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Can you summarize SOR /2001-389?
Consolidated Regulations > Financial Leasing Entity Regulations
Short Summary
The Financial Leasing Entity Regulations govern the activities of financial leasing entities operating in Canada. These regulations apply to financial leasing entities under the Bank Act, Cooperative Credit Associations Act, Insurance Companies Act, and Trust and Loan Companies Act. The regulations define the estimated residual value of personal property subject to a financial lease agreement. They also specify the permitted related activities for financial leasing entities, such as entering into conditional sales agreements, administering lease agreements, and raising money for financing activities. The regulations impose restrictions and limitations on activities, including limitations on directing customers to specific dealers, limitations on entering into agreements for certain types of property and with natural persons for personal household property, and limitations on assuming responsibilities for installation, promotion, service, maintenance, or repair of the leased property. The regulations also require financial lease agreements to include provisions assigning warranties or setting out the responsibilities of the financial leasing entity. Additionally, the regulations establish requirements for the rate of return on lease agreements and limit the sum of estimated residual values of leased properties. These regulations came into force on the day that the relevant sections of the Financial Consumer Agency of Canada Act came into force.
Whom does it apply to?
Financial leasing entities operating in Canada
What does it govern?
Financial Leasing Entity Regulations
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Canada