Bill 206 — First Session, 19Th Legislature, 28 Elizabeth Ii the Legislative Assembly of Alberta Bill 206 the Mortgage Payment Penalty Act (Legislature 19, Session 1)

L19 S1 4268

Alberta — Bills

1979 BILL 206 First Session, 19th Legislature, 28 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 206 THE MORTGAGE PAYMENT PENALTY ACT MR. NOTLEY First Reading Second Reading Committee of the Whole Third Reading Royal Assent Printed by the Queen’s Printer for the Province of Alberta, EDMONTON Title: 1979 (19th, 1st) Bill 206, The Mortgage Payment Penalty Act

Bill 206 Mr. Notley BILL 206 1979 THE MORTGAGE PAYMENT PENALTY ACT (Assented to , 1979) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Part 1 Redemption of Mortgages 1. Where a mortgage of land is redeemed by payment of the full amount outstanding prior to the date prescribed by the mort gage agreement as the due date of payment, the mortgagee may not charge the mortgagor in respect of the redemption an amount which exceeds the total of: (

a) the interest accrued up to the date of redemption, (

b) the actual administrative costs incurred by the mortgagee as a result only of the early payment of the outstanding balance, and (

c) any legal costs incurred by the mortgagee as a result only of the early payment of the outstanding balance. 2. Any requirement that an amount in excess of that provided in

section 1 be paid by a mortgagee as a condition of redeeming a mortgage is void. 3. Any waiver of the provisions of sections 1 or 2 is against public policy and is void.

Explanatory Notes 1. Limits charges made on early redemption of mortgage. 2. Extra charge is void. 3. Waiver of limit is void.

Part 2 The Credit and Loan Agreements Act 4. The Credit and Loan Agreements Act is amended by this Part.

Section 8 is amended by adding the following after sub section (1):

(1.1) The amount to which the seller or his assigns are entitled pursuant to subsection (1) (

b) shall not exceed the total of: (

a) the credit charge he has incurred under the agreement for the period up to the date of pre-payment; and (

b) a service charge reflecting the direct cost to the seller or his assigns of processing the advance payment and ter minating the agreement.

(1.2) Where credit charges in a time sale agreement are not precomputed and any amount is paid in advance of the due date, the seller or his assigns shall be entitled to collect only: (

a) the credit charge he has earned under the agreement up to the date of pre-payment; and (

b) a service charge reflecting the direct cost to the seller or his assigns of processing the advance payment and ter minating the agreement.

(1.3) It is an offence to make any penalty or charge in excess of the amounts specified in subsections (1) and (2) in connection with or as a condition of the termination of, or an early payment under, a time sale agreement.

(1.4) Any waiver of the provisions of subsections (1.1), (1.2) or (1.3) is against public policy and is void. 6. This Act comes into force on the day upon which it is assen ted to. 2

4. This Part will amend

chapter 73 of the Revised Statutes of Alberta, 1970. 5. Amends

section 8 to limit charges on early payment. 2 Title: 1979 (19th, 1st) Bill 206, The Mortgage Payment Penalty Act

Document details

Collection	Alberta — Bills
Citation	L19 S1 4268
Type	bill
Volume / chapter	L19 S1 4268
Language	en
Format	json
Source	PROVINCIAL
Identifier	94aea9e02dd65cb7eb13cc1d83d779044a8f3d61

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