Bill 121 (Legislature 15, Session 1)

L15 S1 1700

Alberta — Bills

No. 121 1st Session, 1'5th Legislature, A~berta. 12 Elizabeth II BILL 121 A Bill respecting Relief with regard to Certain. Contracts HON. MR. MANNING Printed by L. S. WALL. Printer to the Queen's Most Excellent Majesty, Edmonton, Alberta, 1964

Expl."atory . Note I. General. This Bill is intended to provide a method of ob taining relief against unconscionable loan transactions where the cost of the loan is excessive. This is similar to Ontario legislation recently found by the Supreme Court of Canada to be within the constitutional powers of the provinces. 2. befinitions. 3. Powers of court.

BILL No. 121 of 1964

An Act respecting Relief with regard to Certain Contracts (Assented to , 1964) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. This Act may be cited as "The Unconscionable Trans actions Act". 2.

In this Act, (a) "cost of the loan" means the whole cost to the debtor of money lent, and includes interest, dis count, subscription, premium dues, bonus, com mission, brokerage fees and charges, but does not include registration or filing fees prescdbed by or pursuant to any ,statute; (b) "court" means a court having jurisdiction in any action for the recovery of a debt or money demand to the account claimed iby a creditor in respect of money lent; (c) "creditor" includes the person advancing money lent and the assignee of any claim arising or secur ity given in respect of money lent; (d) "debtor" means a person to whom or on whose ac count money lent is advanced, and includes every surety and endorser or other person liable for the repayment of money lent, or upon any agreement or collateral or other security given in respect thereof; (e) "money lent" includes money advanced on account of any person under a mortgage or in any transac tion that, whatever its form may 'be, is substantially one of money-lending or securing the repayment of money so advanced. 3.

Where, in respect of money lent, the court finds that, having regard to the risk and to all the circumstances, the cost of the loan is excessive and that the transaction is harsh and unconscionable, the court may (

a) reopen the transaction, take an account between the creditor and the debtor, and relieve the debtor from payment of any sum in excess of the sum ad-

4. Exercise of powers of court. 5. Saving rights. 6. Commencement of Act. 2

judged by the court to be fairly due in respect of the principal and the cost of the loan, (

b) notwithstanding any statement or settlement of account or any agreement purporting to close previous dealings and create a new obligation, re open any account already taken and relieve the debtor from payment of any sum in excess of the sum adjudged by the court to be fairly due in respect of the principal and the cost of the loan, (

c) order the creditor to repay any such excess if the same has heen paid or allowed on account ·by the debtor, or (

d) set aside either wholly or in part or revise or alter any security given or agreement made in respect of the money lent, and, if the creditor has parted with the security, order him to indemnify the debtor. 4. The powers conferred by

section 3 may be exercised (

a) in an action or proceeding by a creditor for the re covery of money lent, (

b) in an action or upon an originating notice of motion brought by the debtor, notwithstanding any pro vision or agreement to the contrary, and notwith standing that the time for repayment of the loan or any instalment thereof has not arrived, and (

c) in an action or proceeding in which the amount due or to ibecome due in respect of money lent is in question. 5. Nothing in this Act affects the rights of a bona fide assignee or holder for value without notice, or derogates from the existing powers or jurisdiction of any court or judge thereof. G. This Act comes into force on the day upon which it is assented to. 2

No. 121 FI&ST SESSION FIFTEENTH LEGISLATURE 12 ELIZABETH II 1964 BILL

An Act respecting Relief with regard to Certain Contracts Received and read the First time Second time ..................................... . Third time HON. MR. MANNING Title: 1964 (15th, 1st) Bill 121,

An Act respecting Relief with regard to Certain Contracts

Document details

Collection	Alberta — Bills
Citation	L15 S1 1700
Type	bill
Volume / chapter	L15 S1 1700
Language	en
Format	json
Source	PROVINCIAL
Identifier	5f69ccabf01384e1957c54ff3e45fc7bfe87a563

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