Acts and Regulations

2010-126 - Fisheries and Aquaculture Development Act

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NEW BRUNSWICK
REGULATION 2010-126
under the
Fisheries and Aquaculture Development Act
(O.C. 2010-439)
Filed August 31, 2010
1Section 2 of New Brunswick Regulation 84-166 under the Fisheries and Aquaculture Development Act is amended by adding the following definition in alphabetical order:
“prime” means, for each quarter of the calendar year, the prime business rate posted by the Bank of Canada on the first Wednesday of that quarter; (taux préférentiel)
2Section 4 of the Regulation is repealed and the following is substituted:
4(1)Subject to subsection (3), on the recommendation of the Board that an application be granted, the Minister may provide financial assistance under subsection 3(1) of the Act to aid and encourage the establishment or development of fisheries in the Province without the approval of the Lieutenant-Governor in Council.
4(2)Subject to subsection (3), on the recommendation of the Board that an application be granted, the Minister may provide financial assistance under subsection 3(1.1) of the Act to aid and encourage the establishment or development of aquaculture in the Province without the approval of the Lieutenant-Governor in Council.
4(3)The Minister may provide financial assistance under subsection (1) or (2) only if the sum of the following amounts does not exceed $500,000:
(a) the amount of financial assistance that the Minister will grant with respect to the application;
(b) the amount of financial assistance that the applicant has received under the Act but has not yet repaid; and
(c) the amount of financial assistance already granted under the Act that has not yet been provided to the applicant.
4(4)The Minister shall report on a quarterly basis to the Lieutenant-Governor in Council
(a) all financial assistance provided under subsections (1) and (2),
(b) all deferments made under section 12, and
(c) all assets that are repossessed under section 13.
3The Regulation is amended by adding after section 4 the following:
4.1(1)Subject to section 5.01, the rate of interest per year on a loan made under subsection 3(1) of the Act shall be as follows:
(a) for the first three-year term of the loan, prime plus 3.5%; and
(b) for each succeeding three-year term for which the loan is renewed, prime at the beginning of that term plus 3.5%.
4.1(2)The rate of interest referred to in subsection (1) shall be reduced to
(a) prime plus 2.5%, if the borrower makes a down payment of 30% or more, but less than 40%, of the amount of the loan, or
(b) prime plus 1.5%, if the borrower makes a down payment of 40% or more of the amount of the loan.
4.1(3)The rates of interest referred to in subsections (1) and (2) shall not be less than the Provincial lending rate.
4Section 5 of the Regulation is repealed and the following is substituted:
5The rate of interest per year on direct loans made under subsection 3(1.1) of the Act shall be as follows:
(a) for the first three-year term of the loan, or for a shorter term as may be specified by the borrower in writing before an advance under the loan is made, the Provincial lending rate; and
(b) for each succeeding three-year term for which the loan is renewed, the Provincial lending rate at the beginning of that term.
5The Regulation is amended by adding after section 5 the following:
5.01(1)In this section, “new entrant” means an individual receiving financial assistance under subsection 3(1) of the Act who has never owned a vessel-based commercial fishing licence.
5.01(2)The rate of interest to be charged per year on a direct loan made to a new entrant shall be as follows:
(a) for the first three-year term of the loan, the Provincial lending rate; and
(b) for each succeeding three-year term, the Provincial lending rate at the beginning of that term.
5.01(3)A loan provided under the Act to a new entrant shall be subject to a down payment requirement of 5% of the amount of the loan.
6Subsection 6(1) of the Regulation is amended by striking out “A loan provided under the Act” and substituting “Subject to section 5.01, a loan provided under the Act”.