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• 2 (1) In these Regulations,

  eligible assets

  eligible assets means the assets approved by the Minister as forming the whole or a part of a facility or commercial facility but does not include

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  • (b) passenger motor vehicles as determined by the Minister,

  • (c) means of transportation other than passenger motor vehicles as determined by the Minister that, in the opinion of the Minister, are not used primarily for the facility or commercial facility,

  equity

  equity means the aggregate of

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  • (f) the proprietor’s or partner capital accounts, less such accounts as, in the opinion of the Minister, unreasonably inflate the net worth of the applicant; (capital effectif)

• (2) For the purposes of the Act and these Regulations,

  manufacturing or processing operation

  manufacturing or processing operation means an operation whereby any goods, products, commodities or wares are created, fabricated, refined or made more marketable, but does not include

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  • (d) the production of energy except as an integral part of and solely for use in an operation whereby any goods, products, commodities or wares are created, fabricated, refined or made more marketable,

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  • (g) any mobile manufacturing or processing operation, except where the applicant agrees to use the assets of the operation for a period of at least five years in such area of the designated region as is specified by the Minister,

  • (h) construction work,

    • (i) repairing as distinct from rebuilding,

  resource-based industry

  resource-based industry means an industry that uses as a principal material a material

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• 6 (1) If the amount of a development incentive is based only on approved capital costs, those costs shall include only the approved capital costs of the eligible assets that are installed and utilized in a facility not later than 24 months after the date on which the facility, as established, expanded or modernized, is brought into commercial production.

• (2) If the amount of a development incentive is based in part on the number of jobs created directly in the operation of a facility that is established or expanded to enable the manufacturing or processing of a product not previously manufactured or processed in the operation, the approved capital costs of the facility shall include only the approved capital costs of the eligible assets that are installed and utilized therein not later than 36 months after the date on which the facility, as established or expanded, is brought into commercial production.

• (3) Subject to subsection (4), the approved capital costs of eligible assets shall be determined by aggregating

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  • (b) such capital expenditures as, in the opinion of the Minister, have been or are to be reasonably incurred and paid by the applicant as direct costs of designing, acquiring, constructing, transporting and installing the asset, and of insuring the asset during the construction period; and

  • (c) such capital expenditures as, in the opinion of the Minister, have been or are to be reasonably incurred and paid by the applicant or a lessor as

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    • (v) in the opinion of the Minister, the inclusion of such leased machinery and equipment as eligible assets for the purpose of a development incentive or a loan guarantee will result in an appropriately lower leasing charge to the applicant.

• 25 (1) It is a condition of any loan guarantee that the lender shall, semi-annually or at such shorter intervals as may be specified in the loan guarantee agreement, provide the Minister with a report showing

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• (2) It is a condition of any incremental loan guarantee that the lender pay to the Receiver General, at the time he provides the Minister with a report pursuant to subsection (1), a guarantee fee of two per cent per annum, calculated on the guaranteed portion of the loan outstanding as of the last day of each month of the period covered by the report.

• (3) It is a condition of any shared-risk loan guarantee that the lender pay to the Receiver General, at the time he provides the Minister with a report pursuant to subsection (1),

  • (a) where the percentage guaranteed does not exceed 50 per cent of the loan, a guarantee fee of one per cent per annum calculated on the guaranteed portion of the loan outstanding as of the last day of each month of the period covered by the report; and

  • (b) where the percentage guaranteed exceeds 50 per cent of the loan, a guarantee fee of

    • (i) one per cent per annum, calculated on the first 50 per cent of the guaranteed portion of the loan outstanding as of the last day of each month of the period covered by the report,

    • (ii) two per cent of the percentage guaranteed that exceeds 50 per cent but does not exceed 70 per cent of the guaranteed portion of the loan outstanding as of the last day of each month of the period covered by the report, and

    • (iii) three per cent of the percentage guaranteed that exceeds 70 per cent of the guaranteed portion of the loan outstanding as of the last day of each month of the period covered by the report.

• 25 (1) Subject to subsection (2), it is a condition of a development incentive in respect of a facility that if,

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  • (d) the applicant shall repay to Her Majesty such amount of the development incentive as may be determined by the Minister to be the same proportion of the development incentive as the approved capital costs of the eligible assets that have ceased to be used in the facility are of the total approved capital costs unless during the period referred to in paragraph (a) or (b), whichever is applicable, the operation has been carried on in the same manner as planned at the time of the application, and

• (2) Where a facility is sold or otherwise disposed of in the circumstances described in paragraph (1)(a) or (b) and the Minister is satisfied that

  • (a) the operation will continue to be carried on in substantially the same manner as planned at the time of the application,

  the Minister may waive conditionally the requirements of subsection (1), and may direct that such balance of the development incentive as would be payable to the applicant pursuant to section 29 be paid to the successor.

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• 22 (1) Unless otherwise specified in the authorization by the Minister, it is a condition of a development incentive in respect of a new facility that the applicant for the development incentive shall, for a period of at least 36 months after the day the facility is brought into commercial production, continue to carry on, at substantially the same rate as at the time of his application in respect of the new facility, every other operation utilizing a facility in Canada, in which a product is manufactured or processed that is the same as or similar to a product manufactured or processed in the operation of which the new facility constitutes the necessary components.

• (2) Where a firm subject to control in common with the applicant manufactures or processes products that are the same as or similar to those products contemplated in the operation of which the new facility constitutes the necessary components, and such firm fails to continue to carry on such manufacturing or processing operations in accordance with subsection (1), the applicant shall be deemed not to have complied with that subsection.

• (3) To the extent that the conditions referred to in subsections (1) and (2) apply to an applicant and such applicant fails to comply with those conditions, he may be deemed to be ineligible to be paid all or part of the development incentive and may be required to repay to Her Majesty such amount paid on account thereof as is determined by the Minister.