Payment Deferral

The following definitions apply to these Terms and Conditions: 

• “Eligible” refers to any individual qualified to participate in the Customer Assistance Program (CAP). You may not be Eligible if your Loan is 90 or more days in arrears, in which case you should contact Scotiabank for further information.
• “You”, “Your”, “Business”, “borrower”, “co-borrower”, “guarantor(s)”, mean the individual person(s) or entity that agree to borrow or to guarantee the obligations of the Borrower from the Lending Bank under the terms and conditions set out in the Commitment Letter. This includes, but is not limited to, the owner or sole proprietor of the Business or the partners in the partnership.
• “Applicable Period” means from July 15th to August 31st, 2024, inclusive. where a request can be made to participate in the Customer Assistance Program (CAP)
• “Loan” means any Non-Revolving Term Loans, Mortgages and Credit Cards
• “Loan Payment” means the payment obligation under the Loan, as described in the Small Business Financial Services Agreement, Small Business Commitment Letter, the Rates and Fees Schedule, and any other document(s) or schedule(s) that form part of your Agreement with us or any other agreement you have with us, including any promissory note(s) that you execute and also the interest on those obligations when due and payable.
• “Deferred Amount” means the accrued interest, principal and insurance (as applicable) associated with your Loan that has been deferred and not paid during the Deferral Period. 
• “We” “The Bank” or “Scotiabank” mean, as applicable The Bank of Nova Scotia and its branches and subsidiaries and affiliates operating outside of Canada including, but not limited to, its agencies and branches in  Guyana, Scotiabank (Bahamas) Limited, Scotiabank (Barbados) Limited, Scotiabank & Trust (Cayman) Ltd, Scotiabank (Turks and Caicos) Ltd., and Scotiabank Trinidad and Tobago Limited and The Bank of Nova Scotia Jamaica Limited. 

1. You represent and warrant that all information provided to Scotiabank in connection with your Loan deferral request is correct and true.
2. You have asked Scotiabank to defer your regular Loan payment(s) (consisting of principal and interest and insurance premium (as applicable) due and payable under your Loan(s).  Requests for participation in this program shall only be accepted by the Bank during the Applicable Period.
3. Your request must first be approved by the Bank before you can participate in the CAP program.  Once it is approved, your payments will be deferred for a period of three (3) months, or until your loan maturity date, whichever comes first (“the Deferral Period”).
4. The Deferral Period commences with effect from the date you confirm your participation in this CAP program or earlier if one of your products qualified for automatic deferral under this program.
5. Your automatic loan payments will recommence at the end of the Deferral Period. During the Deferral Period, if you have asked Scotiabank to defer your automatic loan payments you cannot opt out of the Deferral, but you may continue to make such payments as you can towards your Loan during the Deferral Period, these will be applied to your account.
6.  You acknowledge that insurance premiums related to the Loan, if applicable, will also be deferred   and will be collected after the Deferral Period.   Your insurance coverage will continue with the same coverage and amounts as provided in your Certificate and Schedule of Insurance during the Deferral Period.  Please review your Certificate of Insurance for full details about your creditor insurance coverage.
7.  During the Deferral Period, the following will apply:
   
   For Credit Cards and Scotialine  
   i.       Interest will be charged and added to the account balance for each cycle. There will be no interest on accrued interest accumulated in a billing cycle during the Deferred Period. However, if the interest accrued during the Deferral Period is not cleared at the end of that period, interest will accrue from that point on the accumulated balance.
   ii.     You will not be required to make any minimum payments during the Deferral Period, but you can continue making payments against your balance at any time.
   iii.   You will not be charged late, no-payment or overlimit fees during the Deferral Period as a result of non-payment of the minimum monthly payment amount.
   iv.   When the Deferral Period is over, regular requirements for monthly payments and normal interest calculations on the accumulated balance will resume.
   v.     If during the Deferral Period you opt to create a SelectPay Plan, and convert an Eligible Transaction posted on your Card Account to fixed installment payments (including interest) you must pay the minimum payment of the SelectPay Plan which included installment principal amount plus interest on all Eligible Transactions
   vi.      If there is an automatic payment or standing order for your credit card it will continue to be made as normal unless you choose and take action to cancel/suspend the automatic payment or standing order.
   vii.  Your insurance premium for your credit card protection will not be deferred but will be added to your balance.
   
   For Scotia Plan Loans and Auto Loans
   i.       During the Deferral Period, interest will continue to accrue on the full principal balance of the Loan.
   ii.     For loans maturing after December 31^st,2026, the accrued interest from the Deferral Period (together with any deferred insurance premium amount, where applicable) will be paid over a 24-month period starting January 2025, or deferred accrued interest and insurance premium amount, where applicable, may be repaid via lumpsum at any time prior to this period. The maturity date will be extended by the number of deferred payments and principal payments will be made each month until the new maturity date.
   iii.   For loans maturing earlier than December 31^st,2026, the accrued interest over the Deferral Period (together with any deferred insurance premium amount where applicable) will be payable as a lump-sum on or before loan maturity. The maturity date will be extended by the number of deferred payments and principal payments will be made each month until the new maturity date.
   iv.   There will be no interest on deferred interest.
   v.     For customers whose payments are made as a deduction at source, you will have to give instruction at the source of the deduction to stop for the period of the deferral.
   vi.   For customers whose payments are made as a standing order, deduction at source or salary deduction, and will have an increased payment for a 24-month term, arrangements will have to be made by you to cover your increased payment over the 24-month period. Please contact us to settle proposed arrangements.
   
   For Non Revolving Term Loans for Small Business -Secured, Unsecured and Automobile, Real Estate Secured and Mortgages.
   i.    The loan must be in current status, if the loan is not in current status, you first have to pay your balance in arrears in full (i.e.,       bring the account to current), and when the account is back to current, the payment deferral can be applied.
   ii.    During the Deferral Period, interest will continue to accrue on the current outstanding balance of the Loan.
   iii.    A payment extension for accounts in current status is available for three (3) months at the discretion of the Bank, or until        your loan maturity date, whichever comes first. 
   iv.    For Real Estate secured loans, we may require proof of valid property insurance.
   v.    The term of the Loan will be extended by the number of months the Loan is deferred. 
   vi.    At the end of the Deferral Period the sum of accrued interest from the deferral period is due immediately. If immediate           payment is not possible, restructuring options can be discussed with the Bank.
   
   
   For Mortgages and Real Estate Secured Loans, including Home Builder Loans
   i.         During the Deferral Period, interest will continue to accrue on the full principal balance of the Loan.
   ii.        For loans maturing after December 31^st,2026, the accrued interest from the Deferral Period (together with any deferred insurance premium amount, where applicable) will be paid over a 24-month period starting January 2025, or deferred accrued interest and insurance premium amount, where applicable, may be repaid via lumpsum at any time prior to this period. The maturity date will be extended by the number of deferred payments and principal payments will be made each month until the new maturity date.
   iii.      For loans maturing earlier than December 31^st,2026, the accrued interest over the Deferral Period (together with any deferred insurance premium amount where applicable) will be payable as a lump-sum on or before loan maturity. The maturity date will be extended by the number of deferred payments and principal payments will be made each month until the new maturity date.
   iv.      For customers whose payments are made as a standing order, deduction at source or salary deduction, and will have an increased payment for a 24-month term, arrangements will have to be made by you to cover your increased payment over the 24-month period. Please contact us to settle proposed arrangements.
   v.       There will be no interest on deferred interest.
   vi.      For Home Builder Loans, deferred interest is payable in full at the end of the Deferral Period.
   
   
8. Subject only to the changes set out above, all other terms and conditions and provisions of Your original contract with the Bank for the Loan remain in effect, and that the above changes to the terms and conditions of your Loan are not intended to invalidate any interest in or any security, right, charge or lien that the Bank holds for the security granted, nor is it intended to affect any of the Bank’s rights for the recovery of any amounts owing under any original contract with the Bank for your Loan.
9. You also agree to execute any further or supplemental document or instrument required to preserve those rights should they be requested by the Bank.
10. Except as set out in these terms and conditions, all provisions of your Loan or Mortgage (including those in your personal credit agreement, charge and any renewals), continue to apply. 
11. By submitting your deferral request, you certify that you consent to the collection, use, disclosure and storage of your personal information by Scotiabank in accordance with our Privacy Policy.

• The customer is adhering to the CAP program and will skip scheduled payments for July 15, August 15, September 15, 2024
• The new maturity date of the loan will now be April 15, 2028 (extended by 3 months)

As of July 15, 2024, the outstanding principal on the loan is $7,652.03 and no more payments will be required to service the loan over the next three (3) months.-July 15, August 15, September 15, 2024)

During these three (3) months the loan will accrue $187.57 in interest.

Starting January 2025, the $187.57 of accrued interest will be evenly split by 24 and this will be added to your next 24 scheduled monthly payment. – So, we will be adding $187.57/24 = $7.81  to each of your scheduled monthly payments which now will be $220.28 as detailed below:

Scheduled Monthly Payment:                                                $212.47

Monthly Installment of Deferred Interest Amount:             $7.81

New Scheduled Monthly Payment:                                        $220.28

After the Deferred Interest Amount has been paid off, (starting January 2027), your scheduled payment will revert to $212.47 for the remainder of your term.

Here is a timeline to recap the changes of your required loan payments relative to this example:

The deferred principal can be paid before or at the end of the loan, the loan term will be extended by a maximum of three (3) months for the payment of the deferred principal.

• The customer is adhering to the CAP program and will skip scheduled payments for July 15, August 15, September 15, 2024
• The new maturity date of the loan will now be April 15, 2025 (extended by 3 months)

As of July 1^st, 2024, the outstanding principal on the loan is $3,719.38 and no payments will be required to service the loan for the next three (3) months.

During these three (3)  months the loan will accrue $88.43 in interest. – This amount will be due by the end of the term of the loan and is payable anytime without penalty through the life of the loan.

If you decide to pay this interest at the end of the loan, the final loan payment looks as below:

Scheduled Monthly Payment:     $212.47
Accrued Interest:                             $88.43
Final Loan Payment:                       $300.90

Here is a timeline to recap the changes of your required loan payments relative to this example:

By submitting your deferral request, you certify that: 

a.       There are no mortgages, encumbrances, executions or other liens registered on title to the property subject to the Mortgage since the registration of the Mortgage other than those in favour of Scotiabank; and 

b.       All borrowers (if more than one) or guarantors (if any) under the Loan(s) have consented to this payment deferral and you agree that in the event of any dispute by other borrowers or guarantors, about benefits granted under this program based on your request to defer payments, that you are liable for the amounts deferred and agree to indemnify the bank against any such claims.

For other loans or needs, our team is also available to speak with you about your eligibility for refinancing or consolidating your debt. If you require further assistance, you can contact us.at Jamaica: (876) 960-2675.