Commonwealth Consolidated Regulations Commonwealth Consolidated RegulationsFor subsection 136(4) of the Code, the proportionate rebate of consideration is calculated using the formula:
where:
"C" is the amount of the charges under the maintenance services contract financed under the credit contract.
"S" is the number of whole months in the unexpired portion of the period for which maintenance was agreed to be provided.
"T" is the number of whole months for which maintenance was agreed to be provided.
Note 1: Subsection 136(1) of the Code provides that, if a debtor terminates a linked maintenance services contract because of the termination of the credit contract, the debtor is entitled to a proportionate rebate of consideration under the maintenance services contract.
Note 2: Subsection 136(4) of the Code provides that the regulations may prescribe the manner of calculating that proportionate rebate of consideration.