Small Business Loans Regulations, 1993 — 19
19 (1) A lender may not submit a claim to the Minister for loss sustained as a result of a loan of a prescribed class before taking all of the applicable steps described in subsection 18(2). (2) Subject to subsection (3), the lender shall submit any claim for loss within a period of 36 months following the day on which default in repayment of the loan occurred. (3) The Minister may, at the lender’s request, extend the period referred to in subsection (2) by not more than six months. (4) A claim for loss shall be certified by a responsible officer of the lender and shall be accompanied by (a) documentation substantiating (i) the cost of the equipment, premises or land in respect of which the loan was made, and (ii) the amount of the loan advanced by the lender in accordance with the Act; and (b) the loan record. (5) A loss sustained by the lender in respect of a loan of a prescribed class shall be calculated by determining the aggregate of the following and deducting from that aggregate any proceeds realized from the steps taken that are referred to in subsection 18(2): (a) the principal outstanding on the loan on the day on which the loan became due and payable; (b) interest accrued on the principal outstanding on the loan during the period beginning on the day after the day on which the last instalment was made and ending on the day before the day on which the loan became due and payable; (c) for loans with a rate of interest calculated in accordance with paragraph 14(a), interest on the principal outstanding on the loan during the period beginning on the day on which the loan became due and payable and ending on the earlier of the day on which the Minister compensates the lender and the last day of the thirty-sixth month following the day on which the loan became due and payable (i) in respect of the first 12 months, at the rate of interest set out in the loan agreement, and (ii) in respect of the 24 months following the 12 months referred to in subparagraph (i), at a rate of interest equal to one-half the rate of interest referred to in subparagraph (i); (d) for loans with a rate of interest calculated in accordance with paragraph 14(b), interest on the principal outstanding on the loan during the period beginning on the day on which the loan became due and payable and ending on the earlier of the day on which the Minister compensates the lender and the last day of the thirty-sixth month following the day on which the loan became due and payable (i) in respect of the first 12 months, at the rate of interest set out in the loan agreement, and (ii) in respect of the 24 months following the 12 months referred to in subparagraph (i), at a rate of interest equal to one-half the rate of interest referred to in subparagraph (i); (e) uncollected taxed costs for, or incidental to, any legal proceedings in respect of the loan; (f) legal fees and disbursements, other than the costs referred to in paragraph (e), incurred by the lender for services rendered to the lender by persons other than employees of the lender, for the purpose of collecting, or attempting to collect, the loan from the borrower or the guarantor, as the case may be; and (g) other costs incurred by the lender for the purpose of collecting, or attempting to collect, the loan from the borrower or the guarantor, as the case may be, other than costs incurred by the lender or its employees in the administration of the loan prior to default. SOR/95-81, s. 13; SOR/96-59, s. 3