Acts and Regulations

C-28.3 - Cost of Credit Disclosure and Payday Loans Act

Section 1
Disposition versions

Full text
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“cash customer” means a person who buys a product and who provides full payment for the product at or before the time of its receipt; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an associate of the credit grantor, does not currently offer the product to cash customers, the price stated in the advertisement,
and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission)
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“compliance officer” means a person appointed as a compliance officer under section 51.12;(agent de conformité)
“Court” means The Court of King’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) except in the case of a credit agreement in relation to a payday loan, the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“Director” means the Director of Consumer Affairs appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Commission or the Director to act on the Director’s behalf; (directeur)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“Internet payday loan” means an Internet payday loan as defined in section 37.1;(prêt sur salaire par Internet)
“investigator” means a person appointed as an investigator under section 51.31;(enquêteur)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Finance and Treasury Board and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payday loan” means a payday loan as defined in section 37.1;(prêt sur salaire)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“Registrar” Repealed: 2017, c.48, s.4
“regulated activity” means any activity governed by this Act or the regulations;(activité réglementée)
“regulation” means a regulation made under this Act and, unless the context otherwise indicates, includes a rule as defined in section 37.1;(règlement)
“scheduled-payments credit agreement” means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified schedule of payments, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default;
“Tribunal” means the Tribunal as defined in the Financial and Consumer Services Commission Act.(Tribunal)
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) money paid or to be paid, an expense incurred or to be incurred, or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47; 2008, c.3, s.1; 2012, c.39, s.56; 2013, c.31, s.11; 2014, c.31, s.1; 2016, c.37, s.40; 2016, c.40, s.1; 2016, c.40, s.2; 2017, c.48, s.4; 2019, c.12, s.6; 2019, c.29, s.36; 2023, c.6, s.8; 2023, c.17, s.47
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“cash customer” means a person who buys a product and who provides full payment for the product at or before the time of its receipt; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an associate of the credit grantor, does not currently offer the product to cash customers, the price stated in the advertisement,
and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission)
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“compliance officer” means a person appointed as a compliance officer under section 51.12;(agent de conformité)
“Court” means The Court of Queen’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) except in the case of a credit agreement in relation to a payday loan, the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“Director” means the Director of Consumer Affairs appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Commission or the Director to act on the Director’s behalf; (directeur)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“Internet payday loan” means an Internet payday loan as defined in section 37.1;(prêt sur salaire par Internet)
“investigator” means a person appointed as an investigator under section 51.31;(enquêteur)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Finance and Treasury Board and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payday loan” means a payday loan as defined in section 37.1;(prêt sur salaire)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“Registrar” Repealed: 2017, c.48, s.4
“regulated activity” means any activity governed by this Act or the regulations;(activité réglementée)
“regulation” means a regulation made under this Act and, unless the context otherwise indicates, includes a rule as defined in section 37.1;(règlement)
“scheduled-payments credit agreement” means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified schedule of payments, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default;
“Tribunal” means the Tribunal established under the Financial and Consumer Services Commission Act.(Tribunal)
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) money paid or to be paid, an expense incurred or to be incurred, or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47; 2008, c.3, s.1; 2012, c.39, s.56; 2013, c.31, s.11; 2014, c.31, s.1; 2016, c.37, s.40; 2016, c.40, s.1; 2016, c.40, s.2; 2017, c.48, s.4; 2019, c.12, s.6; 2019, c.29, s.36
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“cash customer” means a person who buys a product and who provides full payment for the product at or before the time of its receipt; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an associate of the credit grantor, does not currently offer the product to cash customers, the price stated in the advertisement,
and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission)
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“compliance officer” means a person appointed as a compliance officer under section 51.12;(agent de conformité)
“Court” means The Court of Queen’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) except in the case of a credit agreement in relation to a payday loan, the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“Director” means the Director of Consumer Affairs appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Commission or the Director to act on the Director’s behalf; (directeur)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“Internet payday loan” means an Internet payday loan as defined in section 37.1;(prêt sur salaire par Internet)
“investigator” means a person appointed as an investigator under section 51.31;(enquêteur)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Finance and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payday loan” means a payday loan as defined in section 37.1;(prêt sur salaire)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“Registrar” Repealed: 2017, c.48, s.4
“regulated activity” means any activity governed by this Act or the regulations;(activité réglementée)
“regulation” means a regulation made under this Act and, unless the context otherwise indicates, includes a rule as defined in section 37.1;(règlement)
“scheduled-payments credit agreement” means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified schedule of payments, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default;
“Tribunal” means the Tribunal established under the Financial and Consumer Services Commission Act.(Tribunal)
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) money paid or to be paid, an expense incurred or to be incurred, or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47; 2008, c.3, s.1; 2012, c.39, s.56; 2013, c.31, s.11; 2014, c.31, s.1; 2016, c.37, s.40; 2016, c.40, s.1; 2016, c.40, s.2; 2017, c.48, s.4; 2019, c.12, s.6
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“cash customer” means a person who buys a product and who provides full payment for the product at or before the time of its receipt; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an associate of the credit grantor, does not currently offer the product to cash customers, the price stated in the advertisement,
and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission)
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“compliance officer” means a person appointed as a compliance officer under section 51.12;(agent de conformité)
“Court” means The Court of Queen’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) except in the case of a credit agreement in relation to a payday loan, the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“Director” means the Director of Consumer Affairs appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Commission or the Director to act on the Director’s behalf; (directeur)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“Internet payday loan” means an Internet payday loan as defined in section 37.1;(prêt sur salaire par Internet)
“investigator” means a person appointed as an investigator under section 51.31;(enquêteur)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Finance and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payday loan” means a payday loan as defined in section 37.1;(prêt sur salaire)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“Registrar” Repealed: 2017, c.48, s.4
“regulated activity” means any activity governed by this Act or the regulations;(activité réglementée)
“regulation” means a regulation made under this Act and, unless the context otherwise indicates, includes a rule as defined in section 37.1;(règlement)
“scheduled-payments credit agreement” means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified schedule of payments, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default;
“Tribunal” means the Tribunal established under the Financial and Consumer Services Commission Act.(Tribunal)
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) money paid or to be paid, an expense incurred or to be incurred, or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47; 2008, c.3, s.1; 2012, c.39, s.56; 2013, c.31, s.11; 2014, c.31, s.1; 2016, c.37, s.40; 2016, c.40, s.1; 2016, c.40, s.2; 2017, c.48, s.4
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“cash customer” means a person who buys a product and who provides full payment for the product at or before the time of its receipt; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an associate of the credit grantor, does not currently offer the product to cash customers, the price stated in the advertisement,
and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission)
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“compliance officer” means a person appointed as a compliance officer under section 51.12;(agent de conformité)
“Court” means The Court of Queen’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) except in the case of a credit agreement in relation to a payday loan, the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“Director” means the Director of Consumer Affairs appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Commission or the Director to act on the Director’s behalf; (directeur)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“Internet payday loan” means an Internet payday loan as defined in section 37.1;(prêt sur salaire par Internet)
“investigator” means a person appointed as an investigator under section 51.31;(enquêteur)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Finance and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payday loan” means a payday loan as defined in section 37.1;(prêt sur salaire)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“Registrar” means the Registrar of the Tribunal appointed under the Financial and Consumer Services Commission Act;(greffier)
“regulated activity” means any activity governed by this Act or the regulations;(activité réglementée)
“regulation” means a regulation made under this Act and, unless the context otherwise indicates, includes a rule as defined in section 37.1;(règlement)
“scheduled-payments credit agreement” means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified schedule of payments, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default;
“Tribunal” means the Tribunal established under the Financial and Consumer Services Commission Act.(Tribunal)
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) money paid or to be paid, an expense incurred or to be incurred, or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47; 2008, c.3, s.1; 2012, c.39, s.56; 2013, c.31, s.11; 2014, c.31, s.1; 2016, c.37, s.40; 2016, c.40, s.1; 2016, c.40, s.2
Definitions
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“cash customer” means a person who buys a product and who provides full payment for the product at or before the time of its receipt; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an associate of the credit grantor, does not currently offer the product to cash customers, the price stated in the advertisement,
and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission)
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“Court” means The Court of Queen’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“Director” means the Director of Consumer Affairs appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Commission or the Director to act on the Director’s behalf; (directeur)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Finance and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“Registrar” means the Registrar of the Tribunal appointed under the Financial and Consumer Services Commission Act;(greffier)
“scheduled-payments credit agreement” means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified schedule of payments, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default;
“Tribunal” means the Tribunal established under the Financial and Consumer Services Commission Act.(Tribunal)
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) money paid or to be paid, an expense incurred or to be incurred, or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47; 2012, c.39, s.56; 2013, c.31, s.11; 2016, c.37, s.40
Definitions
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“cash customer” means a person who buys a product and who provides full payment for the product at or before the time of its receipt; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an associate of the credit grantor, does not currently offer the product to cash customers, the price stated in the advertisement,
and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission)
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“Court” means The Court of Queen’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“Director” means the Director of Consumer Affairs appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Commission or the Director to act on the Director’s behalf; (directeur)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Justice and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“Registrar” means the Registrar of the Tribunal appointed under the Financial and Consumer Services Commission Act;(greffier)
“scheduled-payments credit agreement” means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified schedule of payments, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default;
“Tribunal” means the Tribunal established under the Financial and Consumer Services Commission Act.(Tribunal)
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) money paid or to be paid, an expense incurred or to be incurred, or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47; 2012, c.39, s.56; 2013, c.31, s.11
Definitions
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“cash customer” means a person who buys a product and who provides full payment for the product at or before the time of its receipt; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an associate of the credit grantor, does not currently offer the product to cash customers, the price stated in the advertisement,
and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission)
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“Court” means The Court of Queen’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“Director” means the Director of Consumer Affairs appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Commission or the Director to act on the Director’s behalf; (directeur)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Justice and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“Registrar” means the Registrar of the Tribunal appointed under the Financial and Consumer Services Commission Act;(greffier)
“scheduled-payments credit agreement” means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified schedule of payments, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default;
“Tribunal” means the Tribunal established under the Financial and Consumer Services Commission Act.(Tribunal)
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) money paid or to be paid, an expense incurred or to be incurred, or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47; 2012, c.39, s.56; 2013, c.31, s.11
Definitions
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“cash customer” means a person who buys a product and who provides full payment for the product at or before the time of its receipt; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an associate of the credit grantor, does not currently offer the product to cash customers, the price stated in the advertisement,
and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“Court” means The Court of Queen’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Justice and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“scheduled-payments credit agreement” means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified schedule of payments, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default.
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) money paid or to be paid, an expense incurred or to be incurred, or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47; 2012, c.39, s.56
Definitions
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“cash customer” means a person who buys a product and who provides full payment for the product at or before the time of its receipt; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an associate of the credit grantor, does not currently offer the product to cash customers, the price stated in the advertisement,
and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“Court” means The Court of Queen’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Justice and Consumer Affairs and includes any person designated by the Minister to act on the Minister’s behalf; (Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“scheduled-payments credit agreement” means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified schedule of payments, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default.
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) money paid or to be paid, an expense incurred or to be incurred, or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47