(a) fee payable at the time of the first disbursement:
A × B × 0.01
(b) fee payable at the time of each subsequent disbursement:
A × B × C ÷ 365 × 0.01
(c) fee payable on each anniversary of the date of the first disbursement until the earlier of the date of formal demand and the date the loan is repaid:
A × D × 0.01
- is the percentage of the loan that the Minister agrees to insure under the loan insurance agreement,
- is the amount of the disbursement,
- is the number of days remaining between the date of the disbursement and the next anniversary of the date of the first disbursement under the loan agreement,
- is the amount of money disbursed and remaining outstanding under the loan agreement on the anniversary date in question.
(2) An insurance fee paid under subsection (1) is not refundable in whole or in part.
- SOR/89-119, s. 1.
Payment of Insurance
12 The Minister shall not pay a lender’s claim under a loan insurance agreement until a formal demand is made by the lender and the lender has provided evidence that the lender has taken all reasonable steps to protect the lender’s rights and realize on the security for the loan made under the loan agreement.
13 A claim by a lender shall contain all information that is reasonably necessary in order for the Minister to determine the amount of insurance payable.
(2) For the purpose of subsection (1), loss means the aggregate of
(a) the principal amount of a loan outstanding and the amount of unpaid interest at the date of the formal demand, less
(b) reasonable legal fees, disbursements and other expenses paid by the lender to collect or to endeavour to collect any amount referred to in paragraph (a) or any portion thereof;
(c) disbursements made by the lender to protect any security provided for the loan; and
(d) interest on the amounts referred to in paragraphs (a), (b) and (c) from the date of the formal demand until the date of payment of the lender’s claim by the Minister
(i) at the rate charged by the lender at the date of the formal demand,
(A) for a period of up to l80 days from the date of the formal demand, and
(B) for an additional period not exceeding 180 days where the Minister and the lender have agreed that it is in the interest of all parties concerned to wait for that additional period before realizing on the security or any portion thereof, and
(ii) at one-half the rate referred to in subparagraph (i) for any period after the relevant period or periods referred to in that subparagraph.
- SOR/87-195, s. 1.
15 The Minister may, as a condition of providing loan insurance under these Regulations, require a royalty on sales or production from the applicant.
16 The Minister shall not provide insurance on loans made for mergers, refinancing or acquisitions, except in respect of a project or Atlantic project referred to in subsection 2(2).
- SOR/88-134, s. 6.
17 No application for loan insurance under these Regulations received after December 31, 1990 shall be accepted for consideration by the Minister.
- Date modified: