Part 9 — Cost of Credit Disclosure Division 1 Interpretation and Application
58 Definitions
(a) "advance" means value receive d by the borrower within the
meaning of section 59(3);
(b) "APR" means the annual per centage rate determined in
accordance with the regulations;
(c) "borrower" means the part y to a credit agreement or
prospective credit agreement who receives or will receive
credit from the other party, but does not include a guarantor;
(d) "brokerage fee" means an a mount that a borrower pays or
agrees to pay to a loan broker in consideration of the loan
broker's services in arranging or attempting to arrange a
credit agreement, and includes an amount deducted from an
advance and paid to the loan broker by the credit grantor;
(e) "business day" means a day on which the credit grantor is
open for business;
(f) "capitalized amount" means, s ubject to the regulations, the
cash value of the leased goods plus the amount of any other
advances made to the lessee at or before the beginning of
the term, minus the total amount of all payments made by
the lessee at or before the beginning of the term;
(g) "cash customer" means a pe rson who buys a product and
pays for it in full before or at the time of receiving the
product;
(h) "cash price" of a product means,
(i) for a sale by a credit gran tor or an associate of the credit
grantor who sells the product to cash customers in the
ordinary course of business, an amount that fairly
represents the price for which the credit grantor or
associate sells the product to cash customers, unless the
parties agree on a lower price,
(ii) for a sale where subclaus e (i) does not apply, the price
agreed on by the parties, and
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(iii) for an advertisement, the price for which the advertiser
currently offers to sell the product to cash customers or,
if the advertiser 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;
(i) "cash value" of leased goods means,
(i) where the lessor offers like goods to cash customers in
the ordinary course of business, an amount that fairly
represents the price for which the credit grantor sells
such goods to cash customers, unless the parties agree on
a lower cash value, and
(ii) where the lessor does not in the ordinary course of
business offer like goods to cash customers, the lessor's
reasonable estimate of the amount that cash customers
would pay to buy such goods, unless the parties agree on
a lower cash value;
(j) "Court" means the Court of King's Bench or, subject to the
jurisdiction of the Court of Justice, the Court of Justice;
(k) repealed 2005 c9 s28;
(l) "credit card" means a card or device that can be used to
obtain advances under a credit agreement for open credit;
(m) "credit grantor" means
(i) the party to a credit ag reement or prospective credit
agreement who extends or will extend credit to the other
party, or
(ii) an assignee of the rights of the original credit grantor, if
the borrower has been given notice of the assignment,
and includes a c redit card issuer;
(n) "credit sale" means a trans action under which the purchase
of a product is financed by the seller or manufacturer of the
product or by an associate of the seller or manufacturer;
(o) "default charge" means a charge imposed on a borrower
who fails to make a payment as it comes due under a credit
agreement or who fails to comply with any other obligation
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under a credit agreement, but does not include interest on an
overdue payment;
(p) "fixed credit" means credit under a credit agreement that is
not for open credit;
(q) "floating rate" means an int erest rate that bears a specified
mathematical relationship to an index rate, and includes an
interest rate that
(i) is subject to a minimum or maximum, or
(ii) is determined at the beginn ing of a period for the whole
period, regardless of changes in the index rate during the
period;
(r) "grace period" means a peri od in which interest accrues but
will be forgiven if the borrower satisfies conditions
specified in the credit agreement;
(s) "index rate" mean s a rate that meets criteria prescribed by
the regulations;
(t) "initial disclosure statement " means a disclosure statement
referred to in section 77, 84 or 93;
(u) "interest" means charges that accrue over time and are
determined by applying a rate to an amount owing from
time to time under a credit agreement;
(v) "interest-free period" means a period following the making
of an advance during which interest does not accrue on the
advance;
(w) "lease" means any agreement for the hire of goods, except
an agreement for the hire of goods in connection with a
residential tenancy agreement;
(x) "lessee" means a party to a lease or prospective lease;
(y) "non-interest finance cha rge" means any charge that a
borrower is required to pay in connection with a credit
agreement other than
(i) interest,
(ii) a prepayment or default charge,
(iii) a charge for an optional service,
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(iv) a charge referred to in section 59(3)(f) or (g) or anythi ng
designated under section 59(3)(h), or
(v) for a credit sale, any charg e that would also be payable
by a cash customer;
(z) "open credit" means credit under a credit agreement that
(i) anticipates multiple advances, to be made when
requested by the borrower in accordance with the
agreement, and
(ii) does not establish the total amount to be advanced to the
borrower under the agreement, although it may impose a
credit limit;
(aa) "optional service" means a service that is offered to a
borrower in connection with a credit agreement and that the
borrower does not have to accept in order to enter into the
credit agreement;
(bb) "outstanding balance" mean s the total amount owing at a
particular time under a credit agreement;
(cc) "payment" means value given by a borrower within the
meaning of section 59(5);
(dd) "product" means goods, ser vices or goods and services, but
does not include the extension of credit;
(ee) "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 may be subject to adjustment
to accommodate contingencies, including, but not limited to,
the possibility of changes in the interest rate;
(ff) "security interest" means any interest in property that
secures the borrower's obligations under a credit agreement;
(gg) "term", in relation to the duration of a credit agreement ,
means the period between the first advance and the last
payment anticipated by the agreement;
(hh) "total cost of credit" has the meaning set out in section
59(2).
RSA 2000 cF-2 s58;2005 c9 s28;AR 217/2022;AR 75/2023
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