Enterprise Development Regulations (C.R.C., c. 969)

36. The Minister may provide insurance on the financial obligations to a private lender incurred by a purchaser or other person in Canada or the United States if, in the opinion of the Minister,

• (a) the purchaser or other person requires financing under a loan, lease or conditional sales contract in order to acquire the use or ownership of a de Havilland DHC-7 or DHC-8 aircraft;

• (b) the purchaser or other person is unable to obtain sufficient financing on reasonable terms unless the financial obligation is insured by the Minister; and

• (c) the manufacturer of a de Havilland DHC-7 or DHC-8 aircraft meets criteria in respect of

  • (i) the level of Canadian material and labour content as set out in “EDC at Your Service”, Number 7, published in February, 1984 by the Export Development Corporation, and

  • (ii) industrial benefits to Canada as set out in “Canadian Capital Goods Exports and EDC Financing: An Economic Assessment”, published by the Export Development Corporation, dated November, 1982.

• 37. (1) Insurance provided by the Minister pursuant to section 25, 28 or 29 shall not exceed 90 per cent of the amount of the loan in respect of which it is provided.

• (2) Insurance provided by the Minister pursuant to section 36 shall not exceed 90 per cent of the amount of the financial obligations of the purchaser or other person under the loan, lease or conditional sales contract in respect of which it is provided.

• (3) Notwithstanding subsection (2), where the manufacturer of a de Havilland DHC-7 or DHC-8 aircraft has agreed to indemnify Her Majesty to the extent of ten per cent of the total liability of Her Majesty under an agreement for insurance provided after March 13, 1992 under these Regulations to a purchaser or other person who has acquired the use or ownership of a de Havilland DHC-7 or DHC-8 aircraft, insurance is provided under section 36 for the full amount of the financial obligation of the purchaser or other person under the loan, lease or conditional sales contract in respect of which the insurance is provided.

• (4) Any insurance provided after March 13, 1992 under section 36 for the benefit of a person who acquires the use of a de Havilland DHC-7 or DHC-8 aircraft in Canada under a loan, lease or conditional sales contract shall be subject to the provision by a person (other than a person who has acquired the use of a de Havilland DHC-7 or DHC-8 aircraft under a loan, lease or conditional sales contract) of insurance or self insurance in the amount of not less than 10 per cent of the financial obligation of that person or of the person who acquires the use of that aircraft under the loan, lease or conditional sales contract.

38. A private lender who wishes the Minister to provide insurance on a loan or other financial obligation in accordance with these Regulations shall make application therefor to the Minister and shall provide such information relating to the application as the Minister may require.