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General Adjustment Assistance Regulations (C.R.C., c. 971)

Regulations are current to 2024-02-06

Insurance of Loans Made by Private Lenders (continued)

 A private lender who wishes the Board to provide insurance on a loan or letter of credit in accordance with these Regulations shall make application therefor to the Board and shall submit to the Board such information relating to the application as the Board may require.

  •  (1) The amount of any insurance provided by the Board under these Regulations may be reduced at the request of the private lender at such times and in such manner as is specified by the Board.

  • (2) The insurance fee payable by a private lender shall be one per cent per annum of the amount of insurance in force from time to time and shall be paid in advance to Her Majesty in semi-annual instalments.

  • (3) If the amount of a loan by a private lender to a manufacturer or to a person or group of persons described in subsection 14(3), (4), (5) or (6) is advanced in periodic advances, the Board may, if required by the private lender, approve interim insurance and the insurance fee payable by the private lender shall be one per cent per annum of the amount of such interim insurance payable at the time such interim insurance is provided by the Board.

  • (4) Where, in the opinion of the Board, it is advisable to obtain a stock option for the purchase of capital stock in a corporation in connection with the provision of insurance on a loan or a letter of credit made to that corporation pursuant to these Regulations, the Board may, in addition to the insurance fee, obtain a stock option for the acquisition of shares in that corporation upon such terms and conditions as the Board deems proper.

 Where a private lender has demanded repayment of a loan or moneys paid by it pursuant to a letter of credit, in respect of which insurance has been provided under these Regulations, the amount payable by Hear Majesty to the private lender shall not exceed the lesser of the amount of insurance in effect on the date of such demand and

  • (a) 90 per cent of the loss incurred by the private lender in the case of a loan insured pursuant to subsections 14(1), (2), (3), (4) and (5) or letter of credit insured pursuant to subsection 14(5); or

  • (b) 100 per cent of the loss incurred by the private lender, in the case of a loan insured pursuant to subsection 14(9) or (10).

Consulting Assistance

  •  (1) Where a manufacturer or other person described in subsection 14(3), (4), (5) or (6) or any group of such persons to whom a loan has been made or insured or may be made or insured, or to whom a letter of credit has been issued and insured, under these Regulations requires the services of qualified consultants in order to develop a satisfactory proposal for a loan or insurance or a loan or insurance on a letter of credit for the purposes described in sections 9 and 14, the Board may authorize a grant to be paid to him or them in an amount not exceeding

    • (a) 50 per cent of the cost of the services required if the sales of the manufacturer or other person described in subsection 14(3), (4), (5) or (6) or any group of such persons exceeded $5 million in the year immediately preceding his application for that grant, or

    • (b) 80 per cent of the cost of the services required if the sales of the manufacturer or other person described in subsection 14(3), (4), (5) or (6) or any group of such persons did not exceed $5 million in the year immediately preceding his application for that grant,

    if, in the opinion of the Board, the cost of those services would be a significant burden on the resources of the manufacturer or other person described in subsection 14(3), (4), (5) or (6) or any group of such persons.

  • (2) Notwithstanding subsection (1), where

    • (a) a loan has been made pursuant to section 9, or

    • (b) insurance of a loan has been provided pursuant to section 14

    and the Board is of the opinion that the services of a qualified consultant are required in order to protect Her Majesty's interest in the assets securing the loan made or the loan or letter of credit insured by the Board, the Board may authorize a grant to be paid to the consultant up to the full amount of the cost of such consulting services.

  • (3) The Board may authorize a grant to be paid to a consultant pursuant to subsection (2) in respect of any consulting services required after April 1, 1971 for the purposes described in that subsection.

Notice of Lay-off

 If, as a result of an adjustment in its operations financed by a loan made by the Board or by a private lender in accordance with these Regulations, a lay-off of 20 or more employees for a period of two or more months is likely to occur, a manufacturer shall give at least three-months notice of the lay-off to the Board and to the employees who are to be laid off.

 

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