SECTION 20 – POSTING LOAN |
10.20.01 – INTENT |
(1) (Intent) The intent of the posting loan is to
facilitate service outside Canada, including
assistance with the purchase of items, such as
food, clothing and a PMV, including a PMV
security system, for the member's use at a post.
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(2) (Other use) A posting loan may be used for
consolidation of debt prior to departure but may
not be used for personal gain such as
investment purposes or paying down a
mortgage.
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10.20.02 – ELIGIBLE MEMBERS |
(1) (Eligibility) This section applies to a member
who is posted or cross-posted for 12 months or
more to a post.
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(2) (Service couple) Each member of a service
couple is entitled to a posting loan if each
member demonstrates a valid requirement for
the posting loan.
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10.20.03 – ENTITLEMENT |
A member who has demonstrated a valid
requirement and is posted or cross-posted to a
post outside Canada is entitled to an
interest-bearing posting loan in an amount not
exceeding the lesser of 50% of the member's
annual pay in effect at the time the loan is
approved and the amount established annually
by the Treasury Board.
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10.20.04 – APPROVAL |
(1) (Valid requirement for loan) Once the
member demonstrates a valid requirement for
the posting loan, approval of the loan shall be
given by the member’s:
(a) Commanding Officer, if the member is in
Canada when requesting the posting loan
prior to the departure for the post; or
(b) Approving Authority, if the member is
outside Canada when requesting the posting
loan.
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(2) (Release of funds) If a posting loan has
been approved, the funds may be released to
the member up to 90 days prior to the date of
departure from Canada or the member's
previous post.
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(3) (Approval period for posting) In the case of
a posting, a posting loan may be approved:
(a) in advance of the posting; or
(b) in the first twelve months of the posting or
during the first half of the posting, whichever
is less.
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(4) (Approval period for cross-posting) In the
case of a cross-posting, the posting loan may be
approved:
(a) in the twelve months preceding the crossposting;
or
(b) in the first twelve months of the crossposting
or during the first half of the crossposting,
whichever is less.
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(5) (Approval outside set period) A member
may also apply to the Director Compensation
and Benefits Administration for a posting loan
outside of the time period set out in paragraphs
(3) and (4).
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10.20.05 – SUPPLEMENTARY LOAN AND NEW LOAN |
(1) (Supplementary loan) A member in receipt
of a posting loan is entitled to a supplementary
loan on one occasion only, to increase the total
amount of the loan. The minimum amount of the
supplementary loan is $1,500 up to the
maximum amount that would have been
available under CBI 10.20.03 (Entitlement) when
the original loan was approved less the original
amount issued.
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(2) (New loan) A member who is cross-posted is
entitled to a new posting loan, the maximum
amount of which shall not exceed the amount
available under CBI 10.20.03 at the time of
official notification of the cross-posting, reduced
by the outstanding principal of the previous loan,
if applicable.
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(3) (Loan repaid in full) If a posting loan has
been repaid in full, the member is not entitled to
a supplementary loan or to a new loan, unless
the member is cross-posted, even if the original
amount borrowed was not the maximum to
which the member was entitled under CBI
10.20.03.
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10.20.06 –INTEREST RATE |
(1) (Interest rate for posting loan) Unless
paragraph (3) applies, a posting loan granted to
a member under CBI 10.20.04 (Approval) bears
the interest rate established by the Department
of Finance on the first day of the quarter in which
the loan is approved for the duration of the loan.
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(2) (Interest rate for supplementary loan) A
supplementary loan granted to a member under
CBI 10.20.05 (Supplementary Loan and New
Loan) bears the interest rate established by the
Department of Finance on the first day of the
quarter in which the supplementary loan is
approved.
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(3) (Interest rate for combined loans) The
interest rate for a total combined loan is a
weighted average based on the outstanding
principal of the previous loan at its interest rate
and the amount of the supplementary loan or
new loan at the current rate.
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(4) (Interest prior to repayment) If a posting
loan has been approved in accordance with CBI
10.20.04, the interest for the period between
when the member receives the funds and the
start of the repayment will be calculated by the
Central Computation Pay System at the time the
loan is set-up by the Director Accounts
Processing, Pay and Pensions. The interest is
deducted from the member’s pay the first of
each month until the repayment starts.
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10.20.07 – REPAYMENT |
(1) (Repayment period) If a posting loan has
been approved in accordance with CBI 10.20.04
(Approval), the repayment period shall not
exceed 48 months, however, if the member is
granted a new posting loan on cross-posting, the
combined loan will commence a new 48-month
repayment period.
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(2) (Supplementary loan) If a supplementary
loan has been approved in accordance with CBI
10.20.05(1) (Supplementary loan), the
repayment period is not to exceed 48 months
from the commencement of the repayment
period on the original loan.
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(3) (Method of repayment) Unless the loan has
been repaid in full under paragraph (4), the loan
shall be repaid in equal monthly instalments of
principal and interest:
(a) for a member granted a posting loan prior
to arrival at the post, commencing on the
earlier of:
(i) the first day of the fourth month
following the month in which the loan is
approved, or
(ii) the first day of the month following
the member's arrival at the post;
(b) for a member granted a posting loan after
arrival at the post, on the first day of the
month following the month in which the loan
is approved.
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(4) (Advance full repayment) A member in
receipt of an approved posting loan may:
(a) repay the principal of the loan in full,
without interest, prior to the date on which
repayment is scheduled to commence
except that interest which was paid in
advance for the period the member was in
receipt of the posting loan shall not be
refunded to the member; or
(b) repay the whole of the outstanding
principal and interest during the repayment
period, with interest calculated to the end of
the month in which the loan is retired.
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(5) (Loan renegotiation) A member in receipt of
an approved posting loan may, on one occasion
only and for a minimum of $500:
(a) partially repay the principal of the loan
prior to the date on which repayment is
scheduled to commence, in which case the
commencement and termination dates for
repayment and the interest rate remains
unchanged but the total amount of blended
principal and interest is adjusted to reflect
the reduced principal of the loan; or
(b) partially repay the principal of the loan
once during the repayment period to
decrease the outstanding principal of the
loan, in which case the interest rate remains
unchanged but the termination date of the
loan and the total amount of blended
principal and interest are adjusted to reflect
the reduced principal of the loan.
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(6) (Early termination or cancellation of
posting) If a member returns to Canada prior to
the termination of the posting or if a member’s
posting loan has been approved in anticipation
of posting and the member is subsequently
notified that the posting has been cancelled:
(a) the Approving Authority (AA) or the
Commanding Officer (CO), as the case may
be, may authorize the continued repayment
of the loan under the existing terms and
conditions for that posting loan; or
(b) the Director Compensation and Benefits
Administration may, upon request, if such
repayment of the loan would cause financial
hardship, consider extending the repayment
period beyond 48 months.
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(7) (Release of member prior to full
repayment) If a member is released before
repayment is completed, the outstanding amount
of the loan shall be subject to immediate
recovery or as arranged with the Director
Accounts Processing, Pay and Pensions.
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(8) (Leave without pay) If a member has been
granted leave without pay during the repayment
period of the loan, the AA will arrange measures
for the member to continue regular payments
during the leave without pay period.
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