R-2.2, r. 1 - Regulation respecting the application of the Act respecting the collection of certain debts

Section 19 Disposition versions

2018-01-11

19. The security must be drawn up using the form provided by the president, and include

(a)  the date on which the security is furnished;

(b)  the total amount of the obligation which the surety is required to meet for the duration of the permit and its renewal as determined in section 12 or 13, as the case may be;

(c)  a solidary undertaking by the surety with the applicant towards the president, in the case of an individual security, or with any member of the group towards the president, in the case of a group security policy, up to the amount of the security, to pay any amount payable pursuant to section 26;

(d)  when the security is furnished by the applicant on the applicant’s own behalf, an undertaking by the applicant, up to the amount of the security, to pay any amount payable pursuant to section 26;

(e)  a statement that the undertaking is binding on the administrators of the surety or the applicant in the case of security furnished by the applicant;

(f)  a waiver of the benefits of discussion and division, and the fact that the surety is subrogated in the rights of a consumer to whom an indemnity is paid up to the amount disbursed by the surety;

(g)  a statement that the surety or applicant may only terminate the security by sending at least 90 days’ written notice to the president along with proof that a copy of the notice was notified to the applicant, if applicable; and

(h)  a statement that, despite the expiry of the security, the obligations of the surety are maintained and the responsibility of the applicant continues to extend to the applicant’s clients, when, as the case may be,

i.  civil proceedings were instituted within the time prescribed by the Civil Code;

ii.  the agreement or transaction, which was intended to prevent judicial proceedings, was entered into within the same time;

iii.  penal proceedings were instituted within the time prescribed by section 63.1 of the Act;

iv.  the act or omission that is the subject of the civil judgment, the agreement or transaction or, as the case may be, the conviction is related to a contract concluded or fault committed while the security was in effect, or occurred while the security was in effect.

The form must be signed by the surety or by the applicant if furnished by the latter and, at the request of the surety, by the principal debtor.

R.R.Q., 1981, c. R-2.2, r. 1, s. 19; O.C. 1245-2017, s. 7.

2012-09-01

19. If security is furnished by means of an individual guarantee policy, it must be drawn up as in Form N-35, the text of which is attached hereto.

R.R.Q., 1981, c. R-2.2, r. 1, s. 19.