Short Title

1 This Order may be cited as the Borrowing of Defence Materials and Equipment Order.

Authorization

2 The Minister of National Defence is authorized

• (a) to borrow materials or equipment from sources outside the Government of Canada for defence, including civil defence purposes, and for test and evaluation and to enter into agreements covering such borrowing where the replacement value of the materials and equipment involved in the borrowing transaction does not exceed $50,000;

• (b) to undertake to pay and pay from public funds, in respect of borrowing pursuant to paragraph (a), those expenses and incidental costs as to him appear appropriate, including the lender’s incidental expenses, such as

  • (i) repayment to the lender of his cost of conditioning the equipment for use, packaging, transportation and, from time to time, the travelling expenses of an expert when this is necessary, and

  • (ii) payment of the operating costs, transportation, fuel, installation, maintenance, running repairs and repackaging and transportation when the material is returned,

  where such expenses do not exceed $50,000 for any one borrowing transaction;

• (c) to reimburse the lender up to a maximum of $50,000 for loss or damage to the materials and equipment borrowed pursuant to paragraph (a);

• (d) to indemnify the lender against loss due to claims for injury, death, or property damage (third party liability) resulting from the borrowing, provided that the amount of the indemnity shall not exceed the lender’s costs of defending any such claim and his legal liability to the third party; and

• (e) in respect of materials and equipment borrowed before February 25, 1960 and in use by the Department of National Defence,

  • (i) to determine and pay, upon return to the lender, the type of expenses contemplated in paragraphs (b) and (c), and

  • (ii) to make any necessary indemnification in respect of third party liability in accordance with paragraph (d).