Third

Session, 45th General Assembly

Elizabeth II, 2006

BILL 29

AN ACT TO AMEND THE

STUDENT FINANCIAL

ASSISTANCE ACT

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

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

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

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

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

HONOURABLE

JOAN BURKE

Minister of Education

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

Clause 1 of the Bill would add a

proposed subsection 4(1.1) to the Student

Financial Assistance Act to allow the minister to sign agreements on behalf

of the Student Loan Corporation of Newfoundland and Labrador .

Clause 2 of the Bill would amend

section 17.8 of the Act to allow the Student Loan Corporation of Newfoundland and Labrador to accept settlement

of debts or claims with respect to student loans that are subject to a

collections agreement entered into with the Federal government.

Clause 3 of the Bill would repeal and

replace

section 17.9 of the Act. The

changes to this

section include the correction of a typographical error in

subsection (1) and the addition of subsections (3) and (5) which would allow

the Student Loan Corporation of Newfoundland and Labrador itself to write off debts related to student loans that are subject

to a collection agreement entered into with the Federal government.

A BILL

AN ACT TO AMEND THE STUDENT FINANCIAL

ASSISTANCE ACT

Analysis

S.4 Amdt.

Agreements

S.17.8 Amdt.

Settlement

S.17.9 R&S

Write-off

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2002 cS-29.01

as amended

Section 4 of the Student Financial Assistance Act is amended by adding immediately

after subsection (1) the following:

(1.1) In an agreement made under subsection (1), the

minister may contract for and on behalf of the corporation.

Section 17.8 of the Act is amended by adding

immediately after subsection (3) the following:

(4) Notwithstanding subsections (1), (2) and (3),

with respect to a student loan administered under a collections agreement, the

corporation may accept a settlement of a debt or claim due or made on behalf of

the corporation in full settlement of that debt or claim in accordance with the

collections agreement and rules that the board may establish.

Section 17.9 of the Act is repealed and the

following substituted:

Write-off

17.9

(1) Where

it appears unlikely that an amount due to the corporation will be paid but the

amount has not been settled under

section 17.8, the Treasury Board may direct

the corporation that the deficit be written off.

(2) Notwithstanding subsection (1), the

corporation may, subject to rules that the Treasury Board may establish, write

off deficits of $1,000 or less.

(3) Notwithstanding subsections (1) and (2), with

respect to a student loan administered under a collections agreement, where it

appears unlikely that an amount due to the corporation will be paid but the

amount has not been settled under

section 17.8, the corporation may write off

the deficit in accordance with the collections agreement and rules that the

board may establish.

(4) The writing off of a deficit under subsection

(1), (2) or (3) does not affect the obligation of a person from whom the

deficit was due to pay it or the right of the corporation to recover it unless

the corporation so directs.

(5) In this

section and

section 17.8, "collections

agreement" means a memorandum of understanding relating to student loan

collections made under the integration agreement as defined in paragraph 17.3

(b).

Earl G. Tucker, Queen's Printer