Bill 9 (Legislature 17, Session 4)

L17 S4 5411

Alberta — Bills

1975 Bill 9 Fourth Session, 17th Legislature, 24 Elizabeth n THE LEGISLATIVE ASSEl\1:BLY OF ALBERTA. BILL 9 THE CO-OPERATIVE MARKETING ASSOCIATIONS GUARANTEE AMENDMENT .ACT, 1975 MR. MILLER (Lloydminster) First Reading ............................. . Second Reading ............................ . Third Reading ............................. . Printed by the Queen's Printer for the Province of Alberta, EDMONTON

Bill 9 Mr. Miller (Lloydminster) BILL 9 1975 THE CO-OPERATIVE MARKETING ASSOCIATIONS GUARANTEE AMENDMENT ACT, 1975 (Assented to , 1975) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: 1. The Co-operative Marketing Association Guarantee Act is hereby amended.

Section 2 is amended by 8triking out subsection (8) and by substituting the following:

(3) Notwithstanding subsection (1), no guarantee shall be given unless (

a) the association has first paid at least 15 per cent of the cost of acquiring the land, factories, warehouses, machinery or equipment for which th~ proposed borrowings are required, (

b) the borrowed sum is required to be repaid within a period not to exceed 20 years by installments on an annual, semi-annual or monthly basis, (

c) the association has made provision satisfactory to the Provincial Treasurer for the repayment of the guaranteed borrowings and interest, and (

d) the total amount of the liability of the Province as a guarantor under this

section will not exceed $20,000,000. ( 4) Where the borrowings of an. association have been 'guaranteed pursuant to subsection (1) and the association requires additional borrowings, the Lieutenant Governor in Council may, subject to subsections (1), (2) and (3), authorize the Provincial Treasurer to guarantee the addi tional borrowings.

(5) Where borrowings are guaranteed under this section, the lender and the association may agree that the borrow ings are to be advanced in installments and in that event, the Provincial Treasurer may execute a guarantee with respect to each installment.

Explanatory Notes I. This Bill will amend

chapter 68 of the Revised Statutes of Alberta 1970. :.4. This amendlnent increases the total amount which ma~· b~ guaranteed and makes several changes designed to clarify the operation of the section.

Section 2, subsection (3) presently reads:

(3) Notwithstanding subsection (1), no such guarantee as mentioned in that subsection shall b~ given unless (

a) the association has first paid at least 15 per cent of the co$'!: of acquiring any land, factories or warehouses and machinery, (

b) the period stipulated for the repayment of the '!?ol'rowed sum does not exceed 20 years, (

c) the association has made provision satisfactory to the Provincial Treasurer fora sinking fund adequate for the purpose of paying off the guaranteed loan and interest as and w.hen it becomes due, and (d) ,the total amount of the liability of the Province as a guarantor under this

section will not exceed $5,000,000.

Section 3 is a·mended (

a) as to subsection (1), clause (

a) by striking out subc~ause (ii) and by substituting the following: (ii) has made provision satisfactory to the Provin cial Treasurer for ,the repayment of the guar anteed borrowings and interest, (

b) as to subsection (1) by striking out clause (

c) and by substituting the following: (

c) the borrowed sum is required to be repaid within a period not to exceed 20 years by installments on an annual, semi-annual or monthly basis, (

c) by striking out subsection (8) .

Section 4 is amended (

a) as to clause (

a) by striking out subclause (ii) and by substituting the following: (ii) has made provision satisfactory to the Provin cial Treasurer for the repayment of the guar anteed borrowings and interest, (

b) by striking out clause (

c) and by substituting the following: (

c) the borrowed sum is required to be repaid within a period not to exceed 20 years by installments on an annual, semi-annual or monthly basis, and

Section 5 is amended (

a) by renumbering the

section as subsection (1), (

b) as to renumbered subsection (1) (

i) by striking out clause (

a) and by substituting the foUowing: (

a) if such sums have not been fully repaid, then the Provincial Treasurer, with the approval of the Lieutenant Governor in Council, may guarantee on behalf of the Province a further borrowing by the as sociation for the purpose of working capital, but the amount of such borrowing shall not exceed 50 per cent of the amount that has been repaid on account of the first mentioned sum borrowed, or (ii) by striking out clause (b), (

c) by adding the following su.bsection after renum bered subsection (1): 2

3. These amendments will clarify the operation of the section. Subsection (1), clauses (

a) and (

c) and subsection (3) presently read as follows: 3.

(1) If (

a) an associati~n incorporated under The Co-operative AS!::iociations Act, having as its principal object the supplying of natural gas. liquefied petroleum gas, \vater, or electrical energy or power to its members (

i) has, first paid at least 15 per cent of the amount of any capital expenditure proposed to be made by the association in carrying out its objects, and (ii) has made provision satisfactory to the Provincial Treasurer for a sinking fund adequate for the purpose of paying ofC th ... loan and interest as and when it uecomes due, {

c) the period of repayment of a uorrowing by such association does not exceed 20 years, the Lieutenant Governor in Oouncil may authorize the Provincial Tr~asurer, on behalf of the Province, to guarantee the due repayment of any sum, together with interest thereon, borrowed by the association for the purpose of acqUiring, cons'tructing, operating, maintaining and administering the pipe lines or works necessary for the canying, trans mission and distribution of natural gas, liquefied petroleum gas, water, or electrical energy, and the Provincial Treasurer, on behalf of thl' Province" may execute any instrument for the purpose of the guarantee.

(3) The provisions of

section 5 do not apply to a borro\ldng guaranleed pursuant to subs'ection (1). 4. These amendments' will clarify the operation of this section. Spction 4; clause (a), -subclause (ii) and clause (

c) presently read: 4. If (

a) an association incorporated under The Co-operative Associations Act, ha.ving as its principal object the purchase of farm mach inery for its members (ii) has made prOVision satisfactory to the Provincial Treasurer for a sinking fund adequate for the purpose of paying off the loan and interest as and when it becomes due, (

c) the period of repayment of a borrowing by such association does not exceed 20 years, and, the Lieutenant Governor in Oouncil n~ay a.uthorize the Provincial Treasurer on behalf of the Province, to guarantee the due repaymen,t of any sum. together with interest thereon, borrowed by the association for the purpose of purchasing farm machinery for its members, and the Provincial Treasurer on behalf of the Province, may eXt'cute any in strument for the purpose of the guarantee. 5. Clause (

b) which restricts second or further guarantees is removed and the working capital ceiling raised. Additional guar antees will now be covered in

section 2 and are already covered in

section

Section 5, clauses (

a) and (

b) read as follows: 5. Where the repayment of any SUlUS borrowed by an association has ueen guaranteed under

section 2, 3 or 4, (

a) if such sums have not been fully repaid, then the Provincial Treasurer with the approval of the Lieutenant Governor in Council may guarantee on behalf of the Province a further borrowing by the association for the purpose of wor!\.ing capItal, but the amount of such borrowing shall not exceed the amount that has been repaid on account of the first mentionell sum borrowed and shall not in any case exceed $10,000, or (

b) if such sums have bf'en fully repaid, then the Lieutenant Governor in Council may authorize the Provincial Treasurer to guarantee 011 behalf of the Province further borrowing by the association, but before any such guarantee is given, the capital assets of the association shall be valued by a person appointed for that purpqse by the Provincial Treasurer, and the amount of the further bor rowing so guaranteed shall not exceed 50 per cent of the value of the capItal assets of the association as ascertained by the valuer, or 2

(2) A guarantee given under this

section is in addition to and not in substitution for any other guarantee permitted under this Act.

Section 9 is st1'uck out. 7. This Act comes into force on the day upon which it is assented to. 3

G. This

section deals with a matter now covered in The Financial Administration Act, ~ection

Section 9 reads as follows: 9. Where it becomes necessary to pay a sum or sums of money under a guarantee provided for by this Act the Lieutenan.t Governor in Council may by loan raise such sum or sums of money as to him seems propel' and convenient and may apply the same in fulfilment of any such guarantee according to the terms thereof without any further or other appropriation. 3 Title: 1975 (17th, 4th) Bill 9, The Co-operative Marketing Associations Guarantee Amendment Act, 1975

Document details

Collection	Alberta — Bills
Citation	L17 S4 5411
Type	bill
Volume / chapter	L17 S4 5411
Language	en
Format	json
Source	PROVINCIAL
Identifier	a785f080266973e3ba15e0159514e5933ede08ed

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