Application of Part
30 Application of Part
In this Part, a reference to a credit sale contract does not include a reference to a credit sale contract relating to goods or services in relation to which the cash price is more than $20 000 unless—
it is a contract relating to a commercial vehicle or farm machinery; or
it is a contract relating to—
a commercial vehicle or farm machinery in relation to which the cash price is more than $20 000; and
other goods or services.
In this Part, a reference to a loan contract does not include a reference to a loan contract in respect of which—
the amount financed is more than $20 000;
there is no annual percentage rate or there is only one annual percentage rate and that rate does not exceed 14 per centum; or
there is an acceptable rate of interest and a higher annual percentage rate that exceeds the acceptable rate by not more than 2 per centum and that acceptable rate does not exceed 14 per centum—
unless, when the contract is made, a mortgage relating to a commercial vehicle or farm machinery has been, or is agreed to be, entered into to secure the payment of a debt or the performance of an obligation under the contract.
Where the annual percentage rate in respect of a loan contract may, at the option of the credit provider, be any rate less than, or not exceeding, an annual percentage rate specified by the credit provider, that specified rate shall, for the purposes of paragraph (b) of subsection (2), be deemed to be the annual percentage rate in respect of the contract, whether or not the annual percentage rate applied under the contract is a lower rate than that specified rate.
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