where the rebate required to be given under subsection (4) is less than $2, the borrower is not entitled to the rebate. R.R.O. 1990, Reg. 176, s. 22 (6). (7) Where a payment is received after it had become due, the lender may deem that the payment had been received on the instalment due date. R.R.O. 1990, Reg. 176, s. 22 (7). (8) Where a payment is received before it is due, the lender shall deem that the payment has been received not later than the end of the period in which the payment has been received. R.R.O. 1990, Reg. 176, s. 22 (8). (9) Where a regular payment contract requires payments monthly or more frequently or less frequently than monthly and the obligation is paid in full before the term of the contract has expired, the obligation shall be deemed by the lender to have been substantially prepaid if the actual balance due, exclusive of default charges, at the end of the period immediately preceding the date of the payment in full plus the greater of one unit or 15 per cent of the obligation is less than the balance at the end of the preceding period as such balance was originally scheduled. R.R.O. 1990, Reg. 176, s. 22 (9). (10) Despite subsection (8), where the obligation has not been substantially prepaid as described in subsection (9), the lender may deem that the balances in the numerator are identical to the balances in the denominator up to the end of the period preceding the payment in full or up to the end of the period in which the payment in full is made, whichever period date is nearest to the actual date of the payment in full. R.R.O. 1990, Reg. 176, s. 22 (10).