Part 2: Subsidy control requirements Chapter 2: Prohibitions and other requirements Section 19: Rescuing
This section establishes rules around subsidies designed to rescue ailing or insolvent enterprises. Subsidies of this kind are prohibited unless specific requirements are met. A rescue subsidy is one that is given temporarily to allow an enterprise to stay in business so that a restructuring plan can be prepared. An ailing or insolvent enterprise is one that would almost certainly go out of business in the short to medium term without subsidy.
	Subsection (2)(a) establishes that these subsidies are permitted only where the subsidy would prevent social hardship or a severe market failure. Subsection (2)(b) establishes that, the conditions in Subsection (2)(a) notwithstanding, rescue subsidies for ailing or insolvent enterprises should only be granted in exceptional circumstances.
	Subsection (3) establishes that rescue subsidies should only be given as temporary liquidity support, as a loan or loan guarantee, to provide time for the enterprise to prepare a restructuring plan.
	This section does not apply to subsidies for rescuing ailing or insolvent banks, other deposit takers, or insurance companies; see sections 21 to 23 for provisions for subsidies to ailing and insolvent banks, other deposit takers, or insurance companies.