Bill 229 — Fourth Session, 18Th Legislature, 27 Elizabeth Ii the Legislative Assembly of Alberta Bi-Ll ~229 the Mortgage Paymen'T Penalty Act' (Legislature 18, Session 4)

L18 S4 4413

Alberta — Bills

1978 BILL 229 Fourth Session, 18th Legislature, 27 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BI-LL ~229 THE MORTGAGE PAYMEN'T 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

Bill 229 Mr. Notley BILL 229 1978 THE MORTGAGE PAYMENT PENALTY ACT (Assented to , 1978) HER MAJESTY, by and with the adVtice and consent of the Legislative Assembly of Alberta, enacts as follows: 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 respe'ct of the redemption an amount which exceeds (

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

b) the actual administrative cos~ incurred by the mortgagee as a result of the early payment of the outs'tanding balance; and ( c) 'any legal oosts incurred by the motgagee as a result only of the early payment of the outstanding balance. 2. Any requirement that an amount in eX!cess 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 I. 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 agree ment 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 pay ment and terminating 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 assi!ms shallbe 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 pay ment and terminating the agreement. (1.3) 11: 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 contrary to publiSpolicy, and is voJd. 6. This Act comes into force on the day upon which it is assented to.

4. This Part will amend

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

section 8 to limit charges on early payment. Title: 1978 (18th, 4th) Bill 229, The Mortgage Payment Penalty Act

Document details

Collection	Alberta — Bills
Citation	L18 S4 4413
Type	bill
Volume / chapter	L18 S4 4413
Language	en
Format	json
Source	PROVINCIAL
Identifier	fa9697770c8c6b0c736b9e4e3dc2c5ffacbd5829

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