47

 

 

Second Session, 45th General Assembly

54 Elizabeth II, 2005

BILL 47

AN ACT TO AMEND THE MUNICIPAL
FINANCING CORPORATION ACT

Received and Read the First Time...................................................................................................

Second Reading.................................................................................................................................

Committee............................................................................................................................................

Third Reading.....................................................................................................................................

Royal Assent......................................................................................................................................

HONOURABLE LOYOLA SULLIVAN

Minister of Finance and President of Treasury Board

Ordered to be printed by the Honourable House of Assembly

 

EXPLANATORY NOTE

Clauses 1 and 2 of the Bill would amend the Municipal Financing Corporation Act to authorize the Lieutenant-Governor in Council to delegate to the minister the authority to approve the terms and conditions of borrowings negotiated by the corporation.

 

A BILL

AN ACT TO AMEND THE MUNICIPAL FINANCING CORPORATION ACT

Analysis


        1.   S.15 Amdt.
Guarantee of loans

        2.   S.19 Amdt.
Temporary loans


Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

RSNL1990 cM-21 as amended

        1. Subsection 15(1) of the Municipal Financing Corporation Act is repealed and the following substituted:

Guarantee of loans

     15. (1) Subject to the prior approval of the Lieutenant-Governor in Council, the minister, acting on behalf of the Crown, may unconditionally guarantee as to principal, interest, including interest on overdue interest, premium and sinking fund payments, loans, in Canadian or United States of America currency or partly in one currency and partly in the other, as the Lieutenant-Governor in Council shall determine, not exceeding the total referred to in subsection (2), to be raised by the corporation, the loan to be raised by bonds, debentures or loan notes issued by the corporation, the bonds, debentures or loan notes to be issued

             (a)  in a principal amount not exceeding the sum;

             (b)  at a rate of interest;

             (c)  on the terms and conditions; and

             (d)  with provisions for redemption at the time

that may be approved by the Lieutenant-Governor in Council, or where the authority to do so is delegated to the minister by the Lieutenant-Governor in Council, by the minister, and the bonds, debentures or loan notes may be issued or sold in the numbers and amounts, at the times, at the prices and upon the terms that the Lieutenant-Governor in Council, or the minister, may approve.

 

        2. Subsection 19(1) of the Act is repealed and the following substituted:

Temporary loans

     19. (1) Subject to the prior approval of the Lieutenant-Governor in Council, the minister, acting on behalf of the Crown, may unconditionally guarantee as to principal and interest temporary loans, other than the interim loans referred to in section 15, to be raised by the corporation, in Canadian currency, not exceeding the total referred to in subsection (2), from a source approved by the Lieutenant-Governor in Council, the loan to be repaid by the corporation within a period, not exceeding 24 months, as may be approved by the Lieutenant-Governor in Council and to be

             (a)  in a principal amount not exceeding the sum;

             (b)  at a rate of interest, including interest on overdue interest and premium;

             (c)  at the discount; and

             (d)  on those other terms and conditions

that may be approved by the Lieutenant-Governor in Council, or where the authority to do so is delegated to the minister by the Lieutenant-Governor in Council, by the minister.