Dry Docks Subsidies Act — D-4 9
Amount of subsidies for first class docks 9 (1) The subsidy in respect of dry docks of the first class that have been constructed under this Act shall be a sum not exceeding four and one-half per cent per annum of the cost of the work as fixed and determined under section 8, payable half-yearly during a period not exceeding thirty-five years from the time the Governor in Council has determined under this Act that the work has been completed. Issue of bonds (2) No bonds, debentures or other securities shall be issued with respect to and as a charge on any dock until it has been established to the satisfaction of the Minister that not less than one million dollars have been spent on the work and the material on or for the dock, and that there are no outstanding and unsettled liens, encumbrances or claims on or in respect of the dock, but thereafter the Minister may permit the issue of bonds, debentures or other securities, and any subsidy mentioned by this section may, with the approval of the Minister, be assigned to a trustee for the holder of the bonds, debentures or other securities, and the subsidy shall, in that event, be payable directly to the trustee. Idem (3) Until the dock has been completed to the satisfaction of the Minister, the total amount of the bonds, debentures or other securities issued shall not at any time exceed seventy-five per cent of the amount actually expended for the work and the materials on or for the dock, and in no case shall any bonds, debentures or other securities be issued without the consent in writing of the Minister. Advances during construction (4) Half-yearly payments on account of the subsidy at the rate of four and one-half per cent per annum on seventy-five per cent of the cost of all work done and materials provided at the time of the payment may be made during the construction of the dock, and for such period as may be determined by the Governor in Council, not exceeding thirty-five years from and including the first payment thereof, the amount of such cost to be determined by the Minister, but no payment on account shall be made until the work done and materials provided have cost the sum of at least one million dollars. Restrictions on payments (5) No payments on account shall be made unless the Minister determines that the work of construction of the dry dock with respect to which the payment is to be made has been done to the satisfaction of the Minister, and no subsidy shall be paid, except payments on account pursuant to subsection (4), unless the Governor in Council, in the manner prescribed in this Act, has determined that the work required by the agreement is completed. Total subsidy limited (6) The total subsidy, including payments on account during construction, shall not in any case exceed the amount of subsidy hereinbefore authorized. Payment of subsidy (7) When the amount actually expended for the work and the materials on or for the dock has equalled at least seventy-five per cent of the cost thereof as fixed and determined under this Act, and the Minister has certified thereto and has further certified that the work has been done to the Minister’s satisfaction, half-yearly payments on account of the subsidy at the rate of four and one-half per cent per annum may be made on ninety per cent of the cost of all work done and materials provided at the time of the payment, but in all other respects this Act applies to the issue of any bonds, debentures or other securities and to any payments on account of the subsidy during construction of the dock. R.S., 1985, c. D-4, s. 9; 1996, c. 16, s. 39