This Payday Loan Contract is designed for use by licensed payday lenders operating in Canada, providing short-term, small-sum loans to consumers. The agreement template ensures compliance with the Criminal Code of Canada's interest rate provisions and provincial payday lending legislation, which varies by province. It includes mandatory disclosure requirements, borrower rights and responsibilities, repayment terms, and all fees and charges associated with the loan. This document is essential for any payday loan transaction and must be provided to borrowers before loan disbursement, incorporating cooling-off periods and cancellation rights as required by provincial regulations. The contract serves both as a legally binding agreement and as a disclosure document, protecting both lender and borrower interests while meeting regulatory requirements.

1. Parties: Identification of the lender and borrower, including full legal names, addresses, and contact information

2. Background: Brief context explaining the nature of a payday loan and the purpose of the agreement

3. Definitions: Clear definitions of key terms used throughout the agreement, including 'loan term', 'interest rate', 'fees', and 'default'

4. Loan Details: Specific details of the loan including principal amount, term, and repayment date

5. Cost of Borrowing: Detailed breakdown of interest rates, fees, and total cost of borrowing as required by legislation

6. Repayment Terms: Specific details about when and how the loan must be repaid, including payment methods accepted

7. Security and Post-Dated Checks: Details of any security required, including post-dated checks or pre-authorized debits

8. Early Repayment Rights: Explanation of the borrower's right to repay the loan early and any applicable rebates

9. Default and Collections: Consequences of default and the lender's collections rights and procedures

10. Cancellation Rights: Borrower's right to cancel the loan within the statutory cooling-off period

11. Privacy and Information Handling: How the borrower's personal information will be collected, used, and protected

12. Representations and Warranties: Statements and guarantees made by the borrower regarding their financial situation

13. Governing Law: Specification of applicable provincial law and jurisdiction

14. Execution: Signature blocks and date of agreement