Acts and Regulations

2010-104 - General

Section 19
Disposition versions

Full text
Acceleration clause
19(1)In this section, “acceleration clause” means a clause in a credit agreement that provides that, on default by the borrower or in any other circumstance provided by the credit agreement, the credit grantor may accelerate payment by the borrower so as to require repayment of the whole or part of the outstanding balance of the credit agreement.
19(2)Subject to subsection (4), if a credit grantor wishes to accelerate payment by the borrower in accordance with an acceleration clause, the credit grantor shall provide written notice to the borrower of the credit grantor’s intention to accelerate payment.
19(3)The notice
(a) shall be delivered personally to the borrower or be sent by registered mail to the last known address of the borrower, and
(b) shall contain
(i) a description of the default by the borrower or other circumstance giving rise to the right to accelerate payment, and
(ii) a statement that, unless the default or other circumstance is remedied within 10 business days after notice was delivered or sent under paragraph (a), the whole of the outstanding balance or part of the outstanding balance, as the case may be, will become due and payable.
19(4)Despite anything to the contrary in a credit agreement, the whole or part of the outstanding balance does not become due and payable if
(a) notice is not provided in accordance with this section, or
(b) the default or other circumstance is remedied within the period referred to in subparagraph (3)(b)(ii).
19(5)Subsection 19(2) of the Act does not apply to a notice referred to in subsection (2).
19(6)This section does not apply in respect of credit agreements in relation to mortgage loans or in respect of credit agreements entered into before the commencement of this subsection.
Acceleration clause
19(1)In this section, “acceleration clause” means a clause in a credit agreement that provides that, on default by the borrower or in any other circumstance provided by the credit agreement, the credit grantor may accelerate payment by the borrower so as to require repayment of the whole or part of the outstanding balance of the credit agreement.
19(2)Subject to subsection (4), if a credit grantor wishes to accelerate payment by the borrower in accordance with an acceleration clause, the credit grantor shall provide written notice to the borrower of the credit grantor’s intention to accelerate payment.
19(3)The notice
(a) shall be delivered personally to the borrower or be sent by registered mail to the last known address of the borrower, and
(b) shall contain
(i) a description of the default by the borrower or other circumstance giving rise to the right to accelerate payment, and
(ii) a statement that, unless the default or other circumstance is remedied within 10 business days after notice was delivered or sent under paragraph (a), the whole of the outstanding balance or part of the outstanding balance, as the case may be, will become due and payable.
19(4)Despite anything to the contrary in a credit agreement, the whole or part of the outstanding balance does not become due and payable if
(a) notice is not provided in accordance with this section, or
(b) the default or other circumstance is remedied within the period referred to in subparagraph (3)(b)(ii).
19(5)Subsection 19(2) of the Act does not apply to a notice referred to in subsection (2).
19(6)This section does not apply in respect of credit agreements in relation to mortgage loans or in respect of credit agreements entered into before the commencement of this subsection.