12. The interest rate on a loan may not exceed, at the option of the borrower,
(1) the hypothecary interest rate less the reduction in the interest rate provided for in section 14; or
(2) the prime lending rate, if the interest rate is variable.
Until the loan is fully disbursed, the interest rate cannot exceed the interim interest rate for a period that cannot exceed 15 months following the date on which a loan certificate is issued by the agency under subparagraph 1 of the first paragraph of section 22 of the Act respecting La Financière agricole du Québec (chapter L-0.1), after which the applicable interest rate must be one of the interest rates described in the first paragraph.
The prime lending rate and the interim interest rate are to be adjusted whenever the prime lending rate is changed.