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Defence Materiel Loan Regulations (C.R.C., c. 690)

Regulations are current to 2024-06-19

Defence Materiel Loan Regulations

C.R.C., c. 690


Regulations Under Section 52 of the Financial Administration Act Respecting Loans of Defence Materiel

Short Title

 These Regulations may be cited as the Defence Materiel Loan Regulations.


 In these Regulations,


materiel means all movable public property, other than money, provided for the Canadian Forces or the Defence Research Board or for any other purpose under the National Defence Act, and includes any vessel, vehicle, aircraft, animal, missile, arms, ammunition, clothing, stores, provisions or equipment so provided; (matériel)


Minister means the Minister of National Defence. (ministre)


 Materiel, having been provided for national defence purposes, shall not be loaned except as prescribed in these Regulations.

 Where the Minister, or such authority as he may designate, considers that the national interest would thereby be served, he may authorize loans of materiel

  • (a) for relief purposes in the event of civil disaster;

  • (b) to authorized law enforcement agencies in the event of civil disturbances;

  • (c) to armed forces of friendly countries;

  • (d) to civil organizations for the benefit of or in support of the Canadian Forces or of national defence and to Dominion and Provincial Rifle Associations and the Boy Scout and Girl Guide Associations;

  • (e) to civil organization for community purposes, provided that such loans do not interfere with military training or operations nor cause undue depreciation of materiel, and further provided, unless the Minister or such other authority as he may designate waives this condition, that the facilities made available through such loans of materiel are not otherwise readily obtainable through normal commercial channels;

  • (f) to departments of the Government of Canada and Crown corporations;

  • (g) for purposes directly connected with or in support of national defence, to provincial and governments and colleges and universities; and

  • (h) to contractors or other organizations or individuals engaged in work or duties for the Department of National Defence.


 A reasonable charge, computed in accordance with instructions issued by the Minister, shall be levied in respect of every loan of materiel except

  • (a) where such loans are made to the Boy Scout and Girl Guide Associations, Dominion and Provincial Rifle Associations or for community activities of a non-commercial, charitable nature or directly for the benefit of or in support of the Canadian Forces or national defence;

  • (b) in cases other than those mentioned in paragraph (a), when the Minister considers that it is in the public interest to reduce or waive the charge, in which event the Minister shall determine what rate, if any, shall be charged, but when the Minister reduces or waives a charge and the amount that the borrower is thereby absolved from paying is $1,000 or more, the Minister shall make a report to the Treasury Board.

  •  (1) All loans under these Regulations will be at no cost to the Crown unless the Minister considers it to be in the public interest for the Crown to bear all or part of the cost, in which case the Minister shall determine what part of the cost, if any, shall be charged to the borrower.

  • (2) The costs to be borne by the borrower shall include transportation costs, losses and deficiencies, and repairs and laundering where applicable.

Consumable Materiel

  •  (1) Materiel of a consumable nature shall not be loaned but may be provided for purposes not inconsistent with these Regulations when the Minister considers that the national interest would thereby be served.

  • (2) Unless the Governor in Council otherwise directs, no materiel shall be provided under this section unless

    • (a) the recipient pays to the Receiver General an amount not less than the amount that, in the opinion of the Minister, is the cost to the Crown; or

    • (b) the recipient replaces the materiel provided by returning to the Minister, at the recipient’s expense, an equal quantity of the same materiel under such conditions as the Minister may prescribe.


 Where the Minister considers such action to be appropriate, he may enter into agreements with organizations and individuals for the loan of materiel in accordance with these Regulations.

 Subject to the foregoing, the terms and conditions upon which loans may be made under these Regulations shall be as directed or prescribed by the Minister.


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