Nova Scotia Order in Council 10045/2001

O.C. 10045/2001

Nova Scotia — Orders in Council

OIC Number: 2001 - 477

Date of Order: Oct 11, 2001

Statute: Municipal Finance Corporation Act

OIC Text: A.

Whereas in and by clause 8(

a) and

Section 12 of the Municipal Finance Corporation Act, being

Chapter 301 of the Revised Statutes of Nova Scotia, 1989, as amended, it is provided, among other things, as follows: 8 The Corporation may (

a) borrow or raise or secure the payment of money in such manner as the Board thinks fit by the issue and sale of notes, bonds, debentures or any other security; 12 (1)The repayment of the principal, interest and premium, if any, of any borrowings by, or any notes, bonds, debentures or securities issued by, the Corporation may be guaranteed by the Province and any such guarantees require the approval of the Governor in Council. (2)The guarantee, in such form and manner as the Governor in Council may approve, may be endorsed upon any note, bond, debenture or security issued by the Corporation and may be signed on behalf of Her Majesty by the Minister of Finance or by such other person as the Governor in Council may designate. (3)The signature of the Minister of Finance, or the person designated by the Governor in Council, upon the guarantee endorsed upon a note, bond, debenture or security of the Corporation may be engraved, lithographed or otherwise mechanically reproduced. (4)The signature of the Minister of Finance, or the person designated by the Governor in Council, upon the guarantee is conclusive proof that the relevant provisions of this Act have been complied with.

B. And

whereas clauses 72(1)(

a) and (

b) and subsection 72(5) of the Provincial Finance Act, being

Chapter 365 of the said Revised Statutes, as amended, provide as follows: 72 (1)A crown corporation shall have the legal power and capacity (a)to borrow money in or out of Canada on its own credit; (b)to issue its bonds, debentures or other securities and to sell or pledge the same; but no crown corporation shall incur any funded obligation without the approval of the Governor in Council, and the Governor in Council may from time to time by order in council make subject to its approval, or otherwise curtail, the exercise by all or any one or more crown corporations of any other power or capacity conferred by this subsection. (5)The provisions of this

Section shall apply to every crown corporation, notwithstanding anything to the contrary contained in any other Act or in the memorandum, articles, letters patent, by-laws or other corporate charter or constitution of such corporation, but shall only apply to such corporation while it is a crown corporation. C. And

whereas the Nova Scotia Municipal Finance Corporation (the "Corporation") has deemed it necessary to raise by way of loan the approximate sum of $19,370,000 in lawful money of Canada for the purposes of the Corporation; D. And

whereas the Corporation deems it expedient to borrow or raise an amount not to exceed the sum of $19,370,000 and to secure the payment thereof by the issue and sale of serial or bullet debentures of the Corporation or a combination thereof in the aggregate principal amount of approximately $19,370,000 payable in lawful money of Canada as hereinafter provided and as authorized by a Resolution of the Corporation passed at its meeting of September 19, 2001, (the "Resolution"), a copy of which Resolution is attached to the Report and Recommendation of the Minister of Finance dated September 26, 2001; E. And

whereas attached to and made part of the Report and Recommendation for this Order is a certified copy of the Resolution which authorizes the Corporation to create, issue and sell Debentures of the Corporation in the aggregate principal amount not to exceed $19,370,000 payable in lawful money of Canada, at a term not to exceed 20 years, at an all in cost to the Corporation not to exceed 7.0%, using either a serial or bullet issue (or combination thereof) depending on market conditions at the time of pricing the issue; F. And

whereas attached and made part of the Report and Recommendation for this Order is a standard form of Debenture issued by the Corporation.

Now therefore, the Lieutenant Governor, by and with the advice of the Executive Council, in and by virtue of

Chapter 301 of the Revised Statutes of Nova Scotia, 1989, as amended, the Municipal Finance Corporation Act,

Chapter 365 of the said Revised Statutes, as amended, the Provincial Finance Act, and of every other power and authority in him vested in this behalf, is pleased to order: 1. That the borrowing referred to in the Resolution of the Directors of Nova Scotia Municipal Finance Corporation attached as

Schedule "X" to the Report and Recommendation of the Minister of Finance dated September 26, 2001 be and the same is hereby approved; 2. That the raising or borrowing by way of loan of a sum not to exceed $19,370,000 by the Corporation by the issue and sale of its Debentures, in substantially the form attached as

Schedule "B" to the September 26, 2001 Report and Recommendation in the aggregate principal amount of approximately $19,370,000 payable in lawful money of Canada, which Debentures are to be dated upon original issue, to be issued on or before December 31, 2001 upon the usual terms and conditions included on the Debentures and, subject to the maximum twenty year term to maturity as provided in the Resolution, to mature in the amounts noted in the Purchase Agreement in each of the years therein mentioned and to bear interest at an average rate not to exceed 7.0% in like currency, payable semi-annually in each year, is hereby approved; 3.

That, in the event the Debentures are not acquired by the Province upon issue, upon execution as authorized herein, the Province absolutely and unconditionally guarantees to the registered holders and any subsequent registered holders of the Debentures, the payment, in the event of default by the Corporation, of the principal of the Debentures and interest thereon approved hereby, (the "Guarantee"), and that the Guarantee of the Province be appended or attached to or endorsed on each of the Debentures and be signed manually by or with the engraved, lithographed or printed facsimile signature of the Minister of Finance or the Deputy Minister of Finance of the Province, and that every such facsimile signature shall have the same force and effect as though it were a manual signature, and that although the person whose signature or facsimile signature as Minister of Finance or the Deputy Minster of Finance is appended to the Guarantee be no longer in office at the date of the issuance of any of the Debentures or on the date of their delivery, whether originally or in exchange or transfer, every such signature shall nevertheless be as fully effective and binding as though it were the manual signature of an authorized person in office at the date of issue of any of the Debentures and at the date of delivery thereof. 4.

That the Guarantee be substantially in the following form or to like effect: By virtue of the powers conferred by the Legislature of the Province of Nova Scotia and of an Order of the Lieutenant Governor in Council the Province of Nova Scotia hereby absolutely and unconditionally guarantees to the registered holder of the within Debenture the due and punctual payment, in the event of default in payment by Nova Scotia Municipal Finance Corporation, of the principal of the said Debenture and the interest thereon, as and when the same shall respectively become due and payable.

SIGNED ON BEHALF OF THE PROVINCE OF NOVA SCOTIA _____________________ Deputy Minister of Finance 5. That the Minister of Finance or the Deputy Minister of Finance be and each of them is hereby authorized to execute and deliver on behalf of the Province such documents as either of them may consider necessary and approve by their signatures respecting the borrowing herein approved. 6. That all necessary and proper proceedings be taken to effect the creation and issue of the Debentures of the Corporation.

Department(s): Finance

Document details

Collection	Nova Scotia — Orders in Council
Citation	O.C. 10045/2001
Date	2001-01-01
Type	order_in_council
Volume / chapter	2001 10045
Language	en
Format	html
Source	PROVINCIAL
Identifier	091c0ff1f739607e763d04fc8381cc8181b65383

Source file is stored in the law ingest library (html).