• 17. (1) This section applies to loans for fixed amounts of credit, except mortgage or hypothec loans.

• (2) A borrower under a credit agreement may prepay

  • (a) the outstanding balance of a credit agreement, at any time, without incurring any charge or penalty for making the prepayment; or

  • (b) a part of the outstanding balance

    • (i) on the date of any scheduled payment, if payments are scheduled once a month or more often, or

    • (ii) at any time but only once a month, in any other case.

• (3) A borrower under a credit agreement who prepays

  • (a) the outstanding balance must be refunded or credited with the proportional amount of any non-interest charges, except for disbursement charges, paid by the borrower or added to that balance, calculated in accordance with the formula set out in subsection (4); and

  • (b) a part of the outstanding balance is not entitled to a refund or credit related to non-interest charges mentioned in paragraph (a).

• (4) The proportion of non-interest charges to be refunded or credited to a borrower shall be determined in accordance with the formula

  R = A × ((n- m) / n)

  where

  R 

  is the amount to be refunded or credited;

  A 

  is the amount of the non-interest charges;

  n 

  is the period between the imposition of the non-interest charge and the scheduled end of the term of the loan; and

  m 

  is the period between the imposition of the non-interest charge and the prepayment.

18. If a borrower under a credit agreement fails to make a payment when it becomes due or fails to comply with an obligation in the agreement, in addition to interest, the authorized foreign bank may impose charges for the sole purpose of recovering the costs reasonably incurred

• (a) for legal services retained to collect or attempt to collect the payment;

• (b) in realizing on any security interest taken under the credit agreement or in protecting such a security interest, including the cost of legal services retained for that purpose; or

• (c) in processing a cheque or other payment instrument that the borrower used to make a payment under the loan but that was dishonoured.

• 19. (1) An authorized foreign bank that advertises a loan involving a fixed amount of credit in an advertisement that makes a representation of the interest rate, or the amount of any payment or of any non-interest charge, in relation to the loan must disclose the APR and the term of the loan. The APR must be provided at least as prominently as the representation and in the same manner, whether visually or aurally, or both.

• (2) If the APR or the term of the loan is not the same for all loans to which the advertisement relates, the disclosure must be based on an example of a loan that fairly depicts all those loans and is identified as a representative example of them.

20. An authorized foreign bank that advertises a loan involving a line of credit in an advertisement that makes a representation of the annual interest rate, or the amount of any payment or of any non-interest charge, in relation to the loan must disclose the annual rate of interest on the date of the advertisement and any initial or periodic non-interest charges at least as prominently as the representation and in the same manner, whether visually or aurally, or both.