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Indian Economic Development Direct Loan Order (SOR/78-22)

Regulations are current to 2019-08-28

Security (continued)

 A borrower shall not, without the consent of the Minister,

  • (a) sell, lease or otherwise dispose of or encumber any security given for the direct loan or any property purchased with the proceeds of the direct loan; or

  • (b) make capital expenditures other than those authorized by the direct loan agreement.

Records

 A borrower shall

  • (a) keep and maintain books and accounting records in a form satisfactory to the Minister and permit the Minister or any person authorized by him to examine those books and records at any reasonable time until the direct loan is repaid in full; and

  • (b) provide invoices, receipts, cancelled cheques or other documents satisfactory to the Minister as evidence that the proceeds of the direct loan will be or were used for the purpose set out in the application therefor.

Revision of Loan Terms and Default

 The Minister may, at the request of a borrower, accept repayment of all or any part of a direct loan at a date earlier than the date required by the direct loan agreement or any revision or alteration thereof.

 Subject to section 13, where a borrower is in default in respect of any repayment or condition of a direct loan, the entire amount of the balance outstanding on the loan shall, at the option of the Minister, become due and repayable.

 Where a borrower is in default in respect of the repayment of a direct loan or informs the Minister that any of the terms of the loan agreement are such that the borrower may have to default thereon, and the Minister is of the opinion that a revision or alteration of any of the terms of the agreement may enable the borrower to meet his obligations thereunder, the Minister may, with the consent of the borrower, revise or alter the terms of the agreement by

  • (a) increasing or decreasing the periods between repayments, except that repayments shall be due no less frequently than annually;

  • (b) extending the time within which the direct loan is to be repaid, but no such extension shall be granted to a date that is more than 15 years from the date of the loan agreement without the approval of the Treasury Board; or

  • (c) reducing the amount of each repayment or increasing that amount where the period between each repayment is being increased.

 Where a borrower is in default in respect of any repayment on a direct loan and the entire amount of the balance outstanding on the loan becomes repayable pursuant to section 12, the Minister may take such steps, whether by legal proceedings or otherwise, as he considers necessary to

  • (a) effect collection of the balance outstanding;

  • (b) obtain additional security;

  • (c) realize on any or all of the security he has taken; or

  • (d) effect any compromise with, or grant any concession to, any person other than the borrower.

General

 The Minister shall maintain a registry for the purpose of recording loans made under these Regulations.

 The Minister shall in January of each year prepare a report with respect to the administration of this Order during the immediately preceding fiscal year and shall include that report in the report submitted by him to Parliament pursuant to section 7 of the Department of Indian Affairs and Northern Development Act.

 
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