7. The Parties shall adopt harmonized legislation respecting the disclosure of cost of credit in accordance with the following objectives, among others:
(a) to ensure that, before making a credit-purchasing decision, consumers receive fair, accurate and comparable information about the cost of credit;
(b) to ensure that, with respect to non-mortgage credit, consumers are entitled to repay their loans at any time and, in that event, to pay only those finance charges that have been earned at the time the loans are repaid; and
(c) to ensure that the disclosure is as clear and as simple as possible, taking into account the inherent complexity of disclosure issues related to any form of credit.
8. The harmonized cost of credit disclosure legislation referred to in paragraph 7 shall apply to all forms of consumer credit, including:
(a) fixed credit such as loans for a fixed sum to be repaid in instalments;
(b) open credit such as lines of credit and credit cards;
(c) loans secured by mortgage of real property;
(d) supplier credit such as conditional sale agreements; and
(e) long-term leases of consumer goods.
9. Federal legislation relevant to cost of credit disclosure includes:
(a) the disclosure provisions in the Bank Act (Canada) and the federal cost of borrowing regulations;
(b) the cost of credit disclosure provisions in federal legislation governing other federally incorporated financial institutions; and
(c) the Interest Act (Canada).
10. The Parties shall complete negotiations on the harmonization of cost of credit disclosure no later than January 1, 1996, and shall adopt such harmonized legislation no later than January 1, 1997.