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Under section 12 of the Economic Development Act, the Lieutenant-Governor in Council makes the following Regulation:

88-94; 93-29

1This Regulation may be cited as the General Regulation - Economic Development Act.

2In this Regulation

“Act” means the Economic Development Act.(Loi)

88-94; 93-29; 1998, c.41, s.38

3The following are prescribed as industrial, commercial and business activities to which the Minister shall not grant financial assistance under subsection 3(1) of the Act:

(a) logging;

(b) primary agriculture;

(c) primary mining;

(d) quarrying;

(e) broadcasting;

(f) transportation;

(g) communications;

(h) publishing of news periodicals;

(i) generation of electricity;

(j) retail trade;

(j.1) food catering;

(j.2) warehousing;

(k) provision of personal services; and

(l) Repealed: 92-110

88-85; 88-104; 92-110; 93-29

3.1Notwithstanding any other provision of this Regulation and without limiting the application of subsection 3(1) of the Act, the Minister may grant financial assistance under subsection 3(1) of the Act to an industrial, commercial or business activity that is a mineral ore concentrating operation, whether the operation is conducted separately from or as a part of a mining operation.

88-104; 93-29

3.2Repealed: 92-110

90-45; 92-110

3.3(1)Subject to subsection (2), the Minister may, where the New Brunswick Industrial Development Board or the New Brunswick Industrial Development Appeal Board recommends such action, provide financial assistance to an industry under subsection 3(1) of the Act without the approval of the Lieutenant-Governor in Council.

3.3(2)Subsection (1) does not apply if the sum of

(a) the financial assistance sought,

(b) all financial assistance previously provided to the industry seeking the financial assistance and not repaid, and

(c) all financial assistance that the Minister has decided to provide to the industry but has not yet provided,

exceeds the amount of $500,000.

3.3(3)The Minister shall, after each meeting of the New Brunswick Industrial Development Board, submit to the Executive Council Office and to the Department of Board of Management a report respecting all financial assistance provided under subsection (1) since the previous meeting.

91-69; 2010-53

3.4Upon the recommendation of the New Brunswick Industrial Development Board or the New Brunswick Industrial Development Appeal Board, the Minister may, without the approval of the Lieutenant-Governor in Council, forgive, commute or rescind any or all of the principal and any or all of the interest of a loan provided under the Act where the loan was made in accordance with section 3.3.

93-29

3.5Despite subsection 3.3(1), when an application for financial assistance is made under the NB Growth Program, the Minister is not required to refer the application to the New Brunswick Industrial Development Board and may grant financial assistance under subsection 3(1) of the Act

(a) without the recommendation of the New Brunswick Industrial Development Board or the New Brunswick Industrial Development Appeal Board, and

(b) without the approval of the Lieutenant-Governor in Council.

96-15; 99-40; 2010-53; 2014-71

4The Minister, where

(a) in the opinion of the Minister, an amendment or adjustment is deemed essential for the continued and orderly operation of an industry,

(b) an adjustment or amendment does not extend the termination date of a loan, a guarantee of a loan or a guarantee of a bond issue, and

(c) the security held by the Minister is not substantially affected by an amendment,

may extend, defer, adjust or compromise the time for repayment of financial assistance provided or the terms and conditions of financial assistance provided to a person.

5The interest rate chargeable by the Minister on a direct loan made by the Minister shall be the lowest rate of interest established by the Minister of Finance during the period beginning with the date the New Brunswick Industrial Development Board makes its recommendation to the Minister under section 7 of the Act with respect to the direct loan and ending with the date on which security or other evidence of or in respect of the direct loan is first delivered by the borrower to the Minister.

93-29

5.1(1)Notwithstanding section 5, the Minister may, with the approval of the Lieutenant-Governor in Council or in accordance with subsection (2),

(a) charge no interest during all or a portion of the term of a loan made under the Act, or

(b) charge interest on a loan made under the Act at a rate other than that required under section 5.

5.1(2)Upon the recommendation of the New Brunswick Industrial Development Board or the New Brunswick Industrial Development Appeal Board, the Minister may, in respect of a loan made in accordance with section 3.3, without the approval of the Lieutenant-Governor in Council,

(a) charge no interest during all or a portion of the term of the loan, or

(b) charge interest on the loan at a rate other than that required under section 5.

95-123

6An annual charge is prescribed in an amount equal to one-half of one per cent of the principal amount of a guarantee, a guaranteed loan or a guaranteed bond issue outstanding on the date of issue of such guarantee, loan or bond issue and on the decreasing balance of such loan, guarantee or bond issue to be calculated on each annual anniversary of the date of issue thereof.

2007-56

6.1Notwithstanding section 6, where a guarantee, a guaranteed loan or a guaranteed bond issue is issued or extended on or after May 15, 1988, an annual charge is prescribed in an amount equal to one per cent of the principal amount of the guarantee, the guaranteed loan or the guaranteed bond issue outstanding on the date of issue or extension of the guarantee, loan or bond issue and on the decreasing balance of the guarantee, loan or bond issue to be calculated on each annual anniversary of the date of issue or extension of the guarantee, loan or bond issue.

88-94; 2007-56

6.2(1)Notwithstanding sections 6 and 6.1, where a guarantee is issued on or after September 1, 1992, an annual charge is payable

(a) on the date of issue of the guarantee, guaranteed loan or guaranteed bond issue in an amount equal to one per cent of the maximum contingent liability of the Minister under the guarantee, guaranteed loan or guaranteed bond issue on that date,

(b) on the date of the first anniversary of the issue of the guarantee, guaranteed loan or guaranteed bond issue in an amount equal to one per cent of the maximum contingent liability of the Minister under the guarantee, guaranteed loan or guaranteed bond issue on that date,

(c) on the date of the second anniversary of the issue of the guarantee, guaranteed loan or guaranteed bond issue in an amount equal to two per cent of the maximum contingent liability of the Minister under the guarantee, guaranteed loan or guaranteed bond issue on that date, and

(d) on the date of the third anniversary or any subsequent anniversary of the issue of the guarantee, guaranteed loan or guaranteed bond issue in an amount equal to three per cent of the maximum contingent liability of the Minister under the guarantee, guaranteed loan or guaranteed bond issue on that date.

6.2(2)For the purposes of calculating an annual charge referred to in subsection (1), the full amount of the loan, bond issue or other indebtedness being guaranteed shall be deemed to have been advanced by the lending institution and to be outstanding on the date on which the annual charge is payable.

6.2(3)Notwithstanding subsection (1), an annual charge payable under subsection (1) may, with the consent of the Minister, be paid in such instalments and commencing on such anniversary date as the Minister may direct.

92-110; 2007-56

6.21(1)Notwithstanding sections 6, 6.1 and 6.2, where a guarantee, a guaranteed loan or a guaranteed bond issue is issued or extended on or after February 15, 2003, an annual charge is prescribed in an amount equal to one and one-half per cent of the principal amount of the guarantee, the guaranteed loan or the guaranteed bond issue outstanding on the date of issue or extension of the guarantee, loan or bond issue and on the decreasing balance of the guarantee, loan or bond issue to be calculated on each annual anniversary of the date of issue or extension of the guarantee, loan or bond issue.

6.21(2)For the purposes of calculating an annual charge referred to in subsection (1), the full amount of the loan, bond issue or other indebtedness being guaranteed shall be deemed to have been advanced by the lending institution and to be outstanding on the date on which the annual charge is payable.

6.21(3)Notwithstanding subsection (1), an annual charge payable under subsection (1) may, with the consent of the Minister, be paid in such instalments and commencing on such anniversary date as the Minister may direct.

2007-56

6.3Repealed: 2007-56

92-110; 2007-56

6.4Repealed: 2007-56

92-110; 2007-56

6.5Where the Minister considers that an adjustment is essential for purposes of economic development, the Minister may defer, reduce or waive part or all of the annual charge referred to in section 6.2 or 6.21.

92-110; 2007-56

6.6Repealed: 2007-56

99-40; 2007-56

7The design, plans and specifications for buildings and equipment which are being offered as security for a loan, a guarantee of a loan or a guarantee of a bond issue shall be submitted to the New Brunswick Industrial Development Board upon the Board requesting same.

8(1)Members of the New Brunswick Industrial Development Board and the New Brunswick Industrial Development Appeal Board who are not civil servants shall receive one hundred dollars for each day or part day that they attend a meeting of the Board of which they are a member, together with necessary and reasonable travelling expenses.

8(2)The Chairperson of the New Brunswick Industrial Development Board and the Chairperson of the New Brunswick Industrial Development Appeal Board shall receive an additional twenty-five dollars for each day or part day that they attend a meeting of the Board of which they are a member.

93-29

9An application for financial assistance shall be in writing and set forth not less than

(a) the financial assistance requested,

(b) the purpose for which the financial assistance is requested, and

(c) the financial situation of the applicant.

10(1)Subject to subsection (3), where any parcel of vacant industrial park land acquired, held, developed, used by or vested in the Minister in provincially-owned industrial parks does not exceed five acres in size, the Minister may

(a) grant leases, licences, easements and permits in, through, over and on,

(b) sell, or

(c) encumber, for the purpose of providing security in a financial transaction,

such parcel without the approval of the Lieutenant-Governor in Council.

10(2)Repealed: 2014-71

10(3)Subsection (1) does not apply where the size of the total number of parcels of land sought to be sold in any one year to the same person or to any number of persons as part of the same transaction exceeds five acres.

2014-71

11(1)Where any chattel acquired, held, used or vested in the Minister has a value not exceeding three thousand dollars, the Minister may sell, lease or otherwise dispose of such chattel without the approval of the Lieutenant-Governor in Council.

11(2)Subsection (1) does not apply where the value of the total number of chattels sought to be sold in any year to the same person or to any number of persons as part of the same transaction exceeds three thousand dollars.

11(3)For the purposes of this section, “value” means market value.

12Notwithstanding sections 10 and 11, the Minister may sell

(a) Repealed: 2014-71

(b) chattels for less than a price that relates reasonably to its value,

where the Minister is satisfied that a lesser price is warranted in order to stimulate or provide assistance to a particular industry.

2014-71

13Where any land, building, structure or facility acquired, held, developed or used by or vested in the Minister is not immediately required for industrial development purposes, the Minister may lease such land, building, structure or facility to any person on a month-to-month basis.

14Regulation 76-132 under the Commerce and Development Act is repealed.

SCHEDULE A

Repealed: 2014-71

86-82; 2014-71

N.B. This Regulation is consolidated to April 1, 2015.

82-197 - General

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