Payment of a Claim
10 The Minister shall not pay a claim made by a lender under a loan insurance agreement unless the lender
(a) makes a formal demand; and
(b) submits evidence to the Minister that establishes that the lender has
(2) For the purpose of subsection (1), loss means the aggregate of
(a) the principal amount of the outstanding loan and the amount of unpaid interest on the loan at the date of the formal demand,
(b) reasonable legal fees, costs and other expenses paid by the lender for the purpose of collecting any amount referred to in paragraph (a),
(c) costs incurred and paid by the lender to protect any security provided in respect of the loan disbursed under the loan agreement, and
(d) interest on the amounts referred to in paragraphs (a), (b) and (c), to be calculated from the date of the formal demand until the date of payment of the lender’s claim by the Minister
(i) at the rate charged by the lender under the loan agreement at the date of the formal demand
(ii) at one-half the rate referred to in subparagraph (i) for any period after the relevant periods referred to in that subparagraph,
- SOR/91-337, s. 3
Stock Options and Capital Shares
12 (1) The Minister may, on behalf of Her Majesty in right of Canada, acquire a stock option as a condition of entering into a loan insurance agreement if the total amount of the loan provided for by the loan agreement is $500,000 or more and the expected rate of return associated with the project justifies the acquisition of the stock option.
(2) Where, pursuant to subsection (1), the Minister acquires a stock option, the Minister may exercise, assign or sell the stock option where the exercise, assignment or sale is of benefit to Her Majesty in right of Canada.
(3) Where the Minister on behalf of Her Majesty in right of Canada acquires capital stock under a stock option, the Minister shall, within two years after the day on which the capital stock is acquired, sell the capital stock to benefit Her Majesty in right of Canada.
(4) Where the Minister receives an offer to purchase a stock option or capital stock acquired under a stock option and the acceptance of the offer would be of benefit to Her Majesty in right of Canada, the Minister shall in writing notify the applicant of the offer.
(5) Where the applicant intends to purchase the stock option or the capital stock at the price and on the terms and conditions specified in the offer referred to in subsection (4), the applicant shall so advise the Minister within seven business days following the day on which the applicant is notified of the offer.
(6) Where an applicant advises the Minister pursuant to subsection (5), the Minister shall sell the stock option or capital stock to the applicant.
- SOR/91-337, s. 4
- SOR/92-453, s. 1
- Date modified: