Part 9 — Cost of Credit Disclosure Division 1 Interpretation and Application
80 Disclosure where mortgage loan renewed
scheduled-payments credit agreement is longer than its term, the
credit grantor must, at least 21 days before the end of the term,
deliver to the borrower a written notice stating whether or not the
credit grantor is willing to renew the loan for a further term.
(2) A credit grantor who is willing to renew a mortgage loan must
include with the notice referred to in subsection (1) a disclosure
statement that contains the information prescribed by the
regulations.
(3) Where the terms of the renewal agreement differ from the
terms contemplated in the disclosure statement because
RSA 2000
(a) the outstanding balance on the renewal date differs from
what was stated in the disclosure statement because of one
or more missed, late, early or extra payments,
(b) the interest rate under the renewal agreement is lower than
was stated in the disclosure statement, or
(c) the amortization period or frequency of payments under the
renewal agreement differs from what was stated or assumed,
or because of any combination of such events, the credit grantor
must deliver a revised disclosure statement to the borrower within
30 days after the effective date of the renewal agreement.
(4) Subject to subsection (3), where a credit grantor does not
provide a disclosure statement that reflects the actual terms of the
renewal agreement to the borrower at least 21 days before the
effective date of a renewal agreement, the borrower
(a) is entitled to prepay the outstanding balance of the renew ed
mortgage loan without penalty at any time within 21 days
after receiving the disclosure statement, and
(b) on exercising that right, is entitled to a refund of any non-
interest finance charges imposed in connection with the
renewal.
1998 cF-1.05 s80