Whereas the Minister of Justice has, in accordance with subsections 347.01(2)a and 347.1(2.1)b of the Criminal Codec, consulted with the Minister of Finance with respect to the annexed Regulations;S.C. 2023, c. 26, s. 611S.C. 2023, c. 26, s. 612(2)R.S., c. C-46Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Justice, makes the annexed Criminal Interest Rate Regulations under subsections 347.01(2)a and 347.1(2.1)b of the Criminal Codec.Non-application — Business or Commercial PurposesCriteriaFor the purposes of subsection 347.01(1) of the Criminal Code, section 347 of that Act does not apply in respect of an agreement or arrangement ifthe borrower is not a natural person;the borrowing is for a business or commercial purpose; andeitherthe amount of the credit advanced is more than $10,000 but less than or equal to $500,000 and the annual percentage rate of interest — calculated in accordance with generally accepted actuarial practices and principles — does not exceed 48% on the credit advanced, orthe amount of the credit advanced is more than $500,000.Non-Application — Pawnbroking LoansCriteriaFor the purposes of subsection 347.01(1) of the Criminal Code, section 347 of that Act does not apply in respect of an agreement or arrangement ifthe person who receives interest carries on a business related to pawnbroking;the credit is advanced in exchange for the pawning of tangible personal property or corporeal movable property, other than a vehicle;in the event of the borrower’s default, the only recourse of the person referred to in paragraph (a) is the seizure of the pawned property; andthe amount of the credit advanced is less than $1,000 and the annual percentage rate of interest — calculated in accordance with generally accepted actuarial practices and principles — does not exceed 48% on the credit advanced.Limit — Payday LoansLimit on total cost of borrowingFor the purposes of paragraph 347.1(2)(a.1) of the Criminal Code, the limit on the total cost of borrowing under a payday loan agreement is 14% of the amount of money advanced to the borrower under the agreement.ClarificationIn determining whether a payday loan agreement complies with the limit fixed under subsection (1), the total cost of borrowing does not include a fee, fine, penalty or other charge that is specifically authorized under the applicable provincial law and imposed on the borrowerfor defaulting in any payment; orfor providing a dishonoured cheque or other dishonoured instrument, if the amount of the fee, fine, penalty or other charge is $20 or less.Definition of applicable provincial lawIn subsection (2), applicable provincial law means the legislative measures referred to in subsection 347.1(3) of the Criminal Code that apply in the province in which the payday loan agreement is entered into.Coming into ForceS.C. 2023, c. 26These Regulations come into force on the first day on which sections 610 to 612 of the Budget Implementation Act, 2023, No. 1 are all in force, but if these Regulations are registered after that day, they come into force on the day on which they are registered.[Note: Regulations in force January 1, 2025.]