Automotive Manufacturing Assistance Regulations

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/C.R.C.,_c._966/FullText.html

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
Automotive Manufacturing Assistance Regulations

C.R.C., c. 966DEPARTMENT OF INDUSTRY ACT
APPROPRIATION ACTS
APPROPRIATION ACT NO. 5, 1965
Regulations Respecting the Provision for Adjustment Assistance in Respect of the Manufacture of Automotive Products in CanadaShort Title

1 These Regulations may be cited as the Automotive Manufacturing Assistance Regulations.

Interpretation

2 (1) In these Regulations,

automobile
automobile means a four-wheeled passenger automobile having a seating capacity for not more than 10 persons; (automobile)
automotive program
automotive program means the Canada-United States Agreement on Automotive Products, Order in Council 1965-99, and the Letters of Commitment addressed to the Minister of Industry from the several automotive products manufacturers, taken together; (programme de l'industrie automobile)
Board
Board means the General Adjustment Assistance Board established by the General Adjustment Assistance Regulations; (Commission)
bus
bus means a passenger motor vehicle having a seating capacity for more than 10 persons or a chassis therefor, but does not include any following vehicle or chassis therefor, namely, an electric trackless trolley bus, amphibious vehicle, tracked or half-tracked vehicle or motor vehicle designed primarily for off-highway use; (autobus)
eligible manufacturer

eligible manufacturer means a person, firm or corporation that is not a manufacturer of automobiles or a subsidiary wholly-owned corporation or subsidiary controlled corporation of an automobile manufacturer or its parent corporation, and that in the opinion of the Board is

(a) a manufacturer in Canada, or a holding company of a manufacturer in Canada, of significant quantities of parts or accessories or both or parts of either, including tires and tubes, or both or either, for use as original equipment in automobiles, buses, off-highway vehicles or specified commercial vehicles,
(b) a supplier in Canada, or a holding company of a supplier in Canada, of significant quantities of materials to a manufacturer of parts or accessories or both or parts of either, including tires and tubes, or both or either, or of tooling for use in the production of parts or accessories or both or parts of either for use as original equipment in automobiles, buses, off-highway vehicles or specified commercial vehicles,
(c) a manufacturer in Canada, or a holding company of a manufacturer in Canada, of significant quantities of tooling for use by a manufacturer of parts and accessories or both or parts of either, including tires and tubes, or both or either, or for use as original equipment for automobiles, buses, off-highway vehicles or specified commercial vehicles, or
(d) a manufacturer in Canada, or a holding company of a manufacturer in Canada, of a significant number of buses, off-highway vehicles or specified commercial vehicles or all of them; (fabricant admissible)

off-highway vehicle
off-highway vehicle means a self-propelled truck designed primarily for off-highway use at quarries, mines, gravel or sand pits, construction sites or in logging operations, or a chassis therefor, but does not include machines for felling, skidding, piling, loading, bunching or processing trees or logs, which have been modified for carrying a load, nor any machine or other article required under tariff item 43803-1 to be valued separately under the tariff items regularly applicable thereto; (véhicule tout terrain)
specified commercial vehicle
specified commercial vehicle means a motor truck, ambulance or hearse, or a chassis therefor, but does not include any following vehicle or chassis therefor, namely, a bus, electric trackless trolley bus, fire truck, amphibious vehicle, tracked or half-tracked vehicle, golf or invalid cart, straddle carrier or motor vehicle designed primarily for off-highway use, or any machine or other article required under tariff item 43803-1 to be valued separately under the tariff item regularly applicable thereto; (véhicule commercial spécifié)
"subsidiary wholly-owned corporation" and "subsidiary controlled corporation"
"subsidiary wholly-owned corporation" and "subsidiary controlled corporation" have the meanings assigned to those expressions by the Income Tax Act; (corporation filiale entièrement possédée et corporation filiale controlée)
tooling
tooling includes patterns, jigs, fixtures, moulds, models, dies, gauges and punches. (outillage)

(2) For the purposes of the definition "eligible manufacturer" in subsection (1), a company is the holding company of a manufacturer only if that manufacturer is its subsidiary; and a company is a subsidiary of another company only if

(a) it is controlled by

(i) that other company, or
(ii) that other company and one or more companies each of which is controlled by that other company, or
(iii) two or more companies each of which is controlled by that other company; or

(b) it is a subsidiary of a subsidiary of that other company.

General Adjustment Assistance Board

3 The General Adjustment Assistance Board is hereby declared to be the successor to the Adjustment Assistance Board, and all property, rights, obligations and liabilities of the Adjustment Assistance Board existing immediately before June 29, 1971 shall be deemed to be the property, rights, obligations and liabilities of the General Adjustment Assistance Board.

4 (1) The Board shall administer loans made under these Regulations and shall perform such other duties and functions as the Minister of Industry, Trade and Commerce may assign to it.
(2) The Minister of Industry, Trade and Commerce may, after June 30, 1973 and with the approval of the Governor in Council, assign to one or more departments or agencies of the Government of Canada the functions previously exercised by the Board in respect of the administration and servicing of loans made under these Regulations.

5 (1) Subject to subsection (2), the Board may authorize a change in any security required or taken in respect of a loan made under these Regulations before July 1, 1973 and the entry into an agreement on behalf of Her Majesty, amending the terms and conditions of such a loan.

(2) No agreement entered into pursuant to subsection (1) shall

(a) increase the principal amount of a loan, except by the compounding of interest in arrears; or
(b) amend a term or condition that was prescribed by these Regulations.

6 Subject to these Regulations, the Board may make such by-laws and regulations as may be necessary for the conduct of its meetings, the management of its affairs and the performance of its duties.

7 In carrying out its duties and functions under these Regulations, the Board shall use the existing staff and facilities of departments and agencies of the Government of Canada and such staff and facilities shall, to the extent practicable, be made available to the Board.

Adjustment Assistance for Eligible Manufacturers

8 Where an eligible manufacturer is already indebted to Her Majesty under a loan or loans made to him under these Regulations and

(a) default or an event of default under the terms and conditions of the loan or loans has occurred, or
(b) in the opinion of the Board, Her Majesty's security taken in support of the loan or loans is in imminent danger of being placed in jeopardy,

the Board may, in accordance with these Regulations, if financing is not available through other sources, make a loan to, or give a guarantee of loan made by a lender to, that eligible manufacturer where, in the opinion of the Board, the loan or guarantee would provide that eligible manufacturer with a reasonable prospect of a profitable operation or would provide for the continuation of all or part of the operations of the borrower and would protect Her Majesty's security.

9 (1) An eligible manufacturer who requires a loan under section 8 shall make application therefor to the Board and shall submit with his application such information as the Board may require.
(2) Where an application for a loan or a guarantee is approved by the Board, the applicant may enter into an agreement with Her Majesty and that agreement shall, subject to these Regulations, be in such form and contain such provisions as the Board considers necessary.
(3) The amount of a loan made or a payment made under a guarantee given under section 8 shall be paid by the Board out of the moneys appropriated therefor by Parliament.

10 (1) A loan made pursuant to section 8 shall bear interest at a rate equal to the prevailing rate charged to crown corporations at the time the loan is authorized by the Board for loans of a similar term plus two per cent.
(2) A guarantee given pursuant to section 8 shall bear a fee of one per cent per annum of the amount of the guaranteed loan in force from time to time and shall be paid by the borrower under such terms and conditions as may be determined by the Board.

(3) The Board may, to the extent that it deems advisable, take, accept or acquire and hold security of any kind in any form to secure any loan or guarantee provided by it under these Regulations and, without limiting the generality of the foregoing, the Board may take, accept or acquire and hold for that purpose

(a) stocks, bonds or debentures of municipal and other corporations whether secured by Canadian, provincial, municipal, British, foreign or other government securities, by mortgage or otherwise;
(b) negotiable warehouse receipts and bills of lading;
(c) goods, wares and merchandise;
(d) mortgages or hypothecs on any real or personal, movable or immovable property; or
(e) trustee's or receiver's certificates issued by the trustee or receiver of the assets of an eligible manufacturer.

(4) A loan made pursuant to section 8 shall be for a term not exceeding

(a) 20 years, if the loan is to be made in respect of the acquisition, modernization, development, conversion or expansion of any buildings or real or immovable property; or
(b) 10 years, in any other case.

(5) A guarantee given pursuant to section 8 shall be for such term as may be fixed by the Board.
(6) A loan made pursuant to section 8 may be repaid in whole or in part in advance of the due date, without notice or bonus, in such manner as may be prescribed by the Board.
(7) During the term of loan or guarantee made pursuant to section 8, the borrower shall maintain such insurance coverage as the Board may prescribe.

11 Any security given for a loan or guarantee provided pursuant to section 8 may, with the approval of the Board or such advisory or other committee as the Minister of Industry, Trade and Commerce may designate for the purpose, be surrendered, retransferred or reconveyed in exchange for other security.

12 The Board shall keep such records and books and make such reports on its automotive adjustment assistance activities from time to time as the Minister of Industry, Trade and Commerce may require.

Adjustment Assistance for Employees

13 (1) Where, in the opinion of the Board,

(a) 10 per cent of the work force or 50 employees, whichever is less, of

(i) an eligible manufacturer or of a particular branch or subdivision of his undertaking,
(ii) a manufacturer in Canada of automobiles or of a particular branch or subdivision of his undertaking, or
(iii) a particular branch or subdivision in Canada of the undertaking of a manufacturer of automobiles

have been or will be laid off for a period of four weeks or more, and

(b) the lay-off, or a proportion thereof determined by the Board, was or will be caused by the termination or decrease of production or other activity arising from the implementation of the automotive program,

the Board shall so certify to the Department of Labour.

(2) A certificate issued by the Board under subsection (1) shall contain

(a) a list of the employees affected by the lay-off, together with their Social Insurance Numbers and their addresses, and
(b) the effective date of the lay-off,

and shall state

(c) in respect of each employee named in the certificate, whether or not he is affected by a supplemental unemployment benefit plan in force at the time the certificate is issued; and
(d) in respect of each employee referred to in paragraph (a) who is so affected, the amount of the benefit to which such employee would be entitled under the supplemental unemployment benefit plan.