Bill 66 (Legislature 10, Session 1)

L10 S1 7591

Alberta — Bills

Bill No. 66 of 1945. A BILL TO PROVIDE FOR THE VOLUNTARY EX CHANGE OF SECURITIES ISSUED OR GUARAN TEED BY THE PROVINCE PRIOR TO 1st APRIL, 1936. NOTE. Under this Bill the Lieutenant Governor in Council is empowered to authoriz·e the Provincial Treasurer to make offers to the holders of provincial securities to exchange them for new securities. It ils provided that an offer shall state a time within which it is to be accepted, but that the time may be extended by the Lieutenant Governor in Council upon such terms and conditions as may be prescribed. Subsection (4) of

section 3 sets out what is to be provided for in the offer, including the rate of interest on the new securities not exceeding three and one-half per centum. The dates of maturity shall be not more than thirty-three years from the date when interest first accrues, and the offer may contain terms and conditions of redemption before maturity. Provision is also made for adjustment on the basis of pay ment of interest at the rate now being paid and also pay ment of sums equivalent to 6 %, 63;4 %, 81;4 % and 9 % respectively in the principal amount of outstanding se curities.

Section 4 provides for the 'creation of the new securities.

Section 6 provides for the creation of a Debt Retirement Fund for the purpose of retiring new securities, etc., and further provides that a sum of not less than $2,000,000 shall be paid into the Fund annually. By

section 7 the Provincial Treasurer is given authority to execute all documents, etc., necessary in connection with the exchange and to appoint agents to effect the exchange, etc., and to pay fees and expenses necessary for carrying out the purposes of the Act. w. S. GRAY, Legistative Counsel. (This note does not form any part of the Bill but is offered in explanation of its provisions.)

BILL No. 66 of 1945.

An Act to provide for the Voluntary Exchange of Securities Issued or Guaranteed by the Province prior to 1st April, 1936. (Assented to , 1945.) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows:

SHORT TITLE. 1. This Act may be cited as "The Pl'ovincial Securities Exchange Act."

DEFINITIONS. 2. In this A'ct,- (a) "Outstanding 'se,curities" means and includes,- (

i) bonds, debentures and Alberta Government stock issued by the Province prior to 1st April, 1936; and (ii) bonds and debentures guaranteed by the Prov ince prior to 1st April, 1936, and which may be from time to time outstanding; (b) "New securities" means and includes, bonds and debentures of the Province and Alberta Government stock which may be issued in exchange for outstand ing securities pursuant to the provisions of this Act. 3.-

(1) The Lieutenant Governor in Council may from time to time authorize the Provincial Treasurer for and on behalf of the Government of the Province to make an offer or offers to any or all of the several holders of any part or parts, or any class or clas'ses or any issue or issues of out standing securities specified in the offer, to exchange the same for new securities of the Province upon such terms and conditions, as may be prescribed by the Lieutenant Governor in Council.

(2) Any offer so authorized shall be signed by the Pro vincial Trea'surer and when so signed shall be printed and published in The Alberta Gazette, and thereupon shall become effective f.or the purposes of this Act, and a notice or

summary of the offer may be published in such manner and in such placeS' as may be approved by the Provincial Treasurer.

(3) The time within which the offer may be accepted shall be ,g.tated in the offer, but notwithstanding the time so stated, the time for acceptance of the offer may be

2 extended by order of the Lieutenant Governor in Council upon such terms and conditions as may be pres1cribed.

(4) Any offer may make provision for,- (

a) the date or dates of the new securities and the date from which interest first accrues thereon; (

b) the place or places and the currency or currencies of payment of the principal and interest of the new securities; (

c) the rate or rates of interest on the new securities not exceeding three and one-half per centum per annum payable annually or semi-annually; (

d) the form· or forms and denomination or denomina tions of the new securities; (

e) the date or dates of maturity of the new securities which shall not be more than thirty-three years from the date from which interest first accrues thereon, provided that they shall be subject to redemption in advance of maturity at any time or times after the expiration of five years from the date from which interest first accrues thereon; (/) the terms and conditions of redemption in advance of maturity including the place or places of redemp tion and the icurrency or currencies in which the new securities shall be redeemed; (

g) interest adjustments on the basis of payment of interest on or in respect of the outstanding securities at the respective rates being paid by the Province at the date of any such offer up to the date from which interest accrues on the new 'securities and thereafter at the rate of interest borne· by the new securities ; (

h) payment by the Province, in 'consideration of the acceptance of the offer by the holders of outstanding securities and the exchange of such securities pur suant thereto, to such holders of outstanding securities of such sums as may be prescribed by the ,offer but not exceeding sums equivalent to six per cent, six and three-quarters per cent, seven and one half per cent, eight and one-quarter per cent and nine per cent respectively, of the principal amount of ,such outstanding securities bearing interest at the rates of four per cent, four and one-half per cent, five per cent, five and one-half per cent and six per cent respectively, as the case may be, the payments to be made in the currency or the respec tive currencies provided by the offer; (

i) such other terms and conditions as may be deemed expedient. 4.-

(1) The Lieutenant Governor in Council may auth orize the creation of new securities of the character and in the form prescribed by the offer and in amounts sufficient to

3 carry out the prOVISIons thereof, and may authorize the issue and delivery o.f the new .securities to' such holderg, of outstanding se:eurities as may accept the offer and deliver their outstanding securities in exchange therefor, and the Provincial Treasurer may pay to' such hO'lders of Dutstanding securities from the G€neral Revenue Fund of the Province the moneys neces1sary to. carry out the terms of said offer.

(2) Any new securities so authDrized to be created but nDt issued and delivered pursuant to' the terms of any offer, shall be cancelled.

(3) The principal amDunt of the new securities which may he issued and delivered by the Province in exchange for such .outstanding securities, ,shall not eX!ceed the principal amDunt of the outstanding s-ecurities for which they are exchanged.

(4) The principal of the new securities-and the interest ·thereon shall' be charged Qn and paid out of the General Revenue Fund. .

(5) The prDvisions of subsectiDn

(2) Df secti.on 11 of The Provincial Loans Act shall apply to. the new securities. 5. All outstanding s~curities received by the Province in exchange fQr the new securities shall be cancelled except securities guaranteed by the Province which may be can celled by Order of the Lieutenant GovernQr in Council. 0.-

(1) The ProviIl:cial Treasurer shall create a Debt Retirement Fund f.or the purpose Qf retiring the new securities, any -outstanding securities which are nDtex changed for new securities, and any securities which may be issued hereafter for the purpo.se of refunding any such ne~ securities or outstanding Isecurities, and shall while any Qf the said securities remain .outstanding, pay into. the said Fund o.ut Qf the General Revenue Fund in each fiscal year, a sum of not less than TwO' Million Dollars; Provided that any excess of Two Millio.n Dollars paid into the Fund in any fiscal year may be applied by the Provincial Treasurer in reduction of the amount required to be paid into the Fund in any subsequent year.

(2) The Provincial Treasurer may, from time to time, utilize the Debt Retirement Fund in such manner as he may deem expedient for the purchase or redemption of new Isecurities, outstanding securities and any securities here after issued to. refund the new securities or o.utstanding securities- and any securities: so purchased Qr redeemed shall be cancelled.

(3) The Provincial Treasurer may invest funds of the Debt Retirement Fund in bonds of the DQminiQn of Canada. 7. For the purposes of this Act, the Provincial Treasurer may,- (

a) execute all deeds, transfers and other documents and do. all things necessary or advisable to' effec-

4 tively carry out the terms and ,conditions of any offer and the exchange of outstanding securities for new 1securities,; (

b) appoint agents to effect the ex:change, to make pay ments or adj ustments necessary to effect the exchange in accordance with the offer and to act as registrar, transfer agent, paying agent, or in any other necessary or advisable capacity in connection with the new securities and the exchange thereof for outstanding securities; (

c) payout of the General Revenue Fund, all fees, 'charges or expenses incurred for the purpose of carrying out the provisions of this Act. 8. The Lieutenant Governor in Council may make regula tions 'Or provisions,- (

a) relating to the inscripti'on, registration, transfer and execution 'Of the new securities; (

b) prescribing the manner in which the signature or s.ignatures may be made on or affixed to the new securities and the coupons attached thereto, and may provide that the signature or s,ignatures may be printed, engraved, lithographed or otherwise ,mech amically reproduced, and the mechanically repro duced signature oOr signatures shall f'Or all purposes be valid and binding upon the Province, notwith standing that any person whose signature is so reproduced has ceased toO hold office before the date of the new securities or bef,ore the issue thereof. 9.

Any bonds, debentures or oOther securities heretoOfore issued or guaranteed by the Province and now held in any Sinking Fund and in the Special Investment Fund of the Province may be cancelled by Order of the Lieutenant Governor in Council. 10. In case there is any conflict between the provisions of this Act and The Provincial Loans Act, being

chapter 53 of the Revised Statutes of Alberta, 1942, the pr'Ovisions of this Act shall prevail. 11. This Act shall come into force 'On the day upon which it is assented to.

No. 66. FIRST SESSION TENTH LEGISLATURE 9 GEORGE VI 1945 BILL

An Act to provide for the Voluntary Exchange of Securities Issued or Guaranteed by the Province prior ,to 1st April, 1936. Recei ved and read the First time ......................................... . Second time ..................................... . Third time ............ . HON. MR. MANNING. EDMONTON: A. Shnitka, King's Printer 1945 Title: 1945 (10th, 1st) Bill 66,

An Act to provide for the Voluntary Exchange of Securities Issued or Guaranteed by the Province prior to 1st April, 1936

Document details

Collection	Alberta — Bills
Citation	L10 S1 7591
Type	bill
Volume / chapter	L10 S1 7591
Language	en
Format	json
Source	PROVINCIAL
Identifier	a8622bce0267368ffd5776f595f394fd3272cb71

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