Board Order: P.U.1(2000-2001) Schedule C
Proposed Revisions to CIAC
Policy[1]
Residential
Policy:
11. PAYMENT
(a)
Subject to Clause 11 (b),
all CIACs shall be paid by cash or certified cheque in advance of
construction.
(b) Where approval has been given in advance by the Company's credit personnel, a customer may pay a CIAC on the following basis:
(i) $300 or 1/3 ¼ of
the CIAC, whichever is greater, as a down-payment in advance of construction;
and
(ii) the balance together with interest by
way of not more than 60 120 equal monthly instalments of
not less than $20 each.
(c) Customers who receive credit approval
will be provided the option of financing the CIAC amount over a period of not
more than 60 months, or over a period of not more than 120 months.
(c)(d) Interest on the unpaid balance from time to
time outstanding of a CIAC financed pursuant to Clause 11 (b) shall be set at
the time of the customer’s agreement to pay by way of installments issuing
of the customer’s CIAC quote.
The rate shall be equal to the prime rate of the Company’s bankers as of
the last day of the month immediately preceding the time of the customer’s
agreement to pay by way of installments issuing of the CIAC quote to
the customer, plus: 3%.
(i) 3%
for customers that choose financing over a period of not more than 60 months.
(ii) 4% for customers that choose financing over a period of
more than 60 months.
(d)(e) Installments shall be subject to the
Company's credit policy. Default in
payment of any installment shall, at the Company's option, render the unpaid
balance immediately due and payable.
(f) Should the customer wish to prepay
all or a portion of the unpaid balance, the Company will accept such
pre-payment without bonus or penalty.
General Service Policy:
9. PAYMENT
(a) All CIACs shall be paid by cash or
certified cheque in advance of construction, except in the following cases:
(i)
Federal or Provincial
Government Departments may provide a purchase order;
(ii)
General Service Customers,
if approval has been given in advance by the Company's credit personnel, may
provide a purchase order; and
(iii) Where approval has been given in advance
by the Company's credit personnel, a customer may pay a CIAC on the following
basis:
(A) $300 or 1/3 ¼ of the
CIAC, whichever is greater, as a down-payment in advance of construction; and
(B) the balance together with interest by way of not more than 60 equal monthly instalments of not less than $20 each.
(b) Interest on the unpaid balance from time to time
outstanding of a CIAC financed pursuant to Clause 9 (a)(iii) shall be set at
the time of the customer’s agreement to pay by way of installments issuing
of the customer’s CIAC quote.
The rate shall be equal to the prime rate of the Company’s bankers as of
the last day of the month immediately preceding the time of the customer’s
agreement to pay by way of installments issuing of the CIAC quote to
the customer, plus 3%.
(c) Instalments
in respect of a CIAC shall be subject to the Company's credit policy. Default in payment of any instalment on a
CIAC paid in accordance with Clause 9(a)(iii) shall, at the Company's option,
render the unpaid balance immediately due and payable.
(d)
Should
the customer wish to prepay all or a portion of the unpaid balance, the Company
will accept such pre-payment without bonus or penalty.
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