Section 14: Rescheduling of debt by lender

14. Rescheduling of debt by lender (1) A borrower— (a) who is unable to meet his obligations under a credit agreement as a result of illness, injury, loss of employment, death of working spouse or other reasonable cause of hardship, which affects his capacity to repay the debt; and (b) who reasonably expects to be able to discharge his obligations if the terms of the credit agreement are revised in a manner set out in subsection (2), may request the lender to reschedule the debt. (2) Where a request is made by a borrower under subsection (1), the terms of the credit agreement may be revised by providing for— (a) an extension of the term and a corresponding reduction in the amount of each instalment due; (b) a postponement for a specific period of the dates on which instalments are due; or B11 – 7 [Issue 1] Borrower Protection Act (c) a change in the terms of payment in such manner as may be agreed upon by both parties. (3) The revised terms of the credit agreement pursuant to subsection (2) shall— (a) be agreed upon in such manner as to enable the borrower to reasonably discharge his obligations; (b) be fair and reasonable to both the borrower and the lender in all the circumstances; and (c) be made in writing. (4) This section shall apply to the heirs of a deceased borrower collectively as it would have applied to a borrower referred to in this section.