Programs, Projects and Services Continuation Regulations
Regulation- Registration
- R-034-2005
- Source
- Unofficial consolidation PDF (justice.gov.nt.ca)
- Under
- Prosper NWT Act
This is an unofficial reading copy parsed from the Department of Justice consolidation PDF above — itself an office consolidation, not an official statement of the law. The authoritative text is in the Revised Statutes of the Northwest Territories, 1988 and the annual Statutes volumes.
- s.1.1 amended by R-003-2024,s.2 in force Feb. 27, 2024
- s.2 amended by R.S.N.W.T. 1988, c.107 (Supp.), as it read immediately before its repeal. (loi précédente)
- s.12 amended by R-052-2007,s.2
- s.13 amended by R-003-2024,s.3 in force Feb. 27, 2024
- s.18 amended by R-003-2024,s.4 in force Feb. 27, 2024
- s.25.1 amended by R-003-2024,s.5 in force Feb. 27, 2024
The Commissioner in Executive Council under subsection 42(5) of the Northwest Territories Business Development and Investment Corporation Act and every enabling power, makes the Programs, Projects and Services Continuation Regulations.
REGULATIONS
General
The purpose of these regulations is to facilitate the continued administration of the programs and projects that were operated by and the continued provision of services that were provided by the Northwest Territories Business Credit Corporation and the Northwest Territories Development Corporation immediately before they were dissolved.
Interpretation
In these regulations, "the Corporation" refers to Prosper NWT. R-003-2024,s.2.
Part 1
Programs of the Northwest Territories
Business Credit Corporation
In this part,
"borrower" means a person to whom a loan has been made or a bond has been provided; (emprunteur)
"former Act" means the Northwest Territories Business Credit Corporation Act, R.S.N.W.T. 1988, c.107 (Supp.), as it read immediately before its repeal. (loi précédente)
The Loans and Bonds Program is established as a program of the Corporation to continue the loans and bonds programs of the Northwest Territories Business Credit Corporation.
(1) The Loans and Bonds Program is funded out of the Loans and Investments Fund.
(2) A fund called the Loans and Bonds Fund is established in the Loans and Investments Fund.
The total amount of financial assistance available under the Loans and Bonds Program is the amount that was available under the former Act.
The maximum amount of financial assistance that may be provided to a business enterprise and any related business enterprise under the Loans and Bonds Program is $2,000,000.
(1) Applications for loans and bonds may be made to officers, employees, agents or committees designated by the Board.
(2) An application for a loan or bond shall be considered by
(a) an officer, employee, agent or committee designated by the Board to consider applications, if the amount of the loan or bond applied for does not exceed $500,000; or
(b) a committee designated by the Board to consider applications for loans or bonds that exceed $500,000, if the amount of the loan or bond applied for exceeds $500,000.
(1) A business enterprise is eligible to apply for a loan in the circumstances in which it would have been eligible to apply for a loan under the former Act.
(2) If a business enterprise is a “resident business enterprise” as defined in the former Act, it is eligible to apply for a bond in the circumstances in which it would have been eligible to apply for a bond under the former Act.
(3) The officer, employee, agent or committee considering an application shall make any determinations relating to an applicant’s eligibility that were required to be made under the former Act.
The officer, employee, agent or committee that considers an application
(a) shall reject the application for a loan or bond in the circumstances in which the former Act would require that the application be rejected;
(b) may reject the application in the circumstances in which the application could be rejected under the former Act; and
(c) may approve the application in the circumstances in which the application could be approved under the former Act and, in accordance with that Act, may specify the terms and conditions for the loan or bond and the security for the loan.
(1) If an application is rejected by the officer, employee, agent or committee that considered it, the applicant may apply to a person or committee designated by the Board for a review.
(2) A person or committee designated by the Board shall review a rejection when an application is made under subsection (1), and has the same powers to conduct a review and make a decision as the Board and the Minister had when conducting a review under the former Act.
(3) The decision of the person or committee conducting a review under this section is final.
(1) If the Corporation makes a loan or bond, it shall do so in accordance with the provisions of the former Act.
(2) A loan may include one or both of the following terms:
(a) that payment of principal may be deferred for a period up to three years;
(b) that, subject to the approval of the Financial Management Board, the interest rate may be fixed at a rate lower than the applicable rate established by section 12.
(1) In this section, "prime rate" means the annual rate of interest quoted by the bank in which the Consolidated Revenue Fund is maintained to its most creditworthy customers.
(2) The interest rate for a loan made by the Corporation is the prime rate plus an additional percentage of 2%, 3% or 4% as determined to be applicable under subsection (3).
(3) The officer, employee, agent or committee approving a loan shall determine the applicable additional percentage referred to in subsection (2) based on the level of risk associated with the loan. R-052-2007,s.2.
On receiving a loan or bond from the Corporation, the borrower shall
(a) maintain books and accounting records in a form acceptable to the Board until the business enterprise has discharged all obligations under the loan or bond;
(b) permit a person designated by the Board to have access to and examine the books and accounting records at any reasonable time; and
(c) submit financial statements to the Corporation within 190 days after the borrower’s financial year end.
R-003-2024,s.3.
The balance outstanding on a loan made by the Corporation becomes due and payable at the option of the Corporation when
(a) the borrower does not comply with section 13;
(b) the borrower is in default in respect of any payment on the loan; or
(c) the borrower ceases to be a business enterprise.
The Corporation may change the terms or conditions of a loan made or of a bond provided by the Corporation where
(a) the borrower agrees;
(b) the change is approved by the officer, employee, agent or committee that approved the loan; and
(c) the change would not be contrary to the former Act.
A loan or bond is not transferrable without the written approval of the Corporation, and any transfer without such approval is of no effect.
Part 2
Territories Development Corporation
In this Part,
"former Act" means the Northwest Territories Development Corporation Act, R.S.N.W.T. 1988, c.59 (Supp.), as it read immediately before its repeal; (loi précédente)
"job" means
(a) a job that is created in a project, subsidiary or other business enterprise as a result of its economic activity that consists of a total of 1,725 hours of employment in a year by one or more persons in one or more positions of employment,
(b) a job that is created outside of a project, subsidiary or other business enterprise as a result of its economic activity, as calculated by the Input-Output Model used by the Bureau of Statistics of the Department of Finance, and
(c) a job that is created outside of a project, subsidiary or other business enterprise as a result of the creation of a job in a project, subsidiary or business activity referred to in paragraph (a), as calculated by the Input-Output Model used by the Bureau of Statistics of the Department of Finance; (emploi)
"project" means any business endeavour that the Corporation undertakes. (projet)
(1) The Capital and Subsidy Program is established as a program of the Corporation to continue the investment, subsidy and financing programs of the Northwest Territories Development Corporation that were funded out of the Capital Fund, Subsidy Fund and Capital Reserve Fund respectively, and in respect of which the Capital Reserve Fund was maintained.
(2) The Corporation shall maintain in its name the accounts established by the Northwest Territories Development Corporation known as the Capital Fund, the Subsidy Fund and the Capital Reserve Fund, and shall deposit to those funds money contributed to the Corporation for the purposes of subsection (3).
(3) The Capital Fund and the Subsidy Fund shall be used by the Corporation, in accordance with section 22, its corporate plan and its capital budget,
(a) to operate, manage and carry on the business of projects established by the Northwest Territories Development Corporation;
(b) to incorporate, establish, manage and carry on the business of companies or corporations as approved by the Financial Management Board; and
(c) to manage and carry on the business of companies or corporations established by the Northwest Territories Development Corporation as approved by the Financial Management Board.
(4) The Corporation may, for each job directly or indirectly created in a subsidiary, pay from the Capital Fund to a subsidiary as initial investment,
(a) an amount not exceeding $100,000; and
(b) an amount exceeding $100,000, with the approval of the Financial Management Board.
(5) The Corporation may, for each job directly or indirectly created in a project or subsidiary, pay from the Subsidy Fund to a subsidiary or for the benefit of a project, a subsidy for operating costs each fiscal year
(a) in an amount not exceeding $100,000 for the project or subsidiary; and
(b) in an amount exceeding $100,000 for the project or subsidiary, with the approval of the Financial Management Board.
(6) The Corporation shall deposit to the Capital Reserve Fund an amount equal to 10% of the sum paid from the Capital Fund to a subsidiary or for the benefit of a project at the time the sum is paid to the subsidiary or for the benefit of the project.
(7) The Corporation may pay a sum from the Capital Reserve Fund to a subsidiary or for the benefit of a project as a further investment or as short-term financing, to provide the subsidiary or project with a sufficient sum to carry on its business,
(a) in an amount not exceeding $250,000; and
(b) in an amount exceeding $250,000, with the approval of the Financial Management Board.
(8) Any amount in the Capital Reserve Fund which exceeds $1,000,000 shall be paid to the Consolidated Revenue Fund.
(9) Any income received by the Corporation from a subsidiary or project shall be, firstly, used to pay the ongoing expenses of the Corporation and the remainder, if any, shall be paid to the Consolidated Revenue Fund. R-003-2024,s.4.
(1) The Venture Investment Program is established as a program of the Corporation to continue the investment and financing programs of the Northwest Territories Development Corporation that were funded out of the Venture Investment Fund and the Venture Reserve Fund respectively, and in respect of which the Venture Reserve Fund was maintained.
(2) The Corporation shall maintain in its name the accounts established by the Northwest Territories Development Corporation known as the Venture Investment Fund and the Venture Reserve Fund, and shall deposit to those funds money contributed to the Corporation for the purposes of subsection (3).
(3) The Venture Investment Fund shall be used by the Corporation to purchase shares or otherwise invest in a business enterprise as the Board considers appropriate and in accordance with section 22, its corporate plan and its capital budget.
(4) The Corporation may, for each job directly or indirectly created in a business enterprise, other than a subsidiary, purchase shares or otherwise invest in the business enterprise
(a) in an amount not exceeding $100,000; and
(b) in an amount exceeding $100,000, with the approval of the Financial Management Board.
(5) The Corporation shall deposit to the Venture Reserve Fund an amount equal to 10% of the sum paid from the Venture Investment Fund at the time the sum is paid to the business enterprise until the Venture Reserve Fund reaches $1,000,000.
(6) The Corporation may pay a sum from the Venture Reserve Fund to a business enterprise in which it has invested, other than a subsidiary, in return for shares or a larger proportion of ownership in the business enterprise or as short-term or long-term financing, to provide the business enterprise with a sufficient sum to carry on its business,
(a) in an amount not exceeding $250,000; and
(b) in an amount exceeding $250,000, with the approval of the Financial Management Board.
(7) Any income received by the Corporation from investments made from the Venture Investment Fund shall be deposited to the Venture Investment Fund.
In the case of a subsidiary or other business enterprise in which the Corporation has a majority interest, the Corporation shall not authorize payment of a dividend or a partnership draw except with the approval of the Financial Management Board.
(1) The Corporation may, in accordance with the former Act,
(a) borrow money for the purpose of providing short-term financing to subsidiaries and to other business enterprises in which it has an interest; and
(b) loan the money referred to in paragraph
(a) to subsidiaries and to other business enterprises in which it has an interest.
(2) The Government of the Northwest Territories may, in accordance with the Financial Administration Act, guarantee repayment of principal and interest of any money borrowed by the Corporation.
(1) The Board may establish the committees it considers necessary for the conduct of its business under sections 18 to 25.
(2) Subject to subsection (3), the guidelines developed by the Board of Directors of the Northwest Territories Development Corporation for investment from the Capital Fund and Subsidy Fund and from the Venture Investment Fund continue to apply, with such necessary modifications as may be required, to such investments.
(3) The Board may amend the guidelines referred to in subsection (2).
(4) In making its decisions regarding investment from the Capital Fund and the Subsidy Fund and from the Venture Investment Fund, the Board shall consider the things required to be considered under the former Act in making decisions regarding such investment.
(5) The Corporation shall not make an investment from the Venture Investment Fund unless a positive rate of return is expected within three years after the date of investment.
(6) The Board may delegate to a person or a committee the responsibility of reviewing and approving or rejecting proposals for investment by the Corporation.
(1) Subject to subsection (2), the guidelines developed by the Board of Directors of the Northwest Territories Development Corporation for the sale of a subsidiary, of a portion of the shares it owns in a subsidiary and of shares or any other interest the Corporation owns in another business enterprise continue to apply to such sales, with such necessary modifications as may be required.
(2) The Board may amend the guidelines referred to in subsection (1).
(3) If the Board amends guidelines under subsection (1), the amended guidelines
(a) are subject to the approval of the Financial Management Board; and
(b) shall include, but not be limited to, the amount for which the Corporation may sell a subsidiary, a portion of the shares it owns in a subsidiary or shares or any other interest it owns in another business enterprise without the approval of the Financial Management Board.
(4) The Board may, with the approval of the Financial Management Board, sell a subsidiary, a portion of the shares it owns in a subsidiary or shares or any other interest it owns in another business enterprise in accordance with the guidelines referred to in this section, and in making its decisions regarding a sale, the Board shall consider the things required to be considered under the former Act.
(5) The Corporation shall not, without the approval of the Financial Management Board, sell shares it owns in a subsidiary, a subsidiary or shares or any other interest it owns in another business enterprise at less than the value determined by a valuation done in accordance with the standards of the Canadian Institute of Chartered Business Valuators, as amended from time to time.
(1) Subject to subsection (2), the guidelines developed by the Board of Directors of the Northwest Territories Development Corporation for the amalgamation of a subsidiary with another company or corporation continue to apply to such amalgamations, with such necessary modifications as may be required.
(2) The Board may amend the guidelines referred to in subsection (1).
(3) The Board may, with the approval of the Financial Management Board, authorize an amalgamation of a subsidiary with another company or corporation, including another subsidiary, in accordance with the former Act and the guidelines referred to in this section.
(1) Subject to subsection (2), the guidelines developed by the Board of Directors of the Northwest Territories Development Corporation for the winding- up of a subsidiary continue to apply to the winding-up of a subsidiary, with such necessary modifications as may be required.
(2) The Board may amend the guidelines referred to in subsection (1).
(3) In making its decisions regarding the winding- up of a subsidiary the Board shall consider the things required to be considered under the former Act.
(4) The Corporation may, with the approval of the Financial Management Board, authorize a wind-up of a subsidiary in accordance with the former Act and the guidelines referred to in this section.
Operating Budget
For the purposes of subsection 29.1(2) of the Act, cash on hand may include all or part of an accumulated surplus existing in the previous fiscal year in any of the Corporation’s established funds. R-003-2024,s.5.
Commencement
These regulations come into force on the later of April 1, 2005 and the day on which they are registered under the Statutory Instruments Act.