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For the official version of the regulations, consult the original documents on file with the Office of the Registrar of Regulations , or refer to the Royal Gazette

Part II .

Regulations are amended frequently.

Please check the list of Regulations by Act to see if there are any recent amendments to these regulations filed with our office that are not yet included in this consolidation.

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Fisheries and Aquaculture Loan Board Regulations

made under

Section 42 of the

Fisheries and Coastal Resources Act

S.N.S. 1996, c. 25

O.I.C. 2018-308 (effective December 11, 2018), N.S. Reg. 207/2018

as amended to O.I.C. 2025-278 (effective October 7, 2025), N.S. Reg. 216/2025

Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.

Click here to go to the text of the regulations .

Citation

Definitions

Purpose of loans

Eligibility for loans

Applying for loan

Requirements for loan for licence or quota purchase

Processing applications

Application fee and legal costs

Deposits for loans

Approved builders

Appraisal

Loan limit

Loans requiring Governor in Council approval

Insurance

Security

Security document

Combining or transferring loan

Interest rate, terms and amortization

Prepayment under closed-prepayment loan

Annual prepayment options under closed-prepayment loan

Determining interest rate

Prescribed fees

Citation

1 These regulations may be cited as the Fisheries and Aquaculture Loan Board

Regulations .

Definitions

2 In these regulations,

“Act” means the Fisheries and Coastal Resources Act ;

“applicant” means an applicant for a loan;

“boat” means a watercraft, of any type, that is fully equipped and ready to be used

in the fishing industry;

“borrower” means an individual, partnership or body corporate that has been

granted a loan;

“engine” means an engine used to propel or provide auxiliary power to a boat, and

includes

(

i) an inboard engine, a clutch, reduction gears, a shaft, a propeller,

controls and any other accessory that properly forms part of the

mechanism for propelling the boat, and

(ii) an outboard engine;

“equipment”,

(

i) in relation to a boat used in the commercial fishery, includes any of

the following:

(

A) mechanical, electrical or hydraulic devices used for fishery

operations,

(

B) safety devices such as life rafts,

(

C) any gear the Board considers to be essential to the intended

activity of the boat,

(ii) in relation to an aquacultural operation, includes any hardware or

materials pertaining to the aquacultural operation, including

buildings, rafts, buoys, floats, pumps, anchors, nets and cages;

“fee”, in relation to a fee payable to the Board, means the applicable fee

established by the Minister under clause 6(

j) of the Act;

“hull” means a boat exclusive of engine and equipment;

“loan” means a loan made by the Board under the Act and these regulations;

“partnership” means a partnership as defined in the Partnership Act .

Purpose of loans

(1) A loan may be for any purpose relating to the fishing industry in the Province,

including any of the following:

(

a) purchasing or building a hull or boat;

(

b) purchasing and installing an engine or equipment in a boat;

(

c) purchasing a licence or quota;

(

d) converting, modifying or upgrading an existing boat;

(

e) refinancing or combining loans of a borrower;

(

f) developing or enhancing aquaculture facilities;

(

g) providing working capital for a business in the fishing industry;

(

h) purchasing seed stock, seed or spat for use in aquaculture;

(

i) any other purpose that is in accord with the object and purpose of the Board

set out in

Section 28 of the Act.

(2) The Board must not make a loan guarantee for the purpose of replacing existing

financing.

(3) The Board may set policies and priorities for loans and loan guarantees.

Eligibility for loans

4 To be eligible for a loan,

(

a) an individual must meet all of the following requirements:

(

i) they must be a Canadian citizen or be able to satisfy the Board of

their intention to become a Canadian citizen,

(ii) they must be at least 19 years old at the time of their application,

(iii) they must have adequate experience, training or education in the

fishing industry,

(iv) they must be able to adequately protect the assets to be used as

security for the loan during the term of the loan, including by

obtaining and keeping insurance as required by

Section 14;

(

b) a partnership must have a representative who satisfies the requirements for

an individual in clause (a);

(

c) a body corporate must meet all of the following requirements:

(

i) it must be in good standing under the laws of the jurisdiction in

which it was incorporated,

(ii) it must be registered with the Nova Scotia Registry of Joint Stock

Companies,

(iii) it must commit to not transfer voting control in whole or in part

during the term of the loan without prior written notice to the Board,

(iv) its officers, directors, employees or agents must have adequate

experience, training or education in the fishing industry,

(

v) it must be able to adequately protect the assets to be used as security

for the loan during the term of the loan, including by obtaining and

keeping insurance as required by

Section 14.

Applying for loan

5 An applicant must submit all of the following to the Board:

(

a) the application fee set out in

Section 8;

(

b) a statement of the purpose of the loan;

(

c) a business plan in a form acceptable to the Board;

(

d) complete details of the costs relating to the loan, including appropriate

quotations from any suppliers or contractors;

(

e) the applicant’s written agreement to obtain and keep insurance on the assets

to be used as security for the loan on terms satisfactory to the Board, and to

assign the insurance to the Board;

(

f) for an application by an individual, a signed statement of assets and

liabilities;

(

g) audited financial statements or financial statements satisfactory to the

Board;

(

h) for an application by a partnership,

(

i) the full name of each of the partners, together with a statement of

each partner’s interest in the partnership, and

(ii) a signed partnership agreement in a form acceptable to the Board;

(

i) for an application by a body corporate,

(

i) the names of its officers and directors,

(ii) the names of all persons who have subscribed for shares, with a

statement showing the amount paid up on all shares authorized or

issued,

(iii) a certified copy of a special or extraordinary resolution of its

shareholders authorizing it to borrow money, and

(iv) evidence that it is in good standing issued by the Registrar of Joint

Stock Companies or equivalent authority in the jurisdiction in which

it was incorporated;

(

j) any additional information that the Board requires to assess the application.

Requirements for loan for licence or quota purchase

6 In addition to the requirements for all applications set out in

Section 5, an applicant for a

loan for the purchase of a licence or quota must provide the Board with the following:

(

a) for a loan to purchase a licence, evidence that the applicant meets all

requirements prescribed by a federal or a provincial body for holding the

proposed licence;

(

b) for a loan to purchase a licence or quota issued under the Fisheries Act

(Canada), a completed form “Notice to Department of Fisheries and Oceans

of a Financial Arrangement with an Eligible Lender” published by the

federal Department of Fisheries and Oceans Canada; and

(

c) for a loan to purchase a licence issued under the Act, confirmation that the

assignment of the licence has been approved by the Administrator under

Section 58 of the Act.

Processing applications

7 The Board may establish guidelines for and the manner in which loan applications are to

be processed by staff.

Application fee and legal costs

(1) The application fee for a loan other than a loan for vessel construction is as set out

in the following table:

Loan Amount

Fee (plus applicable taxes)

Up to and including

$20 000 000

0.25% of the amount

of the loan being

applied for

minimum fee: $400

maximum fee: $2000

Over $20 000 000

$3000

(2) The application fee for a loan for vessel construction is as set out in the following

table:

Loan Amount

Fee

(plus applicable taxes)

up to and including $15 000

$311.00

over $15 000 and up to and including $150 000

$498.35

over $150 000 and up to and including $450 000

$1495.15

over $450 000 and up to and including $750 000

$3737.00

over $750 000

$6229.00

(3) The Board may include the legal costs to close a transaction as part of the loan

amount.

(4) If an application is processed, but is withdrawn by the applicant before completion,

the applicant is liable for all legal costs incurred by the Board in processing the

application.

(5) If an application is not approved, the Board may refund 25% of the application fee

to the applicant.

Deposits for loans

(1) The Board may require an applicant to pay a minimum deposit, as determined by

the Board, on the total loan amount approved by the Board.

(2) A deposit is payable to the Board by an applicant immediately on notification by

the Board that, subject to receipt of the deposit, the loan is approved.

(3) A deposit must be credited to the borrower’s account and must be used as part or

all of the first progress payment of the loan.

Approved builders

(1) In this Section, “builder” means a person engaged in constructing, converting,

modifying or upgrading boats.

(2) Any work to be carried out with loan assistance must be carried out by a builder

(3) [repealed]

(4) Before the start of any work to be carried out with loan assistance, plans and

specifications for the work must be approved by Board technical staff or qualified

agents of the Board.

Appraisal

(1) The Board may at any time require the appraisal of any assets used to secure a loan

to determine the sufficiency of the Board’s security.

(2) The borrower is responsible for the cost of any appraisal required by the Board

under subsection (1).

Loan limit

(1) Except as provided in subsection (2), the maximum amount of a loan is 90% of the

appraised value of the assets securing the loan.

(2) The Board may lend additional funds to an applicant or a borrower based on any of

the following:

(

a) the Board’s assessment of all of the following:

(

i) the managerial ability of the applicant or the borrower,

(ii) the ability of the fishery or aquacultural operation to repay the loan,

(iii) the value of other security items;

(

b) the Board’s assessment of development policy factors of the Department or

the Board.

Loans requiring approval

13 The amounts set out in the following table are prescribed for the purposes of

Section 38

of the Act as the amounts requiring the approval of the Minister or of the Governor in

Council, as specified, of a loan or guarantee of loan in excess of any amount that would

result in the borrower’s total indebtedness to the Board exceeding $5 000 000:

Loan Approvals

Total Indebtedness of Borrower to Board

Approval Required

Over $5 000 000 and up to and including $20 000 000

Minister

Over $20 000 000

Governor in Council

Insurance

14 A borrower must obtain and keep insurance on terms satisfactory to the Board on the

assets to be used as security for the loan, and must assign the insurance to the Board.

Security

(1) The Board may take any security or guarantee that it considers appropriate for any

loan and enforce the security or guarantee in accordance with its terms and

conditions.

(1A) The Board may release any security or guarantee on any loan, including a loan or

by the Board if the release does not change the risk to repayment of the loan as it

was originally approved.

(2) The Board may make any payments necessary to protect the security of a loan, and

the borrower is liable for any amounts paid by the Board under this subsection.

(3) In enforcing security held under this Section, the Board may do any of the

following:

(

a) advance money to a receiver;

(

b) guarantee the accounts of a receiver;

(

c) pay or guarantee a payroll of a borrower in default under the security;

(

d) expend money in attracting a person to revive, take over or re-establish a

borrower’s business.

(4) It is a term and condition of each loan that the Board may add to the amount of the

loan the amount of any fees and expenses incurred by the Board to register any

security the Board requires for the loan.

Security document

16 The security documents securing a loan must together contain all of the following

covenants:

(

a) that the borrower will repay the loan in accordance with the following, all to

be specified in the security document:

(

i) the amortization period and interest rate,

(ii) the payment schedule, specifying whether the loan payments are to

be made weekly, bi-weekly, semi-monthly, monthly, bi-monthly,

quarterly, semi-annually or yearly,

(iii) the dates and times when and place where loan payments are to be

made;

(

b) that the borrower will keep all secured property, both real and personal,

including improvements to the property, in good condition and state of

maintenance and repair;

(

c) that the borrower will maintain and comply with all relevant standards and

requirements for the secured property, including any relevant registrations,

inspections and licences;

(ca) that the borrower will not take any action that may devalue the secured

property without the prior written permission of the Board;

(

d) for an aquacultural operation, that the borrower will not remove any chattels

from the aquaculture site without the prior written permission of the Board;

(

e) that, if required by the Board, the borrower will provide the Board with

detailed financial statements covering the borrower’s operations and any

additional information about their operations that the Board specifies,

including copies of personal or corporate tax returns.

Combining or transferring loan

(1) If a borrower obtains additional funds from the Board at an interest rate different

from that charged on existing indebtedness to the Board, the total indebtedness to

the Board may be combined into 1 principal balance with 1 repayment

schedule at

the composite interest rate.

(2) If a borrower that is a partnership or body corporate is dissolved and 1 or more of

its partners or shareholders will continue as the borrower, the Board may transfer

the balance of the existing loan at the interest rate and on the same terms and

conditions that applied to the existing loan.

(3) If a borrower that is an individual or partnership forms a body corporate to include

the assets held by the Board as security for the loan, the Board may transfer the

balance of the existing loan to the body corporate at the interest rate and on the

(4) The Board may require a party to a loan transfer under subsection (2) or (3) to

provide any information or submit any documentation that the Board considers

necessary to complete the transfer.

Interest rate, terms and amortization

(1) Subject to any deferral or adjustment under subsection (4), the interest rate,

amortization period and term of a loan must be established in accordance with 1 of

the following options:

(

a) a fixed interest rate for an amortization period to a maximum of 30 years

with the loan of the same term;

(

b) a fixed interest rate for a specified term of years with an amortization period

to a maximum of 30 years;

(

c) a variable interest rate for a specified term of years with an amortization

period to a maximum of 30 years.

(2) A loan may be

(

a) open for prepayment at any time during the term of the loan; or

(

b) a closed-prepayment loan in accordance with Sections 19 and 20.

(3) The Board may reduce the amortization period of a loan if, in the opinion of the

Board, conditions warrant the reduction.

(4) The Board may defer or adjust payment of principal, interest and other accruals on

any loan, including a loan previously approved under

Section 13, for any length of

time the Board considers necessary to do any of the following

(

a) to permit the borrower to establish a business;

(

b) to permit the borrower’s business to recover, if the business is suffering

economic hardship as a result of reduced income;

(

c) to permit a financed asset to become operational.

(5) A deferral under subsection (4) must be capitalized.

(6) At the request of a borrower under an open-prepayment loan dated on or before the

date these regulations come into force, the Board may replace the existing loan

existing loan, except that any prepayment under the new loan is subject to the

prepayment fee referred to in

Section 19 and to the prepayment options referred to

Section 20.

Prepayment under closed-prepayment loan

(1) A borrower under a closed-prepayment loan who is not in default under the loan

may, at any time during the term of the loan, prepay the whole or any part of the

loan on payment to the Board of a prepayment fee in an amount equal to the

greater of

(a) 3 months’ interest on the loan balance at the established interest rate; and

(

b) interest calculated using the interest rate differential for the period remaining

in the term of the existing loan or 5 years, whichever is shorter.

(2) In clause (1)(b),

“interest rate differential” means the difference between an existing loan’s actual

interest rate and the interest rate that would be applicable to a new loan with a

term, calculated in number of months, equivalent to the period remaining in the

term of the existing loan.

Annual prepayment options under closed-prepayment loan

(1) A borrower under a closed-prepayment loan may, if not in default under the loan,

exercise 1 of the following prepayment options once in each calendar year:

(

a) to increase the amount of each payment of principal and interest by an

amount no greater than 10% of the current amount of a payment of principal

and interest;

(

b) to pay down the principal of the loan, without payment of interest, in an

amount that is no greater than 10% of the original amount of the loan,

unless the Board accepts a higher amount in accordance with subsection (2).

(2) The Board may accept, without the payment of interest, a payment that exceeds the

10% limit specified in clause (1)(b), but only if the Board is satisfied that 1 of the

following special circumstances exists:

(

a) proceeds from property insurance on secured assets have been recovered;

(

b) proceeds have been recovered from a subsidy or grant that has been

assigned to the Board;

(

c) proceeds from life insurance on the death of an insured borrower have been

recovered;

(

d) the Board refinances the existing loan with a loan of similar terms and

outstanding principal but that bears a higher interest rate;

(

e) the initial loan approval included a condition that allowed proceeds from the

sale of real or personal property to be applied to the loan.

Determining interest rate

(1) The minimum interest rate for a loan is the Government of Nova Scotia’s all-in

cost of borrowing on similar terms plus 0.50% for the relevant term, including any

prepayment options permitted by

Section 20.

(2) Subject to the minimum interest rate in subsection (1), the Board must fix interest

rates based on the cost of borrowing for the Government of Nova Scotia provided

quarterly by the Department of Finance and Treasury Board and adjusted to

include any markup that the Board considers appropriate.

(3) The Board may adjust the interest rate on an individual loan for any of the

following factors:

(

a) business risk factors, including debt servicing capacity, security and the

management ability of the borrower;

(

b) development policy factors of the Department of Fisheries and Aquaculture

and the Board.

Prescribed fees

(1) Subject to subsections (2) and (3), the fees payable to the Board by borrowers are

as set out in the following table:

Fees Payable to Board

Type of Fee

Fee

(plus any applicable taxes)

Mortgage release fee

$50.00

Refinancing fee

lesser of:

0.125% of loan balance or $100.00

Mortgage assumption fee

$310.00

Loan guarantee fee

1.5% on the outstanding balance, paid

annually

Fee for preparing deed, mortgage,

agreement of sale, chattel mortgage,

lease or any related document

$124.00

Fee for preparing detailed financial

statements, searching legal records and

providing statistical data

$62.00

File review fee

$100.00

Insufficient funds fee

$35.00

(2) The Board may charge to a loan account any fees charged by an external agency

for registration or release of registration of the Board’s security interest.

(3) The Board may exempt a borrower from the file review fee if the borrower meets

the reporting requirements set out in their loan agreement.

Legislative History

Reference Tables

Fisheries and Aquaculture Loan Board Regulations

N.S. Reg.

207/2018

Fisheries and Coastal Resources Act

Note: The

information in these tables does not form part of the regulations and is

compiled by the Office of the Registrar of Regulations for reference only.

Source Law

The current consolidation of the Fisheries and Aquaculture Loan Board Regulations made

under the Fisheries and Coastal Resources Act includes all of the following regulations:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

207/2018

Dec 11, 2018

date specified

Dec 21, 2018

29/2020

Feb 20, 2020

date specified

Mar 13, 2020

216/2025

Oct 7, 2025

date specified

Oct 17, 2025

The following regulations are not yet in force and are

not included in the current consolidation:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

*See subsection 3(6) of the Regulations Act for

rules about in force dates of regulations.

Amendments by Provision

ad. = added

am. = amended

fc. = fee change

ra. = reassigned

rep. = repealed

rs . = repealed and substituted

Provision affected

How affected

5(a) ...................................................

am. 29/2020

8 ........................................................

rs . 29/2020

8(1) ..............................................

am. 216/2025

8(2) ..............................................

am. 216/2025

10(3) .................................................

rep. 216/2025

12(2) .................................................

rs . 216/2025

13 ......................................................

rs . 216/2025

15(1) .................................................

am. 216/2025

15(1A) ..............................................

ad. 216/2025

16(b) .................................................

am. 216/2025

16(c) .................................................

am. 216/2025

16(ca) 1 ..............................................

ad. 216/2025

18(4) .................................................

am. 216/2025

18(4)(a) ........................................

am. 216/2025

18(4)(b) .......................................

am. 216/2025

18(4)(c) ........................................

ad. 216/2025

19 ......................................................

rs . 29/2020

20(2) .................................................

am. 216/2025

20(2)(d) .......................................

am. 216/2025

20(2)(e) ........................................

ad. 216/2025

22 ......................................................

ad. 29/2020

22(1) ............................................

rs . 216/2025

Note that changes to headings are not

included in the above table.

Editorial Notes and Corrections:

Note

Effective

date

Clause 16(cc) added by N.S. Reg. 216/2025 redesignated

as 16(ca) for the purposes of this consolidation.

Repealed and Superseded:

N.S.

Regulation

Title

In force

date

Repealed

date

191/1980

Fisheries and

Aquaculture Loan Regulations

Dec 16, 1980

Dec 11, 2018

Note: Only

regulations that are specifically repealed and replaced appear in this

table. It may not reflect the entire

history of regulations on this subject matter.