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This enactment amends the Interest Act. It provides that a financial
institution that makes a mortgage or hypothec loan of five hundred
thousand dollars or less to a natural person must allow the person to
repay the loan before its maturity, in return for the payment of
prescribed interest in lieu of notice.
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The financial institutions to which this enactment applies are banks
to which the Bank Act applies, companies to which the Trust and Loan
Companies Act applies and foreign companies to which the Insurance
Companies Act applies.
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The enactment also provides that such financial institutions shall, in
the manner prescribed by regulation, include a statement in the
mortgage document written in plain language, in terms generally
understood by the public, explaining whether the borrower may repay
the mortgage loan before maturity and the circumstances in which the
borrower may exercise that right.
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