Vol. 134, No. 16 — August 2, 2000

Registration
SOR/2000-291 17 July, 2000

CANADA STUDENT LOANS ACT

Regulations Amending the Canada Student Loans Regulations

P.C. 2000-1079 17 July, 2000

Her Excellency the Governor General in Council, on the recommendation of the Minister of Human Resources Development and the Treasury Board, pursuant to sections 11(see footnote a) and 17(see footnote b) of the Canada Student Loans Act, hereby makes the annexed Regulations Amending the Canada Student Loans Regulations.

REGULATIONS AMENDING THE CANADA STUDENT LOANS REGULATIONS

AMENDMENTS

1. Subsection 2(2) of the Canada Student Loans Regulations(see footnote 1) is amended by adding the following in alphabetical order:

"risk-shared loan" has the same meaning as in the Canada Student Financial Assistance Regulations; (prêt à risque partagé)

"risk-shared loan agreement" has the same meaning as in the Canada Student Financial Assistance Regulations; (contrat de prêt à risque partagé)

2. Subsection 8(11) (see footnote 2) of the Regulations is replaced by the following:

(11) Any amount paid by or on behalf of the borrower pursuant to subsection (10) shall be applied first pro rata against interest accrued on the borrower's full-time guaranteed loans and risk-shared loans made to the borrower as a full-time student, then prorata against the principal amount of those loans.

3. The Regulations are amended by adding the following before section 17:

16.6 Sections 17 to 21.2 do not apply to a borrower who is indebted to the Minister under a direct loan made under the Canada Student Financial Assistance Regulations.

4. (1) Subsection 23(2) (see footnote 3) of the Regulations is replaced by the following:

(2) Subject to section 23.1, a borrower may request the assignment of all of the borrower's outstanding guaranteed student loan agreements if the following conditions are met:

(a) the borrower completes the prescribed form to request an assignment of guaranteed student loan agreements;

(b) the borrower submits the completed form to the assignor lender; and

(c) the assignee lender accepts the agreements to be assigned.

(2) Subsection 23(8) (see footnote 4) of the English version of the Regulations is replaced by the following:

(8) The assignee lender shall ask the borrower to acknowledge the total value of the borrower's outstanding loan liability by signing the summary.

5. Subsection 23.1(2) (see footnote 5) of the Regulations is replaced by the following:

(2) Where a borrower has both outstanding guaranteed student loan agreements for which the Minister has not paid a claim for loss and outstanding risk-shared loan agreements, those agreements must be held by the same lender.

6. (1) The portion of subsection 30.1(1) (see footnote 6) of the Regulations before paragraph (a) is replaced by the following:

30.1 (1) Subject to subsection 42.1 of the Canada Student Financial Assistance Regulations, if, on the application of a borrower, a lender has reduced, on a pro rata basis, the amount of the outstanding principal of all of the borrower's guaranteed student loans, the lender is entitled to a gratuitous payment by the Minister in respect of the reduction in an amount calculated in accordance with this section if, at the time the application for reduction was made,

(2) Paragraph 30.1(1)(d) (see footnote 7) of the Regulations is replaced by the following:

(d) the borrower has not previously been granted:

(i) a reduction in the principal amount of a guaranteed student loan or a risk-shared loan that entitled the lender to a gratuitous payment under this section or section 42 of the Canada Student Financial Assistance Regulations,

(ii) a reduction in the principal amount of a student loan or guaranteed student loan under section 42.1 of the Canada Student Financial Assistance Regulations.

(3) The portion of subsection 30.1(2) (see footnote 8) of the French version of the Regulations before the formula is replaced by the following:

(2) Sous réserve du paragraphe (5), le montant du remboursement par le ministre est déterminé selon la formule suivante et arrondi au dollar près :

(4) Subsection 30.1(6) (see footnote 9) of the French version of the Regulations is replaced by the following:

(6) Sur avis donné par le prêteur, en la forme établie par le ministre, celui-ci lui verse le montant correspondant à son remboursement déterminé selon le présent article.

COMING INTO FORCE

7. These Regulations come into force on the day on which they are registered.

N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2000-290, Regulations Amending the Canada Student Financial Assistance Regulations.

Footnote a

S.C. 1994, c. 28, s. 25

Footnote b

S.C. 1998, c. 21, s. 102

Footnote 1

SOR/93-392

Footnote 2

SOR/95-331

Footnote 3

SOR/96-369

Footnote 4

SOR/98-287

Footnote 5

SOR/95-331

Footnote 6

SOR/98-403

Footnote 7

SOR/98-403

Footnote 8

SOR/98-403

Footnote 9

SOR/98-403

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