O. Reg. 377/09: GENERAL
filed October 2, 2009 under Motor Vehicle Dealers Act, 2002, S.O. 2002, c. 30, Sched. BSkip to content
ontario regulation 377/09
made under the
motor vehicle dealers act, 2002
Made: September 30, 2009
Filed: October 2, 2009, 2009
Published on e-Laws: October 2, 2009
Printed in The Ontario Gazette: October 17, 2009
Amending O. Reg. 333/08
1. Ontario Regulation 333/08 is amended by adding the following section:
Exemption of certain trades from Act
2.1 (1) A trade in a motor vehicle between or through a registrant and any of the following persons or entities is exempt from the Act and the regulations, except for sections 52 and 53 of this Regulation, if the purpose of the trade is to provide financing for the purchase or lease of the vehicle from the registrant by a third party:
1. A bank, or an authorized foreign bank, within the meaning of section 2 of the Bank Act (Canada).
2. A subsidiary or an affiliate, within the meaning of section 5 or 6 respectively of the Bank Act (Canada), of a bank described in paragraph 1.
3. A corporation registered under the Loan and Trust Corporations Act.
4. A credit union, as defined in the Credit Unions and Caisses Populaires Act, 1994.
5. A subsidiary of a credit union established or acquired in accordance with section 200 of the Credit Union and Caisses Populaires Act, 1994 or an affiliate of a credit union within the meaning of section 1 of that Act.
(2) A trade between the person or entity that provides the financing described in subsection (1) and the third party mentioned in that subsection is exempt from the Act and the regulations if the purpose of the trade relates to the financing.
(3) A trade by a person or entity described in any of the paragraphs 1 to 4 to subsection (1) is exempt from the Act and the regulations if the purpose of the trade is to facilitate or complete a financing transaction, howsoever the transaction is structured, whether as a bulk purchase, a securitization of assets or otherwise.
(4) A trade between a motor vehicle dealer registered as a lease finance dealer or as a fleet lessor or both and any other person or entity is exempt from the Act and the regulations, except for clause 53 (1) (k) of this Regulation, if,
(a) the purpose of the trade is to facilitate or complete a financing transaction involving the registrant, howsoever the transaction is structured, whether as a bulk purchase, a securitization of assets or otherwise; or
(b) the trade is made in connection with a financing transaction described in clause (a) and for no other purpose.
2. Paragraph 7 of subsection 18 (1) of the Regulation is revoked and the following substituted:
7. Fleet lessor.
3. Section 25 of the Regulation is amended by striking out the portion before clause (a) and substituting the following:
25. A motor vehicle dealer registered as a fleet lessor shall not act as a motor vehicle dealer, other than,
. . . . .
4. Section 26 of the Regulation is revoked.
5. Paragraph 1 of subsection 40 (2) of the Regulation is revoked and the following substituted:
1. The matters required under paragraphs 1 to 3, 5 to 10, 14 to 19 and 21 to 27 of subsection 39 (2).
1.1 If the contract is made through a motor vehicle dealer registered as a general dealer, the registered name and registration number of that dealer, together with the legal name of that dealer if it is different from the registered name.
6. Subsection 50 (14) of the Regulation is revoked and the following substituted:
(14) If a person gives a notice of cancellation under subsection (6) for a contract for a motor vehicle and complies with clause (10) (a) or (11) (a), then at the time of compliance the notice operates,
(a) to cancel, as if they never existed,
(i) the contract,
(ii) any contract for an extended warranty or a service plan for the vehicle, whether the registered motor vehicle dealer sold the warranty or the service plan, as the case may be, to the person or facilitated the sale of it to the person through the dealer,
(iii) all guarantees given in respect of money payable under the contract, and
(iv) any of the following obligations if the registered motor vehicle dealer arranged for them or facilitated them and they relate to the purchase or lease of the vehicle: security interests, credit agreements and other payment instruments, including promissory notes; and
(b) to transfer to the dealer the obligations described in subclauses (a) (iii) and (iv) of the person arising in respect of money payable under the contract.
(14.1) If a contract has been cancelled under this section and the registered motor vehicle dealer arranged for or facilitated financing for the contract under an agreement between the dealer and the person providing the financing, the dealer shall promptly provide notice of the cancellation to that person.
(14.2) Nothing in this section affects the rights and obligations of parties to an agreement that a registered motor vehicle dealer has entered into for the purpose of arranging for or facilitating financing of any contracts that are cancelled under this section.
7. Subsection 53 (1) of the Regulation is amended by adding “and” at the end of clause (j) and by adding the following clause:
(k) for each trade in a motor vehicle made by the dealer, where the trade is a trade described in subsection 2.1 (3) and the dealer registered as a lease finance dealer or as a fleet lessor or both,
(i) the name of the person or entity mentioned in that subsection,
(ii) the date of the trade and the vehicle identification number of the vehicle, and
(iii) all documents or portions of them evidencing the trade.
8. (1) Subsection 75 (5) of the Regulation is amended by striking out the portion before clause (a) and substituting the following:
(5) If the Board declares that there is a shortfall in the Fund, then for each motor vehicle dealer who is registered in a class for which the dealer is required to make a payment to the Fund at the time of registration, the Board shall,
. . . .
(2) Clause 75 (5) (a) of the Regulation is revoked and the following substituted:
(a) calculate an amount equal to the shortfall declared by the Board divided by the number of motor vehicle dealers registered at the time of the declaration, subject to subsection (5.1); and
(3) Section 75 of the Regulation is amended by adding the following subsection:
(5.1) For the purposes of clause (5) (a), a motor vehicle dealer registered in the class of general dealer or broker that is authorized to trade from more than one place shall be counted as the number of registered motor vehicle dealers equal to the number of places from which the dealer is authorized to trade.
9. This Regulation comes into force on the later of the day section 44 of Schedule B (Motor Vehicle Dealers Act, 2002) to the Consumer Protection Statute Law Amendment Act, 2002 comes into force and the day this Regulation is filed.