Document ID: chunk:federal_register_of_legislation:F2024C00882:reg:106
Version: federal_register_of_legislation:F2024C00882
Segment Type: reg
Provision Reference: reg 106
Character Range: 385869–387813

106  Tolerances relating to disclosures
 (1) For paragraph 180(1)(a) of the Code:
 (a) information about a percentage rate that contains more than 4 decimal places is within permissible tolerances if it is rounded‑off to not less than 4 decimal places (so long as it is correct to the nearest fourth decimal place); and
 (b) information about any amount payable that includes a fraction of a cent is within permissible tolerances if it is rounded‑off to the nearest whole cent.
 (2) For paragraph 180(1)(a) of the Code, information about any amount payable that:
 (a) depends for its accuracy on an interest charge that is correct only because of a permissible tolerance under subsection (1); and
 (b) is not inaccurate for any other reason;
is also within permissible tolerances.
 (3) For this regulation and regulation 107:
 (a) a percentage rate may be rounded up to the nearest highest fourth decimal place only if the part of the rate being rounded up exceeds 0.00005; and
 (b) a fraction of a cent may be rounded up to the nearest highest whole cent only if the fraction being rounded up exceeds 0.5 cents.
Note: Section 180 of the Code provides that information disclosed in a precontractual statement or contract document etc under the Code is taken to be correctly disclosed if it is within tolerances allowed by the regulations and the disclosure is made as at a date stated in it.
 (4) For paragraph 180(1)(a) of the Code, information disclosed about:
 (a) interest charges or repayments payable; or
 (b) credit fees or charges that are government fees or government charges;
is within permissible tolerances if it overstates the amount or amounts payable.
 (5) However, an overstatement mentioned in subregulation (4):
 (a) does not affect the amounts payable under the credit contract; and
 (b) is not within permissible tolerances for section 181 of the Code unless it is within permissible tolerances because of regulation 107.