Acts and Regulations

84-166 - Fisheries Development Act

Table of contents
Full text
NEW BRUNSWICK
REGULATION 84-166
under the
Fisheries Development Act
(O.C. 84-579)
Filed July 16, 1984
Under section 7 of the Fisheries Development Act, the Lieutenant-Governor in Council makes the following Regulation:
1This Regulation may be cited as the General Regulation - Fisheries Development Act.
2In this Regulation
“Act” means the Fisheries Development Act;
“Provincial lending rate” means that rate of interest determined by the Minister of Finance on a quarterly basis to be the average interest cost to the Province of borrowing money during the previous quarter.
93-133
3Application for financial assistance shall be made in a form provided by the Minister.
4(1)Upon the recommendation of the Board that an application be granted, the Minister may, without the approval of the Lieutenant-Governor in Council, provide direct loans in amounts of up to one hundred thousand dollars per application to aid and encourage the establishment or development of fisheries in the Province, except where that loan would constitute an additional disbursement under a previous loan approved by the Lieutenant-Governor in Council under subsection 3(1) of the Act.
4(2)The Minister shall, each month, report to the Lieutenant-Governor in Council
(a) all financial assistance provided pursuant to subsection (1),
(b) all deferments made pursuant to section 12, and
(c) all assets that are repossessed pursuant to section 13.
88-244
5(1)The rate of interest per annum on direct loans made under the Act
(a) for the first three year term of the loan, or for such shorter term as may be specified by the borrower in writing before any advance under the loan is made, shall be the Provincial lending rate, and
(b) for each succeeding three year term for which the loan is renewed, shall be the Provincial lending rate at the commencement of that term.
5(1.1)Repealed: 93-133
5(2)The interest rate on vessels held for re-sale shall be seven and one-half percent per annum.
88-244; 92-79; 93-133
5.1Notwithstanding any other provision in this Regulation, if the Minister determines after making a direct loan under the Act to a borrower that the borrower is unable to repay the loan from the revenues from the fisheries, the Minister may, with the approval of the Lieutenant-Governor in Council, adjust in writing the time for repayment and the terms and conditions of the loan.
93-134
6(1)A loan provided under the Act is subject to a down payment of not less than five percent of the amount of the loan.
6(2)An annual charge is payable in an amount equal to one and one-half per cent of the principal amount of a guaranteed loan or guaranteed bond issue outstanding on the date of issue of the guarantee, and annually thereafter on each anniversary of the date of issue of the guarantee an annual charge is payable in an amount equal to one and one-half per cent of the principal amount of the guaranteed loan or guaranteed bond issue outstanding on that anniversary date.
2007-58
7The time of repayment of a loan shall not exceed twenty-five years, unless the time is extended by the Lieutenant-Governor in Council.
8An agreement between the Minister and the person to whom financial assistance is being provided shall be executed prior to the providing of the financial assistance and that agreement shall provide for the method of repayment.
9The Minister may share a portion of the cost of interest on outstanding financial assistance approved on or before December 6, 1979, by reimbursing up to fifty percent of the cost of interest on loans made for new or used vessels, aquaculture or weir construction and by reimbursing up to twenty-five percent of the cost of interest on loans made for new engines, electronics equipment or fishing gear, or for major repairs on hull and engine having a minimum estimated cost of three thousand dollars.
10(1)Every loan shall be secured by a promissory note and by a first mortgage or other charge on the assets utilized in a fishery by the person to whom the loan is provided and any other security that is considered necessary.
10(2)The person to whom the loan is made shall maintain adequate insurance with the loss payable to the Minister in an amount not less than the interest and principal outstanding on the loan for the duration of the loan and a copy of the insurance policy shall be deposited with the Minister.
11(1)Every person receiving financial assistance shall keep
(a) a record of the entire operations, and
(b) a record of earnings and disposal or use of the financial assistance provided,
for the inspection of the Minister or a person designated by the Minister.
11(2)An audited financial statement shall be provided to the Minister or a person designated by the Minister upon request.
12(1)Upon the recommendation of the Board, the whole or a part of money owing may be deferred by the Minister for a period not exceeding two consecutive years unless approved by the Lieutenant-Governor in Council.
12(2)Where the payments of a loan have been deferred, the payments in arrears shall be paid in the year following the deferment.
13The Minister may take possession of the assets mortgaged or charged in order to protect the interests of the Province in the assets
(a) if the person to whom financial assistance is provided does not comply with the terms and conditions of the financial assistance,
(b) if the person to whom financial assistance is provided is declared bankrupt or makes a general assignment for the benefit of creditors,
(c) if the assets taken as security for the financial assistance are not being used for the purpose for which the financial assistance was provided, unless authorized by the Minister,
(d) if the assets taken as security are abused or allowed to lapse into disrepair,
(e) if the person to whom financial assistance is provided fails to observe any covenant or obligation to be observed or performed by that person,
(f) if the person to whom financial assistance is provided encumbers the assets taken as security without obtaining the consent of the Minister in writing, or
(g) if any other terms or conditions of the security are not complied with.
14(1)Where the Minister has taken possession of assets pursuant to section 13,
(a) the Minister may sell or transfer those assets for the purpose of protecting the interest of the Province in those assets,
(b) the Minister may enter into an agreement with the person whose assets were taken possession of, or any other person, to operate the assets on terms and conditions as are mutually agreed upon, or
(c) the Minister may, subject to the prior approval of the Lieutenant-Governor in Council, expend money to refit, repair or renovate such assets.
14(2)Where the Minister proposes to sell or transfer repossessed assets at less than their appraised value, a notice of the proposed sale shall be published in one issue of The Royal Gazette and in at least one issue of two daily newspapers published in the Province.
15Members of the Board who are not members of the Civil Service, shall be paid a per diem allowance of one hundred dollars for each day, or part thereof, that they are in attendance at meetings of the Board, and any other reasonable and necessary travelling expenses.
16Regulation 78-31 under the Fisheries Development Act is repealed.
N.B. This Regulation is consolidated to September 25, 2007.