Industrial Loan Act

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Published: 2016-01-05

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Industrial Loan Act


An Act to Provide for Assistance
to Industrial Enterprises in Nova Scotia

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

2 In this Act,

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

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

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

(d) "Minister" means the Minister of Small BusinessDevelopment. 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 theProvince, may from time to time

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

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

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

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

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

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

Industrial Loan Fund
(2) The name of the said Fund is changed to the Industrial Loan Fundand any reference in any Act or regulations to the Industrial AssistanceFund 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 thefund and charge to Capital Account such sum or sums as are considerednecessary for the purpose of this Act or, if it is considered expedient soto do, the Minister of Finance with the approval of the Governor inCouncil may transfer the said sum or sums out of the Special ReserveAccount of the Province or out of the revenue of the Province for anyyear 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 theFund.

Cancellation of commitment
(2) The Governor in Council may from time to time cancel all or anypart of any commitment respecting any sum of money in the IndustrialDevelopment Fund and upon such cancellation being made, the sums ofmoney 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 orother transaction out of the Fund, the Industrial Assistance Fund or theIndustrial Development Fund shall be paid or credited to the Fund andmay 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 theFund 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 Actmentioned herein shall be a charge upon the Fund to the amount of theguarantees from time to time outstanding and the Fund shall not bereduced 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 thebest interest of the Province to do so, purchase or otherwise acquire anyproperty that is the subject of a mortgage or charge in respect of any loanor 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 ofany such real or personal property for such consideration and on suchterms and conditions as he deems advisable.

Proceeds of disposition
(3) The proceeds of any such sale, lease or disposal shall be paid to theMinister 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 calledthe Industrial Loan Board, consisting of such number of persons as theGovernor in Council from time to time determines, and the Governor inCouncil may designate one of the members of the Board to be Chairmanthereof.

Term of office and re-appointment
(2) Each member of the Board shall hold office for a period of threeyears unless his appointment is sooner revoked and all members shall beeligible for re-appointment.

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

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

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

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

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

(b) limiting the amounts of loans or guarantees;

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

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

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

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

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

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

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

Effective date of regulation
(2) Every such regulation shall be effective upon publication in theRoyal Gazette. R.S., c. 224, s. 12.

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