Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations — 1
1 (1) The definitions in this subsection apply in these Regulations. Act means the Canada Small Business Financing Act . ( Loi ) aggregate outstanding balance means the aggregate, calculated on the day on which a capital lease is entered into or is amended as a result of improvements to the equipment, of (a) the total financing amount of the capital lease, (b) the outstanding balance of any other capital lease registered with the Minister in accordance with these Regulations, and (c) the outstanding loan amount referred to in subsection 4(3) of the Act. ( somme des soldes impayés ) capital lease means a lease or leasing under which a lessor provides equipment to a lessee for payment and that meets one of the following conditions: (a) the lease or leasing includes a bargain purchase option or provides for a transfer of ownership of the leased equipment to the lessee at the end of its term; (b) the term of the lease or leasing is greater than 75% of the economic life of the equipment; and (c) the net present value of the scheduled payments made under the lease or leasing, calculated in accordance with the annual imputed rate of interest used in the calculation of the scheduled payments, is 90% or more of the cost of the equipment on the day the lease or leasing is entered into. ( contrat de location-acquisition ) cost of the equipment means, in respect of equipment that is the subject of a capital lease, (a) in respect of new equipment, the purchase price of the equipment provided to the lessee, (b) in respect of used equipment, the lesser of (i) the purchase price of the used equipment, and (ii) the fair market value of the used equipment on the day on which the capital lease is entered into, and may include, in respect of either new or used equipment, (c) the additional costs necessary for the operation of the equipment, other than maintenance and training costs, (d) the cost of software related to the operation of the equipment, and (e) non-refundable taxes and customs duties, if applicable. ( coût du matériel ) lease funder means a person who purchases or accepts an assignment of a capital lease. ( investisseur ) lessee means a person who carries on or is about to carry on a small business in Canada and who is a party to a capital lease. It does not include Her Majesty or an agent of Her Majesty in right of Canada or a province, a municipality or a municipal or other public body that performs a function of government. ( locataire ) lessor means (a) a member of the Canadian Payments Association established by subsection 3(1) of the Canadian Payments Act (i) as set out in paragraph 4(1)(b) or (c) or paragraph 4(2)(a) or (c) of that Act, or (ii) as set out in any of paragraphs 4(2)(d) to (h) of that Act, if the member provides, with their application to be a lessor under these Regulations, their Canadian Payments Association transit number and a certificate issued by the member’s external auditor stating that the member has been a commercial lessor in Canada for the past five years; (b) a local cooperative credit society, within the meaning of subsection 2(1) of the Canadian Payments Act , that is a member of a central cooperative credit society, within the meaning of that subsection, if the central cooperative credit society is a member of the Canadian Payments Association; (c) a leasing company incorporated in Canada or a lease funder carrying on business in Canada, with a place of business in Canada, that (i) maintains a rating of “BBB” or better issued by a Canadian bond rating agency, or (ii) participates in a securitization program approved by a Canadian bond rating agency; or (d) any other organization designated by the Minister as a lessor for the purposes of these Regulations. ( locateur ) outstanding balance of a capital lease means the aggregate of (a) the amount of any overdue payments, (b) the net present value of all future payments due under the capital lease, discounted at the annual imputed rate of interest use