Can a bank charge a fixed rate of interest on a promissory note?
Saskatchewan, Canada
The following excerpt is from Bank of Nova Scotia v. Simonot et al., 1991 CanLII 7727 (SK QB):
This very question was recently considered in Blanchard v. Bank of Montreal, (1990), 1989 CanLII 5085 (SK QB), 81 Sask.R. 49. In that instance the plaintiff executed a promissory note in favour of the bank and that note contained a fixed rate of interest. Unknown to the plaintiff, the bank charged a floating rate. When the plaintiff eventually learned this he paid out the loan and ultimately commenced an action to recover the overpayment. He was successful in his suit.
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