Small Businesses Loans Regulations — 19
19 (1) A claim for loss by a lender in respect of a loan shall not be made to the Minister until 90 days have elapsed after the entire amount of the loan becomes due and payable. (1.1) The lender shall submit any claim for loss to the Minister within 19 months after the date on which the default in repayment of the loan occurred. (1.2) The Minister may, where the lender makes a request in accordance with the form set out in Schedule III, extend one or more times the period of 19 months referred to in subsection (1.1). (1.3) A request for an extension of the period of 19 months referred to in subsection (1.1) shall be made before the expiration of that period or of that period as extended by the Minister, as the case may be. (2) The loss sustained by a lender in respect of a loan shall be determined by aggregating the following, namely, (a) the unpaid principal amount of the loan; (b) interest earned on the loan over any period and outstanding at the time the claim is approved for payment by the Minister, calculated (i) where the interest was earned over a period of 180 days or less, at the rate of interest referred to in subsection (2.1), or (ii) where the interest was earned over a period of more than 180 days, (A) at the rate of interest referred to in subparagraph (i) for the first 180 days of the period or, where in the opinion of the Minister reasons beyond the control of the lender justify calculating the interest at that rate for more than 180 days, at that rate for such greater number of days as are approved by the Minister, and (B) for the remainder, if any, of the period over which the interest was earned, at a rate of interest equal to one-half of the rate of interest referred to in subparagraph (i). (c) any uncollected taxed costs for or incidental to legal proceedings in respect of the loan; (d) legal fees, legal costs and legal disbursements, whether taxable or not, actually incurred by the lender, with or without litigation, in collecting or endeavouring to collect the loan or in protecting the interests of the Minister but only to the extent that the Minister allows; and (e) any other disbursements actually incurred by the lender in collecting or endeavouring to collect the loan or in protecting the interests of the Minister but only to the extent that the Minister allows. (2.1) For the purpose of paragraph (2)(b), the rate of interest shall be fixed at a rate not exceeding the aggregate of one per cent per annum and the average of the prime lending rates in effect at the following lenders on the last day of the month preceding the month in which the interest referred to in paragraph (2)(b) commenced to be earned: (a) the Bank of Montreal; (b) the Canadian Imperial Bank of Commerce; (c) the National Bank of Canada; (d) The Bank of Nova Scotia; (e) The Royal Bank of Canada; and (f) The Toronto-Dominion Bank. (2.2) Subject to subsection (2.3), where, in the case of any loan by a lender, the evidence submitted by the lender pursuant to paragraph (3)(c) shows that (a) the actual cost of the fixed equipment, movable equipment, premises or land, as the case may be, in respect of which the loan was made was less than the estimated cost shown in the application for the loan, and the loan was made in an amount exceeding (i) 80 per cent of the actual cost of the fixed equipment, (ii) 80 per cent of the actual cost of the movable equipment, (iii) 90 per cent of the actual cost of the premises, or (iv) 90 per cent of the actual cost of the land, as the case may be or (b) only a portion of the funds advanced by the lender in respect of the loan were expended for the purpose set out in the application for the loan, the loss sustained by the lender in respect of the loan shall, notwithstanding subsection (2), be determined as that proportion of the amount determined pursuant to subsection (2) that (c) where paragraph (a) applies, the actual cost referred to in that paragraph is of the estimated cost referred to in that paragr