CAPL has been advised that the Federal Government has tabled Notice of a Ways and Means Motion for Budget 2023 in the House of Commons.
Division 34 of Part 4 introduces changes to the Criminal Code to lower the criminal rate of interest to 35% annual percentage rate, as announced in Budget 2023. As part of the Amendments to the Criminal Code, the government has proposed a regulation-making authority to allow for certain types of loans to be exempt from the criminal rate of interest in future regulations.
We are therefore seeking feedback from members concerning what exemptions should be considered for inclusion in the regulation. For instance, should exemptions exist for short term loans, such as bridge financing and real estate deposit loans? Should borrowers which are commercial entities or non-consumer loan transactions be exempted? Please give us your input by contact us at s.gale@privatelenderassociation.ca
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