INTERIM CLAIMS PROCEDURE
39. (1) A lender may make an interim claim to the Minister in accordance with this section for loss sustained as a result of a loan or guaranteed business improvement loan made under the Small Business Loans Act where the lender has taken all of the measures described in subsection 37(3) that are applicable and
(a) paragraph 37(3)(b) applies but the guarantee or suretyship has not been fully realized; or
(b) paragraph 37(3)(d) applies but the compromise settlement has not been fully implemented.
(2) The Minister must pay the interim claim as if the lender had fully implemented the compromise settlement or fully realized the guarantee or suretyship at the time the interim claim is made.
(3) Subsections 38(2) to (8) apply, with any modifications that the circumstances require, in respect of the submission of an interim claim.
(4) If, after the interim claim is paid, the lender, by fully implementing the compromise settlement or fully realizing the guarantee or suretyship, recovers 100% of the compromise settlement, guarantee or suretyship, the lender must so notify the Minister and the interim claim is deemed to be a final claim.
(5) If, after the interim claim is paid, the lender, by fully implementing the compromise settlement or fully realizing the guarantee or suretyship, recovers less than 100% of the compromise settlement, guarantee or suretyship, the lender may make a final claim under section 38 for the difference.
40. (1) When the Minister pays a lender for a loss sustained by it as a result of a loan, Her Majesty is subrogated from the payment of the final claim for the loss to the rights of the lender up to the amount paid by the Minister.
(2) If, after the Minister makes the payment, additional proceeds are realized from the taking of any measures by the lender described in subsection 37(3), the Minister must be paid an amount equal to 85% of the proceeds and the lender must be paid an amount equal to 15%.
- SOR/2009-102, s. 23.
COMING INTO FORCE
41. These Regulations come into force on April 1, 1999.
- Date modified: