Dominion Water Power Regulations — 13
13 (1) Within 60 days after being notified in writing by the Director of the approval of the general construction plans and specifications, an interim licensee shall, for the purpose of guaranteeing the performance and fulfilment by the interim licensee of the terms and conditions of the licence, forward to the Director for deposit with the Department of Finance, (a) a guarantee deposit computed, in the case of a power undertaking, upon the horsepower capacity of the site as determined by the Director according to the following scale: (i) up to 1,000 h.p. $2.00 per h.p. (ii) the next 9,000 h.p. 1.00 per h.p. (iii) all over 10,000 h.p. 0.50 per h.p. (b) a guarantee deposit computed, in the case of a storage undertaking, upon the estimated cost of the storage development as determined by the Director according to the following scale: (i) five per cent on the first $100,000 of estimated cost, (ii) 2 1/2 per cent on the next $900,000 of estimated cost, (iii) one per cent on the amount above $1,000,000 of estimated cost. (2) A guarantee deposit required under this section shall not exceed $50,000 and shall be in one or more of the following forms: (a) a certified cheque drawn on a bank incorporated under the Bank Act or the Quebec Savings Banks Act ; (b) bonds of the Government of Canada or of a company included in the National Railways as defined in the Canadian National Railways Capital Revision Act, 1952 , unconditionally guaranteed as to principal and interest by the Government of Canada where such bonds are (i) payable to bearer, (ii) hypothecated to the Minister of Finance and Receiver General in accordance with the provision of the Domestic Bonds of Canada Regulations , or (iii) registered in the name of the Minister of Finance and Receiver General. (3) A guarantee deposit may be refunded by the Minister to an interim licensee as the actual construction work progresses, the first, second and third quarters thereof to be refunded when one-quarter, one-half and three-quarters, respectively, of the initial development have been satisfactorily completed, the fourth quarter to be refunded when the final licence is issued. (4) An interim licensee shall furnish to the Director, in the form of a statutory declaration or otherwise as may be required, evidence of satisfactory progress in the works to the stage that is required by the terms of his interim licence. (5) The Minister is the final arbiter of the satisfactory completion of the first quarter of the initial development. (6) Where an interim licensee has complied with all requirements in filing general construction plans, but the plans are rejected and the interim licence cancelled, the guarantee deposit shall be refunded upon application therefor, and the Minister may make such provision as he deems just for compensating the interim licensee for the plans where they prove to be valuable in connection with the disposition that is eventually made of the power site. (7) Where an interim licensee fails to comply satisfactorily with the terms of his interim licence, the guarantee deposit, or such part thereof as the Minister may determine, shall be forfeited to the Crown.