Bill 83 (Legislature 12, Session 1)

L12 S1 6751

Alberta — Bills

Bill No. 83 of 1953 A BILL TO PROVIDE FOR A FUND TO ASSIST RURAL ELECTRIFICATION ASSOCIATIONS IN DEFRAY ING THE CAPITAL COSTS OF SUPPLYING THEIR MEMBERS WITH ELECTRICAL POWER NOTE This Bill enacts a new Act to be known as tiThe Rural Electrification Revolving Fund Act". A revolving fund to be known as the Rural Electrification Revolving Fund is to be established. The fund will be made up of moneys advanced thereto upon the requisition of the Supervisor of Co-operative Activities, up to ten million dol lars.

Payment of loans will be made out of the fund' re payment of loans will return to the fund for further loa~ing while interest payments will go to the General Revenue Fund as earnings. Loans for terms up to ten years may be made to rural electrification associations upon appUcation, and upon com pliance with certain conditiOons relating to preliminary preparations, services and such matters. The Power Com mission will pass upon the application for the purpose of having uniform development 'and good coverage by rural electrification associations. Thereafter the Supervisor will pass upon the applicatiOon.

If approved by him, the loan will be made frOom the fund by the Provincial Treasurer upon agreed terms. The Provincial Treasurer is secured by the assets of the association but in addition the members of the association who have not fully 'paid up their contribu tions but who have contributed at least one hundred and fifty dOollars, make out to the association lien notes for the balance of their contributions.

To these the Provincial Treasurer is subrogated in the event of default by the as sociation, and as these notes, by filing notice thereof in the Land Titles Office, become a charge upon the real property to which the electrical service is brought, they constitute security for both the advance of credit by the association and the loan by the Provincial Treasurer to the association. An assOociation and a member, respectively, may pay their loan or contribution in full at any time during the period of the loan or lien note, and 'Provision fOor the making of adj ust ments in interest thereon are provided.

This Bill comes into for:ee upon assent. J. W.RYAN, Acting Legislative Counsel. (This note does not form any part of the Bill but is offered in explanation of its provisions.)

Short title Interpreta tion "association" "electriclty" "fund" "member" "note" "prescribed" "works" Rural ElectrIfica tion Revolving Fund Advances to fund Payment out of fund BILL No. 83 of 1953

An Act to Provide for a Fund to Assist Rural Electrification Associations in Defraying the Capital Costs of Supplying Their Members with Electric Power ( Assented to ,1953) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. This Act may be cited as "The Rural Electrification Revolving Fund Act". 2. In this Act, unless the context otherwise requires, (a) "association" means an association incorporated under The Co-operative Associations Act, 1946, in a rural area and having as its principal object the (b) (C) (d) (e) (f) (

g) supplying of electricity to its members; "electricity" means electric power, energy or cur rent; "fund" means the Rural Electrification Revolving Fund established by

section 3 ; "member" ·means a member of an association; "note" means a lien note of a member referred to in

section 9; "prescribed." means prescribed by regulations made pursuant to this A~t; "works" means the poles, lines, conduits and struc tures for the distribution, transmission, carrying, measuring, supplying or conveying of electric power, energy or current. 3.

(1) The Provincial Treasurer shall establish a fund to be known as the Rural Electrification Revolving Fund.

(2) From time to tim·e there shall be advanced to the fund, upon the requisition of the Supervisor of Co-operative Activities, such sums as may be required for the purposes of this Act but the amount of advances outstanding at any time shall not exceed ten million dollars. 4. Subject to the provisions of this Act payments may be made out of the fund by way of loans to associations.

2 5. MQneys received as repayment Qf principal Qf lQans Repayments, made under this Act shall be credited to' the fund and mQneys received as payment Qf interest Qn IQans shall be de- PQsited to' the General Revenue Fund Qf the PrQvince. 6. If he deems it advisable, the PrQvincial Treasurer may Unused sUlm transfer frQm the fund to' the General Revenue Fund Qf the PrQvince any sum lying unused in the fund and any sum sO' transferred shall be a reductiQn Qf the advances Qutstand- ing to. the fund. 7.

(1) Subject to' sectiQns 10, 11, 12 and 13, an associa4 Loan tiQn may apply fQr Dne Qr mQre lQans under this Act.

(2) A loan shall be fQr a periDd Qf ten years Qr such Term of IOalj lesser periQd as may be desired by the assQciatiQn and ap- prQved by ihe SupervisQr Qf CD-Dperative Activities.

(3) A IQan shall bear interest at the rate Qf three and ~~t1~~~ Dne .. half percent per annum, payable annually.

(4) A IQan shall be repaid by annual payments sufficient :re)~i~ent to' pay Qff the full amDunt Df the principal and interest within ten years Qr such lesser periDd as may have been desired and decided UPQn by the assDciatiQn and the SupervisQr Qf CQ Qperative Activities.

(5) UpQn an equitable adjustment Qf interest being made and subject to' the apprQval Qf the SupervisQr Qf CQ-Qpera tive Activities, a IQan may be 'repaid in full at any time. 8. NO' applicatiQn by an assDciatiDn for a IQan shall be g~~si~era apprQved by the SupervisQr Qf Co-Qperative Activities un- app1i~ation less the assDciatiDn cQmplies with and meets all the require- for loan ments Qf sectiQns 10, 11, 12 and 13. 9.

(1) The assQciatiQn shall Qbtain from thQse members Lien note whO' have nQt fully paid up their share Qf thecDst Qf CQn structing the works required by the associatiQn a lien nQte in FQrm A in the

Schedule (

a) payable to' the Qrder Qf the assQ,ciatiQn, (

b) in the amQunt that remains unpaid by the member to' the associatiQn, (

c) bearing interest at the rate Qf three and Qne-half per cent per annum, (

d) setting Qut (

i) the date from which interest is to' be cQmputed, (ii) the number and amount Qf the equal annual instalments Qf principal and interest by which payment Qf the nQte is to' be made, (iii) the date when each instalment Qf principal and interest is to. be paid.

(2) The nQte shall be made and signed in the presence Qf fl~~n~cfteof an o.fficer of the assQciation obtaining it and shall be certified by the officer,

3 Statement. 10. Before applying to the Supervisor of Co-operative ~p~f~Oarn~~

n) Activities for a loan the association shall furnish the Al berta Power Commission with a statement of Conditions of approval of applica tion Certificate of approval Application for loan (

a) the total estim'ated cost of constructing the works required, (-

b) the proposed route of the distribution lines, (

c) the area to be served by its works, (

d) the number of farmers in the area to be served (

i) who are willing to ac,cept service, and (ii) who are not willing to accept service from the works of the association. 11.

(1) If, after receiving an ~p~lication. f'rom an as sociation, the Alberta Power CommIssIon consIders (

a) that the ,proposed works of the association are not in the best interest of the majority of the inhabit ants in the area to be served by the works, or (

b) that the association does not contain suffident mem bers in all the circumstances of the case, or (

c) that the proposed works of the association, in the opinion of the Alberta Power Com,mission, is un economical or incapable of reasonable expansion, or not properly planned, or (

d) that any other act, matter or thing with respect to the membership, association, or works of the as sociation should first be done or made, the Alberta Power Commission may require the association to do any act or execute any agreement or instrument with in the powers of the association before it approves the ap plication of the association. 12.

If the Alberta Power Commission is satisfied that the application with respect to the works o"r member ship of the association is in order, and that the association and its proposed works are in the public interest and that the proposed plan is economically feasible, the Alberta Power Commission shall approve the appHcation and issue a ,certificate of approval thereof to the association and to the Supervisor of Co-operative A'ctivities. 13.

(1) Where an association (

a) has entered into an agreement with an electric power com'pany whereby the power company has agreed to supply the association and its members, or an extension thereof, with ele,ctricity, and (

b) has determined the cost of ,constructing the works required to supply each member of the association with electricity, and (

c) has received from its members to meet the cost of constructing the works required at least fifteen per cent of the total construction cost, and

4 (

d) has received from ea'ch member at least one hundired and fifty dollars to meet the cost of con structing the works required to supply the member with electricity, it may make an application in the prescribed form to the Supervisor of Co-operative Activities for a loan under this Act.

(2) With its application the association shall furnish the Statement to Supervisor of Co-operative Activities with a statement of ~~~~k~ti~~ (

a) the total estimated cost of constructing the works for loan required, (

b) the total a'mount of the moneys received from its members and the dis'position, if any, made of the moneys, (

c) the membership of the association and the amount each member has paid the association, (

d) the amount each member is required to pay the as sociation to meet the cost of constructing the works required to supply him with electricity and the period within which the payment is to be made, (

e) particulars concerning each lien note received by the association from a member who has not fully paid his share of the cost of constructing the neces sary works of the association. 14.

(1) Upon receipt of the Alberta Power Com,mis- Agreement sion's certificate of approval, the Supervisor of Co-operative re oan Activities in his discretion may either approve or disap- prove the loan.

(2) If the Supervisor of Co-operative Activities approves the loan he shall enter into an agreement with the associa tion in respect of the loan.

(3) The agreement shall provide for (

a) the amount of the loan and the events or times upon which advances of the loan 'are to be 'made, (

b) the amounts and periods of repayment, (

c) the duties of the association in connection with the collection of instalments of payments from the mem bers~ (

d) such other matters or things as the Supervisor of Co-operative' Activities deems advisable.

(4) When the agreement has been executed, the Super visor of Co-operative Activities shall notify the Provincial Treasurer.

(5) U'pon receipt of the notice referred to in subsection Advances (4), (

a) the Provincial T'reasurer shall advance the amolmt of the loan to the Supervisor of Co-operative Activi ties who shall advance the same to the association in accordance with the terms of the loan, and

Collections Enforcement of payment Default Notice to members Notice of loan 5 (

b) the Provincial Treasurer shall have a first charge upon all the WDrks Df the assDciation constructed and paid for WhDlly or in part DUt of the moneys loaned to the association.

(6) If default is made by the association in any Df its payments under the agreement referred' to' in subsectiDn (2) the Provincial Treasurer is suhrogated to the rights of the assDciation in respect of lien notes Df the members held by the associatiDn and may enforce 'payment of the lien nDtes in the same manner and to the same extent as the associatiDncDuld enfDrce payment. 15.

(1) The associatiDn shall cDllect from its members the amount of their annual payments and remit sU,ch mDneys to the Supervisor of Co-operative ~ctivities at the times set out in the agreement referred to in

section 14 and the SupervisDr shall ,pay the moneys to the PrDvincial T'reasurer for deposit in the fund.

(2) If default is made by a member in the due payment of any mDneys payahle by him in respect Df any lien note made by him under

section 9, all instalments payable by the member under his lien note becDme due and payable, and upon default of due payment thereDf the association shall instruct the power company to discontinue electric service to' the member in question and then in its discre tion at any time thereafter shall take such action as is necessary to enfDr;ee payment of the lien note.

(3) Notwithstanding subsection (2), if a member who is in default Df payment of instctlments in respect ofa lien note later pays the arrears of instalments, the association in its discretiDn may (a) ,cancel its instructions to the pDwer company and the pDwer company may thereafter resume electric service to' the member upon payment Df reconnection fees and other charges as are required of him, (

b) reinstate the lien nDte Df the member and there after the member shall continue to .pay the instal ments in accDrdance with the terms of his lien note. 16. After the agreement referred to' in

section 14 has been executed, the associatiDn shall advise thDse members who have made lien notes that payment of instalments is to be made to the association upon the due dates thereof. 17.

(1) Within thirty days after a loan is approved by the Supervisor O'f CO-Dperative Activities the secretary of the assDciation shall cause a notice Df the lien note in Form B in the S.chedule to' be filed in the office Df the Land Titles Office in the district in which is situated the land upon which the member resides in respect of whDm the associa tion holds a lien note.

(2) Every Registrar of Land Titles shall without fee en dorse upon the title to' the land described in the notice in

6 Form B situate in his land registration district standing in the name of the member of the association named in the notice, a memorandum in Form C in the Schedule.

(3) Upon receiving notice in writing in Form D in the Schedul~ from t~e Supervisor of Co-operative Activities that a hen note In respect of which a memorandum has been endorsed against the title of any land has been dis charged by a member, the Registrar of Land Titles shall without fee cancel the memorandum on the title to the land standing in the name of the member. 1'8.

(1) Upon the filing of a notice in For'm B the as- ~otice of sociation has a lien upon the interest of a member in the hen land to which electricity is to be conveyed by the association to the amount of the lien note of the member held by the association, which lien has the same priority as if a mort- gage under The Land Titles Act to secure the total amount of the note of the member has been registered in the proper Land Titles Office at the time at whkh the notice referred to in

section 17 was filed in such Land Titles Office.

(2) Land to which electricity is conveyed or to be con veyed by an association and in respect of which notice of a lien note has been filed shall be deemed for the purposes of this Act, not a homestead within the meaning of The Dower Act. 19.

(1) If the estim'ated :cost of constructing the works Refunds of the association exceeds the actual ,cost and the power company constru:cting the works makes a refund to the association, after making any provision that the association deemls fit for its deposit reserve, the association shall com- :pute the amount of the refund remaining and due each member. (2.) Where a lien note of a member is held by the associa tion, that member's share of the refund shall be credited as a payment on the last mentioned instal,ment or instal ments, as the case may be, set out in his lien note.

(3) Where no lien note is held by the association in re spect of a member, his share of the refund shall be paid to him in cash.

(4) Any sums credited to the instalments of members pursuant to subsection (2) shall be remitted to the Super visor of Co-operative Activities by the association irrespec tive of the dates for remittance by the asso,ciation to the Supervisor of Co-operative Activities specified in the agree ment referred to in

section 14. 20.

(1) A member may at any time with the approval ~~%~~~to}n of the association and upon such adjustment of interest as maturity is equita!ble pay a lien note in full in advance of payment of all unpaid instalments.

(2) The sums received by the association from any mem ber who pays a lien note in full in advance of all instal ments shall be remitted forthwith to the Supervisor of

Re&,ulations Priority of construction of works Supervision of Board of Public Utility Commis sioners Adminlstra lion of Act Coming into force

Schedule Form A 7 Co.-operative Activities irres,pective o.f the dates for re mittance specified in the agreement referred to. in sectio.n 14.

(3) Upo.n receipt of any sums pursuant to. subsectio.n (2) the Superviso.r o.f Co.-o.perative Activities and the asso.cia tio.n shall vary the amQunts payable under the agreement in Qrder to. compensate fo.r the change in the interest payable annually by the asso.ciation arising out o.f the depletio.n o.f the principal o.f the Io.an occasio.ned by a member's payment Qf a lien nQte in full. 21. Suibject to. the prQvisio.ns Qf this Act, the Lieutenant Go.vernor in Co.uncil, by regulatiQn, may (

a) prescribe fQrms to. be used under this Act, (

b) prQvide fQr the assignment, cQmplromise, release Qr discharge Qf any security given for a IQan, (

c) make pro.visiQn fQr any o.ther matters cQncerning which regulatiQns are deemed necessary Qr advis able to. carry out the puvpose and intentiQn Qf this A·ct. 22.

Where an electric PQwer CQmpany has entered into. an agreement with two. or more associations that have made applicatiQns fQr and received IQans under this Act whereby the electric PQwer CQmpany has agreed to. cQnstruct, main tain, repair Qr administer wo.rks to. supply electricity to. the associations and their members, the Alberta Po.wer Com missiQn may direct the company to. proceed with the CQn structio.n Qf the WQrks Qf the assQciatio.ns in the o.rder which to. it seems advisable in the public interest. 23.

Nothing in this Act shall be CQnstrued to. restrict any PQwer of the Board of Public Utility CQmmissiQners to fix rates and Qtherwise supervise the operatiQn o.f electric PQwer cQmpanies in the PrQvince. 24. This Act shall be administered 'by that member Qf the Executive CQuncil who is charged with its administra tiQn fQr the time being by the Lieutenant Go.verno.r in Council. 2,5. This Act co.mes into. fQrce Qn the day UPQn which it is assented to..

SCHEDULE FORM A (Sectio.n 9) MEMBER'S LIEN NOTE I ............................................ , Qf ............................................ in the Pro.vince Qf Alberta, .............................. , a me'mber o.f the · ........ ···· .. ··· ............................ Rural Electrificatio.n AssQciatiQn Limited, hereby pro.mises to. pay the ...................................... ..

R:ural Electrification Association Limited, within ...... . years from the .......................... day of ............................

A.D., 19 ..... , bei~g the day from which interest shall be computed, the followIng sum, that is,.............................. . .................... . dollars with interest at the rate of three and one-half per cent per annum, the said ................................... . dollars being- the amount that I have undertaken to pay the aforesaid Association to defray my share of the con struction costs of the ele'ctrical distribution works and system of the aforesaid Association and which remain un paid as of this date.

The said . . ........ dollars, with interest at the rate of three and one-half per cent per annum, shall be paid to the said Association in equal annual instalments of principal and interest in the amount and on the dates shown after each instalment as follows: 1st instalment ...... dollars on the.. '" day of ......... 19 .. .. 2nd instalment . . .. . dollars on the ........ day of ..... 19 . 3rd instalment. . ... dollars on the . day of ........... 19 .. 4th instalment. . dollars on the day of .... 19 . 5th instalment dollars on the ..day of ........ 19. 6th instalment. dollars on the. ..day of.. . ..... 19 .. 7th instalment. dollars on the ..... day of ......... 19 8th instalment '. dollars on the day of ....... 19 .. 9th instalment ......... dollars on the ....... day of ......... 19 10th instalment. dollars on the ........ day of ............ 19 ..

Until otherwise advised in writing by the Secretary of the said Association I shall pay the above instalments when due to the Secretary-Treasurer of the ...... ... ............ . Rural Electrification Association Limited at .... . in the Province of Alberta. Dated at ........ .. this. . .... day of . .. .in the Province of Alberta, .19 ... ........... , . ..... . .............. . Signature of Member The above was made and signed in my presence by the said ...... ......... . .... .this ................ day of ................... . 19 Signa ture of Officer .........................

Office in Association FORM B (Section 17) NOTICE OF LIEN Take notice that the... . Rural Electrifi,cation Associatio~" Li~it~'d of.............. .. ... .in the Province of Alberta, under The Rural Electrification Re- Form B

Form C Form D 9 volving Fund Act, holds a lien note executed and made by one ................................................ of ........................................... . in the Province of Alberta ........................................ a member ( occupation) of the said Association, dated the ......... day of .................... . 19 ... and that pursuant to the nrovisions of

section 9 of the aforesaid Act the said Association has a lien upon the interest of the said member in ................ . .. . . . . .......... . to the amount of the note of the said member held bv the said Association. which char~e has the same priority vas if a mortgage under The Land Titles Act to secure the total amount of the note of the said member had been reg istered in the proper Land Titles Office at the time at which this notice was filed in the Land Titles Office, and the said lien is to secure the nay'ment of moneys ad vanced to the ~aid Association under the said Act in part upon the security of the lien note of the aforesaid member.

Dated at .............. this...... . ..... day of ............... , 19 ..... . Secretary ........................... Rural Electrifi'cation Association Limited FORM C (Section 17 (2) ) MEMORANDUM The land comprised in this title is subj ect to a lien under The Rural Electrification Revolving Fund Act in favour of ;;:: .. ~~. ·t};~·.·.·.·.·.·.·.·.·.·.:·.·.·.·.·.d~Y·· ~f::::::::~:::::::::::: :::::::::::::::: .~~.~~i~~d .. ~~ Endorsed by me this ............... day of ...................... , 19 ...... . ............................................................

Registrar FORMD (Section 17) To the Registrar, ........................................... Land Registration District. Take notice that h~~" '~~P~i'd' '"in' i~'ii . 'tl{e' . am'ou'~t~" ~~i~g . '~pon" hi"~' . ii~~' 'n~t~

10 under The Rural Electrification Revolving Fund Act, notice of which note was endorsed by memorandum upon the title to the following land, namely and therefore the said memorandum is to be cancelled forth- with. . Dated this ............... day of ................................. , 19 ....... Supervisor of Co-operative Aetivities.

No. 83 FIRST SESSION TWELFrH LEGISLATURE 2 ELIZABETH II 1953 BILL

An Act to Provide for a Fund to Assist Rural Electrification As sociations in Defraying the Capital Costs of Supplying Their Members with Electric Power Received and read the First time. Second time Third time. HON. DR. ROBINSON Title: 1953 (12th, 1st) Bill 83,

An Act to Provide for a Fund to Assist Rural Electrification Associations in Defraying the Capital Costs of Supplying Their Members with Electric Power

Document details

Collection	Alberta — Bills
Citation	L12 S1 6751
Type	bill
Volume / chapter	L12 S1 6751
Language	en
Format	json
Source	PROVINCIAL
Identifier	18e229ab2719baf7710b9edb6fe89983ecbdfd85

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