Regional Development Incentives Regulations, 1974 (C.R.C., c. 1388)

12 (1) A development incentive for an undertaking that the Minister determines to be an undertaking described in subsection (2) may only be authorized on condition that the development incentive is repayable in whole or in part at such time or times as the Minister prescribes in the offer of the development incentive and subject to the Act and the other provisions of these Regulations.

(2) For the purposes of subsection (1), an undertaking described in this subsection is an undertaking

• (a) that has a high risk of failure but for which there is a commensurate opportunity to achieve a high rate of return;

• (b) whose rate of return would be too marginal without a development incentive but for which the authorizing of a development incentive that is not repayable would not be justifiable, taking into account the possible rate of return;

• (c) that is not capable of proceeding because reasonable arrangements cannot be made for adequate financing by means of a loan guarantee under the Act or by other means; or

• (d) that is of such a nature that it merits the offer of a development incentive but for which

  • (i) the authorizing of a development incentive that is not repayable would not be in the public interest, or

  • (ii) the applicant does not wish to receive a development incentive that is not repayable.