General Adjustment Assistance Regulations (C.R.C., c. 971)

14 (1) Where, in the opinion of the Board, a manufacturer or a person who is about to engage in a manufacturing or processing activity in Canada

• (a) requires a loan in order to

  • (i) take advantage of a new opportunity for the production of goods in Canada which will face significant international trade competition, or

  • (ii) restructure his operations in a manner that will significantly improve his position in meeting international trade competition, and

• (b) is unable to obtain sufficient financing on reasonable terms unless the loan is insured by the Board,

the Board may, on behalf of Her Majesty, provide insurance on a loan made to such manufacturer or person by a private lender for the purposes stated in this subsection.

(2) Where, in the opinion of the Board, a manufacturer

• (a) requires a loan in order to

  • (i) adjust to changes in conditions affecting his access to foreign markets, which conditions are attributable to the imposition by a country other than Canada of a temporary import surtax or to the taking by such country of other actions having a like effect, or

  • (ii) adapt efficiently to competition from goods imported at such prices, in such quantities or under such conditions as to cause or threaten to cause him serious injury, and

• (b) is unable to obtain sufficient financing on reasonable terms unless the loan is insured by the Board,

the Board may, on behalf of Her Majesty, provide insurance on a loan made to such manufacturer by a private lender for the purposes stated in this subsection.

(3) Where, in the opinion of the Board, a person engaged or about to engage in a business in Canada to provide services directly or indirectly to manufacturers in Canada

• (a) requires a loan to establish or restructure operations in order to significantly improve the ability of manufacturers in Canada in meeting international trade competition, and

• (b) is unable to obtain sufficient financing on reasonable terms unless the loan is insured by the Board,

the Board may, on behalf of Her Majesty, provide insurance on a loan made to such person by a private lender for the purposes stated in this subsection.

(4) Where a person established to provide directly or indirectly marketing, financial or other services that, in the opinion of the Board, are essential to the operation of a manufacturer who is entitled to assistance under these Regulations

• (a) requires a loan in order to establish or restructure his operations,

• (b) has submitted a comprehensive plan setting out the services to be provided, and

• (c) is unable to obtain such a loan on reasonable terms without the insurance provided for in this subsection,

the Board may, on behalf of Her Majesty, provide insurance on such a loan to such person by a private lender.

(5) Where a general contractor, consulting engineer, builder, architect or manufacturer in Canada or any group of such persons

• (a) requires a letter of credit as a bid or performance surety in connection with a contract to be performed outside Canada or the United States by that contractor, engineer, builder, architect manufacturer or group, and

• (b) is unable to obtain sufficient financing on reasonable terms without the insurance provided for in this subsection,

the Board may, on behalf of Her Majesty, if such contract involves, in the opinion of the Board, a significant amount of Canadian content, provide insurance on such letter of credit issued to that contractor, engineer, builder, architect, manufacturer or group by a private lender.

(6) Where a general contractor, consulting engineer, builder, architect or manufacturer in Canada or any group of such persons

• (a) requires insurance on a loan for the repayment of any financial obligations incurred under a letter of credit previously insured by the Board, and

• (b) is unable to obtain sufficient financing on reasonable terms for the purpose referred to in paragraph (a),

the Board may, on behalf of Her Majesty, provide insurance of a loan made to that contractor, engineer, builder, architect, manufacturer or group by a private lender for that purpose.

(7) For the purposes of subsection (5), the amount of Canadian content shall in no event be less than the amount of insurance provided by the Board.

(8) The amount of insurance provided under subsection (1), (2), (3), (4), (5) or (6) shall not exceed 90 per cent of the amount of the loan to be insured.

(9) Where a loan has been made or insured or a letter of credit has been insured pursuant to these Regulations and a trustee, receiver, receiver-manager or other person has been authorized by law to carry on the business of the borrower, the Board may, on behalf of Her Majesty, provide insurance on the full amount of any loan made to such person by a private lender for the purpose of protecting Her Majesty, provide insurance on the full amount of any loan made to such person by a private lender for the purpose of protecting Her Majesty's interest in the assets securing the loan previously made or insured or the letter of credit previously insured.

(10) Where a loan has been made or insured or a letter of credit has been insured pursuant to these Regulations, the Board may, on behalf of Her Majesty, provide insurance on the full amount of any further loan made or letter of credit issued to the borrower for the purpose of protecting Her Majesty's interest in the assets securing the loan previously made or insured or a letter of credit previously insured or letter of credit issued.