Canada Student Loans Regulations

28 (1) A claim by a lender against the Minister in respect of the amount of any loss sustained as a result of a guaranteed student loan shall be made

• (a) where the rights of a lender against a borrower are terminated pursuant to section 12 of the Act, as soon as evidence of the death or disappearance of the borrower is obtained by the lender;

• (b) where the rights of the lender against a borrower are terminated pursuant to section 13 of the Act, forthwith on receipt of a notice issued to the lender under paragraph 27(b);

• (c) subject to subsections (2) and (3), if the borrower is in default in the payment of an instalment, fails to enter into a consolidated guaranteed student loan agreement as required by subsection 7(1) or (2) or fails to comply with subsection 24(3) of the Canada Student Financial Assistance Regulations, within the period beginning on the day that is three months after the day on which the default or failure began and ending 180 days after the day on which the default or failure began; and

• (d) where the borrower makes a consumer proposal, files an assignment for the benefit of creditors or otherwise becomes subject to the Bankruptcy and Insolvency Act or any regulations made thereunder or any provincial law relating to the orderly payment of debts, within the period beginning on the day on which the consumer proposal is filed or the day on which the borrower files the assignment or otherwise becomes subject to such law, whichever is earliest, and ending 180 days after that day.

(2) A lender may make a claim for loss after the period referred to in paragraph (1)(c) but, where it does so, the Minister shall not pay any uncollected earned interest that accrues after that period unless, before the expiration of that period, the lender has requested from the Minister and the Minister has authorized an extension of the time during which the lender is permitted to make a claim for loss.

(3) The maximum extension of a period in respect of which the Minister may make an authorization at one time pursuant to subsection (2) is 180 days.

(4) The amount of loss sustained by a lender as a result of a guaranteed student loan shall be determined by calculating the aggregate of

• (a) the unpaid balance of the principal amount of the loan,

• (b) the uncollected earned interest on the loan as of

  • (i) the day of the death of the borrower, where the rights of the lender against the borrower are terminated under subsection 12(1) of the Act,

  • (ii) such day after the death or disappearance of the borrower as the Minister may fix pursuant to subsection 12(2) of the Act, where the rights of the lender against the borrower are terminated under that subsection,

  • (iii) the day that is 20 days after the day on which a notice referred to in section 27 is sent to the lender, where the rights of the lender against the borrower are terminated under section 13 of the Act,

  • (iv) the day that is 30 days after the beginning of the period referred to in paragraph (1)(d), in the case of a claim made as a result of the circumstances referred to in that paragraph, or

  • (v) the day that is

    • (A) where a lender makes a claim for loss after the period referred to in paragraph (1)(c), 180 days after the day on which the borrower is in default in the payment of an instalment or fails to enter into a consolidated guaranteed student loan agreement, or is the day that is the last day of the extension authorized pursuant to subsection (2), and

    • (B) where a lender makes a claim for loss before the end of the period referred to in paragraph (1)(c), the day on which payment is approved by the Minister,

• (c) any uncollected and assessed legal fees and disbursements actually incurred by the lender in relation to litigation concerning the collection or protection of the interests of the Minister, in respect of the loan, but not including legal fees and disbursements incurred for the purposes of obtaining a rectification of a guaranteed student loan agreement, and

• (d) other reasonable disbursements actually incurred by the lender in collecting or endeavouring to collect the outstanding loan or in protecting the interests of the Minister.

• (e) [Repealed, SOR/95-331, s. 14]

(5) A claim for loss made in accordance with subsection (1) or 28.1(1) must be substantiated by all of the original documentation held by the lender in respect of the loan, including calculations or recalculations requested by the Minister in accordance with subsection 28.1(2), if any. If the claim for loss is not substantiated in that way, the amount calculated under subsection (4) or subsection 28.1(2) may be reduced by an amount equal to the interest accruing on the loan during the period

• (a) where the Minister makes a request to the lender for calculations or recalculations in accordance with subsection 28.1(2), beginning on the date of that request and ending on the day on which the Minister receives those calculations or recalculations; and

• (b) in any other case, beginning on the day on which the claim for loss was received by the Minister and ending on the day on which the Minister receives the required documents.