Regulation - LGIC
Motor Vehicle Dealers Act, 2002 Amendments to the General Regulation
Regulation Number(s):
Instrument Type:
Regulation - LGIC
Bill or Act:
Motor Vehicle Dealers Act, 2002
Summary of Decision:
Technical amendments to the General Regulation under the Motor Vehicle Dealers Act, 2002 (Ontario Regulation 333/08) before it comes into effect on January 1, 2010. These amendments address technical issues primarily relating to business financing arrangements in the sector.
Further Information:
Ontario Regulation 377/09
Proposal Number:
09-MSBCS002
Posting Date:
October 26, 2009
Summary of Proposal:
Technical amendments to the General Regulation under the Motor Vehicle Dealers Act, 2002 (Ontario Regulation 333/08) before it comes into effect on January 1, 2010.
These amendments address technical issues primarily relating to business financing arrangements in the sector.
The amendments include provisions permitting financial institutions to continue to accept assignment of conditional sales contracts and otherwise engage in activities required for their facilitation of credit to automobile buying consumers. Similar amendments permit leasing industry businesses to continue to use instruments such as securitization to finance their operations.
The amendments clarify and improve the operation of contract cancellation provisions to maintain consumer protection while avoiding unintended harm to the interests of third parties who provided financing facilitated or arranged by dealers (e.g., the amendments prevent secured loans from being converted into unsecured loans and clarify that dealer obligations to lenders under dealer contracts with them are not affected by consumer cancellations of dealer-consumer contracts).
The amendments correct references and terminology such as ensuring that the correct classes and types of dealer are referred to in disclosure provisions and provisions dealing with Compensation Fund contributions.
The amendments eliminate a subclass of short term lessors which has proven to be unnecessary.
These amendments address technical issues primarily relating to business financing arrangements in the sector.
The amendments include provisions permitting financial institutions to continue to accept assignment of conditional sales contracts and otherwise engage in activities required for their facilitation of credit to automobile buying consumers. Similar amendments permit leasing industry businesses to continue to use instruments such as securitization to finance their operations.
The amendments clarify and improve the operation of contract cancellation provisions to maintain consumer protection while avoiding unintended harm to the interests of third parties who provided financing facilitated or arranged by dealers (e.g., the amendments prevent secured loans from being converted into unsecured loans and clarify that dealer obligations to lenders under dealer contracts with them are not affected by consumer cancellations of dealer-consumer contracts).
The amendments correct references and terminology such as ensuring that the correct classes and types of dealer are referred to in disclosure provisions and provisions dealing with Compensation Fund contributions.
The amendments eliminate a subclass of short term lessors which has proven to be unnecessary.
Contact Address:
Policy Branch
Ministry of Consumer Services
777 Bay Street, Suite 501
Toronto, ON M7A 2J3
Ministry of Consumer Services
777 Bay Street, Suite 501
Toronto, ON M7A 2J3
Effective Date:
January 1, 2010
Decision:
Approved