MHHS · Consumer Protection Act
Part 9 — Cost of Credit Disclosure Division 1 Interpretation and Application
59 Determination of cost of credit
and (g), "borrower", "credit grantor" and "credit agreement"
include a lessee, lessor and lease, respectively.
(2) The total cost of credit is the difference between the value
received or to be received by the borrower in connection with a
credit agreement and the value given or to be given by the borrower
in connection with the credit agreement, disregarding the
possibility of prepayment or default.
(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 by the cr edit grantor to the borrower or to
the order of the borrower;
(b) the cash price of a product purchased by the borrower from
the credit grantor;
(c) the cash value of leas ed goods under a lease;
(d) the payment, discharge or consolidation by the credit
grantor of a pre-existing monetary obligation of the
borrower, the value received by the borrower being the
amount of the obligation so paid, discharged or
consolidated;
(e) the use of a credit card to obtain money or a product, the
value received by the borrower being the money obtained or
the cash price of the product;
(f) a charge for any of the fo llowing expenses, if the credit
grantor incurs the expense for the purpose of arranging,
documenting, insuring or securing a credit agreement and
then charges the expense to the borrower:
(i) a fee 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) a fee for professional serv ices required for the purpose of
confirming the value, condition, location or conformity
to law of property that serves as security for a credit
agreement, if the borrower is given a report signed by
the person providing the professional services and is free
to give the report to third persons;
RSA 2000
(iii) a premium for insurance t hat protects the credit grantor
against the risk of default on a high-ratio mortgage, as
defined by regulation;
(iv) a premium for casualty ins urance 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;
(g) a fee charged by the credit grantor for maintenance of a t ax
account on a high-ratio mortgage, as defined by regulation;
(h) anything designated by the r egulations as value received by
the borrower for the purposes of this subsection.
(4) The following do not constitute value received or to be
received by the borrower unless they relate to an optional service,
an expense or fee referred to in subsection (3)(f) or (g) or
something designated under subsection (3)(h):
(a) insurance provided or paid for by the credit grantor in
connection with a credit agreement;
(b) money paid, an expense incurred or anything done by the
credit grantor for the purpose of arranging, documenting,
securing, administering or renewing a credit agreement.
(5) The following constitute value given or to be given by a
borrower in connection with a credit agreement:
(a) money or property transferred from the borrower to the
credit grantor for any purpose in connection with the credit
agreement;
(b) money or property transferred from the borrower to a perso n
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 subsection (3)(f) or
regulations under subsection (3)(h) would have applied
if it 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.
RSA 2000
(6) Despite subsections (3) and (5), amounts paid into or out of a
tax account for a mortgage loan are ignored when calculating the
APR and total cost of credit.
1998 cF-1.05 s59