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

9 (1) Where, in the opinion of the Board, a manufacturer

• (a) requires a loan in order to 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 from other sources for the purposes of making the necessary adjustments,

a loan may be made to the manufacturer by the Board on behalf of Her Majesty for the purpose of assisting the manufacturer to restructure his operations.

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

• (a) requires a loan in order to 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, and

• (b) is unable to obtain sufficient financing on reasonable terms from other sources for the purpose of assisting the manufacturer to adjust to the changes described in paragraph (a),

a loan may be made to the manufacturer by the Board on behalf of Her Majesty for the purpose of assisting the manufacturer to make such changes.

(3) 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, a loan may be made by the Board on behalf of Her Majesty to such trustee, receiver, receiver-manager or other person, for the purpose of protecting Her Majesty's interest in the assets securing the loan previously made or insured or letter of credit insured.

(4) Where a loan has been made or insured or a letter of credit has been insured pursuant to these Regulations, a loan may be made by the Board on behalf of Her Majesty to the borrower or person to whom the letter of credit has been issued for the purpose of protecting Her Majesty's interest in the assets securing the loan previously made or insured or letter of credit insured.

(5) Where, pursuant to these Regulations, the Board has authorized the provision of insurance on a loan by a private lender not exceeding $200,000 to a manufacturer or other person in Canada, the Board may, on behalf of Her Majesty, make a loan in an amount not exceeding, in the aggregate, 50 per cent of the amount of the loan to the manufacturer or other person on the following conditions:

• (a) a loan may be made pursuant to this subsection only when a private lender has agreed to make the loan on which the Board has authorized the provision of insurance on the terms and conditions under which the Board authorized such insurance;

• (b) a loan made pursuant to this subsection shall be subject to interest at a rate of not less than the aggregate of the interest to be charged by the private lender on the insured loan and the insurance fee thereon;

• (c) a loan may be made pursuant to this subsection only where, in the opinion of the Board, such loan is essential to prevent a serious delay in implementing the project for which insurance on the loan by the private lender was authorized under these Regulations;

• (d) a loan made pursuant to this subsection shall be repaid on the date of the first disbursement of the loan advanced by the private lender or on such earlier date as the Board may determine; and

• (e) the Board shall specify the date on which the loan shall be repaid in the event that a disbursement to repay the loan advanced hereunder has not been made by the private lender within a reasonable time as established by the Board.