251. The portion of section 461 of the Act before paragraph (b) is replaced by the following:
Payments to shareholders from participating account	461. A company that has share capital may, from a participating account maintained pursuant to section 456, make a payment to its shareholders, or transfer an amount to an account (other than a participating shareholder account as defined in section 83.01) from which a payment can be made to its shareholders, if
	(a) the aggregate of the amounts so paid or transferred in respect of a financial year does not exceed the percentage of the portion of the profits of the participating account that is determined by the directors as the portion to be distributed for the financial year to the shareholders and participating policyholders, which percentage shall not exceed the number, expressed as a percentage, that is the aggregate of
	(i) 10 multiplied by the lesser of
	(A) the sum of the opening balances for the financial year of all participating accounts of the company, and
	(B) two hundred and fifty million dollars,
	(ii) 7.5 multiplied by the amount, if any, by which the lesser of
	(A) the sum of the opening balances for the financial year of all participating accounts of the company, and
	(B) five hundred million dollars
	exceeds two hundred and fifty million dollars,
	(iii) 5 multiplied by the amount, if any, by which the lesser of
	(A) the sum of the opening balances for the financial year of all participating accounts of the company, and
	(B) one billion dollars
	exceeds five hundred million dollars, and
	(iv) 2.5 multiplied by the amount, if any, by which the sum of the opening balances for the financial year of all participating accounts of the company exceeds one billion dollars,
	divided by the sum of the opening balances for the financial year of all the participating accounts;
	252. Section 462 of the Act is replaced by the following:
Transfers from participating account	462. The only transfers that may be made from a participating account maintained pursuant to section 456 are
	(a) transfers made pursuant to sections 461 and 463;
	(b) transfers made in respect of transfers or reinsurance of all or any portion of the participating policies in respect of which the participating account is maintained; and
	(c) transfers, with the approval of the Superintendent, of amounts that can reasonably be attributed to sources not related to the participating policies in respect of which the account is maintained.
	253. Subsection 469(2) of the Act is amended by striking out the word ``or'' at the end of paragraph (b), by adding the word ``or'' at the end of paragraph (c) and by adding the following after paragraph (c):
	(d) a loan secured by a mortgage where
	(i) the mortgage is taken back by the company on a property disposed of by the company, including where the disposition is by way of a realization of a security interest, and
	(ii) the mortgage secures payment of an amount payable to the company for the property.
	254. Subsections 474(2) and (3) of the Act are replaced by the following:
Exception	(2) Paragraph (1)(a) does not apply where the person on whose behalf the company has undertaken to guarantee a payment or repayment is a subsidiary of the company.
	255. Subsections 477(1) and (2) of the Act are replaced by the following:
Restriction on guarantees	477. (1) A property and casualty company shall not guarantee on behalf of any person other than itself the payment or repayment of any sum of money unless the person on whose behalf the company has undertaken to guarantee the payment or repayment is a subsidiary of the company and has an unqualified obligation to reimburse the company for the full amount of the payment or repayment to be guaranteed.
	256. Sections 479 and 480 of the Act are replaced by the following:
Definition of ``cost of borrowing''	479. For the purposes of this section and sections 479.1 to 487, ``cost of borrowing'' means, in respect of a loan or an advance on the security or against the cash surrender value of a policy made by a company,
	(a) the interest or discount applicable to the loan or advance; and
	(b) such charges in connection with the loan or advance as are payable by the borrower to the company, or to any person from whom the company receives any charges directly or indirectly, and as are prescribed to be included in the cost of borrowing.
	For those purposes, however, ``cost of borrowing'' does not include prescribed charges.
Rebate of borrowing costs	479.1 (1) Where a company makes a loan in respect of which the disclosure requirements of section 480 apply and the loan is not secured by a mortgage on real property and is required to be repaid either on a fixed future date or by instalments, the company shall, if there is a prepayment of the loan, rebate to the borrower a portion of the charges included in the cost of borrowing in respect of the loan.
Exception	(2) The charges to be rebated do not include the interest or discount applicable to the loan.
Regulations	(3) The Governor in Council may make regulations governing the rebate of charges under subsection (1). The rebate shall be made in accordance with those regulations.
Disclosing borrowing costs - loans	480. (1) A company shall not make a loan to a natural person that is repayable in Canada unless the cost of borrowing, as calculated and expressed in accordance with section 481, and other prescribed information have , in the prescribed manner and at the prescribed time , been disclosed by the company to the borrower.
Non-appli- cation	(2) Subsection (1) does not apply in respect of a loan that is of a prescribed class of loans.
	257. (1) Subparagraph 482(1)(a)(i) of the Act is replaced by the following:
	(i) any terms and conditions relating to that right, including the particulars of the circumstances in which the borrower may exercise that right, and
	(2) Subsection 482(1) of the Act is amended by striking out the word ``and'' at the end of paragraph (a) and by adding the following after paragraph (b):
	(c) at such time and in such manner as may be prescribed, any changes respecting the cost of borrowing or the loan agreement as may be prescribed;
	(d) particulars of any other rights and obligations of the borrower; and
	(e) any other prescribed information, at such time and in such form and manner as may be prescribed.
	(3) Subsection 482(2) of the Act is replaced by the following:
Disclosure re charge cards	(2) Where a company makes a loan to a natural person through the use of a credit, payment or charge card, the company shall, in addition to disclosing the costs of borrowing and any charges or penalties described in paragraph (1)(b), disclose to the person, in accordance with the regulations,
	(a) particulars of the person's rights and obligations;
	(b) any charges for which the person becomes responsible by accepting or using the card;
	(c) at such time and in such manner as may be prescribed, such changes respecting the cost of borrowing or the loan agreement as may be prescribed; and
	(d) any other prescribed information, at such time and in such form and manner as may be prescribed.
Additional disclosure re other loans	(3) Where a company under any arrangement, including a line of credit, makes a loan in respect of which the disclosure requirements of section 480 apply and the loan is not a loan in respect of which subsection (1) or (2) applies, the company shall, in addition to disclosing the costs of borrowing, disclose to the person to whom the loan is made, in accordance with the regulations,
	(a) any charges or penalties described in paragraph (1)(b);
	(b) particulars of the person's rights and obligations;
	(c) any charges for which the person is responsible under the arrangement;
	(d) at such time and in such manner as may be prescribed, such changes respecting the cost of borrowing under the arrangement as may be prescribed; and
	(e) any other prescribed information, at such time and in such form and manner as may be prescribed.
	258. Section 483 of the Act is replaced by the following:
Renewal statement	482.1 Where a company makes a loan in respect of which the disclosure requirements of section 480 apply and the loan is secured by a mortgage on real property, the company shall disclose to the borrower, at such time and in such manner as may be prescribed, such information as may be prescribed respecting the renewal of the loan.
Disclosure in advertising	483. No person shall authorize the publication, issue or appearance of any advertisement in Canada relating to loans offered to natural persons by a company and purporting to disclose any information about the cost of borrowing or other prescribed information unless the advertisement contains prescribed information in such form and manner as may be prescribed.
	259. Section 485 of the Act is replaced by the following:
Regulations re borrowing costs	485. The Governor in Council may make regulations
	(a) respecting the manner in which, and the time at which, a company is to disclose to a borrower
	(i) the cost of borrowing,
	(ii) any rebate of the cost of borrowing, and
	(iii) any other information relating to a loan referred to in section 482;
	(b) respecting the contents of any statement disclosing the cost of borrowing and other information required to be disclosed by a company to a borrower;
	(c) respecting the manner of calculating the cost of borrowing;
	(d) respecting the circumstances under which the cost of borrowing is to be expressed as an amount in dollars and cents;
	(e) specifying any class of loans that are not to be subject to section 479.1 or subsection 480(1) or 482(1) or (3) or section 482.1 or 483 or the regulations or any specified provisions of the regulations ;
	(f) specifying any class of advances that are not to be subject to section 484 or the regulations or any specified provisions of the regulations ;
	(g) respecting the manner in which and the time at which any rights, obligations, charges or penalties referred to in sections 479.1 to 484 are to be disclosed;
	(h) prohibiting the imposition of any charge or penalty referred to in section 482;
	(i) respecting the nature or amount of any charge or penalty referred to in section 482 and the costs of the company that may be included or excluded in the determination of the charge or penalty;
	(j) requiring any charge or penalty referred to in section 482 to be reasonable;
	(k) respecting the method of calculating the amount of rebate of the cost of borrowing, or the portion of the cost of borrowing referred to in subparagraph 482(1)(a)(ii);
	(l) respecting advertisements made by a company regarding loans;
	(m) respecting the renewal of loans; and
	(n) respecting such other matters or things as are necessary to carry out the purposes of sections 479.1 to 484.
	260. Paragraph 486(1)(a) of the Act is replaced by the following:
	(a) establish procedures for dealing with complaints made by customers of the company about
	(i) the application of charges applicable to arrangements referred to in subsection 482(3) or payment, credit or charge cards with the company, or
	(ii) the disclosure of or manner of calculating the cost of borrowing in respect of a loan or an advance on the security or against the cash surrender value of a policy made by the company;
	261. Subsection 487(1) of the Act is replaced by the following:
Contacting Superinten- dent	487. (1) If a customer of a company has a complaint about an arrangement referred to in subsection 482(3), a payment, credit or charge card or the disclosure of or manner of calculating the cost of borrowing in respect of a loan or an advance on the security or against the cash surrender value of a policy, the company shall, in the prescribed manner, provide the customer with prescribed information on how to contact the Office of the Superintendent of Financial Institutions.
	262. Paragraph 488(2)(b) of the Act is replaced by the following:
	(b) that is made for business purposes and the principal amount of which is more than $100,000 or such other amount as may be prescribed.
1996, c. 6, s. 80	263. Section 489 of the Act is replaced by the following:
Regulations re customer information	489. The Governor in Council may make regulations
	(a) requiring a company or society to establish procedures regarding the collection, retention, use and disclosure of any information about its customers or members or any class of customers or members;
	(b) requiring a company or society to establish procedures for dealing with complaints made by a customer or member about the collection, retention, use or disclosure of information about the customer or member;
	(c) respecting the disclosure by a company or society of information relating to the procedures referred to in paragraphs (a) and (b);
	(d) requiring a company or society to designate its officers and employees who are responsible for