Section B: Registration, Administration and Reporting
The lender and the borrower may agree as follows without the approval of the CSBFP Directorate:
- at the end of a loan term, they can renew the term of the loan for an additional term or terms
- at any time, they may agree to amend the repayment terms of the CSBF loan.
Any such renewal or amendment must comply with the following:
- the new repayment term is not longer than 10 years from the date of the original first scheduled payment of principal and interest;
- the interest rate, at renewal or amendment, must be calculated in accordance with Section A, Item 6.2 of these Guidelines;
- the terms of the loan must provide a minimum of one principal and interest payment each year, with the first payment scheduled to be made within one year of the date the amendment or renewal revision is made;
- the terms of the renewal or amendment are set out in a document signed by the lender and the borrower.
Unless otherwise stated in the loan document, a fixed rate CSBF loan with a term less than the principal amortization period will be considered automatically renewed at the interest rate for the previous term until a renewal is properly completed.
Bulletin – November 1999:
The loan amortization period may be increased beyond 10 years if it becomes necessary to reduce the loan payments. A balloon payment must then be scheduled to ensure full repayment of the loan before the end of the tenth year.
- Date modified: