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RSNL1990 CHAPTER H-12
HOUSING ASSOCIATION LOANS ACT
AN ACT RESPECTING GOVERNMENT
1. This Act may be cited as the Housing Association Loans Act.
2. In this Act
(a) "housing association" means a society, body of trustees or company established for the purpose of, or among whose objects or powers are included those of constructing, improving or managing or facilitating or encouraging the construction or improvement of houses; and
(b) "minister" means the minister of the Crown who may be appointed by the Lieutenant-Governor in Council to administer this Act.
3. The minister, with the approval of the Lieutenant-Governor in Council, may make loans to a housing association out of public money voted for that purpose.
Eligibility for loans
4. The Lieutenant-Governor in Council may by order limit the classes of housing associations to which loans may be made under this Act and may provide
(a) that a loan may not be granted to a housing association unless that association has raised or undertakes to raise share or loan capital in an amount which bears the relation to the amount of the loan that the Lieutenant-Governor in Council may prescribe; and
(b) that a loan may not be granted to a housing association unless it is an association which does not trade for profit or an association whose constitution or rules prohibit the raising of capital by the issue of shares, bonds or other securities with interest or dividends exceeding the rate prescribed by the Lieutenant-Governor in Council under this Act, whether with or without differentiation as between share and loan capital.
Terms and conditions of loans
5. The Lieutenant-Governor in Council may by order prescribe the terms and conditions to which loans made under this Act shall be subject and may provide for
(a) the terms of repayment of loans;
(b) the security to be given for loans;
(c) the manner in which and the classes of persons for whose benefit the loans are to be spent;
(d) securing that the expenditure on administrative and overhead expenses of an association to which a loan is made, while the loan or a part of it is outstanding, is restricted; and
(e) the maximum rate of interest or dividends to be paid by a housing association on share or loan capital while indebted in respect of a loan granted under this Act.
Further terms and conditions
6. The minister may attach to a loan made under this Act, in addition to those terms or conditions that may be prescribed by order made under section 5, those further terms and conditions that the minister considers desirable for securing the repayment of that loan and that the loan is spent in a manner that in the minister's opinion best secure the purpose of this Act.
Security for loans
7. The minister may in relation to a loan granted under this Act take mortgages, bonds or other securities and may sue for the recovery of money due in respect of that loan and may enforce a security and perform whatever acts are necessary for the purpose of securing compliance with the terms and conditions of a loan or for the recovery of money or interest or for the realization of a security.
Purchase of bonds, etc.
8. The minister may, with the approval of the Lieutenant-Governor in Council, waive the priority of the Crown over other creditors in respect of a loan under this Act and may accept bonds or other securities of a housing association with or without priority or preference as to dividends, interest or principal over other holders of those bonds or other securities.
Minister to issue securities
9. All mortgages, bonds or other securities executed, issued or given by a housing association in respect of a loan under this Act shall be made payable to the minister and all transfers or releases of those mortgages, bonds or securities shall be signed by the minister.
RSN1970 c161 s9