Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations

Extract

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Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations

Vol. 135, No. 26 — December 19, 2001

Registration SOR/2001-527 6 December, 2001

CANADA SMALL BUSINESS FINANCING ACT

Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations P.C. 2001-2237 6 December, 2001

Whereas, pursuant to subsection 13(5) of the Canada Small Business Financing Act , the Minister of Industry caused a copy of the proposed Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations, substantially in the form set out in the annexed regulations, to be laid before the House of Commons and before the Senate on October 3, 2001;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister for the purposes of the Atlantic Canada Opportunities Agency Act, the Minister of Western Economic Diversification, the Minister of Industry, the Minister of Finance and the Treasury Board, pursuant to sections 13 and 14 of the Canada Small Business Financing Act , hereby makes the annexed Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations.

CANADA SMALL BUSINESS FINANCING (ESTABLISHMENT AND OPERATION OF CAPITAL LEASING PILOT PROJECT) REGULATIONS

INTERPRETATION

1. (1) The definitions in this subsection apply in these Regulations.

"Act" means the Canada Small Business Financing Act. (Loi)

"aggregate outstanding balance" means the aggregate, calculated on the day on which a capital lease is entered into or is amended as a result of improvements to the equipment, of

(a) the total financing amount of the capital lease,

(b) the outstanding balance of any other capital lease registered with the Minister in accordance with these Regulations, and

(c) the outstanding loan amount referred to in subsection 4(3) of the Act. (somme des soldes impayés)

"capital lease" means a lease or leasing under which a lessor provides equipment to a le(see for payment and that meets one of the following conditions:

(a) the lease or leasing includes a bargain purchase option or provides for a transfer of ownership of the leased equipment to the le(see at the end of its term;

(b) the term of the lease or leasing is greater than 75% of the economic life of the equipment; and

(c) the net present value of the scheduled payments made under the lease or leasing, calculated in accordance with the annual imputed rate of interest used in the calculation of the scheduled payments, is 90% or more of the cost of the equipment on the day the lease or leasing is entered into. (contrat de location-acquisition)

"cost of the equipment" means, in respect of equipment that is the subject of a capital lease,

(a) in respect of new equipment, the purchase price of the equipment provided to the le(see,

(b) in respect of used equipment, the lesser of

(i) the purchase price of the used equipment, and (ii) the fair market value of the used equipment on the day on which the capital lease is entered into,

and may include, in respect of either new or used equipment,

(c) the additional costs necessary for the operation of the equipment, other than maintenance and training costs,

(d) the cost of software related to the operation of the equipment, and

(e) non-refundable taxes and customs duties, if applicable. (coût du matériel)

"lease funder" means a person wh...

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