Third

Session, 46th General Assembly

Elizabeth II, 2010

BILL 25

AN ACT TO AMEND THE LOAN AND

GUARANTEE ACT, 1957

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

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

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

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

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

HONOURABLE

THOMAS W. MARSHALL, Q.C.

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 -

Gray Aqua Group Inc.

In April

2009, the minister provided an omnibus bank loan guarantee to Gray Aqua Group Inc.

and a number of related companies under the Aquaculture Working Capital Loan

Guarantee Initiative. The purpose of the guarantee was to support the

establishment of an aquaculture salmon farming operation on the south coast of

the province. The guarantee is structured so that the guaranteed amount changes

annually based on Gray's maximum annual credit facility, with the guaranteed

amount equal to 80% of the annual maximum. The provincial exposure under the

guarantee will range from a low of $1.2 million to a high of $6.8 million and

the guarantee will expire on July 1, 2014.

Item 2 -

Newfoundland and Labrador Immigrant Investor Fund Limited

Newfoundland

and Labrador Immigrant Investor Fund Limited, a Crown corporation, was

established in April 2005 to receive and invest the province's monthly

redesigned business immigration program. Money received from immigrant

investors is to be repaid by participating provincial funds after 5 years and

each province provides a guarantee of repayment. This current amendment to the

Schedule

to the Act secures the repayment of the total of the monthly allocations in the

amount of $51,666,812 which were received by the Newfoundland and Labrador

Immigrant Investor Fund Limited during the fiscal year 2008-2009. This brings the total amount of allocations

guaranteed by the province to $201,266,132 as at March 31, 2009.

Clause 2 of

the Bill would amend the

Schedule to the Act, as enacted by

chapter 6 of 2005,

by increasing the guaranteed amount to the Stephenville Airport Corporation to $600,000.

The province has been providing guarantee support in the amount of $350,000 to

the Stephenville Airport Corporation since 2005.

A BILL

AN ACT TO

AMEND THE LOAN AND

GUARANTEE ACT, 1957

Analysis

Schedule Amdt.

2005 c6

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

Gray Aqua Group Inc.

6,800,000

Apr. 16/09

Jul. 1/14

Newfoundland and Labrador Immigrant Investor Fund Limited

51,666,812

Apr. 29/05

Jun. 30/13

May 31/14

2005 c6

Schedule Amdt.

2. The

Schedule to the Act is further amended by

amending Item 2 - Stephenville Airport Corporation, as enacted by

chapter 6 of

2005, by striking out the amount "$350,000" and substituting the

amount "$600,000".

Earl G. Tucker, Queen's Printer