ORDIN ANCES OF THE YUKON TERRITORY PASSED BY THE YUKON COUNCIL IN THE YEAR 1971 FIRST, SECOND AND THIRD SESSIONS J. SMITH COMMISSIONER Printed end Published for the Government of Yukon Territory under Authority of Chepter 93 of the Coneolldeted Ordlnences of 1958 BY H. J. TAYLOR, Q .... n·s Printer

ORDINANCES of the YUKON TERRITORY Passed By COUNCIL OF THE YUKON In The Year 1 971 Fir s t Se s s i on

Chapter 2 3 4 5 6 7 8 9 l!') 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 INDEX 1971 (First Session) Title An Ordinance Respecting a Financial Agreement 8etween the r.overnment of the Yukon Territory and the Government of Canada An Ordinance Respecting the Preservation of Archives of the Yu~on Territory An Ordinance for the Protection of Consumers An Ordinance to r.onstitute a Court of Appeal for the Yukon Terri tory An Oroinance Respectinq Elevators and Other Fixed Conveyer Svstel'ls An Drdin~nce Respecting the Expropriation of Lands and the Determination of Compensation for the Expropriation or Injurious Affection of Lands An Ordinance to Authorize the Co~issioner to Lend Money to the Villdgc of Faro for Various Purposes An Ordinance Respecting Justices of the Peace An Ordinance to Authorize the Commissioner to Borrow a Sum Not Exr.eeding One Hundred and Fifty Thousand Dollars From the Government of C~n~da for the Purpose of Making a Loan to th~ Ci ty of !4hi tehorse and to Authol"i ze the Commi ss ioner to Enter Into an Agreement Relating Thereto An Ordin~nce to Cnnstitute the ~aqistrate's Court of the Yukon Territory .

An Ordinance Respecting Mentally Disordered Persons An Ordinance to Constitute the Territorial Court of the 'Yukon Terri tory An Ordinance to Estahlish a Transport Puhlic Utilities Boarrl in the Yukon Territory An Ordinance to Authorize the Commissioner to Lend Money to the City of Whi tehorse for the lJpd~ting and Upgrading of Whitehorse Water dnd Se\~er System An Ordinance Respecting the Yukon Health Care Insurance Plan An Ordinance to Repeal the Amusement Tax Ordinance An Ordinance to Amend the Companies Ordinance An Ordinance to Amend the Elections Ordinance An Ordi nance to Amend the Evidence Ordinance An Ordinance to Amend Certain Ordinance Respecting Fees and Licences An Ordi nance to Amend the Fuel Oil Tax Ordinance An Ordinance to Amend the Fur Export Ordinance An Ordi nance to Amend the Game Ord i nance An Ord i nance to Amend the ~unicip~l Ordinance An Ordi nance to Amend the Puhlic Health Ordinance An Ordinance to Amend the Taxation Ordinance An Ordin~nce to Amend the> liquor Ordi n~ncc An Ordinance to Amend the Taxation Ordinance An Ordinance to Amend the Motor Vehicles Ordinance An Ordinance to Amend the Yukon Loan Ordinance, 1955 An Ordinance to Amend the Workmen's Compensation Ordinance 3 Page 5 9 12 56 59 64 72 75 77 78 86 89 92 104 107 115 116 117 119 120 129 130 131 136 138 139 141 143 144 152 153

CHAPTER ~ 32 33 34 35 2 3 4 5 6 7 8 9 10 11 12 13 TITLE An Ordinance for Granting to the Commissioner Certain Sums of Money to Defray the Expenses of the Public Service of the Territory (Fourth Appropriation 1970/71) An Ordinance for Granting to the Co~issioner Certain Sums of Mon~y to Defray the Expenses of the Public Service of the Territory (First Appropriation lQ71/72) An Ordinance for Granting to the Commissioner Certain Sums of Money to Defray the Expenses of the Puhlic Service of the Territory (Second Appropriation 1971/77.) An·Ordina·nce for Grantin,) to the Commissioner Certain Sums of Money to Defray the Expenses of the Public Service of the Territory (Fifth Appropriation 1970/71) 1971 (Second Session) An Ordinance to Aml'nd the '1unici(1ill Ordinance 1971 (Third Session) An Ordinance Respecting a Financial Agreement Between the Government of the Yukon Territory and the Government of Canada An Ordinance Respecting the Revised Ordinances of the Yukon Territory. 1971 An Ordinance to Change the Name of.the Territorial Court of the Yukon Territory An Ordinance Respecting Trade Schools Regulation An Ordinance to Amend the Game Ordinance An Ordinance to Amend the Labour Standards.Ordinance An Ordinance to Amend the Magistrate's Court Ordinance An Ordinance to Amend the Mining Safety Ordinance An Ordinance to Amend the Reciprocal Enforcement of Maintenance Orders Ordinance An Ordinance to Amend the Securities Ordinance An Ordinance to Amend the Taxation Ordinance An Ordinance for Granting to the Commissioner Certain Sums of Money to Defray the Expenses of the Public Service of the Territory (Third Appropriation 1971/72) An Ordinance for Granting to the Commissioner Certain Sums of Money to Defray the Expenses of the Public Service of the Territory (Fourth Appropriation 1971/72) TABLE OF ORDINANCES 4 155 157 159 101 17) 177 1110 IIlI 1114 1115 IHh 1117 IIlIl lilY 1'12 1'13 195 197

CHAPTER 1 ORDINANCES OF THE YUKON TERRITORY 1971 (First Session) AN ORDINANCE RESPECTING A FINANCIAL AGREEMENT BETWEEN THE GOVERNMENT OF THE YUKON TERRITORY AND THE GOVERNMENT OF CANADA Chap. I (Assented to February 26. 1971) The Commissioner of the Yukon Territory. by and with the advice and consent of the Council of the said Territory, enacts as follows: Short Titl e 1. This Ordinance may be cited as the FinanciaZ Agreement Ordi­ nance, 1971. 2. In this Part. (a) "Agreement" means the Agreement entered into pursuant to

section 3; (b) "local administrative district" has the meaning given to it in the Agreement; and (c) "fiscal year" means the period beginning on and in­ cluding the first day of April in one year and ending on and including the thirty-first day of March in the next year. 3. Subject to this Part, the Commissioner is authorized to enter into and execute. on behalf of the Government of the Yukon Territory, an agreement with the Government of Canada which will provide (

a) that the Government of Canada will pay to the Govern­ ment of the Yukon Territory, (

i) as an operating grant for the fiscal year 1971-72, an amount equal to $6,890.000.00. and (if) in respect of the period from the first day of April. 1971 to the thirty-first day of March, 1972, an amount equal to (

A) all monies owed by the Government of the Yukon Territory to the Government of Canada and becoming due in that year under a loan agreement entered in­ to pursudnt to an Ordinance listed in the

Schedule to this Ordinance, minus (

B) all monies paid to the Government of the Yukon Territory in tha't'year in res­ pect of self liquidating'l.oans made by the Territory with monies borrowed from the Government of Canada pursuant to a loan agreenent described in clause (

A) as certiffed by the ConmiSsiQner; and 5

Short Title.

Definitions. "Agreement." "Local administrative district. .. "Fiscal year." Conunissioner may execute Agreement. Provisions of Agreement.

Chap. 1 r I"fJ'Jis ions of . t.g rc~men t. Additional provisions of ilgreement. Variation and amendment. Rstification. Suspension of Ordinances, etc. No tax collection contravening ~greement. fax reduced. (

b) that in consideration thereof the Government of the Yukon Territory will suspend and refrain and will require local administrative districts in the Terri­ tory to suspend and refrain from the imposition, levying and collection of (

i) individual income taxes, corporation taxes and corporation income taxes in respect of the periad c0mrnencing on the first day of Januilry. 1971, and ending on thE! thirty­ fint OJ,Y of December, 1971, and (ii) succession duties in respect of success ions or transmissions consequent upon a death or upon prop~rty passing upon a dea t~, occurrin9 during the period commencing on ~he first dilY of January, 1971, and ending on the thi ."ty-fi rst day of December, 1971. 4. The Agreement shall also provide (

a) that the amounts payable by the Government of Canada to the Government of the Yukon Territory shall be paid (

i) in the case of the amounts described in sub­ paragraph (

i) of paragraph (

a) of

section J, in equal instalments in each month in the per­ period from the first day of April, 1971 to the thirty-first day of March, 1972, and (ii) in the case of amounts described in sub­ paragraph (ii) of paragraph (

a) of

section J, in the amounts and the times fixed in the loan agreements described in the sub-para­ graph; and (

b) for such other terms and conditions as may be agreed upon for the purpose of giving effect to this Ordi­ nance. 5. The Agreement may be varied or amended from time to time, as may be agreed upon with the Government of Canada by the Commissioner. 6. No variation or amendment to the Agreement made pursuant to

section 5 is valid unless it is ratified by the Council. 7. Upon execution of the Agreement, the Ordinances of the Territory and any regulations, rules, by-laws or orders made thereunder, including those of any local administrative district, shall, for the relevant periods provided in the Agreement, be deemed to be amended, suspended or inopera­ tive as the case may be to the extent necessary to give effect to the Agreement and to permit the Government of the Yukon Territory to fulfill every obligation assumed by it under the Agreement. 8.

Neither the Commissioner nor any local administrative dis­ trict shall do any act or exercise any power or collect any tax in contravention of the provisions of the Agreement. 9. In any case in which by the Agreement any tax or fee is re­ quired to be reduced, such tax or fee is for the relevant periods provided in the Agreement, reduced in accordance with the Agreement, and the tax or fee in the reduced amount only shall continue to be payable; exigible and recoverable in the same manner as if it had not been reduced. 6

10. The Commissioner is empowered to do every act and exercise every power for the purpose of implement lng every obliga­ tion assumed by the Government of the Yukon Territory under the Agreement. 11. Sections 7 to 10 shall remain in operation for only so long as is necessary to give effect to the Agreement. Chap. 1 PwerB of Commissioner .• Operations of sec t ions 7 to 10. 12. In thi s Part, "Agreement 00 means the Agreement entered into "Agreement" pursuant to

section 14. defined. 13. The Commissioner may, on behalf of the Territory borrow Commissioner from the Government of Canada a sum not exceeding $5,009,000. may borrow 14. The Commissioner is authorized to enter into and execute on behalf of the Government of the Yukon Territory, an agree­ ment with the Government of Canada providing ~or (

a) the repayment to the Government of Canada of the amount borrowed pursuant to

section 13, (

b) the payment to the Government.of Canada of interest at such rate as may be agreed upon by the Commissioner on the principal from time to time outstanding on the amount borrowed pursuant to

section 13, and (

c) such other tenns and conditions as may be agreed upon by the Commissioner. 15. The Commissioner is empowered to do every act and exercise every power for the purpose of implementing every obliga­ tion assumed by the Government" of the Yukon Territory under the Agreement. 16. No amount shall be borrowed by the Commissioner ~ursuant to this Ordinance after the thirty-first day of March, 1972. 7 money. Commissioner may execute Agreement. Commissioner may implement Agreement. No borrowing after March 31st, 1972.

Chap. 1 S C H E 0 U l E Yukon Hospital loan Ordinance loan Agreement Ordinance Financial Agreement Ordinance Financial Agreement Ordinance Canada and Anvil Agreements Ordinance Financial Agreement Ordinance Financial Agreement Ordinance B 1955 (Second Session)

Chapter 2 1961 (Third Session)

Chapter 4 1962 (First Session)

Chapter 4 1967 (First Session)

Chapter 19 1968 (Third Session)

Chapter 2 1969 (First Session)

Chapter 1 . 1970 (First Session)

Chapter 10

CHAPTER 2 ORDINANCES OF THE YUKON TERRITORY 1971 (First Session) AN ORDINANCE RESPECTING THE PRESERVATION OF ARCHIVES OF THE YUKON TERRITORY (Assented to February 26, 1971) . The Commissioner of the Yukon Territory, by and with the advice and consent of the Council of the said Territory, enacts as follows: 1. This Ordinance may be cited as the Archives Ordinance. 2.

In this Ordinance, "pub 1 i c records" means all ori gi na 1 documents, parchments, manuscripts, records, books, pamphlets, magazines, periodicals, maps, plans, photographs, letters, copies of letters, papers of all kinds or other documentary materials regardless of physical form or characteristic, deposited, on file, or held with or in any department or agency of the Govern­ ment of the Territory or any municipal or other public office in the Territory, and includes any such documentary materials that were formerly part of the records or files of any such department, agency, or office. J.

The Commissioner may appoint an archivist to carry out the provisions of this Ordinance. 4. Subject to the regulations all public records shall be delivered to the Archivist for safe keeping and custody within thirty years from the date on which such public records cease to be in current use. 5. The Archivist is authorized and directed to receive and grant discharges for all public records transferred to him under this Ordinance and the Archivist is there­ after responsible for the safe keeping of the public records so transferred. 6. The objects of this Ordinance are, (

a) the classification, safe keeping, indexing and cataloguing of all pub.lic records transferred to the Archivist under

Section 4; (

b) the discovery, collection and preservation of material having any bearing upon the history of the Territory; 9 Chap. 2

Short title "Public records" Appointment of Archivist Cus tody of all public records Responsibility of Archivist Objects of Ordinance

Chap. 2 (

c) the copying and printing of important public documents relating to the legislative or general history of the Territory; (

d) the collecting of all documents having in any sense a bearing upon the political or social history of the Territory and upon its agricultural, industrial, commerical and financial development; (

e) the collecting of municipal, school and church records; (

f) the collection and preservation of pamphlets, maps, charts, manuscripts, papers, books, photographs and other documentary materials regardless of physical form or characteristic, of general or local historic interest in the Territory; (

g) the collection and preservation of information re­ specting the early settlers of the Territory in­ cluding pioneer experience. customs, mode of living, prices, wages, bou~daries, areas cultivated or mined; home and social life; (

h) the collection and preservation of the correspondence of settlers, docu'nents in private hands relating to public and social affairs and reports of local events of historic interest in domestic and public life; (

i) the conducting of research with a view to preserving the memory of the indigenous peoples in the Territory and their mode of living and customs; (

J) the conducting of research with a view to preserving the memory of pioneer settlers in the Territory and of their early exploits and the part taken by them in opening up and developing the Territory; and (

k) the stimulation of public interest in the history of the Territory by the dissemination of infonnation to the public, by exhibitions and displays of materials preserved in the Archives and by granting to the public access to items preserved in the Archives subject to such precautions as may be necessary for their preservation. Preservation 7. Subject to the regulations no public records shall be of official destroyed or permanently removed without the knowledge documents. and concurrence of the Archivist. Certified 8. A copy of any original document in the custody of the copies.

Archivist, certified under his hand to be a true copy, is prima facie evidence of the authenticity and correctness of such document. Commissioner 9. Where the public interest so requires the Commissioner may determine may direct that any document transferred to the Archives when documents will not be made available for public inspection for such to be made 'period of time as the Commissioner determines. oublic. Archivist may 10. acquire documents under condit ions.

The Archivist may acquire by gift, bequest, loan or purchase and place in the Archives for preservation, any document having any bearing upon the history of the Territory upon such terms and conditions as may be stated by the person giving, bequeathing, lending or selling the document. . JO

11. Where any person is in possession or control of any public record he shall at the request of the Commissioner or hi s authori zed offi cer forthwith del i ver s.uch pub 1 i c record to the Archivist. 12. The Commissioner may make regulations, (

a) respecting the duties of the Archivist; (

b) prescribing the public records that shall be transferred to the Archivist under this Ordinance and extending or reducing the period that shall elapse before any such public records are transferred to him; Chap. 2 Commissioner may request public records be delivered to Archiv.1st Regulations (

c) for the classification of archives in the custody of the Archi vi s t an(j the pr'epara ti on of proper ca 1 end a ~s, catalogues and indexes for the purpose of making arthives accessible for official, scientific and historical research; (

d) directing the ~anner in which public records shall be disposed of from time to time and the class of documents, papers, pdmphlets 0r reports that shall be deemed to be archive,; (

e) generalfy for carrying out the purposes and provisions of this Ordinance into effect; and (

f) prescribing any fees that may be required under this Ordinance. 13. Nothing in this Ordinante shall be taken or be deemed to authorize the destruction or other disposition of any official document, paper, map, plan, report, memorandum or other matter in contravention of an Ordinance or an order of a Court or the Commissioner. " NC1thing in Ord in.,nce author ize.1.i destruction of documents

Chap. 3

CHAPTER 3 ORDINANCES OF THE YUKON TERRITORY 1971 (First Session) AN ORDINANCE FOR THE PROTECTION OF CONSUMERS (Assented to Apri 1 1. 1971) The Commissioner of the Yukon Territory. by and with the advice and consent of the' Coullcil ()f the said Territori. enacts as follows: 1. This Ordinance may be cited as the CnnS4me~s' Protection O~dinancl:. 2.

In this Ordinance (a) "assignee" includes any person in whom the right or benefit concerned has become vested, as a result of any assigmn~nt or series of assignments; (b) "borro~/er" means a person borrowing money or obtain­ ing credit and includes a huyer of goods or services on credit and a hirer of goods on hire-purchase; (c) "buyer" includes a hirer on a retail hire-purchase; (d) "cash price" of any goods or services means the price that would be charged by the seller for the goods or services to a buyer who paid cash for them at the time of purchase or hirinq; (e) "collect ion agent" ml!ans any person who (

i) collects or attempts to collect money owing to others, (ii) is used by others to levy distress or seize goods, (iii) collects money under any name which differs from that of the creditor to whom the money is owed. (iv) offers or undertakes to act for a debtor in ar­ rangements or negotiations with his creditors or receives mOllev from a debtor for distribution to his creditors, (

v) solicits accounts for collection or offers or undertakes to collect debts for others either im­ mediately aI' at a future date, or (vi) writes letters, or makes telephone or personal calls on beh,llf of others for the purpose of in­ ducing a dehtor to pay a debt, but does not include (vi

i) a [lC'r-.nn \·,'.n ,'r.(P.pt~ rh'.yrncnt of Ar.COllnts on he­ hall 01 ,:t"cditors but who dUl:s n()t otherwise negotiate with or in any way attempts to obtain payment from debtors in respect of the amount owing, 12

Short Title.

Definitions. "Assignee. 1t "Borrower." "Buyer.1! "Cash price." "Collection agent. It

"Cost of horrowing." (f) (v;;; ) (;x) (x) (xi) (xi i) (xi i i) (xiv) (xv) (xvi) (xvi

i) a chartered bank. a credit union. a truslee licensed under the Bankruptcy Act act­ ;ng in that ca;>acity. a duly appo;"ted officer of a court. a barrister or sol icitor entitled to practice ;n the Territcry and acting in that capacity. a tru~t company. a real estate brokEr acting ;n that capacity. or a .. ea 1 estate ~alesman acting in that capacity. an insurance agent acting in that capacity. a mortga,e b,'o~(-r acting in that capacity. a person apoointr.J under the ~'l"_'r:v.rn~(?s Aet as a 1 iquid;,:or ~(ting in that capac(ty. or (xviii) a person acting for a friend who receives no re­ ward fel' his se:'vices; "cost of borro.~lin~" means (

i) where used in connection with a retail sale or hire-purchase of qJods or services or both other­ ~/ise than on variahle credit. the difference be­ tween (/I) the total ilmO'Jnt \-Ihich the buyer is required to pay i:'l the trans3ction (including any down paylllt:!nt and the value ascdbed in the contract to <iny trJJe-in or other allol1J.nce to him). if all pcljl:wnts are mdde as they fall due. and (

S) the total cash price as described in subsec­ tion (2) of

section 5 or 6, as the case may he, (ii) where used in relation to a loan agreement, the d i ff el'enc c he t"/een (

A) the ,total amount that the borrower has to pay in the transaction, if all payments are made as they fall due. and (8) the a~9re9ate of the amounts described in clauses (a). (b). (

c) ur (

d) of subsection (2) of

section 14 (other than Jlly amount which is d~clared by

section 21 to be part of the cost of borrowing) subject to such adjustment. thereof as lIIay be required by subsection (1) or (2) of

section 15. if dppl i~able. (iii) where used in r~lation to a transaction to which subsection (3) of

section 15 applies. the dif­ ference bet~/el!n (

A) the tota, amount wl~ich tile borrower is re­ quired to pay in the transaction (including any dewn payment and the vdue ascribed in the agreement fo!" any trade-i n or other a 1- lowijnce to him). if all payments are lIIade as the}, fal'l due. and (

B) the J99regate of the total cash price of the 9000S or services, or both, being purchased and the amo:lOts described in clauses (

b) and (

c) of subsection (3) of

section 15. J3 Chap. 3

Chap. 3 (iv) where used in relation to variable credit, the charges that the buyer or borrower is required to pay pericdically on the unpaid balance from tim~ to time for the privilege of pur~hasing or borrowing on variable credit; (g) "court" means the Territorial Court, and in a case where the amount of the loan made or credit extended is not greater than the limit of the jurisdiction of the Magistrate's Court, the Magistrate's Court and includes a magistr~te sitting as a small debts official; (h) "credit grantor" means a pe>rson lending money or ex· tending credit an~ inrludes ft seller of yoods or ser­ vices on cre>dit. and a person letting ')oods on hire­ purchase; (t) "debtor" includes a borrower and any person who is respons i tll e for' the pa}'lllent 0 f a deLt by vi rt.up. of guaranteeing a borrower's liahility to pay the debt; (j) "direct seller" means the person who, on behalf of a vendor, makes any offer. solicitation, proposal or approach Vlhich is intended to result in a sille to ~Ihich

Part VII applies; (k) "goods" means chattels personal other than things in action or money. and includes. emblements. industrial growing crops and'thinqs attached to or formin~ part of the land which are d'lreed to he severed before sale or under the contract of sale, and chdttels which are to be affixed to land upon or after delivery thereof; (1) "instalments of approximately equal amollnt" means a series of instalments in which the amount of anyone instalment is not different from' the equal amounts of all other instalments by more than one dollar multi­ plied lly the nu'nber of installllent~ ref.juireu to be p.aid; (m) "legal rate" of interest means the rate from time to time payable under the Illtel·(J.~t tlet (Ca>lt.J.drl! on I i­ abilities on whiCh interest is payable but no other rate is fixed; (n) "loan agreement" means a document or memorandum in writing (

i) evidenc ing a loan of money. or (i il made or given as st'!curity for a loan of money. or (iii) made or ~iven as securi ty for a past i ndehted- ness; (0) "money lender" means a person who carries on the busi­ ness of money lending or adverlises himself, or holds himself out in any ~wy. as carryin') on thi,t business, but does not include a re~istered pawn broker as such; (p) "mortga~e", "mortga~ee". "morlqage money" and "mort­ gagor" have the meaninqs as,igncd to them by common law; (q) "retail hire-purchase" of goods mcans any hiring of goods from a per,soll in the course of his business in which (

i) the hirer is given an option to purchase the goods, or 14 "Court." "Credit grantor." "Debtor.1! "D Lrec.t sellf=r." "Goods." "Instalments of approxi­ mate L~' equal .lmount." "Legal rate." "Loan agree­ ment. to "Money lender. I "!'1ortgage, mortgagee,' mortgage m~ney, morl;~.';~()r • "RetCl il hlre-' purr.'1.1se .n

"Retail sale." "Sale." "Sale of goods." "Sale of services. n "Seller." "Services." (ii) it is agreed that upon compliance with the terms of the contract, the hirer will either become the owner of the goods or will be en­ titled to keep them indefinitely without any further payment, except (iii) a hirin~ in which the hirer if given an option to purchase the goods exercisable at any time during the hiring and which may be determined by the hirer at any time prior to the exercise of the option on not more than two months' no­ tice without any penalty, (iv) a hire-purdlcse of gcods by a hirer who himself intends ~ither to ~~ll them or to relet them for hire by others, (

v) a hire-purchase by a hirer who is a retai ler of a vending machine or a bottle cooler to be in­ stalled in his r",tail establishment, (vi) a hire-purchas~ in which the hirer is a corpora­ tion, and (vii) a hire-purchase of goods the cash price of which exceeds eight thousand, five hundred dollars; (r) "reta i I sa I e" of goods or of serv ices or of both means any contract rf sale of goods or services or both made by a seller in the course of his business except (

i) any contract of sale of goods which are intended for resale by the buyer in the course of his business, (ii) (i i i ) (iv) any contract of sale to a retailer of a vending machine or a bottle coolp.r to be installed in his retail establishment, any contract of sale to a corporation, and a sale in which the cash price of the goods or services or both exceeds eight thousand, five hundred dollars; (s) "sale" includes any transaction whereby the whole or part of the price is paid or satisfied by the exchange of other prorerty, real or personal; (t) "sale of goods" includes any transaction in which goods are sold, whether separately or together with services; (u) "sale of services" means furnishing or agreeing to fur­ nish services and includes making arrangements to have services furnished by others and any transaction in which services are sold, whether separately or together with goods; (v} "seller" includes a person who lets goods on hire by a retail hire-purchase; (w) "services" includes (

i) work, labour and other personal services, (ii) privileges with respect to transportation, hotel and restaurant accommodations. education. enter­ tainment, recreation, phys"ical culture. funerals, cemetery accommodations and the like and, (iii) insurance provided by a person other than the in­ surer; 15 Chap. 3

Chap. 3 (le ) (y) "time sale aoreement" means an agreement evidenciny a time sa 1 e ; . "time sal e" means (1) any retail sale of goods or of goods and services under which posses~ion of the goods is to be de­ livered to the buyer, but the triln~fer uf the pro­ perty in the goods is to take place subsequently to such del ivery upon payment. by him of the ~Ihol e. or parl of the price and cost of borrowing, if ~ny. whether or nor such tl'ansfcr is al so sl/bject to the fulfillment of some other condition, (ii) any reta·il hir<:-;J;lrchilse of <]00(\5, ;Ind (i i

i) for tile Ilurpos<: of ~ect iens 47 to 57. any reta i I sale of goods or of ~oods and services in which the sell~r tates batk a ch3ttcl mort4a<]e on those goods to 5C(Ure PdYIIU~r.t of the whole or part of the !JI· ic~; (z) "variable credit" mi'·)ns credit made availdble under an agreement I~hereby the r.redi t qr,jntor agrees to make credit available to be used from time to timl!, at the option of the borrower. for the purpose of the purchase from time to time of qoods or services, and. without limiting the generality of the foregoing. includes credit arrangements commonly known as revolvin-; credit, accounts, bud')"'- accoullts. cyclic~l accounts ~nd oth!.:r arran'lments of il !iimi litr ndtllre. hut does n(lt include any agre~nent or ~rrany~ml.:nt in which there is neither a cost of borrowing payable by the borrower nor any additional charge. other than court costs, payahle by the borrower in the evellt of default; (aa) "vendor" medns the person who makes on his own behal f or uses others to make on his behalf. any offer. sol i~ citation. prOIlClSdl or approach which is intended to result in a salc to ~/hl:h Pclrt VII applies. 3.

For the purpose of determinin~ whether (

a) the cost of borrowing in ~ salp. or hire-purchase exceeds ten dollars; or (

b) the cash price nf 9[)nd~ or scrvice~ or both comprised in a sale or hire.'rurcltdSc I~xcced~ ei~ht tilClusanJ, five hundred dollar~; the following rules apply: (

i) The cost of borrol·tine) in all sales and hire-purchases which arc part of the 5il;ne trdn~action shall he ilrldcd togethel' . (ii) The ca~h price of ~OUd5 ~nd services comprised in all sales and hire-pur;:hd~.C::s I'hich are

part Clf the <;a~le transaction shall he add~d to,)ether. (iii)Unless the contrdt·y i~ pl·oved. all sales "nd hire­ purchases made het"lc,>,\ the same seller and the same buyer 011 the same '.Iay sil,,11 be pl'esumed to be part of the same transaction, 4. Nothfn<] jll t.hh Onljll,'"'" """I ;,.:; to ""Y 1",111 """:"~ I,y, or any security <]ivell to, till': lndu5trial Development Can\(. the Canadian rann Credit (orpor·iJtinn, Cent.ral Mort'JJ')c and lIous­ ing Corporation. 01' the Currrnissioner. If! "Time sale agreement." "Time sale." "Variable credit'" "V~ndor. 11 Rules to deter",ine pri.ce and cost of borrololing. Appllc"tlon of Ordinance.

Application of section. Contents of agreement. Applicstion to hire­ purchase. Contents of asreement. Disclosure of Cost of Borrowing 5.

(1) This

section applles to every retail sale of goods or services or goods and services on credit in which there is any cost of borrowing payable by the buyer except (

a) a sale made on variable credit; and (

b) a sale in which the cost of borrowing does not ex­ ceed ten dollars.

(2) Every sale to which this

section applies shall be evi­ denced by a writin~ Signed by the buyer or his agent prior to. or at the time of delivery of the goods or performance of the services which contains a descrip­ tion of the goods or services and states (

a) the cash price of the goods included i·n the sale; (

b) the amount of any applicable delivery or instal- lation charge, if n(lt included in the cilsh price of the goods; (

c) any insurance charges actually paid or to be paid by the seller to an insurer on behalf of the buyer on the buyer's request; (

d) the registration fee. if any; (

e) the total cash price, being the aggregate of the amounts mentioned in clauses (a). (b), (

c) and (d); (

f) the amount or value of any down payment, trade-in or other allowance made to the buyer; (

g) the balance of the total cash price, being the dif­ ference between the total mentioned in clause (

e) and the amount mentioned in clause (g); (

h) the total cost of borrowing expressed as one sum in dollars and cents; (

i) the balance owing, being the aggregate of the balance mentioned in clause (~) and the amount mentioned in clause (h); (

j) the details of the manner in which the balance owing is to be paid, as required by

section 8 or 10; (

k) the aggregate of the cost to the buyer being the total mentioned in clause (

e) and the amount menlioned in clause (h); (1) the true annual rate of the cost of borrowing calcu­ lated in accordance with

section 11 and the regula­ tions. expressed as a percentage; and (

m) the total additional charge, if any. other than court costs, to be paid in the' event of default expressed as a rate percentage per annum. 6.

(1) This

section applies to every retail hire-purchase of goods in which the cost of borrowing exceeds ten dollars.

(2) Every hire-purchase to which this

section applies shall be evidenced by a writing signed by the hirer or his agent prior to. or at the time of delivery of the goods, which contains a description of the goods and states (

a) the cash price of the goods included in the hire- purchase 17 Chap. 3

Chap. 3 7. (1 ) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (I) (

m) the amount of any applicable delivery or instal­ lation charge, if not included in the cash price of the goods; any insurance charges actually paid or to be paid by the seller to an insurer on behalf of the hirer on the hirer's request; the registration fee, if any; the total cash price, being the ag9regate of the amounts mentioned in clauses' (a). (b). (

c) and (d); the amount or value of any down payment, rent paid or to be paid in advance of delivery or on delivery, trade-in or other allowance made to the hirer; the balance of the total cnsh price, being the dif­ ference' bet\~een the total mentioned in clause (

e) and th~ amount mention~d ~n'tlause (f); the tot"l co~t of borrowing being the difference between the balances' mentioned.in clauses (

i) and (

g) expressed 3S one sum in dollars and cents; the balance owin~, being the aggregate of the rent to be paid by the hirer subsequent to delivery of the goods, and of all further payments, if any, not included in the rent which the hirer will have to pay in order to purchase or become the owner of the goods; the details of the manner in which the balance owing is to be paid, as required by

section 8 or 10; the aggregate of the cost to the hirer being the total of the amounts mentioned in clauses (

e) and (h); the true annual rate of the cost of borrowing calcu­ lated in accordance with

section 11 and the regula­ tions, expressed as a percentage; and the total additional charge, if any, other than court costs, to be paid in the event of default expressed as a rate percentage per annum. As soon as possible after the writing required by

section 5 or 6 or by subsection (3) of

section 15 is received by the seller or his agent, and in any event not later than the time of delivery of the goods or performance of the services, as the case may be, the seller shall give a true copy of the writing to the buyer, but (

a) if there is more than one buyer, it shall be suf­ ficient to give a copy to one of them; and (

b) if the writing was signed by an agent of the buyer, the copy may be given to that agent.

(2) The buyer or agent to whom the copy of the writi"ng is given shall, if so requested by the seller, acknowledge receipt thereof and in any case the writing shall not be bindin£ on the buyer unless a copy thereof has been given as provided herein. Buyer to have copy of agreement. Acknowledgment of receiving agreement. 8. Subject to

section 10, the details required by

section 5 or 6 Dates of of the manner in which the balance owing is to be paid shall payments. include the date and the amount of each payment to be made, except only that where such manner consists of, or includes, a succession of instalments of approximately equal amount payable monthly or at any other regular periods, it shall be a sufficient statement of such succession of instalments to state them in the following form: 18

Delivery of goods etc. Late delivery. Rights preserved. "10 equal consecutive payments of $10.00 each on the first day of each month com­ mencing on the 1st day of June, 1971, and ending on the 1st day of March, 1972, to­ talling $100.00." with such changes as may be necessary to fit the circum­ stances of the case. 9;

(1) Subject to

section 10, if the writing required by sec~ tion 5 or 6 is signed prior to the delivery of the goods or performance of the services, the seller shall deliver the goods or perform the services not later than seven days after the delivery date, which is (

a) the date for delivery or performance fixed by the writing; or (

b) if none is so fixed, the date on which the writing is received by the seller or his agent.

(2) If the seller does not deliver the goods or perform the services within the time limited by subsection (I), the buyer is entitled to a rebate of part of the cost of borrowing calculated by applying the true annual rate of the cost 0 f borrowi ng to the amount of the balance owing over the period of the seller's default.

(3) Nothing herein contained derogates from the buyer his right, if any, in the transaction to rescind or cancel for late delivery, failure to perform or otherwise. Where

section 10. Where, in any case to which either

section 5 or 6 applies, 9 not to apply. the date of del ivery of the goods or performance of the services is uncertain, the" date or dates on which the ba­ lance owing is to be paid may be described in the writing by reference to the date on which the goods are delivered or services performed, and if that is done

section 9 does not apply. Date for calculation of cost of borrowing. 11. Except as otherwise prescribed by regulation, the true an­ nual rate of the cost of borrowing stated in a writing re­ quired by

section 5 or 6 must be calculated over the period commencing (

a) where

section 9 applies, with the delivery date re­ ferred to therein; and (

b) in any other case, with the date on which the delivery of the goods or performance of the services is completed. Payments 12. For the purposes of clause (

f) of subsection (2) of

section 5 and clause (

f) of subsection (2) of

section 6, any pay­ me~t which is made or to be made by the buyer prior to the delivery of goods or performance of the services is a down payment, notwithstanding that it may be made after the writing is signed. before delivery of service. Variable 13.

(1) This

section applies to every retail sale to or retail credit and hire-purchase by a resident of the Yukon Territory of cridit cards. goods or services or goods and services made on vari­ able credit; and, for the purposes of this

section a buyer who obtains credit by use of a credit card shall, in relation to that credit, be deemed to reside at the address shown on that card, or if there is no address at the address applicable to that card. 19 Chap. 3

Chap. 3

(2) Every extension of variable credit by a credit grantor shall be governed.by a master agreement which shall be signed by the borrower before the first extension of variable credit to him. and which ~tates (a-) at what periods payments are to be made by the borrower, (

b) the amount of the minimum paym,!nts that will be required from the borrower. bu~. if this may vary accord i ng to the amount of cre':: it extended or out­ standing. the method of calculating the minimum payments shall be set out in ar. intell igible manner. (

c) the prevailing rate or rates of charges that the borrower \~i 11 be requ i red to pay peri od i ca lly for the variable creciit extended to him cxp,'essed as a percentage or percentages per annulII of the ba­ lance of principai and accrued ch~rges outstdnd­ ing at the commencement of the periou; and (

d) if the chdrges payable on payments in arredrS dre to be calculdted othen~ise than in accordance with clause (

c) hereof. thl! ",dnne,' in which those charges are to be calculated and the rate thereof expressed as a percentage per annum on the amount in arrears,

(3) Subject to subsection (4). the master agreement shall also contain a table shO\~ing the amount in dollar, and cents of the monthly charge produced by the applicable rate or rates on outstanding balances, using a suffi­ ciently large numbe,' of representJtive amounts to give a fair representati6n of the dollars and cents charqes applicable to various sizes of outstanding balance,

(4) At the option of the credit grantor, the table required by subsection (3) may, instead of being included in the master agreement, be CII,bodied in a sePdrate document, which shall be given to the borro~/er before he signs the master agreement,

(5) The credit grantor shall give a copy of the master agreement to the borrower before the first extension of credit thereunder,

(6) There may be more than one master agreement in force concurrently bet~leen a cr'?di t grdntOl' and a borrower if (

a) each agreement relates to a different category of goods or services; or (

b) the borrower has the right to decide under which agreement any purchase shall be made,

(7) Subject to subsection (6), every exten,ion of variable credit by a credit grantor to a borrower who has signed a master agreement shall be governed by the last master agreement signed by the borrower,

(8) A credit grantor shall, on demand, but not more often than once a year, furnish te a borrower a photostatic copy of any master agreement signed by that borrower which is then in force,

(9) A credit grantor Rlay. by giving written notice thereof to the borrower. . (

a) increase the rate or rates of charges payable by the borrower in.respect of subsequent purchases; or 20 Contents of master agreement. T.1b le of ch.lrges. Separate docunlpnt for ch.,rgc.'s. m.1stC"r agrCl.:mcnt. Sl~V(!r:J L masleJ' .1grCl'In(:nt s. Agreement to govern cred it. Copies of master agreement. Variat 10ns 'Jf master agreement.

Decreasing payments under master agreement. Liability of borro"er under master agreement. Ne" master agreement. Where rate charged not stated. Agreements before Ordinance. Money loans. Contents of agreement. (

b) increase the minimum periodic payments payable by the borrower in respect of subsequent pur­ chases; or both, but, except as otherwise provided 1n the regu­ lations, no such increase shall affect the borrower's obligations in respect of his then outstanding balance which shall continue to be governed by the then prevail­ ing terms.

(10) A credit grantor may decreas1! the rate or rates of charges or the minimum periodic payments payable by a bor'r0l1er, or both, ei ther i r. respect of subsequent purchases only or in respect of both his then out­ standing balance and subsequent purchases.

(11) Subject to subsection (13) a borrower to whom variable cred;t has been extEIOded shi,]l be liable to pay periodic charges for such credit in accordance with clause (

c) of subsection (2) and sub~~ctions (9) and (10), but unless he defaul ts in his payments, no other cost of borrowing whatsoever.

(12) A credit grantor m~y at ani time require a borrower to sign a new master agreement as a condition of extending fresh credit, hut a refusal by the borrower to sign a new master agreement shall not affect his liability in regard to credit already extended.

(13) If a master agreement indicates that the borrower is to pay periodic charges for variable credit'extended to him but either does not state any rate for such charges or expre;ses it otherwise than as a percentage per annur.l of the bdlance outstanding at the ':ollmence­ ment of the period, the charges under that agreement shall be calculated at the legal rate of interest on the said balance.

(14) Any agreement for the extension of variahle credit entered into before this Ordinance comes into force continues in force notwithstanding that it does not comply with subsection (2) or subsection (3) and subsections (5), (11), and (13) do not apply thereto; but subsections (6), (7), (8), (9), (10), and (12) apply thereto. 14.

(1) Subject to

section 3, this

section applies to every loan of money made by a money lender except (

a) a loan secured exclusively on real property; (

b) a loan of more than eight thousand five hundred dollars; (

c) a loan to a corporation; (

d) a loan made by an insurance company to a policy holder pursuant to a provision of the policy; and (

e) a loan in which the cost of borrowing does not exceed ten dollars.

(2) Every loan to which this

section applies shall be evi­ denced by a document or memorandum in writing signed by the borrower at or before the time the loan is made which shall set out (

a) the amount advanced or to be advanced to the bor­ rower himse If; 21 Chap. 3

Chap. 3 (3) (4) (5) (b) (c) (d) (e) (f) (g) (h) (

i) any insurance charges actually paid or to be paid by the money lender to an insurer on behalf of the borrower on his request; any registration fee payable on any security taken for the loan; any other amount, not being a part of the cost of borrowing, advanced or to be advanced to other per­ sons for the borrower's account showing the name of each of those persons and the amount advanced or to r.e advanced to each; the cost of borrowing expressed as one sum in dol­ lars and cents; the total a;no'mt tl) be repaid by the borrower, being the dygregatr uf the dlnounts mentioned in clauses ( a ), (b), (cl, ( d), 3 nd ( e ) ; the detail~ of the manner in which the total amount is to be I'~Pd id ~howi ny the number of payments, and the amount a,Id date of each; the true allnu." rate of the cost of borrowing cal­ culated ill dccordance \,d th the regulations expressed a s a pel"centJ,]e; and the total additional charge, if any, other than court costs, to be paid ill the event of default expressed as a rate percentage per annum, The particulars re'luil'(~d hy clause (

d) of subsection (2) need not be set out in the loan agreement if (

a) they are contained in a separate document signed by the borrower not later than the time at which he signs the 10dn agreement; (

b) the borrower is given a copy of that document at the tilllf! he signs it; and (

c) the total of the amounts shown in that document is set out in the loan agreement. Where any loan to whi~h this

section applies is secured by a mortgage or charge on goods, the goods shall be clearly de:;cribed ill the document or memo,"andum required under subsection (2), and in the copy that is given by the credit grantor or his agent under

section 20. In this

section "real property" includes leasehold interests therl'in and things attached to or fanning part of the land Oil \ihich the loan is secured. 15. (

I) Except as otherwise provided in the regulations, where a borrower rearrdllqes \.,; th a c,"edi t grantor payment of any existill9 debt 01' dellts OI·,ing to that credi t grantor which nose out of Cl transaction or transactions to which

section 5, 6 or 14, or any combination of them, applied, or to which those provisions or any of them would have applied if they, or any of them, had been in force at the time the transaction took place, by any arrangement whatever that has the effect of vary­ ing the amount the borrower has to payor the period over which he has to pay it, the transaction shall be evidenced by a document or memorandum in writing signed by the borro~ler in accordance with

section 14 as if the credit grantor \ierE' then advancing to the borrower the sum then required to prepay the existing debt or debts without any allowance to the credit grantor under Separate documents permitted. Description of goods in document. Def init ion. Refinancing eKisting indebtedness"

Refinancing .. ombined with new loan. Refinancing combined with further p:.Jrchase. subsection (3) of

section 29 and the credit grantor shall furnish to the borrower before he signs the agreement a written computation of that sum; and where more than one existing debt is included in the rearrungement, a separate computation shall be made in respect of each of them.

(2) Except as othen/ise provided in the regulations where a rearrangement of an existing debt or debts under sub­ section (1) is combined with an additional loan of money by the cr~rlit grantur to the borrower, the transactiOn shdll be evidenced by a document or memorandum in writ­ i ng s i gn~d by the borrOI·/er a t or before the time the additional loan is made in accordance with

section 14 as if the credit ~ra~tor we,·c then advancing both the amount of the addit"iullal loan and tile sum then required to prepay the existing indEbtedness in accordance wi th subsect ion (1); but the 10dn agreement must show how the total is divided bet~leen these two items and the borrower must be given the computation required by suh~ecticn (I).

(3) Except as oth~rwi~~ provided in the regulations, where a borrower wishes to combine the p~~nent of an exist­ ing debt or debts with pa~nents for a new purchase from the same credit grantor ef goods or services or both to which

section 5 is applicable, the transaction shall be evidenceJ by a ~/riting signed by the borrower prior to or at the time of del ivery of the goods and services which combines the infonTldtion required to be given by

section 5 and by subseo:tion (1 ) hereof by stating (

a) the infomation required b'y clauses (

a) to (

g) of subsection (2) of

section 5 in respect of the sale of the goods ~nd services; (

b) the sum t·equi red to prepay the ex is t i ng i ndebted­ ness in accordance with subsection (1); (

c) any registration fee which is payable only in respect of ~he refinancing of the existing in­ debtedness; (

d) the total present debt, being the aggregate of the balance of the total cash price of the goods and services and the ~mounts ~entioned in clauses (

b) and (c); (

e) the total cost of b(lrrO\~ing e:o<pressed as one sum in dollars and cents; (

f) the b~lance owing, being the ag~regate of the amounts mentioned in clauses (d, anci (e); (

g) the details of the manner in which the balance owin9 is to be paid, as required by

section 8; (

h) the totdl amount the borrol"er will be ·paying to acquire the qoods and services ~nd retire the existing indebtedness, being the aggregate of any down pa~ent, trade-in or other allo~lance to the horrower on the purchase of the goods and services ftnd the balance owing mentioned in clause (f); (

i) the true annual rate Jf the cost of borrowing calculated in accordance with

section 11 and the regulations expressed as a percentage; and (

j) the total additional charge, if any, other than court costs, to be paid in the event of default expressed as a percentage per annum.; Chap. 3

Chap. J (4) and the credit grantor shall also furnish the borrower with a written computation of the sum required to prepay the existing indebterlness as provided by subsection (1) thereof. In any transaction to which subsection (3) hereof applies. all payments made by the borrower on account of the balance owing shall be upplied in payment of (

a) first. the registration fee mentioned in clause (

c) of subsection (3); (

b) secondly. the sum required to prepay the existing indebtedness; (

c) thirdly. the cr;t of borrowing; (

d) fourthly, the balance of the total cash price of the goods, and services; and when the borro~ler's payments have satisfied thp. amount~ menti oned in cl auses (

a) and (b), any security held by the credit grantor for the existing indebtedness is discharqed; and, if the goods bein!! purchase are the subject of a time sale. the l'lhole cost of borrO\~ing is secured on them, not­ withstanding subsection (1) of

section 57. AppU cation of p"yments.

(5) The combination as one obliQation of rent on a retail hire- Re-financing purchase to which

section 6 applies with instalment payments not to be on account of an existing indebtedness is prohibited. combined with

(6) In any transaction to which this

section aoplies, if (

a) any insurance previously charged to the borrower in a transaction from which the existing indebted­ ness arose is to be continued in force; and (

b) new insurance is charged to the borrower; the aQreement sha 11 shO\~ whether the new insurance is in addition to the existing insurance or is whol1y or partly in substitution for it, and in the latter event shall also show the amount of the unearned premium on the insLIY'ance being replaced, and the insurance charges charged to the borrower shall not exceed the net amount payable after cre­ dit for such u~earned prpmium. hi re-purc"',s,"" Add it ion" 1 ins,urance ch'H~es. 16.

Where the manner in which the total amount is to be repaid con- Dates for sists of or includes a succession of instalments of approximately periodic equal amounts payable monthly, or at any other regular periods, paym~nts. it shall be a sufficient statement of such succession of instal- ments for the purpose of clause (

g) of subsection (?) of

section 14 and of clause (

g) of subsection (3) of

section 15 to stutc them in the form provided by

section 8. 17 . Where any loan to whi ch secti o,n 14 app 1 i es is to be advanced Loans advance.; by stages over a period of more than seven days, the loan agree- Over period. ment shall so state and shall (

a) name a date (hereinafter referred to as "the interest adjustment ddte") by Ivhich all advances are to be com­ pleted; (

b) provide that to the interest adjustment date the only cost of borrowing payable by the borrower shall be in­ terest at the rate specified calculated on the amount from time to time advanced, and state when such interest shall be paid; (

c) e~clude that interest from both the cost of borrowing and the total amount to be repaid by the borrower; 24

(

d) state clearly that that interest will be in addition to the :ost of borrowing and total amount to be re­ paid ~hown in the agreement; (

e) fix as the date of the first repayment to be made by the borrower a date subsequent to the interest adjust­ ment date; and (

f) state as the true annual rate of the cost of borrowing the rate calculated over the period commencing with the interest adjustment date. . Advancing loan. lB. Except as provided bv

section 17, the full amount of any loan to which

section 14 applies shall be advanced not later than seven days after Rebate where 19. loan not advanced. Delivery of 20. copy of agreement. Payments on 21 . borrower's account as cost of borrowing. Compliance 22. with require­ ments for agreements. Proof of insurance. 23. (

a) the date fixed by the loan agreement, where the date is so fixed; or (

b) where the date is not fixed hy the loan agreement, the date on which thp agreement is signed by the bor­ rower; and the true annual rate of the :ost of borrowing shall be cal­ culated over the period commencin9 with the date so fixed, or, if none is so fixed, with the date on which the agreement is signed by the borrower. If a credit grantor fails to advance the full amount of a loan before the interest adjustment date or within the time limited for that purpose by

section 18, as the case ma'y be, the borrower is entitled to a rebate of part of the cost of borrowing calculated by applying the true annual rate of the cost of borrowing to the amount not so advanced over the period of the credit grantor's default. As soon as possible after a loan agreement required by sec­ tion 14 or 15 is received by the credit grantor or his agent and in any event not later than the time of the first advance made by the credit grantor thereunder, the credit grantor shall gi ve a true copy of the 10dn agreement to the hOrr0\'ler, [lro­ vided that, if there is more than one borrower, it shall be sufficient to give a copy to one of th~. For the purposes of paragraphs (

d) and (

e) of subsection (2) of

section 14, a payment made to another person for the bor­ rower's account is part of the cos t of borrowi ng if it is made to discharge a liability which the borrower would not have incurred if there had been no loan made to him or deemed to be made to him ul~er

section 15 as the case may be. Except as may otherwise be provided by regulation, if a writing or agreement required by

section 5, 6, 13, 14 or 15 stated in an intelligible manner the information required by the applicable section, or by any other provision of this Part, it is not necessary that it should set it out in any particular order, except that in a transaction to which sub­ section (3) of

section 15 applies, the information mentioned in paragraph (

a) thereof shall be stated first.

(1) A creait grantor shall forward promptly the application for any insurance ~/hich is charged to a borrower and does not form part of the cost of borrowing and shall furnish proof of the insurance to the borro~/er as soon as it is effected. 25 Chap. 3

Chap. J 24.

(2) A borrower is liable to pay to the credit grantor only the premium pa.vable from the time the insurance beccmes effective to the date of the expiry of the policy or any extension thereof or to the date on which the policy is cancelled and. where the policy of insurance is cancelled. the debtor shall receive the full amount of the unearned premium cancelled by the insur!!r. Liability for insurance premiUl!l.

(1) Except as otherwise provided in the Intepest Act (Canada), and subject to subsections (2) and (3), if a writing required by

section 5 or 6 (

a) does not contain a stat~ment of the true annual rate of the cost of borrowing or understates it by more thdn the margin permitted by the regula­ tions; or (

b) omits or states incorrectly any of the infor­ mation required hy paragraphs (

a) to (

k) of

section 5 or paragl-aphs (

a) to (

k) of subsec­ tion (2) of

section 6, as the case may be, or by

section 10; the seller may recover from the buyer no more than the total cash price with simple illterest thereon, or on so much thereof as from timE to time remains owing, at the legal rate, and if the buyer has paid the seller mOI"e than that amount, he may recover the excess from the seller. Incorrect statements in agreements.

(2) Where paragraph (

a) of subsection (1) applies, the Inadvertent court may permit the seller to recover, or to keep, mistakes in as thp case may be, more than the total cash price and cost of simple interest thereon at the legal rate if it is borrowing. satisfied that the omission or mis-statement was due to inadvertence; but the seller may not, in any case, recover or keep a cost of borrowing which would exceed the rate stated in the writing to be true annual rate.

(3) Where paragraph (

b) of subsection (1) applies, the Inadvertent court may pelToli t the se llel' to recover, or keep, as mistakes in the case may be, the full amount which the buyer has other agreed to puy if it is satisfied that the omission or statements. mis-statement was due to inadvertenr.e and the buyer ha s not thereby been m i s 1 ed a s to the amoun t he had to pay, but where the result of a mis-st<ltement is to produce in the writiny inconsistencies that make it ullcerta in how much the buyer has to pay, the se 11 er may not, in any event. recover from the bu.ver more than the lowest amount which the writing can reason­ ably be con;trued to require.

(4) Where a seller claims that any omission or mi5-statement Investigation was due to inadvertence. the court shall not adjudicate of inadvertent thereon until the Commissioner has been advised thereof, mistakes. --and if he considers it to be appropriate has made an investigation.

(5) Where subsection (4) applies, the Commissioner may at- Appearance by tend by counsel at the hearing and adduce such evidence Commissioner. as he desires; and, if in the result the court is not satisfied that the omission or mi5-statement was due to inadvertence. it may order the seller to pay the Com­ missioner's costs.

Understatement 25. of c09t of borrowing rate on variable credit . Where no master agree­ ment on variable credit . C09t of borrowing on variable credit restr ic ted. Recovery of excess interest paid. Loans not in 26. writing or at wrong rate. Refinancing not properly stated.

(1) Except as otherwise provided in the Interest Act (Canada), if any master agreement required by

section 13 understates the true annual rate of the cost of borrowing by more than the margin permitted, the bor­ rower is not required to pay charges calculated at any greater rate than the legal rate of interest.

(2) Except as otherwise provided in the Interest Act (Canada), or in

section 13, a credit grantor who ex­ tends variable credit in transaction to which

section 13 applies otherwise than in pursuance of either (

a) a master agreement which complies with

section 13; or (

b) a written agreement made prior to the commencement of this Ordinance; may not recover from the borrower any cost of borrowing whatsoever.

(3) A credit grantor who has extended variable credit in a transaction to which

section 13 applies shall not exact or attempt to exact from the borrower payment of any cost of borrowing in excess of the amount permitted by thi s Ordi nance or by the Tnterest .4ct (Canada).

(4) If a credit grantor who has extended variable credit in a transaction to which

section 13 applies receives from the borrower payment of any cost of borrowing in excess of the amount permitted by this Ordinance or by the Interest lIet ((.'allada), the borrower may recover from the credit grantor the amount of such excess.

(1) Except as otherwise provided in the Inter'est Act (Canada), where a loan to which

section 14 applies (

a) is not evidenced by a loan agreement containing the information required by paragraphs (

a) to (

h) of subsection (2) of

section 14; or (

b) is evidenced by a loan agreement which understates the true annual rate of the cost of borrowing by more than the permitted margin; the credit grantor may recover no more than the aggregate of the amount advanced to the borrower himsel f and any amount properly advanced to any other person for the borrower's benefit, with interest thereon at the legal rate.

(2) Except as otherwise provided in the Interest Act (Canada), where a transaction to which

section 15 applies (

a) is not evidenced by an agreement containing the re­ qired .information; or (

b) is evidenced by an agreement which understates the true annual rate of the cost of borrowing by more than the permitted margin; the transaction is voidable at the option of the borrower; and if the borrower elects to avoid it, the credit grantor may recover no more than the aggregate of (

a) the amount properly payable under the terms of the obligation being rearranged; and (

b) the amount of any additional loan, if subsection (2) of

section 15 is applicable, or the total cash price of the goods and services sold to the borrower, if subsection (3) thereof is applicable. with interest thereon at the legal rate. 27 Chap. 3

Chap. 3

(3) If a credit grantor in a transaction to ~/hich

section Recovery of 14 or 15 applies receives from the borrower payment of excess costs any cost of borrowing in excess of the amount permitted of borrowing. by this Ordinance or by the Interest Act (C(JI1.1~a). the borrower may rec~ver from the credit grantor the amount of excess. 27. (

l) No advertisement of goods for retail sale on credit or Contents of for retail hire-purchase Sh,lll state the monthly or advertis"';,,nls. other periodic payments required unless it also states- (

a) the total cash price of the goods; (

b) the total to be paid by the credit buyer or hirer; and (

c) the true annual rate of the cost of horrowinq ex­ pressed as a percentage and ca1tulated in accordance with the regulations.

(2) In subsection (a). "advertis~nent" includes (

a) any price ta9. ticket or notice attached to or displayed near th~ good~; '(

b) any adverti5Cfflf'nt in a new~raper or maqa7.ine which circu1att's in the Territory; and (

c) any messagp broadcast by television or radio which can reasonahly he exrected to he received by members of the public in the Territory. 28.

(1) Subject to subsecti~n (2). no person carryinq on busi­ ness in the Territory shall advertise or cause others to advertise his (joods in a manner prohibi ted by sec­ tion 27. Oefinitinn llr " rt dvert iSI'Tn"1I1 . If or fence In adVl'rtislng.

(2) Where a person also carries on business outside the Exception. Territory. subsection (1) does not apply to any advertise­ ment of his goods which either (

a) is contained in a newspaper or magazine circulating principally in a particular locality outside the Terri tory; or (

b) states expressly that the credit terms offered do not aoply in the Territory.

(3) Where any advertisement of the goods of a person carrying Onus (Or ['r .... r. on business in the Territory is contained i., a ne~lsrl<lper or magazine published outside the Territory. ~r is scnt by mail from a point outside the Territory. or is hro~d- cast from outside the Territoru. the onus of J)roof shull lie on him to prove that he did not cause his qoods to be so advertised. PART [[ Prepayment Privileges 29.

(1) This

section applies to (

a) every debt which arose out of a transaction to which

section 5. 6 or 14 or subsection (1). (2) or (3) of

section 15 applies; and (

b) to every debt owing before this Ordinance came into force and to which these provisions or any 2K Application of sect lon.

Prepayment and rebate. Credit grantor' a allowance. Deducting rebate from payment. Statement of prepayment. Prepayment of variable cred it. Surrender of security. Appl ica tion of Part. Definition. Default charges. 30. 31. of them would have applied if they had been in force at the time the transaction took place ff the credit grantor accepts full pay­ ment of the balance owing after this subsec­ tion comes into force.

(2) The borrower may at any time prepay the whole of the balance then owing on any debt to which this

section applies and 1n so doing is entitled to a rebate equal to the unearned portion of the cost of borrowing cal­ culated in accordance with the regulations, less the allowance permitted to the credit grantor by subsection (3).

(3) The allowance to the credit grantor on prepayment re­ ferred to in subsection (2) shall be one-half of the un­ earned portion of the cost of borrowing, but in no case more than ten dollars.

(4) A borrower who is prepaying a debt under this

section may deduct the rebate to which he is entitled from his pay­ ment and tender to the grantor the net amount required to effect the prepayment.

(5) A credit grantor shall furnish, on request, to any bor­ rower who is entitled under this

section to prepay a debt to him a statement showi ng the net amount requi red to effect such prepayment and how such amount is arrivec1 at. A borrower to whom variable credit has been extended may, at the time when any periodic payment falls due, payoff the whole or any part of the balance owing. Where a borrower has prepaid or paid off the whole of a balance owing under

section 29 or 30, the credit grantor shall surrender or discharge any security which he holds for such indebted- ness without further charge to the borrower, except that the credit grantor need not register any document required to effect the surrender or discharge, but may deliver the same to the borrower who shall bear the registration fee thereon. Relief Against Acceleration and Forfeiture 32.

(1) This Part applies to any debt owing by a borrower to a credit grantor that is p~yable by instalments, other than (

a) a debt secured on real property; and (

b) a debt which arose out of a sale of real property.

(2) In this

section "real property" includes leasehold in­ terests in real property. 33.

(1) No agreement creating or relating to a debt to which this Part applies shall provide for any charge to be paid upon any default in payment of an instalment un­ less it is expressed as an annual rate on the amount in arrears. 29 Chap. 3

Chap. J

(2) If the debt arises out of a transaction to which any provision of

Part I of this Ordinance applies, the annual rate of default charges shall not exceed the annual rate of the cost of borrowing.

(3) If the agreement states the default charge otherwise than as an annual rate on the amount in arrears, or, in a case to which subsection (2) applies, states an annual rate greater than is permitted by that subsec­ tion, the credit grantor may not recover any default charge in excess of an amount equal to' interest at the legal rate on instalments in arrears. Restrictions on default charges. Penalty. 34.

(1) Subject to the restrictions hereinafter set forth, any Acceleration provision in an agre~ncnt providing that in the event on default. of default in payment of an instalment, the full balance will or may become immediately due and owing is valid and enforceable.

(2) The restrictions to which reference is made in subsection Restrictions on (1) are acceleration. (

a) if the debt arises out of a sale of goods or of goods and services, or a hire-purchase of goods and the seller has not seized the goods or com- menced an action to recover the balance of the dabt. the buyer may pay the instalments in ar- rears with the default charges thereon as pro- vided in

section 33 and. in that event, payment of the balance shall not be accelerated by reason of any default so remedied; (

b) if the debt arises out of a sale of goods or of goods and services or a hire-purchase of goods, and the 5eller is entitled to seize the goods and has so seized them, he shall proceed in accordance with

section 47 or 48 and, if the buyer redeems the goods in accordance with those sections, pay­ ment of the balance shall not be accelerated by reason of any default so remedied; (

c) if the debt is secured by a chattel mortgage, the mortgagor is entitled to relief from acceleration as pro'vided in paragraph (

h) of

section 8 of the Judicatu)'c OrJ-i1:I.1H.:J<::; (

d) in any other case, the borrower may, at any time before an action is commenced to recover the balance of the debt, pay the instalments then in arrears with' the default charges thereon as provided by

section 33, and in that event payment of the ba­ lance shall not be accelerated by reason of any default so remedied; (

e) in any case in which an action has been commenced to recover the balance of the debt, the court may grant reI ief against acceleration on such terms as it sees fi t; and (

f) in any case in which a credit grantor is claiming accelerated payment, and the borrower does not make the payments required to obtain relief under clause (a), (b), (cl er (dl. or is not granted relief under clause (el, as the case may be, the credit grantor may not recover more than the aggregate of (il the amount which the borrower would have had to pay in order to prepay the whole balance of the debt at the time of the default on which the claim for acceleration is based; 30

Default after extension. Meaning of "payments in default" . Acceleration provisions contlDue in effect. Other penalties void. Damages for breac h of obligation. Pena 1 ty for breach. (1 i) 1 nterest thereon from the time of default at the annual rate of the default charges on payments in arrears provided, at the 1 ega 1 ra te, and (iii) any expenses actually incurred by the credit grantor as a result of the default and his taxable costs of the action, if any.

(3) In any case in which a borrower has been granted an ex­ tension of time, the time of default referred to i~ sub­ para9raph (

i) of paragraph (

f) of subsection (2) is the time when the borrower fails to comply with the terms of suc h extension.

(4) Except where expressiy so stated, references in this Ordinance to payments in default do not include any payments that have ~ecome due by virtue of any pro­ vision for the accpleration of payments.

(5) A provisi~n for acceleration of payments on default operates from time to time as and when default occurs; and the circumstan~~ that a borrower has been relieved from acceleration in accordance with this

section shall not be taken to have exhausted the operation of the provision in respect of subsequent defaults. 35. Any provision in an agreement creating or relating to a debt payable by instalments to which this Part applies that imposes on the borrower, as a consequence of default in pay­ ment of an instalment, any pecuniary penalty which is not permitted by sections 33 and 34 is void. 36.

(1) Where an agreement creating or relating to a debt im­ poses on the borrower any obligation in addition to the payment of the debt and the cost of borrowing, if any, and the borrower COlTlllitS a breach of the obliga­ tion, the credit grantor may recover from the borrower as damages for the breach the amount of the loss he has suffered and the actual expenses he has incurred as a result of the breach, but not more.

(2) Every provision contained in an agreement creating or relating to a debt that imposes on the borrower a pecuniary penalty, howsoever described for committing a breach of an obligation in addition to the payment of the debt, imposed on the borrower by the agreement, is void in so far as it would entitle the credit grantor to recover more than the amount permitted by subsection (I), but is effective to prevent the credit grantor from recovering more than the amount of the penalty so specified. Relief against 37. acceleration, seizure and forfeiture.

Where an agreement creating or relating to a debt imposes on the borrower an obligation in addition to the payment of the debt, and provides that in the event of a breach thereof (

a) payment of the debt shall be accelerated; or (

b) the credit grantor may seize or take possession of any goods; or (

c) that the interest of the borrower i'n any goods 1s or may be forfeited; the court may relieve the borrower from the effect of the pro­ vision on such terms as it thinks just. 31 Chap. 3

Chap. 3 38.

(1) Every provision in an agreement creating or relating to a debt that gives or has the effect of giving the credit grantor the right to decide whether any given fact or circumstance exists is void. Absolute discretion of creditor.

(2) Notwithstanding subsection (1), an agreement may con- Powers to tain a provison that, if the credit grantor has reasonable preserve cause to believe that the security for the debt is in security. jeopardy, (a)' payment of the debt shall be accelerated; (

b) the credit grantor may seize or take possession of any goods; or (

c) that the interest of the borrower in any goods is or may be forfeited; or any or all of those provisons; and in that case it is a question of fact for the court whether the credit grantor has reasonable cause for such belief or not, but, if he has such cause at the relevant time, it is immaterial whether the security is actually in jeopardy or not.

(3) The court may relieve the borrower from the effect of a provision mentioned in subsection (2) on such terms as it thi nks just. Relief againgt powers. 39. The court may grant relief under sections 37 and 38 at any Granting time, and may do so either in a proceeding commenced by the relief. credit grantor to enforce his security or on an application by the borrower; but if the credit grantor gives the borrower written notice which (

a) specifies the ~reach complained of, or the facts relied on'as giving reasonable cause for the credit grantor's belief, as the case may be; (

b) informs the borrower of his right to apply for relief; and (

c) requires the borrower to apply for such relief within twenty days; the borrower's right to apply for relief expires at the end of those twenty days. 40. Where a credit grantor s~zes any goods and the borrower remedies the default or otherwise obtains relief under this Part, the credit grantor shall return the 900ds to the borrower on pay- Return of ment by the borrower, in addition to any other payment required s~iZeddg~Od~ by'this Part, of the costs of seizure in an amount not ex- were e au t ceedi ng that permi tted by the Dist"!'ess Ordinance. relD~died.

PART IV Time Sales 41.

(1) Subject to sections 43 and 44, every time sale shall be Content of evidenced by a time sale agreement in writing signed by tilDe sale the buyer or hi s agent pri or to, ,or at" the time of, de- agreement. livery of the goods containing a description of the goods by which they may be readily and easily known and distinguished, and also containing, in type not less ten point in size (

a) a statement that the property in the goods is not to pass to the buyer on delivery; (

b) the conditions upon which the property in the goods is to pass to the buyer; and 32

Delivery of copy to buyer. (

c) the events upon which the seller may, before the property therein has passed to the buyer, repossess the goods.

(2) The seller shall give a copy of the agreement to the buyer, or to the agent \'/ho signed it, not litter than the time of delivery of the goods, but if there is more than one buye", it is sufficient to give a copy to one of them. Compliance 42. Every time s3~e agreement to which

section 5 or F; or sub- with other section (3) of secti~n 15 is applicable shall also cont~in requirements. the information required thereby. Time sale 43. Subject to

section 4·t, if i\ seller extends Voidable cr'edit under master under a !I1~ster ~<]ret:r~eItL ~;hich ;Jrovid.:!S that all 'loods ~()ld agreement. thereunder itre sold ~n tl~le s?les, it ~h.lll not l,e necess~ry for the buyer to sign a tin;e sale c\!lt"<'el"c.:t for any pun:h~se made under' U'clt m,r~ t.cr aq""C!mr.nt if Serial 44. numbers or distinguishing marks, Non-compliance 45. with sections 41, 43 or 44. (

a) the ma~ter .qre~i.IC'nt contains, in type not less than ten point in sil(!, the stdt'.':J'ents a.;d information required by Ci.lu5l~S (~), (

h) a'.d le) ')f suh:;ection (1) of

section 111; JnJ (

b) there is deliver~d to the buyer, 0r his agC!nt, or tD one of the bLiyer~, if thpre is Illor'e than OIIP. of them, prior to, or at the time of, dl?liver'Y or tire good~ i: writing ~/hich (

i) contains a description of the goods hy which they may be readily and ca~,;ly known and di sti Ilgui ~hed, (ii) ~tates the cash price of the goods, and (iii) indicates that the goods ware sold on the tenns of the mas ter agreement, Where an

article bought on a time sale is one of a series of similar articles that are individually distinglli~hed hy a serial number or similar distinguishing mark and at the time of purchase: it is not knm·/O which p~rticlllar

article will be the one de 1 i vered to the bllyer', (

a) if the

article is s~ld otherwise than on variable cred it, the sc 11 er may insert the seri a 1 number or distinguishinlj mMk in tire agreclllent after it is signed by or on bchal f of the buyer, and if this is done after the copy (lr the d!]reel'lcnt requir'cn :',y

section 41 has b~"!l qiven to the buyer he shdll give a second COHlP 1 eted copy of the ~']rl'(: •. 'ent to tl1<.' buyer, but the sendl r,ulllber or distinruhhing rnark shall be inserted in the dyreement dnd the s,~ccnd copy !Jiven to the u:Jyer not lJter than t~/enty days after delivery of the article; and (

b) if the

article is sold on variable credit, the serial number or distinguishing mark may be omitted from the writing required by

section 43 to be given to the buyer, but a copy of the ~ritin9 containing the number or mark shall be given to the b'Jjer not later thdn twenty days after delivery of the article.

(1) Subject to SUbsections (2), (3) and (4), a time sale that does not comply with

section 41 or 43 or 44 takes effect as an immediate sale and the property in the goods passes to the buyer on delivery and the seller 33 Char. 3

Chap. 3 has no lien on the goods, but this does not affect the buyer's obligation to pay for the goods in ac­ cordance with the terms of the agreement.

(2) Where a time sale includes more than one separate article, and the only non-compliance with

section 41, 43 or 44, as the case may be, is a failure to give a proper description of one or more of the articles, the rese~vat~on of the seller's lien is effective in regard to the articles that are properly described and subsection (1) applies only to the articles that are not, properly described.

(3) The buyer may at any time consent in writing to the correction of an error or omission in the descripti~n of any goods in a time sale agreement; and on receipt of such consent the seller nlay correct the original agreement accordingly; and for the purposes of this

section the aqreement shall be deemed to have been originally, written as so corrected, except that no such correction shall prejudice any rights, in or to the goods which lIIay have been acq'Ji red before the date of the correction by any other person claiming through the buyer I~ho does not consent in writing to the correction.

(4) The court, on being satisfied that an error or omis­ sion in the description of any goods in a time sale agreement was due to inadvertence and that the buyer accepted the goods and was not misled by the error or omission, may ord~r the description in the original agreement to'be corrected; and for the purposes of this

section the agreement shall be deemed to have been originally written as so corrected; but every such order shall contain whatever provisions the cir­ cumstances ef the case may require to protect any person who may have acquired in good faith through the buyer a right in or to the goods adverse to the seller's title which would be prejudiced by the correction.

(5) Where (

a) a variation in a time sale agreement, other than in the description of the goods, is made byagree­ ment in writing between all persons affected thereby; (

b) gocds sold on a time sale which have been repos­ sessed by the sellet' are returned to the ,buyer pursuant to any provision of this Ordinance; (

c) the court extends the time for payment of the balance owing on a time sale pursuant to this Ordinance; or (

d) a buyer on a time sale who has defaulted obtains any other relief under this Ordinance; the seller's title to the goods remains in full force and effect as l'eserved by the time sale agreement and his remedies in respect to future defaults by the buyer are not affected thereby. 46.

(1) Where a seller on a retail sale of goods takes back a chattel mortgage on those goods to secure payment of the whole or part of the price, the chattel mortgage shall state clearly and explicitly that it is given for this purpose. 34 Partial ,effect of seller's lien. Correction of description by consent. Correction of description by court. Chattel mort­ gage for purchase price

Prohibition. Waiting period after seizure. Notice of seizure. Resale with consent of buyer. Notice of seizure. Right to redeem.

(2) No seller shall take a chattel mortgage that does not comply with subsection (1). 47.

(1) Where a seller on a time sale has repossessed the goods by reason of the buyer's default in payment, 48. he shall retain them for twenty days after the giving of the notice required by subsection (2) during which time the buyer may redeem them on payment of (

a) any payments then in default; (

b) any default charges that have become payable thereon; and (

c) the actual expenses of taking and keeping pos­ sessions not exceeding the amount allowed by the Dif:trocss Oro<ii r.a nee •

(2) Within forty-eight hours after repossessing any goods, the seller shall give written notice to the buyer stating (

a) that the goods have been repossessed; (

b) the date on which they were repossessed; (

c) the amount required to redeem them, showing this amount is m~d~ up; (

d) the date 011 ur before whi ch the goods may be redeemed; and how (

e) the place where the goods are, or are to be kept.

(3) Notwithstanding subsection (I), the seller may resell the goods during the twenty days with the written con­ sent of the buyer given not less than twenty-four hours after the goods were repossessed.

(1) Where a seller on a time sale has repossessed the goods (

a) by reason of a breach by the buyer of the time sale agreement other than default in payment; or (

b) pursuant to a provison in the agreement entitling him to repossess the goods if he has reasonable cause to believe that his security thereon is in jeopardy; the buyer may, subject to the provisions of this section, (

a) redeem the goods by remedying the breach or taking the requisite action to ensure the safety of the seller's security thereon; or (

b) apply to the court for relief under sections 37 and 38.

(2) Within forty-eight hours after repossessing the goods. the seller shall gi,ve to the buyer a written notice that (

a) contains the statements and information required under clauses (a). (

b) and (

c) of

section 39; and (

b) specifies the action that the seller requires the buyer to take to remedy the breach, if it is capable of remedy, or to ensure the safety of the seller's security on the goods. as the case may be.

(3) Within twenty days after the giving of the notice re­ quired by subsection (2). the buyer may 35 Chap. J

Chap. 3 Ca) r~deem the goods by taking the action required by the seller in his notice and paying the seller's actual expenses of taking and keepin'g possession, not exceeding the amount allowed by the Distrcss Ordinance; or (

b) apply to the court for'relief.

(4) If the buyer applies ,to the court for relief pursuant to subsection (3), the court may, if it sees fit, re­ lieve the ~uyer against the consequences of the repos­ session by ordering the seller to return the goods to the buyer either unconditionally or subject to the fulfillment by the buyer of such conditions as the court may see fit to impose.

(5) Where the court has ordered the seller to return the goods to the buyer unconditionally. and the court is of the opinion that the buyer's breach of the agree­ ment did not prejudice the seller. or that the seller did not have reasonable cause to believe that his securi ty on the goods ~Ias in jeopardy, as the case may be, the court nlay order the seller to pay the buyer's costs of the application. 49. In reckoning the periods of forty-eight hours prescribed by sections 47 and 48. Saturdays, Sundays and holidays shall be excluded. 50.

(1) Where a seller on a time sale'would be, but for this section, entitled to repossess any goods, and the balance owing by the buyer on those goods at thdt time is less than twenty-five percent of the cash price of the goods at the time of the sale thereof, the seller may not repossess the 900dS without either the leave of the court of the written consent of the buyer given at the time of repossession.

(2) The seller shall give notice to the buyer of his ap­ plication for leave required under subsection (1). unless (

a) the buyer cannot be found or is evading service; or - (

b) there is reasonable cause to believe that the buyer 'might hide the goods or otherwise attempt to evade repossession thereof if he had notice of the appli- cation; or ' (

c) the court for any other reason sees fit to dispense with noti ce; in which event the court may give leave' to repossess on the ex parte application of the seller.

(3) Where leave to repossess is given ex parte; the order giving the leave may be set aside upon the application of the buyer initiated not later than (

a) twenty days a fter the buyer has not ice of the making of the order; or (

b) ninety days after the goods are repossessed; whichever is 'the earlier, and the seller shall at. or as soon as possible after, the time,of repossession give to the buyer a copy of the order'and a notice in a form approved by the judge who made ,the order of the buyer's rights under this subsection. 36 Court may relieve. Costs. Reckoning time for notice. Leave required for seizure. Notice of a pplica tion for leave. Setting aside ex parte order.

Consideration o( court. Sections 47 and 48 not to spply. Delivery of notice etc. Where notice late. Extension of time for redemption. Protection removed. Order made when buyer absent.

(4) In deciding whether to grant leave to repossess, or to set aside an order made ez parte, the court shall consider all relevant circumstanc~s, including (

a) the present value of the goods; (

b) the amount already paid by the buyer; (

c) the balance owing by the buyer; (

d) the reasons for the buyer's default; and (

e) the present and likely future financial circum- stances of the buyer and of the seller; and may permit the buyer to keep the goods, of if they have been repossessed pursuant to an order made er parte, to redeem them. on such terms as it sees fit and may extend the time for payment by the buyer of the balance owing, but if it grants an extension, the court shall require the buyer to pay such additional amount as may be necessary to compensate the seller for the extension.

(5) Where any goods are repossessed pursuant to this section, sections 47 and 48 do not apply to such repossession. 51.

(1) A notice required by

section 47 or 48 and the copy of the order and notice required by

section 50 may be given to the buyer (

a) by delivering it personally to the buyer or to his spouse; (

b) if the goods are in a dwelling at the time of repossession, by delivering it to any adult per­ son who is present at ~he time of repossession and appears to reside in the dwelling; or (

c) by mailing it by registered mail addressed to the buyer at this last known address. in which case it shall be deemed to be given on seven days after the date of mailing.

(2) If a seller fails to give the notice required by sec­ tion 47 or 48 within the time required, the repossession of the goods is not invalidated, but the time allowed to the buyer to redeem the goods or to apply to the court is extended until the expiration of twenty days from the date on which the requisite notice is given.

(3) The court may extend the time allowed by sections 47 and 48 to a buyer to redeem the goods or apply for relief, and the time al1o~led by

section 50 to a buyer to apply to set aside an B£ parte order, but the court shall not grant the extension unless it is satisfied that the seller will not be prejudiced thereby. 52.

(1) If a buyer has persistently defaulted on his obl iga­ tions under the time sale agreement or master agree­ ment in question, or has deliberately evaded repos­ session of the goods, the court, on the application of the seller, may deprive the buyer in whole or part of the protection of sections 34,47,48 and 50.

(2) If the buyer does not appear on the hearing of an ap­ plication under subsection (I), an order made on the application is not effective until a copy of the order has been served on the buyer in a manner approved by the court. 37 Chap. 3

Chap. J

(3) Nothing in subsection (2) diminishes the court's power ~o order substitutlonal service. 53.

(1) Subject to subsection (2), every provision in a, time sale agreement or in a master agreement that prohibits or restricts or has the effect of prohibiting or res- tricting the buyer from ' (

a) removing the goods to any place within the Territory; or -' (

b) charging his interest in the goods, is void.

(2) A time sale agreement or a master' agreement may pro­ vide that the buyer may not (

a) remove the goods from any particular place or area; or (

b) charge his interest In the goods;' unless he gives to the seller by registered mall ad­ dressed to the seller at the address specified in the agreement at least ten days before so doing, written notice of his intention to do so, specifying the place to which he intends to remove the goods, or the person to whom he intends to charge them, as the case may be.

(3) On receipt of any notice given pursuant to subsection (2), the seller, if he believes he will be prejudiced by the intended action therein specified, may apply to the court, and the court may make whatever order may' seen just to protect the interests of the seller and of the buyer. 54. (

l) Subject to subsection (2), if a seller under a time sale repossesses the goods comprised in the time sale, or any portion thereof, his right to recover any ba­ lance, whether of the price or of the cost of bor­ ro\~ing or both, owing on the goods so comprised is thereafter limited' to his lien on the goods and his right to repossession and sale thereof, and no action is thereafter maintainable by the seller to recover the balance or any part thereof.

(2) If the seller repossesses the goods and the buyer sub­ sequently redeems them or they are returned to him pur­ suant to an order of the court or as the result of the setting aside of an ax pJrte order under

section 50, the seller is, for the purposes of subsection (I), re­ stored to his former position and in the event of any subsequent default by the buyer may proceed as if the goods had not been previously repossessed.

(3) Subject to subsection (4), if a seller on a time sale obtains judgment in any action for the whole or any part of the balance, whether of the price or of the cost of borrowing or both, owing on any goods comprised in the time sale, his lien on the goods comprised in that sale ,is extinguished on the date of the judgment and the property in the goods thereupon passes to the buyer.

(4) If an action brought by the seller was for the full amount then owing by virtue of an acceleration pro­ vision, and the· court relieves the buyer or hirer 38 Substitutional services. Right of buyer to move or charge goods. Restriction on moving and charging goods. Order to pro­ tect seller's interest. No right to sue after seizure. Restoration of seller's rights Judgment ex­ tinguishes lien on goods. Exemption from subsection (3).

Execution of collateral under judgment. Judgment for part of b.,lance. Ex.,mptions from the acceleration, it may, as one of the condi­ tions of granting the relief, exempt the seller either wholly or partially from the operation of subsection (3).

(5) Where a seller has obtained a judgment for the whole of the balance, and the goods comprised in the sale, or any of them, are seized under an execution issued pursuant to that judgment, the seller's right to re­ cover under the judgment, in so far as it is based on that balance, is limited to the amount realised fro~ the sale of goods so seized, and on the judgment, to the extent that it is based on that balance and taxed costs, shal I be deemed to be fully paid and satisfied; but where the amount realised from the sale of the goods exceeds the all:ount of the judgment and the costs of execution, the excess shall be paid to the buyer, or to subsequent execution creditors, as the case may be.

(6) Where a seller has obtained judgment for only a part of the bal~nce, and the goods comprised in the sale, or any of th~m, are seized unaer an execution issued pursuant to that judgment, the seizure operates not only to sati5fy the judgment as provided by subsec­ tion (5), but also to extinguish the seller's right to maintain any action for the remainder of the ba­ lance; but in that case, if the amount realised from the sale of the goods excp.eds the amount of the judg­ ment and the costs of execution, the excess shall be paid into court, and the court may order it to be paid out in such manner as may be just. from subsections 0), (5) and

(7) Where only one of the goods co~prised in a time sale agreement are repossessed by the seller er are seized under the execution, and the reason why the others are not repossessed or seized is that the seller of the sheriff or bailiff, as the case may be, is unable to find them, the court may exempt the seller either wholly or partially from the operation of sub3ection (1) or of subsections (5) and (6), as the case may be. (6) • Where collateral damaged. Removal or replacement of collateral.

(8) Where any of the goods have been d~stroyed or damaged by the deliberate act or wilful neglect of the buyer, the seller may, notwithstanding subsections (1), (5) and (6) recover, from the buyer, the lesser of (

a) the balance owing on the agreement or J~dgment, as the case may be; or (

b) the value of the goods destroyed, or of the damage done. 55. Where a buyer has removed from any

article sold on a time sale an accessory or component that was includf1 in the sale, and has not replaced it by a~nth2r o~ ~ like kind and value, or has replaced it by one th~~ is itself subject to a lien or charge held by another person, and the

article has been repossessed by the seller or seized under an exe­ cution issued at ·the suit of the seller; the seller may, notwithstanding

section 54, maintain an action to recover the least of . (

b) the value of the accessory or component removed, al­ lowing for depreciation; the amount owing on the lien or charge on the replace­ ment held by another person; or 39 Chap. 3

Chap. 3 (

c) the amount by which the sum realised by the sale of the goods falls short of the balance owing thereon, or of the amount of the judgment and costs of exe­ cution, as the case may be. 56.

(1) Where a seller has lawfully repossessed goods sold on a time sale, and the buyer has not redeemed them with­ in the time allowed for that purpose, the seller may resell them.

(2) A seller who resells goods must act in good faith, but so long as he does so, he may sell them at whatever price and on I~hatever terms he sees fit. Resale of seized collateral..

(3) If the amount realised on the resale of the ~oods ex- Payment of ceeds the balance owing on the goods and the expenses excess to of taking and keeping possession and of resale, the buyer. excess shall be paid by the seller to the buyer.

(4) If the seller has the goods repaired before reselling Cost of repair. them, the cost thereof is part of the expenses of sale.

(5) If the seller resells the goods by retail in the ordi- Charge of nary course of his business, he may charge, as an al- overhead. lowance for the overhead expenses of resale, twenty per- cent of the proceeds of sale.

(6) If the seller is unable to resell the goods at a price Retention in sufficient to satisfy the balance owing on them and lieu of resale. the expenses of taking and keeping possession and of resale, the seller may keep the goods and use them as he sees fit. 57.

(1) No part of the pri ce of any goods compri sed in a time sale which is not made on variable credit, or of the cost of borrowing thereof, may be secured on any goods not comprised in that time sale; and any provision or arrangement which purports to do so is void.

(2) Every provision in a master agreement relating to vari­ able credit under which the seller may (

a) acquire title to, possession of, or any rights in, any goods of the buyer, other than goods bought or hired by him under that master ag.reement; or (

b) retain any title to, a right to repossess, or any other rights in, any

article bought or hired by the buyer under that master agreement after such

article has been paid for in full; is void. Additional collateral on time sale. Rights in excess collateral under variable credit.

(3) Except with the prior consent of the Commissioner or his Demand payments. authorized officer, no time sale agreement shall provide that the balance owing, or any part thereof, is payable on demand, and any time sale agreement that contravenes this subsection takes effect as an immediate sale and the property in the goods passes to the buyer ori delivery and the seller has no lien on the goods; but this does not affect the buyer's obligation to pay for the goods in accordance with the terms of the agreement. 40

Leave- to repossess. Notice of application for leave. Setting aside order for 58. leave to seize. Cond it ions 0 f leave to seize. Extension of tilDe to pay.

(1) PART V Chattel Mortgages Where a mortgagee of goods would be, but for this sec­ tion, entitled to seize the mol·tgaged goods and the ba­ lance owing by the mortgagor on the mortgage is less than twenty-five percent of the total monetary liability of the mortgagor originally secured thereby, the mortgagee may not repossess the goods without the leave of the court.

(2) A mortgagee of goods shJll gi ve notice to the mortgagor of his application for leave under suhsection (1) unless (

a) the mortgagor cannot be found, or is evading service; or (

b) there is reasonable causp. to believe that the mort­ gagor mi ght hide the goods or otherwi se a t tempt to evade seizure thereof if he hJd notice of the ap­ plication; or (

c) the court for any other reason sees fit to dis­ pense with the nntice; in which event the court may give leave to seize on the ex pa~te application of the mortgagee.

(3) Where I ea ve to se i ze is given ex /'£11'/. c under subsec t ion (2), the order giving the leave may be set aside upon the application of the mortgagor initiated not later than (

a) twenty days after the mortgagor has notice of the making of the order; or (

b) ninety days after the goods are. seized; whichever is the earlier, and the mortgagee shall at, or as soon as possible after, the time of seizure give to the mortgagor a copy of the order and a notice in a form a pproved by the judge ~Iho made the ol'lJer 0 f the mo rtgagor' s rights under this subsection.

(4) In deciding whether to grant leave to seize, or to set a si de an order made e:.: l,a~t,:, the court sha 11 cons i der all relevant circumstances, including (

a) the oresent value of the goods; (

b) the amount already paid by the mortgagor; (

c) the ba I a nce 0~1i ng by the mortgagor; (

d) the reasons for the mortgagor's default; and (

e) the present and likely future fi~ancial circum- stances of the mortgagor and of the mortgagee. (51 If the court grants leave to seize, it may order the mort­ gagee to offer the goods for sale in such manner and on such terms as it sees fi t.

(6) If the court refuses leave to seize, or sets aside an order giving leave made er PQ~tc, the court may extend the time for payment by the mortgagor of the balance owing, but in granting the extension, the court shall require the mortgagor to pay such additonal amount as may be necessary to compensate the mortgagee for the extension. 41 Chap. 3

Chap. 3 (7) . The copy of the order and notice required by sub­ section (3) may be given to the mortgagor in the same manner as is provided by

section 51 for giving a not ice to a buyer.

(8) The court may extend the time allowed by. subsection (3) to a mortgagor to apply to set aside an ex parte order, but an extension shall not be granted unless the court is satisfied that the mortgagee will not be prejudiced thereby.

(9) The rights of a mortgagor under this

section are in addition to any he has under sections 37, 38 and 39.

(10) If a chattel mortgage is subject to the provisions of

section 50, the provisions of that

section prevail over any conflicting provisions of this section.

(11) Where (

a) a variation in a chattel mortgage, other than in the description of the goods, is made by agree­ ment in wri t i n9 between a 11 persons affected thereby and i~ registered if and as required by the Bills or Sale (lrdi>Ulncc; (

b) goods subject to a chattel mortgage which have been seized by the mortgagee are returned to the mortgagor pursuant to any provision of this Ordi nance; (

c) the court extends the time for payment of the balance owing on a chattel mortgage pursuant to this Ordinance; or (

d) a mortgagor of chattels who has defaulted obtains any other relief under this Ordinance; the mortgagee's security on the goods remains in full force and effect as created by the chattel mortgage and his remedies in respect of future defaults by the mort­ gagor are not affected thereby.

PART VI Statutory Warranties on Retail Sales Delivery of notice, etc. Extension o'f time to set aside order. Additional rights of mortgagor. Conflict with

section 49. Mortgagee not prejudiced by variations. 59.

(1) Notwithstanding any agreement to the contrary, the Warranties on following conditions or warranties on the part of the sale. seller are implied in every retail sale of goods and in every retail hire-purchase of goods: (

a) In the case of an immediate sale, a condition that he has the right to sell the goods, or, in the. case of a time sale, a condition that he has the right to agree to sell or to let on hire the goods, and will have the right to sell them at the time when the property is to pass to the buyer. (

b) In the case of an immediate sale, a warranty that the buyer shall have and enjoy quiet possession of the goods, or, in the case of a time sale, a warranty that the buyer, so long as he fulfils his obligations under the time sale agreement, shall have and enjoy quiet possession of the goods. 42

Statement of conditions. Statements relating to goods on time sa les. Statements relating to goods in cash sales. (

c) A warranty that the goods are free from any charge or encumbrance in favour of any third party except only for any that the buyer has specifically agreed in writing to accept. (

d) A condition that the goods are new and unused unless otherwise described, but in the case of a motor vehicle a description showing that it is more than one year old is sufficient to describe it as used. (

e) A condition that the goods are of merchantable quality, except for such defects as are described. (

f) A condition that the goods correspond with the des­ cription under which they are sold. (

q) If tlie goods are sold by sample, a condition that the bulk shall correspond with the sample and that the goods are free from any defect that renders them unmerchantable, and that would not be apparent on reasonable examination of the sample, and a con­ di tion th~t the buyer sila 11 have a reasonable op­ portunity of comparing the bulk with the sample. (

h) Where the buyer expressly or by implication makes known to the. seller the particular purpose for which the goods are required, so as to show that the buyer relies on the seller's skill or judgment, and the goods are of a description which it is in the course of the seller's business to supply, whether he is the manufacturer or not, a condition that the goods are reasonably fit for the purpose, but in the case of a contract for the sale of a specified

article under its patent or other trade name, there is no implied condition as to its fitness for any parti­ cular purpose.

(2) For the purposes of clause (

e) of SUbsection (1), it is not necessary to specify every defect separately, if the general condition or quality of the goods is stated with reJsonable accuracy.

(3) Any statement (

a) that the goods are not new and unused; (

b) of the age of a motor vehicle; (

c) of defects in the goods; or (

d) of the general condition or quality of the goods; shall be a part of the description of the goods for the purposes of sections 5, 6, 41 and 43, and of subsection (3) of

section 15, and where one or more of them applies, none of those statements has any effect unless it is in­ cluded in the required description of the goods in the agreement or writing but the statement shall be deemed to be included in the agreement or writing if it is con­ tained in a document that (

a) is clearly identified as an appendix or

schedule to the agreement or writing; (

b) is signed by the buyer-and the seller; (

c) is attached to and forms part of the agreement; (

d) is delivered to the buyer with a copy of the agree­ ment before delivery of the goods.

(4) Where

section 5, 6, 41 or 43, or subsection (3) of sec­ tion 15 does not apply, a statement of a kind referred 43 Chap. 3

Chap. 3 to in subsection (3) has no effect unless it is made in writing an"d (

a) is contained in a notice that is readily visihle to the buyer at or before the time of the sale and is so displayed as to make it clear that it refers to the goods; or (

b) is contained in a document that is delivered to the buyer before he accepts the goods.

(5) If the goods are described as used in the manner re­ quired by this section, there shall be taken into account in deciding whether they are of merchantable qua 1 ity (

a) the fact that they are used; and (

b) the age of the goods as specified in their des­ cription, or if no age is specified, the aQe of the goods as understood by the buyer at the time of sale.

(6) Unless otherwise expressly agreed in writing signed by the buyer, there shall be implied in every retail sale of services d conJition on the part of the seller that the services sold shall be performed in a ski 11- ful and workmanl ike manner.

(7) Nothing in this

section excludes or affects any other condition or warranty relating to the goods or services, whether expressed or impl ied, as bet~leen the buyer and the seller or any person claiming through the seller who would, apart from this Ordinance, be held to be bound thereby.

PART VII Direct Sellers 60. Subject to

section 61, this Part applies to all retail sales or retail hire-purchase of goods or services or both entered into by the buyer elsewhere than in the vendor's usual place of business and which result from any offer, solicitation, proposal or approach made by or on behalf of the vendor 61. (

a) without any prior request by the buyer; or (b) " in response to a request made by the buyer if the request was itself solicited by or on behalf of the vendor.

(1) This (a) (b) (c) (d) (

e) Part does not apply to sales at a price of less than ten dollars; sales or hire-purchase of vehicles or trailers withi n the meani n9 of the Motor Vehicles Ord'inance; sales of water, propane gas or petroleum products; sales of lumber or coal where the vendor has a place of business in which the sale takes place; sales of feed grain, feed supplement, fertilizer, or weed spray where the vendor has a place of business where the sale takes place; 44 Merchantable quality. Condition as to services. Effect on other condi­ tions. Application of Part. Where Part not to apply.

Definitions for paragraph (1) of sub­ sec tion Cl). (

f) sales of farm produce in the Territory by a farmer from his own farm; (

g) sales of services relating to (

i) the raising and care of livestock, (ii) the planting, raising or harvesting of crops, or (iil) any service of a domestic nature, in­ cluding gardening; (

h) any sale in which the price 15 expressly soli­ cited as a contribution to a charitable, philan­ thropic or similar cause and not as being a fair price for the goods or services offered; (

i) sales of goods or services by a merchant having a recogni zed reta i 1 store in the Terri tory and selling goods ar services of a sort or class ordinarily sold at that store, or by ~ b~na fide servdnt or employee of the merchant.

(2) For the purposes of paragrarh (

i) of subsection (1) (a) "recognized retail store" does not include a dwelling. mail order office. display room, office, repair or servi~e Shop, warehou~e, studio or any other place of a like nature notwithstanding that the owner or occupant thereof is or n~y be assessed for business tax purposes in respect of such place; and (b) "merchant" does not include a person who has a recognized retail store if more than fifty percent of the goods or ser'vices sold by him in the Territory are I·lithin

section 60. Cancellation 62. within seven days. All retail sales or retail hire-purchases to which this Part applies which are ~ot in writing may be cancelled by notice in writing within seven days after the buyer has entered into the contract by sending a notice by registered mail to the vendor or personal delivery thereof to the vendor at his place of business and the notice of cancellation is good Statement required in agreement. and effective, if, however expressed, it indicates the intention of the buyer to withdraw from the transaction to which it relates. 63.

(1) Every agreement made in writing to which this Part ap­ plies or, if an agreement to which this Part applies is not in writing, every receipt for any payment on account of the purchase price other than an agreement to which this Part applies shall have printed or typed at the top of the first page in type not less than ten point in size the following words: "You can cancel thi s agreement by noti ce in writing within seven days after you signed it. If you do not cancel this agreement within the seven days you may not be able to cancel it afterwards.

You can send your notice by regi­ stered mail to (name and address of vendor shall be inserted here) or ycu may deliver it there yourself. You must mail it or deliver it before the end of the seven days. If you cancel it, any moneys you paid, and any goods you traded in, wi 11 be returned to you." 45 Chap. 3

Chap. J (2) (3)

(4) The words required by subsection (1) to be inserted in an agreement shall be a term of every agreement in which they are contained, but the words do not exclude any right of cancellation, repudiation or rescission which a buyer has apart from this Part.

Subject to subsection (5), if any agreement made in writing to which this Part applies or any receipt for any payment on account of the purchase price un­ der an agreement to which this Part applies does not contain the words required by this section, the buyer may cancel the '1greement by "/ritten notice to the vendor at any time within thirty days after the first goods are delivered or services performed thereunder. Where an aoreement made in writing to which this Part appl ies does not contain th!!

"Iords required under this section, the ve~dor may at any time thereafter deliver to the huyer ~crsonJlly, or t~ each of the buyers per­ sonally if tll«OoI"l; are mo,'e tileln onc, a notice which clearly and explicitly (

a) refers to tile a\j,'eement concerned; (

b) informs the buyer thi! t he ",ay withi n seven days thereafter cancel the agreclllent by notice in writing to the vendnr delivered or sent by registered mail to the address stated in the notice; and (

c) informs the buyer th~t upon cilncellation any money he paid or gouds he tl'aded in will be rcfundeJ.

(5) If a vendor delivers in accordance with subsection (4), ., notice containing the infnrmation required thereby, the notice thereupon becomes a term of the agreement and subsection (3) ceases to apply.

(6) If a buyer refuses to accept delivery of a notice under subsection (~), tile refusal is in itself an effective cancellation of the a~reelllent.

(7) A dupl icate copy of every agreement made in writing to which this Part applies shJI I be delivered to the buyer at the time of the signing thereof. 64.

(1) Notwithstanding the proviSions of sections 62 and 63, a retail sdle or retail hire-purchdse to which this Part appl ies lIIay he call~ell cd ,<here (

a) the vendol' (lr d i rec t s<' 11 er wa 5 not I icensed pur­ suant to the f~;":I:Ii,'''': i,/,'(··-:I."c· U)'''~n:lnee 0" the Mu!! i:: i;'..:.: ,lJ'd;/~:I!.·,; as tile case may require. at the ti~e that the buyer entered into the contract; or (

b) the goods or services to be supplied under the contract are not supplied to the buyer within one hundred and twenty days after the date on which the buyer ente"ed into the contract; by written notice served on the vendor by the buyer within six months after the day on which the purchase was made or the contract ,~as signed. 46 Terms of agreement in addition to other rights. Cancellation where statement omit ted. Rectifying omission of statement. Notice as part of agreement. Refusal of notice. Delivery of agreement. Cancellation for other reasons.

Relief against cancellation.

(2) Where it is shown to the court that it is inequitable that clause (

b) of subsection (1) should apply, the court may make such order as it deems just and expe­ dient. Effect of 65. Upon the cancellation of a~y agreement, whether oral or in cancellation. writing, under this Part (

a) subject to subsection (2) of

section 66, any and every liability or obligation of the buyer under the agree­ ment is extinguished; (

b) the vendor shall repay to the buyer any and every sum that has al ready been paid by the buyer or by anyone on his behalf for or o~ t~e account of the purchase price, rent, ur cost of borrowing or otherwise pursuant to the agreelllent, ~/hethl'r p~)1nent has been made to the vendor or any other ~erson; and (

c) the vendor shall return to the buyer any goods taken as a trade-in in as guod condition cS they \~ere in when taken, Chap. 3 or it he i; unoble t, do that, shull pay the buyer the greater of (

i) the market value of the goods when taken, or (ii) the price or value set on the goods in the agreement. Rights of 66.

(1) The right of a buyer to cancel under this

Part is not cancellation. affected by Where goods not intact. (

a) the delivery of the goods to him; (

b) the use of the goods by him; (

c) the partial consumption of the gc~ds by him; (

d) the accidental destruction of or damage to the goods; or (

e) the partial performance by the vendor of any services; but the right of a buyer or hirer to cancel under this

Part is extinguished by (

a) deliberate destruction of or damage to the goods by the buyer or any member of his household; or (

b) the actual consumption by the buyer of all goods compri sed in the agreement and the complete per­ fonnance by the vendor of all services comprised therein.

(2) Where goods have been used, or partially consumed or accidently destroyed or damaged by a buyer, or some services have been performed by the vendor (

a) the vendor may recover from the buyer reasonable compensation therefor; (

b) the vendor's right to recover compensation does not arise until the vendor has repaid, set off in favour of the buyer or returned to the buyer all moneys and goods to which he is entitled; and (

c) the vendor may not maintain any action for com- pensation until the ri.ght thereto has arisen; and a vendor shall not, under this subsection, recover payment from the bUjer more quickly than he would have been entitled to under the agreement, and any judgment in favour of the vendor under this subsection may, there­ fore, be made payable by instalments. 47

Chap. 3

(3) The buyer has a lien on all goods delivered to him for all sums payable to him by the vendor, but shall return those goods to the vendor as soon as that lien has been satisfied.

PART VI I I Assignees and Guarantors 67.

(1) The rights conferred by this Ordinance on a borrower pass to and may be exercised by any person claiming through or under him ~/ithout any express assignment thereof; but no such person has any right to receive from a credit grantor any notice requit·ed by this Ordinance unless the credit grantor has been made aware of the transfer to him of the borrower's rights before the time when that notice has to be given.

(2) Notwithstanding subsection (I), a buyer, when sell­ ing or transferring to another person any goods that he has acquired on a credit sale or hire-purchase, may reserve, either expressly or by necessary impli­ cation, any rights he has against the seller under

section 59.

(3) Where the c: ... text so admits, in this Ordinance, "borrower" and "buyer" include any person to whom their rights pass under this section.

(4) Every provision of this Ordinance that restricts or reduces the a~Qunt pdyable by a borrower or gives him a right to set-off, likewise restricts or reduces the amount payable by and gives a similar right of set­ off to any endorser, surety or guarantor for him; but this does not affect any liability to an assignee of a credit grantor on the part of (5) (

a) the credit grdntor himself; (

b) where the credit grantor is a seller, any manu- . facturer, wholesaler or distributor of the goods; or (

c) any person who has guaranteed the performance by the credit grantor of his obligations generally. Where 900ds that were acquired on a time sale or are subject to a chattel mortgage are repossessed or seized, and an assignee of the buyer or mortgagor applies to the court for relief, the court, as a condition of grant­ ing relief, may require the assignee to undertake to be personally 1 iable for payme:1t of the balance o\~ing to the vendor or mortgagee. 68.

(1) Except as otherwise provided in this Ordinance, the as­ signee of any rights of a credit grantor in any trans­ action to which this Ordinance applies has no greater rights than and is subject .to the same obligations, li­ abilities and duties as the assignor, and the provisions of this Ordinance apply equally to such assignee. ("2) Notwithstanding subsection (1), no borrower may recover from, or be entitled to set-off against, an assignee of the credit grantor an amount greater than the balance 48 Buyer's lien on cancellation Assigrun<!nt of rights of borrower. Reservation of rights.

Assigness included in "Borrower" and "Buyer". Rights of guarantors, etc. Assignee's ob liga t ions fbed by court. ASSignee