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Bill C-421

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This enactment amends the Interest Act. It provides that a financial institution that makes a mortgage loan of five hundred thousand dollars or less to a natural person must allow the person to repay the loan before its maturity, in return for the payment of prescribed interest in lieu of notice.

The financial institutions to which this enactment applies are banks to which the Bank Act applies, companies to which the Trust and Loan Companies Act applies and foreign companies to which the Insurance Companies Act applies.

The enactment also provides that such financial institutions shall, in the manner prescribed by regulation, include a statement in the mortgage document written in plain language, in terms generally understood by the public, explaining whether the borrower may repay the mortgage loan before maturity and the circumstances in which the borrower may exercise that right.