In 1981, the Criminal Code was amended to include a definition of a “criminal rate” of interest.
Sections 305.1(4) states that certification is required by a Fellow of the Canadian Institute of Actuaries in order to determine whether or not a particular transaction is in contravention of this law.
The purpose of this paer is to discuss the actuarial principles that apply in certification of this nature, and to provide a convenient source of reference to actuaries who may be called upon to prepare certificates and give evidence in such cases.