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

38.1 [Revoked, SOR/79-335, s. 16]

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

• (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 the Minister in semi-annual instalments.

• (3) Notwithstanding subsection (2), the Minister may, in respect of insurance provided pursuant to sections 26 to 28, waive or vary the amount and terms of payment of the insurance fee.

• (4) If the amount of a loan made by a private lender is advanced in periodic advances, the Minister may, if required by the private lender, provide insurance pursuant to these Regulations on such advances.

• (5) Notwithstanding subsection (2), the Minister may, in respect of insurance provided to a lender pursuant to section 36, postpone the date of payment of the insurance fee, if, in the opinion of the Minister, the purchaser or other person would be otherwise unable to acquire the de Havilland DHC-7 or DHC-8 aircraft.

• (6) Notwithstanding subsection (2), the annual insurance fee payable after the privatization date on any insurance provided by the Minister under section 36 is

  • (a) where the insurance covers 50 per cent or less of the financial obligation of the purchaser or other person under the loan, lease or conditional sales contract in respect of which the insurance was provided, the product obtained by multiplying 0.0025 by the total amount of insurance provided by the Minister; and

  • (b) where the insurance covers more than 50 per cent of the financial obligation referred to in paragraph (a), the aggregate of

    • (i) the product obtained by multiplying 0.0025 by the total amount of insurance provided by the Minister, and

    • (ii) the product obtained by multiplying

      • (A) 0.0000625

      by

      • (B) the number of percentage points of the coverage of the insurance provided by the Minister that exceeds 50 per cent

      by

      • (C) the total amount of insurance provided by the Minister.

40. Subject to section 40.1, where a private lender has demanded repayment of a loan, or has given notice of default under a lease or conditional sales contract, in respect of which insurance has been provided pursuant to these Regulations, the amount payable to the private lender shall not exceed the lesser of

• (a) the amount of insurance in effect on the date of such demand or notice; and

• (b) in the case of

  • (i) a loan or other financial obligation insured pursuant to section 25, 29 or 36, 90 per cent of the loss incurred by the private lender, and

  • (ii) a loan insured pursuant to section 26, 27, 30 or 32, 100 per cent of the loss incurred by the private lender.