Document ID: chunk:federal_register_of_legislation:F2024C00882:reg:76
Version: federal_register_of_legislation:F2024C00882
Segment Type: reg
Provision Reference: reg 76
Character Range: 332556–334693

76  Calculation of unpaid daily balances
 (1) This regulation applies to the calculation of average unpaid daily balances if interest charges under a credit contract are determined under subsection 28(2) of the Code for a month, a quarter or a half‑year by applying the relevant fraction of the annual percentage rate.
 (2) The actual unpaid daily balances for each day in the month, quarter or half‑year concerned are to be added together and divided by the total number of days in the whole of that month, quarter or half‑year.
 (3) If the annual percentage rate applies to part (but not the whole) of the month, quarter or half‑year, the calculation of the average unpaid daily balances for that part is to be made by adding together the actual unpaid daily balances for each day in that part and dividing the sum obtained by the total number of days in that month, quarter or half‑year.
 (4) If the last day or days of the month, quarter or half‑year fall on a non‑business day or days, the average unpaid daily balances for the month, quarter or half‑year may be calculated without reference to the unpaid daily balances for the non‑business day or days.
 (5) In the event mentioned in subregulation (4), the unpaid daily balances for the non‑business day or days must be included in the next month, quarter or half‑year for the purposes of calculating the average unpaid daily balances for that next month, quarter or half‑year.
Note: Subsection 28(1) of the Code limits the maximum amount of an interest charge that may be imposed or provided under a credit contract generally to an amount determined by applying the daily percentage rate to the unpaid daily balances (as defined in section 27 of the Code).
 However, subsection 28(2) of the Code allows an interest charge for a month, a quarter or half‑year to be determined by applying the annual percentage rate or rates, divided by:
(a) 12 (for a month); or
(b) by 4 (for a quarter); or
(c) by 2 (for a half‑year);
 to the relevant average unpaid daily balances for the period. The regulations may provide for the calculation of unpaid daily balances in these circumstances.