Bill 127 — First Session, 17,Th Legislature, 21 Elizabeth Ii the Legislative Assembly of Alberta Bill 127 the Credit and Loan Agreements Amendment Act, 1972 (No.2) (Legislature 17, Session 1)

L17 S1 5108

Alberta — Bills

1972 Bill 127 First Session, 17,th Legislature, 21 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 127 The Credit and Loan Agreements Amendment Act, 1972 (No.2) MR. KOZIAK First Reading .............................. . Second Reading .................... . Third Reading .............................. . Printed by the QUEEN'S PRINTER for the Province of Alberta, EDMONTON

Bill 127 (Mr. Koziak) BILL 127 1972 1HE CREDIT AND LOAN AGREEMENTS AMENDMENT ACT, 1972 (No.2) (Assented to , 1972) HER MAJESTY, by and with the advice and consent of the Legis11ative Assembly 'Of Alberta, enacts as follows: 1. The Credit and Loan Agreements Act is hereby amend ed.

Section 5 is amended by adding the following sub sect'ion after subsection (3):

(3.1) A time sale agreement and any variation or re vision of a time sale agreement shall be signed by the buyer. 3. The following

section is added after

section 7.1: 7.2 Where any time sale agreement made before or after the commencement of this

section contains provisions to the effect that, up'On the default of the buyer or upon the oocurrence of any other event, and whether at the option of the seller or not, the whole 'Or pari of the balance re maining unpaid becomes immediately payahle or is 'Other wise accelerated, then, notwithstanding anything in the time sale agreement, (

a) the whole or part of the balance remaining unpaid does not become payable or otherwise accelerated, and (

b) any rate of interest made especially applicable to the amount remaining unpaid does not become ef fective, before the buyer has received written notice thereof.

Section 11 is amended by adding the following sub

section after subsection (2):

(2.1) A loan agreement and any variation or revision of a loan agreement shall be signed by the borrower.

Explanatory Notes I. This Bill will amend

chapter 73 of the Revised Statutes of Alberta 1970.

Section 5 sets out certain requirements regarding time sale agreements. The new subsection (3.1) is added to avoid any pos sible

interpretation that the buyer's signature is not required on the original agreement or any variation or revision of it. 3. The new

section 7.2 is the equivalent of the proposed

section 13.2 relating to loan agreements: see

section 5 of this Bill.

Section 11 sets out certain requirements regarding loan agre ements. The new subsection (2.1) is added to avoid any possible

interpretation that the borrower's signature is not required on the original loan agreement or any variation or revision of it.

5. The following

section 1·S added after

section 13.1: 13.2 Where any loan agreernent made before or after the commencement of this

section contains provisions to the effect that, upon the default of the borrower or upon the occurrence of any other event, and whether at the option of the lender or not, the whole or part of the balance re maining unpaid becomes immediately payable or is other wise accelerated, then, notwithstanding anything in the loan agreement, (

a) the whole or part of the balance remaining unpaid does not become payable or otherwise accelerated, and (

b) any rate of interest made especially applicable to the amount remaining unpaid does not become ef fective, before the borrower has received written notice thereof. 6. The following

section is added after

section 15.2: ]1,5.21

(1) Notwithstanding anything contained in any '1.greement or contract entered into before or after the com mencement of this section, where a credit 0ard is lost or s,tolen, the person whose name appears on the card has no legal obligation for any debt incurred by the use of the card on Hnd after the date on which the issuer of the card recei ves actual notice of the loss or theft of the card from that person or from a person on his behalf.

(2) A notice under subsection (1) may be oral or in writing. (3) ~There a credit card is lost or stolen and one or more debts are incurred by the use 'Of the card by an un authorized person prior to the receipt by the issuer of the notice under subsection (1), the liability of the person whose name a,ppeared on the card shall not exceed (a) $50 or the maximum amount of credit available to him, under a written agreement with the is:suer, whichever is the lesser, if the notice was given within a reasonable time after he first became aware of the loss or theft of .the card, or (

b) the maximum amount of credit available to him under a written agreement with the issuer, if the notice wals not given within a reasonable time after he first became aware of the l0'sS or theft of the card.

Section 15 . .4- is struck out and the following

section is substituted therefor: 15.4

(1) Where an advertisement made or published by or on behalf of a credit grantor contains any information respecting credit charges, terms of repayment or down payments, or any other information relating to credit terms, the advertisement shall state 2

5 This new

section 13.2 is aimed at overriding prOVISIOns in a loa~ agreement that allow the lender, without notice to the bor rower to exercise an option to accelerate the unpaid balance in the event' of default in an instalment payment. The lender is then unaware of the acceleration and of the fact that he is being charged a higher rate of interest on the whole unpaid balance. 6. The new

section 15.21 deals with the limitation of liability on the credit card holder in the event of loss or theft of the card and its unauthorized use afterward.

Section 15.4 presently reads: 15.4. Where a credit gran tOT' advertises or causes to be advertised information respecting his credit charges, the advertisement (

a) shall state only that he makes a credit plan available at his usual rates, or (

b) shall state (

i) the full credit charges as an annual percentage rate express ed in the manner required by

section 5 or 11 and by the regulations, (Ii) the sum to be actually received in cash by the borrower or the actual cash price of the g'oods, (iii) the amount of the down payment, if any, to be made on the purchase price of the goods, (iv) the amount of each installment, and (

v) the number of installments required to pay the total in debtedness including the cost of borro,wing.

(

a) the full credit charges as an annual percentage rate expressed in the manner required by ,section 5 or 11 and by the regulations, (

b) the sum to be actually received in cash by the bor rower Dr the actual cash price 'Of the goods, (

c) the amount of the downpayment, if any, to be made on the purchase prke 'Of the goods, (

d) the amount of eaoh installment, and (

e) the number of installments required to pay the total indebtedne,ss including the cost 'Of horrowing. (2) Subsection (1) does not apply where the only infor ma,tion contained in the ,advertisement and relating to credit is a statement that a credit plan is available. 8. This Act comes into force on January 1, 1973. 3

3 Title: 1972 (17th, 1st) Bill 127, The Credit and Loan Agreements Amendment Act, 1972 (No. 2)

Document details

Collection	Alberta — Bills
Citation	L17 S1 5108
Type	bill
Volume / chapter	L17 S1 5108
Language	en
Format	json
Source	PROVINCIAL
Identifier	18d75a8786e220eb67d99b157539bdeabf8faf75

Source file is stored in the law ingest library (json).