Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations

31 (1) The Minister is not liable to make any payment to a lessor in respect of any loss sustained as a result of a lessee’s default on a capital lease if

• (a) the capital lease provides for a matter referred to in section 4;

• (b) the due diligence requirements referred to in section 19 are not met;

• (c) the requirements under section 23 are not met; or

• (d) the requirements under paragraph 44(4)(a) are not met or are only partially met.

(2) Despite subsection (1), if the non-compliance referred to in any of paragraphs (1)(a) to (d) is inadvertent, the Minister shall pay to the lessor the amount of any eligible loss, calculated in accordance with subsection 44(7), sustained on the portion of the total financing amount of the capital lease that relates to equipment that is in compliance with these Regulations.