Second

Session, 45th General Assembly

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

A BILL

AN ACT TO AMEND THE MUNICIPAL FINANCING

CORPORATION ACT

Analysis

S.15 Amdt.

Guarantee of loans

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 Subsection 15(1) of the Municipal Financing Corporation Act is repealed and the following substituted: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

(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;

(

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

(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

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.

Earl G. Tucker, Queen's Printer