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Bill C-102

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42-43-44 ELIZABETH II

CHAPTER 48

An Act to amend the Small Business Loans Act

[Assented to 15th December, 1995]

R.S., c. S-11; R.S., c. 19 (1st Supp.), c. 14, (2nd Supp.), c. 22 (3rd Supp.); 1990, c. 10; 1991, c. 47; 1992, c. 1; 1993, cc. 6, 34

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

R.S., c. 19 (1st Supp.), s. 2

1. (1) Subsection 3(1) of the Small Business Loans Act is amended by striking out the word ``or'' at the end of paragraph (a) and by replacing paragraph (b) with the following:

    (b) eighty-five per cent, or such other percentage as is provided by an appropriation Act or other Act of Parliament, of any loss sustained by the lender as a result of a business improvement loan made after March 31, 1985 and before April 1, 1993;

    (c) ninety per cent, or such other percentage as is provided by an appropriation Act or other Act of Parliament, of any loss sustained by the lender as a result of a business improvement loan made after March 31, 1993 and before the earlier of January 1, 1996 and the day that is sixty days after the day on which this paragraph comes into force; and

    (d) eighty-five per cent, or such other percentage as is provided by an appropriation Act or other Act of Parliament, of any loss sustained by the lender as a result of a business improvement loan made on or after the earlier day referred to in paragraph (c).

*ep

1993, c. 6, s. 3(1)

(2) Subsection 3(1.1) of the Act is repealed.

1993, c. 6, s. 3(2)

(3) The portion of subsection 3(2) of the Act before paragraph (a) is replaced by the following:

Conditions

(2) The conditions referred to in subsection (1) are as follows:

1993, c. 6, s. 3(4)

(4) Subsection 3(4) of the Act is amended by striking out the word ``and'' at the end of paragraph (a) and by replacing paragraph (b) with the following:

    (b) if the loan is made after March 31, 1985, the lender has, at the time the loan is submitted for registration or any other prescribed time, paid to the Minister the registration fee; and

    (c) if the loan is made on or after the day on which this paragraph comes into force, the lender

      (i) has, at the prescribed time and in addition to the registration fee, paid to the Minister the annual administration fee, and

      (ii) has not charged the borrower for that administration fee, otherwise than through the imposition of interest in accordance with this Act.

1993, c. 6, s. 3(5)

(5) The portion of subsection 3(5) of the Act before paragraph (a) is replaced by the following:

Registration fee

(5) The registration fee referred to in subsection (4) is

1990, c. 10, s. 1(2)

(6) The portion of subsection 3(7) of the Act before paragraph (a) is replaced by the following:

Minister may make payment

(7) Where, at the time a lender makes a loan, the prescribed maximum rate of interest, the maximum rate determined by the prescribed formula or formulae or a condition set out in paragraph (2)(e), (f) or (g) or subparagraph (4)(c)(ii) is not complied with, the Minister may pay to the lender the amount of any loss that is eligible for payment under subsection (1) if

R.S., c. 19 (1st Supp.), s. 3

2. (1) The portion of section 5 of the Act before paragraph (a) is replaced by the following:

Limitation of liability in respect of loans made during loan periods

5. (1) The Minister is not liable under this Act to pay to a lender, in respect of losses sustained by it as a result of business improvement loans made by it during each of the periods referred to in paragraphs 6(1)(a) to (c), a total amount in excess of

(2) Section 5 of the Act is amended by adding the following after subsection (1):

Limitation of liability in respect of loans made during loan periods

(2) The Minister is not liable under this Act to pay to a lender, in respect of losses sustained by it as a result of business improvement loans made by it during the period referred to in paragraph 6(1)(d), a total amount in excess of

    (a) ninety per cent of that part of the aggregate principal amount of the guaranteed business improvement loans made by it during that period that does not exceed two hundred and fifty thousand dollars;

    (b) fifty per cent of that part of the aggregate principal amount of the guaranteed business improvement loans made by it during that period that exceeds two hundred and fifty thousand dollars but does not exceed five hundred thousand dollars; and

    (c) ten per cent of that part of the aggregate principal amount of the guaranteed business improvement loans made by it during that period that exceeds five hundred thousand dollars.

3. (1) Subsection 7(1) of the Act is amended by adding the following after paragraph (e):

    (e.1) prescribing the terms and conditions on which a lender may release any security, including a personal guarantee, taken for the repayment of a business improvement loan;

R.S., c. 19 (1st Supp.), s. 5

(2) Paragraph 7(1)(p) of the Act is replaced by the following:

    (p) prescribing, for the purposes of paragraph 3(4)(b), the registration fee, or the method of calculating the registration fee, and the time when the fee is payable;

    (p.01) prescribing, for the purposes of subparagraph 3(4)(c)(i), the annual administration fee, or the method of calculating the annual administration fee, and the time when the fee is payable;

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