Bill C-330

1st Session, 39th Parliament,

55 Elizabeth II, 2006

house of commons of canada

BILL C-330

An Act to amend the Business Development Bank of Canada Act and the Canada Student Loans Act to provide for a student loan system that is more supportive of students

WHEREAS the management of student loan programs by banks has resulted in unreasona-ble and inflexible interest and payment policies and had a negative effect on post-secondary education in Canada;

WHEREAS student loans through banks have had interest rates applied that are well over the rates charges to business borrowers;

WHEREAS, as a result, many graduates face years with a heavy burden of loan repayment after completing their education and consequently are unable to meet their loan obligations;

AND WHEREAS student loan programs should incorporate interest policies that recognize that giving financial assistance to students is a national priority of investment in the future and not an opportunity for profit;

NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

BUSINESS DEVELOPMENT BANK OF CANADA ACT

1. Section 4 of the Business Development Bank of Canada Act is replaced by the following:

4. (1) The purpose of the Bank is

(a) to support Canadian entrepreneurship by providing financial and management services and by issuing securities or otherwise raising funds or capital in support of those services; and

(2) In carrying out its purpose with respect to Canadian entrepreneurship, the Bank must give particular consideration to the needs of small and medium-sized enterprises.

2. Subsections 14(2) to (4) of the Act are replaced by the following:

(2) In the case of loans in support of entrepreneurship, the loans, investments and guarantees may be made or given directly, through arrangements with other financial institutions or by the Bank as a member of a financing syndicate.

(3) The loans, investments and guarantees in support of entrepreneurship may be made or given only where, in the opinion of the Board or any committee or officer designated by the Board,

(a) the person is engaged, or is about to engage, in an enterprise in Canada;

(b) the amount invested, or to be invested, in the enterprise by persons other than the Bank and the character of the investment are such that the Bank may reasonably expect that those persons will have a continuing commitment to the enterprise; and

(c) the enterprise may reasonably be expected to prove successful.

(4) The loans, investments and guarantees in support of entrepreneurship are to fill out or complete services available from commercial financial institutions.

3. The definition “lender” in subsection 2(1) of the Canada Student Loans Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or” at the end of paragraph (c) and by adding the following after paragraph (c):

4. The Act is amended by adding the following after section 5: