Atlantic Enterprise Loan Insurance Regulations (SOR/86-524)

2 (1) In these Regulations,

applicant

applicant means an individual, partnership, cooperative or body corporate or any trustee or legal representative thereof, but does not include a government, a municipality or an agency thereof or a legal entity owned or controlled by that government, municipality or agency or any subsidiary thereof, who makes an application for loan insurance under these Regulations; (requérant)

Atlantic project

Atlantic project means an activity in the Province of Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland, the capital costs of which do not exceed twenty million dollars

• (a) for the establishment, expansion, modernization or renovation of a commercial operation in the tourism sector as described in item 11 of the schedule, or

• (b) for the establishment, expansion or modernization of a commercial operation in any other eligible sector; (projet de l’Atlantique)

capital costs

capital costs means, in respect of a project or Atlantic project, the capital costs, determined in accordance with generally accepted accounting principles, that are necessary to carry out the project or Atlantic project, other than

• (a) goodwill,

• (b) motor vehicles not used exclusively on a project or Atlantic project site or between two or more project or Atlantic project sites, and

• (c) the portion of the cost of any asset that exceeds fair market value; (coûts d’immobilisations)

designated region

designated region means the provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and the Gaspé Peninsula region of the Province of Quebec, that extends to the western and southern borders of Kamouraska County as shown in the Statistics Canada publication 1981 Census of Canada, Reference maps, Census divisions and subdivisions, and includes the Magdalen Islands; (région désignée)

eligible sector

eligible sector means a sector set out in the schedule; (secteur admissible)

formal demand

formal demand means a demand made by the lender for the repayment of the outstanding amount under the loan agreement; (demande officielle)

lender

lender means a bank and includes a bank to which the Quebec Savings Banks Act applies, a credit union, a caisse populaire or any other cooperative society, a trust company, a loan company, an insurance company, a pension fund, or a non-bank affiliate of a foreign bank as defined in section 303 of the Bank Act, but does not include an institution that is controlled by the Government of Canada, the government of a province or any municipality or agency thereof; (prêteur)

loan agreement

loan agreement means an agreement entered into by a lender and an applicant whereby the lender makes a loan to the applicant to finance the applicant’s project or Atlantic project; (convention de prêt)

loan insurance agreement

loan insurance agreement means an agreement entered into by the Minister and a lender whereby the Minister provides loan insurance to the lender under these Regulations on a loan made by the lender to an applicant; (convention d’assurance-prêt)

Minister

Minister means, in relation to a project, the Minister of Regional Industrial Expansion and, in relation to an Atlantic project, the Minister responsible for the Atlantic Canada Opportunities Agency; (ministre)

project

project means

• (a) the establishment, expansion, modernization or renovation of a commercial operation in the tourism sector as described in the schedule, and located in the designated region, or

• (b) the establishment, expansion or modernization of a commercial operation in any other eligible sector located in the designated region. (projet)

(2) For the purposes of the definitions project and Atlantic project in subsection (1), the establishment of a commercial operation includes the purchase of the assets of an existing facility if, at the time of the application,

• (a) the operation of the existing facility to be purchased has ceased or is about to cease;

• (b) the cessation or imminent cessation of operation of the existing facility to be purchased is dictated by circumstances beyond the control of its owner; and

• (c) the purchase of the assets of the existing facility is a bona fide arm’s length transaction by an applicant unrelated to the present owner or his immediate predecessor, and has not been contrived solely for the purpose of making an application under these Regulations.