Northern Ontario Loan Insurance Regulations (SOR/88-503)

2 (1) In these Regulations,

applicant

applicant means an individual, partnership, cooperative or body corporate, or any trustee or legal representative thereof, who makes an application pursuant to subsection 3(1), but does not include a government, municipality or agency thereof or a legal entity owned or controlled by a government, municipality or agency or any subsidiary thereof, or any combination thereof; (requérant)

capital costs

capital costs means capital costs that are determined in accordance with generally accepted accounting principles to be necessary to carry out a project, other than

• (a) goodwill,

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

• (c) aircraft, and

• (d) the portion of the cost of any asset which exceeds fair market value; (coûts en immobilisations)

designated region

designated region means that area of Ontario north of and including the census divisions of Parry Sound and Nipissing as shown in the Statistics Canada publication 1981 Census of Canada, Reference Maps, Census divisions and subdivisions; (région désignée)

disbursement

disbursement means any amount paid by a lender to an applicant under a loan agreement; (versement)

eligible sector

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

formal demand

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

lender

lender means a bank, credit union, caisse populaire or any other cooperative society, a trust company, a loan company, an insurance company or 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 a government, municipality or agency thereof or an institution that is controlled by the Government of Canada, the government of a province, a municipality or by any agency thereof, or any combination thereof; (prêteur)

loan agreement

loan agreement means any agreement entered into by a lender and an applicant whereby the lender agrees to grant to the applicant a loan to finance the applicant’s project and for which a loan insurance agreement is made; (convention de prêt)

loan insurance agreement

loan insurance agreement means any agreement entered into by the Minister and a lender whereby the Minister agrees to provide loan insurance to the lender in respect of one or more loans granted under one or more loan agreements; (convention d’assurance-prêt)

Minister

Minister means the Minister of Industry, Science and Technology; (ministre)

project

project means

• (a) the establishment, expansion, modernization or renovation of a commercial operation located in the designated region in eligible sector 11, or

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

(2) For the purposes of the definition project in subsection (1), the establishment of a commercial operation includes the purchase of the assets of a facility if, at the time an applicant makes an application under these Regulations,

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

• (b) the cessation or imminent cessation of the operation of the facility is due to circumstances beyond the control of its owner; and

• (c) the purchase of the assets of the facility is an arm’s length transaction by the applicant in good faith who is unrelated to the present owner or the immediate predecessor of that owner, and the purchase has not been undertaken for the sole purpose of an application under these Regulations.