PAYDAY LENDER LICENCE APPLICATION REQUIREMENTS In order to obtain a payday lender licence, the following information is required: 1. Payday Lender Application Form: • All information on the application form must be completed. • All documentation must contain original signatures. • Incomplete and/or unsigned documents will not be processed, and will be returned. • One completed application form is required per location. 2. Articles of Incorporation from the jurisdiction where the business entity is located: You must submit the original document(s) or a certified copy. If the business entity is operating more than one payday loan location in Manitoba, only one original document or certified copy of the Articles of Incorporation is required. Updated Articles of Incorporation are also required to be submitted with applications for renewal if there have been any changes to the applicable information. 3. Business Name Registration: You must submit the original or a certified copy of the Business Name Registration. The required documents may be obtained from the Manitoba Companies Office, 10th Floor Woodsworth Building, 405 Broadway, Winnipeg MB R3C 3L6, (204) 945-2500, www.companiesoffice.gov.mb.ca. If the business entity is operating more than one location, only one original document or certified copy of the Business Name Registration is required. An updated Business Name Registration is also required to be submitted with applications for renewal if there have been any changes to the applicable information. 4. Criminal Record Checks: A criminal record check must be submitted once annually for the applicant and each Director, Officer, Sole Proprietor, or Partner, and must be the original document, or a certified copy. If the business entity is operating more than one location only one original criminal record check or certified copy per Director, Officer, Sole Proprietor, or Partner is required. 5. Sample Payday Loan Agreement: See required information in “Appendix 1” 6. Bond or security in the amount of $25,000.00 in one of the following formats: a. A bond of a guarantee insurance or surety company authorized to carry on business in Manitoba that is in a form acceptable to the director. See “Appendix 2” (Penal Bond) for the acceptable form, or b.

A deposit of cash or negotiable bonds that is acceptable to the direct as security. See “Appendix 3” Collateral Security (Currency) and “Appendix 4” Collateral Security (Negotiable Securities) for the acceptable form, or

c.

An Irrevocable Letter of Credit payable to the Minister of Finance given by a bank, trust company or credit union licensed to carry on business in Manitoba that is in a form acceptable to the director as security.

7. Licence Fee of $5,500.00 (CDN currency): Make cheque, money order or equivalent payable to the Minister of Finance, Government of Manitoba. If paying by credit card, complete the credit card payment form “Appendix 5”. The licence fee of $5,500.00 is required for each application for licence as a payday lender and each application for renewal of a licence as a payday lender.

 Application for a Licence as a Payday Lender  Application for Renewal of a Payday Lender Licence 1.

Name of applicant: ____________________________________________________________________

2.

Business name or business style of applicant (if different from above): ____________________________________________________________________________________

3.

Physical address of location to be licenced: Address No Street Postal Code Phone Number

Fax:

(

Ext.

)

City

Province

Email address

4.

Type of business entity:  Sole proprietorship  Partnership  Corporation  Credit Union  Other _____________________________________________________________________ specify

5.

Enter below the names of all owners, partners, directors or officers. Attach list if necessary. Name

Title

Address No Street Postal Code Phone Number (

)

C ity Fax:

P rovince

Email address

Ext.

Name

Title

Address No Street Postal Code Phone Number ( 6.

)

C ity Fax:

Province

Email address

Ext.

a) Does the applicant offer payday loans? Yes  No  If no, go to 6 b). If yes, complete the following: Through what means? (Check all that apply.) In person  Telephone  Internet  Other (specify) ______________________________________ b) Does the applicant arrange payday loans? Yes  No  If no, go to 6 c). If yes, complete the following: How does the applicant communicate with borrowers when arranging their payday loans? (Check all that apply.) In person  Telephone  Internet  Other (specify) ______________________________________ List each payday lender that provides the payday loans that the applicant arranges, along with its address, phone and fax number. ______________________________________________________________________________________

Describe how the applicant arranges payday loans by the payday lenders listed above, including how all fees charged to borrowers in relation to the arrangement of payday loans are calculated. ___________________________________________________________________________________________ ___________________________________________________________________________________________ c) Does the applicant provide payday loans? Yes  No  If no, go to 6 d). If yes, complete the following: How does the applicant communicate with borrowers when providing their payday loans? (check all that apply) In person  Telephone  Internet  Other (please specify) ___________________________________ How does the applicant advance payday loan funds to borrowers? (Check all that apply.) Cash  Cheque  Direct Deposit  Cash Card  Other (specify)_______________________________ How does the applicant accept repayment of payday loans? (Check all that apply.) Cash  Cheque  Pre-authorized debit  Cash Card  Other (specify) __________________________ d) Does the applicant assist another payday lender to offer, arrange or provide payday loans in any way that is not described at 6 b)? Yes  No  If no, go to 7. If yes, complete the following: List each payday lender that offers, arranges or provides the payday loans, along with its address, phone and fax number. _________________________________________________________________________________________ _________________________________________________________________________________________ In what way does the applicant provide assistance? (Check all that apply.)  Making payday loan information available to the public, including by means of the Internet  Making equipment or other means available to the public, including Internet access, by which they may obtain information about the payday loans  Assisting the public by any means, including by the Internet, to obtain the payday loans  Assisting borrowers to access money provided under the payday loans  Assisting borrowers to repay the payday loans, including by cash card or other device  Other (specify) _______________________________________________________ 7. The Applicant maintains records at the following address(es)________________________________________ _________________________________________________________________________________________ 8. Has the applicant or any of the persons named in section 5 been convicted of an offence under any federal, provincial or territorial law, or are any charges pending?  No  Yes. Provide specifics: _________________________________________________________________________________________ _________________________________________________________________________________________ 9. Has the applicant or any of the persons named in section 5 been an undischarged bankrupt or been involved as owner, director or officer of any firm or business that declared bankruptcy during the period of their involvement?  No  Yes. Provide specifics: ____________________________________________________________________________________ ____________________________________________________________________________________ 10. Has the applicant or any of the persons named in section 5 ever had a license issued under this Act, or by an authority responsible for issuing licences with respect to lending money in any jurisdiction, which has been suspended or cancelled, or has the applicant ever applied for a renewal of such a licence and the renewal was refused?  No  Yes. Provide specifics: ___________________________________________________________________________________ ___________________________________________________________________________________

11. Contact Person: Provide the name of an officer or employee who resides in Manitoba and who is authorized to provide information requested by the director and to receive and disseminate information given by the director. Name

Title

Address No Street Phone Number (

)

Fax:

City

Province Email address

Postal Code

Ext.

THE APPLICANT DECLARES THAT THE APPLICANT IS FAMILIAR WITH MANITOBA’S CONSUMER PROTECTION LEGISLATION IN RESPECT OF PAYDAY LOANS AND UNDERTAKES TO COMPLY WITH THIS LEGISLATION. IT IS A CONDITION OF ANY LICENCE THAT THE CONSUMER PROTECTION OFFICE MUST BE ADVISED WITHIN 14 DAYS OF ANY CHANGES TO INFORMATION IN, OR IN SUPPORT OF, THIS APPLICATION.

STATUTORY DECLARATION I/We declare that the information and statements in this application, and all information provided in support of this application, ar e co mplete and true.

(Corporate seal, if any)

Per: _________________________ (signature)

___________________________________________ (position or title)

Per: _________________________ (signature)

____________________________________________ (position or title)

Declared before me at ____________________ In the province of _______________________ This _______ day of ____________ 20______ Signature of a Commissioner for Oaths in and for the Province of________________________________ My commission expires on the ______________________ day of __________________________, 20___ If the statutory declaration is made outside Manitoba, make sure that the person it is declared before has the authority to do so for a document to be used in Manitoba Every section in this form must be completed. Additionally, the following information must be included with the application. Please see the attached document “Payday Lender Licence Application Requirements” for more information about these items. i. ii. iii. iv. v. vi.

Articles of Incorporation or Business Name Registration Credit Union only: Certificate of Status Completed Sample Payday Loan Agreement Criminal Record Check for the applicant and for each individual listed in section 5 Bond or Security Annual Licence Fee

The applicant will provide any additional information requested by the Director of the Consumer Protection Office. If you have questions about this application, please call the Consumer Protection Office at (204) 945-3800, or toll free in Manitoba 1-800-782-0067. Return to:

Director, Consumer Protection Office Tourism, Culture, Heritage, Sport and Consumer Protection 302 – 258 Portage Avenue Winnipeg MB R3C 0B6

NO REFUND OF THE FEE WILL BE MADE ONCE A PAYDAY LENDER LICENCE HAS BEEN ISSUED. Privacy Notice: The personal information we collect is necessary to consider this application for a licence and to administer and enforce The Consumer Protection Act, and is limited to the minimum amount necessary for these purposes. The personal information is being collected under the authority of The Consumer Protection Act and clauses 36(1)(a) and (b) of The Freedom of Information and Protection of Privacy Act of Manitoba and it is protected by The Freedom of Information and Protection of Privacy Act. If you have questions about the collection of this personal information, please contact the Manager of Licencing at 302- 258 Portage Ave, Winnipeg, Manitoba, R3C 0B6, or by phone at (204) 945-3800, or toll-free in Manitoba at 1-800-782-0067.

APPENDIX 1 REQUIREMENTS FOR A SAMPLE PAYDAY LOAN AGREEMENT Section 8(a) of the Payday Loans Regulation provides that an applicant for a payday lender licence must provide a completed sample payday loan agreement for a $300 loan for 12 days. The Consumer Protection Office will review the submitted sample agreement to ensure that it is consistent with the legislated requirements, including the requirement in section 148(2) of The Consumer Protection Act that the agreement be clear and understandable and that the information required by the Act and the Regulation be prominently displayed. The sample agreement must clearly show that neither the total cost of credit nor any component of the cost of credit exceeds the maximum allowed by the Regulation. It is important to note that the cost of credit disclosure provisions in Part 2 of The Consumer Protection Act (Credit Agreements and Leases: Cost of Credit) apply to consumer credit agreements, including payday loans. These provisions deal with requirements for various components in credit arrangements including advertising, disclosure statements, insurance, brokers, and optional services. While the following requirements are specific to payday loans agreements, applicants must also comply with Part 2 of The Consumer Protection Act and the Consumer Protection Regulation under that Act. Applicants are strongly encouraged to ensure that they are aware of and understand those obligations. Payday loan agreement disclosure requirements under Part 18 of The Consumer Protection Act (Payday Loans) Section 148(1) (a) of The Consumer Protection Act requires that at the time of making the initial advance under a payday loan or providing the borrower with a cash card or other device that enables the borrower to access funds under a payday loan, the payday lender must give to the borrower a document that is in a form satisfactory to the director that: (i) (ii) (iii) (iv) (v)

states the date and time of day that the initial advance is being made or the card or other device is being provided, states that the loan is a high-cost loan, gives notice of the borrower’s right to cancel the loan within 48 hours after receiving the initial advance or the card or other device, includes a form of notice that the borrower may use to give written notice that he or she is cancelling the loan, and includes a form of receipt that the lender must use to acknowledge receipt of what was paid or returned by the borrower upon cancelling the loan.

1

Payday loan agreement disclosure requirements in the Payday Loans Regulation Section 14 of the Regulation requires that in addition to the information required in section 148(1)(a) of the Act, the following information must also be included in the payday loan agreement: (a) the payday lender’s business name or style, business and mailing address, email address and telephone and fax numbers; (a.1) the payday lender’s licence number; (b) the borrower’s name, address and telephone number; (c) the principal amount of the loan; (d) the term of the loan in days; (e) the amount of the initial advance; (f) the total cost of credit and the annual percentage rate (APR); (g) an itemization of all fees, commissions, charges, penalties, interest and other amounts or consideration charged, paid or given, or to be charged, paid or given, by or to the lender or any other person in relation to the loan; (h) the date on which payment is due to the payday lender and, if being repaid by more than one payment, the date and amount of each payment; (i) if a cash card or other device that enables the borrower to access funds under the loan is issued to the borrower, the following information:

(j)

(i)

the terms and conditions for use of the cash card or device,

(ii)

the amount of money advanced that is available on the cash card,

(iii)

the expiry date, if any, of the cash card,

(iv)

an itemization of each fee, commission, charge, penalty, interest or other amount or consideration charged, paid or given, or to be charged, paid or given, by or to the lender or any other person, in relation to the cash card.

the following statements: “If you have any questions or concerns about payday loans, cancellation rights or collection practices, contact the Consumer Protection Office at (204) 945-3800 or toll free at 1-800-782-0067”. “If you feel you could benefit from debt counseling, contact the Consumer Protection Office at (204) 945-3800, or toll free at 1-800-782-0067 for information”. 2

(k) information about the cancellation rights under section 149 of the Act, including the procedure for cancelling a payday loan and the time limit for doing so; (l) information about the consequences of the payday lender’s failure to comply with subsections 147(1), 152(1), 153(1) and 154(1) of the Act; (m) if the payday loan agreement relates to an Internet payday loan, information about how any amounts or consideration described in subsections 147(2), 152(2), 153(2) and 154(2) of the Act will be reimbursed.

3

APPENDIX 2 PENAL BOND 1. TAKE NOTICE that I (we)_ ______________________________________________ ____________________________________________________________________ ____________________________________________________________________ (herein called the Principal) as Principal and located at_ _______________________ ___________________________________________________________________ , and we, _________________________________________________ (herein called the Surety) as Surety are held and firmly bound unto Her Majesty The Queen in right of the Province of Manitoba (hereinafter called the Obligee) in the penal sum of _____________________________________ Dollars ($____________) in Canadian currency, to be paid to the said Obligee, her successors and assigns, for which payment well and truly to be made, we jointly and severally bind ourselves, our executors, administrators, successors and assigns firmly by these presents. 2. SEALED with the respective seals of the Principal and of the Surety and dated the ____________day of_______ ________________, 20______. 3. NOW THE CONDITION of the above obligation is such that if the said obligation does not by reason of any act, matter or thing at any time hereafter become or be forfeit under subsection 12(1) of the Payday Loans Regulation under The Consumer Protection Act, then the said obligation shall be void but otherwise shall be and remain in full force and effect and shall be subject to forfeiture as provided by the said Act or Regulation. 4. The Director of the Consumer Protection Office ( hereinafter called “The Director”) may order forfeiture of this penal bond, in whole or in part, by giving written notice to that effect to the Principal, in the event of any claims or expenses arising from any breach, failure or other circumstances set out in subsection 12(1) of the Payday Loans Regulation made under The Consumer Protection Act. A copy of the written notice to the Principal, provided to the Surety by the Director, shall be sufficient to collect payment from the Surety. Notice of any claim shall be given to the Surety within two years following the date on which the Principal was deemed responsible for any breach, failure or other circumstances set out in subsection 12(1) of the Payday Loans Regulation made under The Consumer Protection Act. 5. PROVIDED that if the said Principal or Surety at any time gives 90 days notice in writing to the Director of the Consumer Protection Office of intention to terminate the obligation hereby undertaken, then this obligation shall cease and determine in respect only of any act, matter or thing taking place, arising or done subsequent to the date named in the notice of termination of the obligation hereby undertaken but shall remain in full force and effect in respect of all acts, matters and things taking place, arising or done from the date hereof to the date of such termination. Notice of any claim hereunder shall be given to the Surety within two years following the date of termination as herein provided. SIGNED, SEALED and DELIVERED in the presence of:

Principal_ __________________________

Witness___________________________

Principal_ __________________________

SIGNED, SEALED and DELIVERED in the presence of: Witness___________________________

Surety_____________________________

APPENDIX 3 COLLATERAL SECURITY BOND (Currency)

1. That_____________________________________________________________________ ,

located at__________________________________________________________________ (hereinafter called “the Licensee”) hereby deposits with Her Majesty The Queen in right of the Province of Manitoba (hereinafter called “the Government”) the amount of __________________________________Dollars ($___________) in Canadian currency to be held by the Director of the Consumer Protection Office (hereinafter called “the Director”) receipt of which is hereafter acknowledged, as collateral security for the Licensee’s faithful performance as a licensed payday lender under The Consumer Protection Act and the regulations under that Act.

2. That the aforesaid collateral security shall be liable to forfeiture, in whole or in part, to the

Government upon demand by the Director in the event of any claims or expenses arising from any breach, failure or other circumstance set out in subsection 12(1) of the Payday Loans Regulation, made under The Consumer Protection Act. Written notice to the Licensee provided by the Director, shall be sufficient to collect payment under this bond. Such notice shall be provided within two years following the date on which the Licensee was deemed responsible for any breach, failure or other circumstances set out in subsection 12(1) of the Payday Loans Regulation made under The Consumer Protection Act.

3. That if the said Licensee at any time gives notice in writing to the Director of intention to

terminate the licence and business as a payday lender, then the liability of the collateral security to forfeiture shall cease and be determined in respect of any claims arising subsequent to the date of such termination of licence or business, but this liability shall remain in full force and effect in respect of any claims arising from the date hereof to the date of such termination of licence or business, and notice of any claim against the collateral security may be provided within two years following the date of termination of licence or business as herein provided.

4. That if the licence of the Licensee is terminated as aforesaid, or is cancelled or not renewed

by the Director, then the Licensee shall be entitled to the return of the collateral security two years after such termination, cancellation or non-renewal, providing there are no claims or expenses arising against the collateral security during the period of the licence or business, but if there are claims or expenses resulting in forfeiture of the collateral security, then the Licensee shall be entitled to the return of the balance of the collateral security after any such claims or expenses are verified, paid and deducted from the collateral security by the Director.

IN WITNESS WHEREOF the Licensee has duly executed this Bond in the City of ________________, in the Province of ___________________ this ________ day of _________________, 20_______. SIGNED, SEALED and DELIVERED in the presence of

Per:______________________________

_______________________________ Witness

Per:______________________________

ACKNOWLEDGMENT BY DIRECTOR According to the terms and conditions of the foregoing Bond, the Director hereby acknowledges receipt of the aforesaid collateral security from the Licensee in the amount of ______________________Dollars ($_______________ ) in Canadian currency, this ___________day of____________, 20_____ .

______________________________________ Director of the Consumer Protection Office

APPENDIX 4 COLLATERAL SECURITY BOND (NEGOTIABLE SECURITIES)

1. That________________________________________________________________, located at _________________________________________________________, (hereinafter called “the Licensee”) hereby deposits with Her Majesty The Queen in right of the Province of Manitoba (hereinafter called “the Government”) the amount of ($_______________ ) in Canadian currency in negotiable securities to be held by the Director of the Consumer Protection Office (hereinafter called “the Director”), receipt and particulars of which are hereafter acknowledged, as collateral security for the Licensee’s faithful performance as a licensed payday lender under The Consumer Protection Act and the regulation under that Act.

2. That the aforesaid collateral security, including all interest, dividends or advantages accruing

thereon, shall be liable to forfeiture, in whole or in part, to the Government upon demand by the Director in the event of any claims or expenses arising from any breach, failure or other circumstance set out in subsection 12(1) of the Payday Loans Regulation, made under The Consumer Protection Act. Written notice to the Licensee provided by the Director, shall be sufficient to collect payment under this bond. Such notice shall be provided within two years of the date on which the Licensee was deemed responsible for any breach, failure or other circumstances set out in subsection 12(1) of the Payday Loans Regulation made under The Consumer Protection Act.

3. That if the said Licensee at any time gives notice in writing to the Director of intention to terminate

the licence and the business as a payday lender, then the liability of the collateral security to forfeiture shall cease and be determined in respect of any claims arising subsequent to the date of such termination of licence or business, but this liability shall remain in full force and effect in respect of any claims arising from the date hereof to the date of such termination of licence or business, and notice of any claim against the collateral security may be provided within two years following the date of termination of licence or business as herein provided.

4. That if the licence of the Licensee is terminated as aforesaid, or is cancelled or not renewed by the Director, the Licensee shall be entitled to the return of the said collateral security, including any interest, dividends or advantages received thereon, as may be applicable, two years after such termination, cancellation or non-renewal, providing there are no claims arising against the collateral security during the period of the licence or business, but if there are claims resulting in forfeiture of the collateral security then the Licensee shall be entitled to the return of the balance of the collateral security after any such claims are verified, paid and deducted from the collateral security by the Director.

5. That the Licensee shall not hold the Government or the Director responsible for a loss respecting

the collateral security, including any loss arising from any failure to recover any interest, dividend, or advantage on the collateral security, or resulting from any depreciation in the value of the collateral security, or caused by any realization, redemption or negotiation upon forfeiture, as may be applicable, during their custody thereof.

IN WITNESS WHEREOF the Licensee has duly executed this Bond in the City of_______________, in the Province of ________________, this _____________day of___________________, 20_____. SIGNED, SEALED and DELIVERED in the presence of

Per:_ ________________________________

Witness_______________________

Per:_ ________________________________

ACKNOWLEDGMENT BY DIRECTOR According to the terms and conditions of the foregoing Bond, the Director hereby acknowledges receipt of the aforesaid collateral security from the Licensee in the amount of _____________________ Dollars ($_______________ ) in Canadian currency, in the form of the following negotiable securities this ___________day of____________, 20_____ . KIND OF NEGOTIABLE SECURITY

VALUE

_____________________________________

____________________________________



____________________________________ Director of the Consumer Protection Office

APPENDIX 5 CREDIT CARD PAYMENT Expanded Online License/Registration Payment Option The Consumer Protection Office has expanded the payment options available for businesses by accepting online credit card payments for licensing fees. It's simple, secure and available 24 hours a day, seven days a week. Please visit www.cpopayment.com to submit your payment by Visa or MasterCard. Please mail, email, or fax the payment confirmation number along with the completed application form for processing. If paying by cheque or money order, please make payable to Minister of finance, Government of Manitoba and submit with the signed application. Payment is to be made in Canadian Funds.