Industrial Loan Act

Short title

1 This Act may be cited as the Industrial Loan Act. R.S., c. 224, s. 1.

Interpretation

2 In this Act,

(a) "Board" means the Industrial Loan Board constituted under this Act;

(b) "Fund" means the Industrial Loan Fund established under this Act;

(c) "industry" means any industry, business, trade or undertaking designated by the regulations as an industry;

(d) "Minister" means the Minister of Small Business Development. R.S., c. 224, s. 2.

Powers of Governor in Council

3 Subject to this Act and the regulations, the Governor in Council, for the purpose of establishing or developing industries within the Province, may from time to time

(a) make loans to, or guarantee loans of, any person or persons for the purpose of acquiring land, buildings, machinery, implements, plant or equipment;

(b) make loans to, or guarantee loans of, any person for the purpose of providing working capital for any industry;

(c) pay off or retire existing debts or obligations of a person engaged in an industry where, in the opinion of the Minister, it is necessary or desirable to do so in order to improve the security of any loan or other assistance to that person;

(d) enter into agreements with the Government of Canada or with any agency or instrument of the Government of Canada, or with any other persons, for the purpose of carrying out the intent and purposes of this Act;

(e) do such other matters or things and exercise such other powers as may be deemed necessary for the better carrying out of the provisions of this Act. R.S., c. 224, s. 3.

Fund continued

4 (1) The Industrial Assistance Fund established pursuant to the former The Industrial Assistance Act is continued.

Industrial Loan Fund

(2) The name of the said Fund is changed to the Industrial Loan Fund and any reference in any Act or regulations to the Industrial Assistance Fund shall be construed as a reference to the Industrial Loan Fund.

Source of funds

(3) The Governor in Council may from time to time transfer to the fund and charge to Capital Account such sum or sums as are considered necessary for the purpose of this Act or, if it is considered expedient so to do, the Minister of Finance with the approval of the Governor in Council may transfer the said sum or sums out of the Special Reserve Account of the Province or out of the revenue of the Province for any year or years. R.S., c. 224, s. 4.

Source of loans

5 (1) All the loans made under this Act shall be made out of the Fund.

Cancellation of commitment

(2) The Governor in Council may from time to time cancel all or any part of any commitment respecting any sum of money in the Industrial Development Fund and upon such cancellation being made, the sums of money shall thereupon be credited to the Industrial Loan Fund.

Repayments and recoveries paid to Fund

(3) All repayments and all recoveries made in respect of any loan or other transaction out of the Fund, the Industrial Assistance Fund or the Industrial Development Fund shall be paid or credited to the Fund and may be reloaned in accordance with the provisions of this Act. R.S., c. 224, s. 5.

Use of money in Fund

6 Subject to this Act, all money from time to time at the credit of the Fund may be employed or re-employed for the purpose of this Act. R.S., c. 224, s. 6.

Guarantee to be charge on Fund

7 All guarantees made under this Act or made under any other Act mentioned herein shall be a charge upon the Fund to the amount of the guarantees from time to time outstanding and the Fund shall not be reduced below an amount sufficient to cover the liability of the Province, contingent or otherwise, in respect of all guarantees so made. R.S., c. 224, s. 7.

Acquisition of property given as security

8 (1) The Governor in Council may, where he deems it to be in the best interest of the Province to do so, purchase or otherwise acquire any property that is the subject of a mortgage or charge in respect of any loan or guarantee made under this Act or under any Act referred to herein.

Alienation of property

(2) The Governor in Council may sell, lease or otherwise dispose of any such real or personal property for such consideration and on such terms and conditions as he deems advisable.

Proceeds of disposition

(3) The proceeds of any such sale, lease or disposal shall be paid to the Minister of Finance and credited to the Fund. R.S., c. 224, s. 8.

Industrial Loan Board

9 (1) The Governor in Council may appoint a Board to be called the Industrial Loan Board, consisting of such number of persons as the Governor in Council from time to time determines, and the Governor in Council may designate one of the members of the Board to be Chairman thereof.

Term of office and re-appointment

(2) Each member of the Board shall hold office for a period of three years unless his appointment is sooner revoked and all members shall be eligible for re-appointment.

Remuneration and allowances

(3) The members of the Board, excepting employees in the civil service, shall receive such remuneration and allowances as may be determined by the Governor in Council. R.S., c. 224, s. 9.

Duties of Board

10 The Board shall study and examine applications for loans or guarantees and make recommendations thereon to the Minister, and shall generally perform such further or other matters as may be provided for in the regulations. R.S., c. 224, s. 10.

Administration expenses

11 The administration expenses of the Minister and of the Board shall be administration expenses of the Department of Small Business Development and shall not be a charge upon the Fund. R.S., c. 224, s. 11.

Regulations

12 (1) The Governor in Council may from time to time make regulations, not inconsistent with this Act and in relation to any class or classes of industry,

(a) designating industries or types of industries to which this Act shall apply;

(b) limiting the amounts of loans or guarantees;

(c) for the examination and audit of accounts and for the inspection of premises, plant and equipment in respect of which a loan or guarantee has been made;

(d) prescribing the purposes for which loans or guarantees may be made;

(e) prescribing the amount and nature of the security to be required before a loan or guarantee is made;

(f) prescribing the manner in which applications for loans or guarantees may be made;

(g) prescribing the terms and conditions upon which loans or guarantees may be made;

(h) prescribing further or other or additional functions, duties or powers of the Board;

(i) for the better or more efficient carrying out of the purposes and objects of this Act.

Effective date of regulation

(2) Every such regulation shall be effective upon publication in the Royal Gazette. R.S., c. 224, s. 12.

Execution of instrument

13 All agreements, deeds, conveyances, releases and other instruments whatsoever relating to any loans or guarantees made under this Act or under any Act referred to herein may be executed by the Minister on behalf of Her Majesty in right of the Province. R.S., c. 224, s. 13.