Regional Development Incentives Act — R-4.9 13.1
Loan guarantees 13.1 (1) Upon application therefor to the Minister by an applicant proposing to (a) establish a new facility or to expand or modernize an existing facility, or (b) establish a commercial facility, the Minister may, with the concurrence of the Minister of Finance, subject to this Act and upon such terms and conditions as are prescribed by the regulations, authorize the guarantee by Her Majesty in right of Canada of the repayment by the applicant of a proportion of any loan made to him in respect of the establishment, expansion or modernization of the facility or the establishment of the commercial facility and the payment of interest by the applicant on the proportion of the loan so guaranteed. Ineligible facilities (2) No loan guarantee may be authorized under this Act in respect of the establishment of a new facility or the expansion or modernization of an existing facility unless (a) a development incentive (i) has been or could be authorized under this Act for the establishment of the facility or the expansion or modernization thereof, or (ii) could not be authorized under this Act for the establishment of the facility or the expansion or modernization thereof by reason only that the Minister is of the opinion that the facility could be established, expanded or modernized without the provision of a development incentive; and (b) the Minister is of the opinion that (i) the applicant could not obtain sufficient financing on reasonable terms for the establishment of the facility or the expansion or modernization thereof without such guarantee, and (ii) in the case of the establishment of a new facility, it will be brought into commercial production on or before the 31st day of December, 1984 and, in the case of the expansion or modernization of a facility, the expanded or modernized facility will be brought into commercial production on or before that date. Ineligible commercial facilities (3) No loan guarantee may be authorized under this Act in respect of the establishment of a commercial facility unless (a) the commercial services to be provided are of a class prescribed by the regulations and the facility will be located within an area prescribed by the regulations for the purposes of this section that is within a designated region; and (b) the Minister is of the opinion that (i) the establishment of the commercial facility would make a significant contribution to economic expansion and social adjustment within the designated region, (ii) the capital costs of the commercial facility will exceed such minimum amount as is prescribed by the regulations, (iii) the applicant could not obtain sufficient financing on reasonable terms for the establishment of the commercial facility without such guarantee, and (iv) the commercial facility will be brought into commercial operation on or before the 31st day of December, 1984. Maximum loan a proportion of which may be guaranteed (4) No loan guarantee may be authorized under this Act where the amount of the loan to the applicant exceeds 80% of the amount estimated by the Minister to be the total capital costs of establishing, expanding or modernizing the facility or of establishing the commercial facility in respect of which the loan is made minus an amount estimated by the Minister to be the aggregate of any development incentive and all other federal, provincial and municipal grants or other financial assistance given or to be given in connection therewith or for which the applicant would ordinarily have been eligible by reason of the establishment, expansion or modernization of the facility or of the establishment of the commercial facility. Insurance (5) A loan guarantee authorized under this Act ceases to be of any force or effect if the lender by whom the loan was made fails to provide to the Minister, at his request or at such times as are provided by the regulations, evidence that the facility or commercial facility in respect of which the guaranteed loan was m