INTRODUCTION AND BRIEF DESCRIPTION

A Fellow of the Canadian Institute of Actuaries can provide a certificate of the effective annual rate of interest, which is considered as proof in any proceedings related to credit agreements or arrangements.

SECTION WORDING

347(4) In any proceedings under this section, a certificate of a Fellow of the Canadian Institute of Actuaries stating that he has calculated the effective annual rate of interest on any credit advanced under an agreement or arrangement and setting out the calculations and the information on which they are based is, in the absence of evidence to the contrary, proof of the effective annual rate without proof of the signature or official character of the person appearing to have signed the certificate.

EXPLANATION

Section 347(4) of the Criminal Code of Canada is a provision that pertains to the calculation of the effective annual interest rate for credit agreements or arrangements. The section stipulates that in any proceedings under this section, a certificate from a Fellow of the Canadian Institute of Actuaries stating that they have calculated the effective annual rate of interest on any credit advanced under an agreement or arrangement is proof of the effective annual rate. This provision is aimed at ensuring that lenders or creditors do not charge borrowers excessive or predatory interest rates. It provides legal protection for borrowers by establishing a standard way to calculate the interest rate charged on loans or other credit arrangements. By requiring a certificate from a Fellow of the Canadian Institute of Actuaries, the section promotes accuracy and transparency in the calculation of interest rates. The provision is particularly relevant in cases where lenders are accused of charging excessive interest rates that are contrary to the Criminal Code. Lenders who violate the provisions of the Criminal Code by charging interest rates above the allowed limit can face criminal charges. In such cases, a certificate from a Fellow of the Canadian Institute of Actuaries can be used as evidence to prove the effective annual rate of interest charged by the lender. Overall, section 347(4) plays a crucial role in preventing predatory lending practices and protecting borrowers from unscrupulous lenders. It promotes transparency and accuracy in the calculation of interest rates and is an essential tool in enforcing the provisions of the Criminal Code on excessive interest rates.

COMMENTARY

Section 347(4) of the Criminal Code of Canada is a critical provision that provides an essential tool for the courts, prosecutors, regulators, and consumers to guard against predatory lending practices. Essentially, this provision allows for a Fellow of the Canadian Institute of Actuaries to issue a certificate that provides evidence of the effective annual rate of interest charged on the credit advanced under an agreement or arrangement, which serves as proof of the interest rate without having to verify the signature or official position of the person issuing the certificate. This provision is particularly important because it recognizes the need for a transparent process in determining the interest rate charged by lenders. It is common knowledge that many lenders in Canada charge exorbitant interest rates that are not always apparent to borrowers at the time of credit issuance. This is especially true of payday loans and other high-interest credit facilities that trap individuals into debt traps, thereby perpetuating their cycles of poverty. The inability to determine the interest rate that applies to these loans exacerbates the problem, as borrowers are not always able to compare the cost of borrowing between different lenders. Thus, Section 347(4) seeks to promote transparency in the lending industry by requiring that lenders provide information about the interest rate charged on credit facilities. By requiring a Fellow of the Canadian Institute of Actuaries to calculate the effective annual rate of interest and issue a certificate as proof, the provision is intended to ensure that lenders cannot conceal the true cost of borrowing from consumers. The provision, however, has not been without controversy. Some stakeholders have criticized it for being too narrow in scope, arguing that it only applies to agreements or arrangements that exceed the criminal rate of interest. Furthermore, the provision has been criticized for requiring a certificate only from a Fellow of the Canadian Institute of Actuaries, which some view as being too limited in scope and may not provide the appropriate checks and balances required to regulate the industry. Despite these criticisms, there is no doubt that Section 347(4) represents an important step towards promoting transparency in the lending industry. While there is still much more to be done in terms of regulating the industry, this provision has set a foundation upon which a more robust regulatory framework can be constructed. In conclusion, Section 347(4) of the Criminal Code of Canada is a crucial provision that provides a tool for the courts, prosecutors, regulators, and consumers to promote transparency in the lending industry and guard against predatory lending practices. While there are some criticisms of the provision, it represents an important step towards ensuring that individuals can make informed decisions about the cost of borrowing and avoid falling into debt traps that perpetuate poverty.

STRATEGY

Section 347(4) of the Criminal Code of Canada provides a legal tool to the prosecution to prove the effective annual rate of interest in proceedings related to criminal interest rates. The provision enables a certificate from a fellow of the Canadian Institute of Actuaries stating that they calculated the effective annual rate and based on calculations and information. This certificate could be considered as evidence by the court unless there is evidence to the contrary. There are several strategic considerations that could be employed by the prosecution and defense while dealing with this section. Some of these strategies are: 1. The prosecution and defense will have to consider the credibility and expertise of the Fellow of the Canadian Institute of Actuaries who has provided the certificate. The prosecution will try to present an expert with a strong reputation in the actuarial field to provide the certificate. Whereas, the defense will try to challenge the credibility of the expert by presenting counter-evidence or questioning their methods. 2. The prosecution and defense will also have to consider the timing of the certificate. The certificate should be obtained and submitted as early as possible to avoid any delays in the court proceedings. This will also give the defense ample time to review the certificate and prepare their counter-evidence. 3. The prosecution and defense will have to consider the requirements of the certificate. The certificate should contain all the necessary information and calculations that are required to prove the effective annual rate of interest. The prosecution should provide clear instructions to the expert and ensure that the certificate meets all the legal requirements. 4. The defense will have to consider challenging the accuracy of the calculations used in the certificate. They can hire their own expert to conduct their own calculations and present evidence to counter the prosecution's claims. 5. The defense can also challenge the interpretation of the data used in the calculations. They can argue that the data used in the certificate was incorrect or inadequate. In conclusion, the strategic considerations while dealing with Section 347(4) of the Criminal Code of Canada are important for both the prosecution and defense. The prosecution will have to ensure that they have a credible and reputable expert to provide the certificate and that the certificate meets all the legal requirements. The defense will have to review the certificate thoroughly and prepare counter-evidence to challenge the prosecution's claims. Both parties will have to consider the timing of the certificate, accuracy of calculations, and interpretation of the data used in the calculations.