Acts and Regulations

2011, c.233 - Unconscionable Transactions Relief Act

Full text
Current to 16 June 2023
2011, c.233
Unconscionable Transactions Relief Act
Deposited May 13, 2011
1The following definitions apply in this Act.
“cost of the loan” means the whole cost to the debtor of money lent and includes interest, discount, subscription, premium, dues, bonus, commission, brokerage fees and charges, but not actual lawful and necessary disbursements made to a registrar of deeds, a clerk of The Court of King’s Bench of New Brunswick, a sheriff or a treasurer of a local government. (coût de l’emprunt)
“court” means a court having jurisdiction in an action for the recovery of a debt or money demand to the amount claimed by a creditor in respect of money lent. (cour)
“creditor” includes the person advancing money lent and the assignee of a claim arising or security given in respect of money lent. (créancier)
“debtor” means a person to whom or on whose account money lent is advanced and includes every surety and endorser or other person liable for the repayment of money lent or on an agreement or collateral or other security given in respect of it. (débiteur)
“money lent” includes money advanced on account of a person in a transaction that, whatever its form may be, is substantially one of moneylending or securing the repayment of money so advanced and includes a charge on any property for securing money or money’s worth. (somme prêtée)
R.S.1973, c.U-1, s.1; 1979, c.41, s.124; 2005, c.7, s.86; 2017, c.20, s.175; 2023, c.17, s.273
Powers of court
2If, in respect of money lent, the court finds that, having regard to the risk and to all the circumstances, the cost of the loan is excessive and that the transaction is harsh and unconscionable, the court may
(a) reopen the transaction and take an account between the creditor and the debtor;
(b) despite a statement or settlement of account or an agreement purporting to close previous dealings and create a new obligation, reopen an account already taken and relieve the debtor from payment of a sum in excess of the sum adjudged by the court to be fairly due in respect of the principal and the cost of the loan;
(c) order the creditor to repay the excess if it has been paid or allowed on account by the debtor;
(d) set aside, either wholly or in part, or revise or alter a security given or agreement made in respect of the money lent, and, if the creditor has parted with the security, order the creditor to indemnify the debtor.
R.S.1973, c.U-1, s.2
When powers may be exercised
3The powers conferred by section 2 may be exercised
(a) in an action or proceeding by a creditor for the recovery of money lent;
(b) in an action or proceeding by the debtor despite a provision or agreement to the contrary and despite that the time for repayment of the loan or an instalment of it has not arrived;
(c) in an action or proceeding in which the amount due or to become due in respect of money lent is in question.
R.S.1973, c.U-1, s.3
4Nothing in this Act affects the rights of an assignee or holder for value without notice who is acting in good faith, or derogates from the existing powers or jurisdiction of any court.
R.S.1973, c.U-1, s.5
N.B. This Act was proclaimed and came into force September 1, 2011.
N.B. This Act is consolidated to June 16, 2023.