Regulations Under Section 52 of the Financial Administration Act Respecting Loans or Transfers of Defence Materiel for Test and Evaluation Purposes
1 These Regulations may be cited as the Defence Materiel Loan or Transfer for Test and Evaluation Regulations.
2 In these Regulations,
materiel means all movable public property, other than money, provided for the Canadian Forces or the Defence Research Board or for any other purpose under the National Defence Act, and includes any vessel, vehicle, aircraft, animal, missile, arms, ammunition, clothing, stores, provisions or equipment so provided; (matériel)
loan means materiel given to another country on condition of its return; (prêt)
Minister means the Minister of National Defence; (ministre)
transfer means the granting of all right, title and interest in and to materiel to another country. (transfert)
3 The Minister, where he considers that the Canadian Forces and national defence would benefit, is authorized
(a) to lend or transfer materiel for test and evaluation purposes, subject to the following conditions:
(i) all loans or transfers of materiel under these Regulations shall be restricted to friendly countries,
(ii) all transfers of materiel shall be restricted to consumable items and such other items as are to be tested to destruction,
(iii) all loans or transfers of materiel under these Regulations shall be made gratuitously to the recipient country, unless the Minister decides otherwise;
(b) to accept gratuitously or otherwise material loaned or transferred by friendly countries for test and evaluation purposes;
(c) to pay from public fund such incidental costs as he may consider appropriate, in respect of all or any loans or transfers, including the acceptance thereof, made pursuant to these Regulations; and
(d) to enter into agreements to give effect to the foregoing, the said agreements to contain such other terms and conditions as he may consider appropriate.
4 The Minister shall report annually to the Treasury Board any major item such as a vessel or an aircraft or any item valued at more than $25,000 that has been on loan to a friendly government for more than one year or that has been transferred.
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