1st Session, 36th Parliament,
46-47 Elizabeth II, 1997-98

The House of Commons of Canada

BILL C-380

An Act to amend the Interest Act and An Act to amend certain laws relating to financial institutions (mortgage prepayment and consumer disclosure)

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

R.S. c. I-15; 1992, c. 1; 1993, c. 28; 1996, c. 17

INTEREST ACT

1. Subsection 10(1) of the Interest Act is replaced by the following:

When no further interest payable

10. (1) Whenever the person liable to pay principal money or interest secured by a mortgage on real property, or entitled to redeem the mortgage, at any time tenders or pays, to the person entitled to receive the money, the amount due for the principal money and interest to the time of payment, as calculated under sections 6 to 9, together with

    (a) three months further interest, or

    (b) the percentage of the amount of principal money outstanding that has been agreed on by the parties at the time the mortgage was first entered into or at a time when it was renewed,

in lieu of notice, no further interest shall be chargeable, payable or recoverable at any time thereafter on the principal money or interest due on the mortgage.

Exception

(1.1) Notwithstanding subsection (1), dur ing the first three months following the day the mortgage is first entered into and during the three months preceding the day the mortgage is to mature, the person liable to pay principal money or interest secured by a mortgage may, at any time, redeem the mortgage by paying the amount due for the principal money and interest at the time of payment.

1997 c. 15

AN ACT TO AMEND CERTAIN LAWS RELATING TO FINANCIAL INSTITUTIONS

2. Section 412 of An Act to amend certain laws relating to financial institutions is renumbered as subsection 412(1) and is amended by adding the following:

Limit re certain section

(2) Notwithstanding subsection (1), the date set for the coming into force of sections 49 to 54 and 379 to 384 shall be no later than April 1, 1998.