Second

Session, 45th General Assembly

Elizabeth II, 2005

BILL 62

AN ACT TO

AMEND THE LOAN AND

GUARANTEE ACT, 1957 NO. 2

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 NOTES

Clause 1 of the Bill would amend the

Schedule to The Loan and Guarantee Act, 1957 as

follows:

Item 1 - Natures Sea Farms Inc.

Natures Sea Farms Inc. has purchased the assets of an aquaculture

business which has been in receivership since October, 2004. Order in Council 2005-543 authorized the

Minister of Finance to issue an 80% deficiency guarantee under the Aquaculture Working

Capital Loan Guarantee Initiative in support of the company's $9 million

operating credit. The maximum amount of

the province's guarantee is $7.2 million.

The guarantee is for a maximum term of 7 years, with reductions to be

made according to pre-established targets.

Clause 2 of the Bill would amend the

Schedule to the Act, as enacted by

chapter 7 of 2004, by extending the $2.1 million

loan guarantee for the Torngat Fish Producers Co-operative Society Limited from

May 31, 2004 to May 31, 2006 as approved by Order in Council 2005-503.

A BILL

AN ACT TO

AMEND THE LOAN AND

GUARANTEE ACT, 1957 NO. 2

Analysis

Schedule

Amdt.

2. 2004 c7

Schedule Amdt.

Be it enacted

by the Lieutenant-Governor and House of Assembly in Legislative Session convened,

as follows:

1957 No.70

as amended

1 . The

Schedule to The Loan and Guarantee Act,

1957 is amended by adding the following:

Company

Amount

Date of Issue

Expiry Date

Natures Sea Farms Inc.

7,200,000

Oct. 12/05

Oct. 12/12

2004 c7

Schedule Amdt.

2. The

Schedule to the Act is further amended by

amending Item 3 - Torngat Fish Producers Co-operative Society Limited, as

enacted by

chapter 7 of 2004, by striking out the date of expiry "May

31/04" and substituting the date of

expiry "May 31, 2006".

Earl G. Tucker,

Queen's Printer