Marginal note:Loss-sharing ratio

8. The liability of the Minister in respect of losses sustained by a lender as a result of a loan made by it is limited to the lesser of

• (a) 85%, or any prescribed lesser percentage, of its eligible loss, calculated in accordance with the regulations, and

• (b) a prescribed maximum amount.

Marginal note:Other limitations — registration fee, etc.

• 9. (1) Subject to the regulations, the Minister is not liable to make any payment to a lender in respect of any loss sustained by it as a result of a loan made by it unless the lender has, in respect of that loan,

  • (a) paid to the Minister the registration fee in accordance with section 11; and

  • (b) complied with the other requirements of this Act and the regulations.

• Marginal note:Other limitations — annual administration fee

  (2) The Minister is not liable to make any payment to a lender in respect of any loss sustained by it as a result of a loan made by it unless the lender has, in respect of all loans made by it, paid to the Minister the annual administration fee in accordance with section 12.

Marginal note:Condition re: fees and charges

10. Every loan is subject to the condition that no fee or charge is payable by a borrower in respect of the loan other than

• (a) interest;

• (b) the registration fee; and

• (c) any other prescribed fee or charge that is specified in the regulations as being payable by the borrower.

Marginal note:Registration fee

11. Every lender shall pay to the Minister, at the time a loan made by that lender is submitted for registration, a registration fee of an amount calculated in accordance with the regulations in respect of the loan. The registration fee may be charged by the lender to the borrower.

Marginal note:Annual administration fee

12. Every lender shall, in accordance with the terms and conditions set out in the regulations, pay to the Minister, in respect of a loan, an annual administration fee of an amount calculated in accordance with the regulations. The lender may not charge the borrower for that fee otherwise than through the imposition of interest in respect of the loan.

Marginal note:Regulations

• 13. (1) Notwithstanding anything in this Act, the Governor in Council may, on the recommendation of the Minister, make any regulations that the Governor in Council considers necessary respecting the establishment and operation of one or more pilot projects for testing whether to guarantee loans made to borrowers in the voluntary sector or capital leases and to determine the legislative and regulatory measures required to do so.

• Marginal note:Program liability ceiling

  (2) The Minister’s maximum aggregate contingent liability in respect of a pilot project may be established by an appropriation Act or another Act of Parliament.

• Marginal note:Maximum duration of pilot projects

  (3) Subject to subsection (4), regulations made under subsection (1) have a maximum duration of five years from the time they come into force.

• Marginal note:Extension of regulations

  (4) If, as a result of a pilot project referred to in subsection (1), the Minister decides to guarantee loans made to borrowers in the voluntary sector or capital leases, the Minister shall cause to be published in the Canada Gazette a notice of that decision and the regulations made under that subsection in relation to that pilot project will continue to have effect until the earlier of

  • (a) the coming into force of the legislative and regulatory measures referred to in that subsection, and

  • (b) one year after the day on which they would otherwise cease to have effect.

• Marginal note:Tabling of proposed regulations

  (5) The Minister shall cause a copy of each regulation proposed to be made under subsection (1) to be laid before each House of Parliament before it is made and that House shall refer the proposed regulations to the appropriate Committee of each House.