Third

Session, 45th General Assembly

Elizabeth II, 2006

BILL 48

AN ACT TO

AMEND THE LOAN AND

GUARANTEE ACT, 1957

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 - Newfoundland and Labrador Immigrant Investor Fund Limited

Newfoundland and

Labrador Immigrant Investor Fund Limited is a Crown corporation established in April

2005 to receive and invest the province's monthly allocation of funds received

immigration program. Money received from

immigrant investors is repaid by participating provincial funds after 5 years,

and each province provides a guarantee of repayment. This guarantee of $26,088,713 for Newfoundland and Labrador

Immigrant Investor Fund Limited secures the repayment of the total of the

monthly allocations received by the fund subsequent to its participation in the

program, up to and including March 31, 2006 .

Clause 2 of the Bill would amend the

Schedule to the Act, as enacted by

chapter 11 of 1993 by extending the $50,000

loan guarantee for the Newfoundland Symphony Orchestra Association from March

31, 2005 to March

31, 2007 as approved

by Order in Council 2006-231. The

extension is necessary to provide operating credit for the association as a

result of liquidity problems it is experiencing.

Clause 3 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, 2006 to May 31, 2007 as approved by Order in Council

2006-320. The Torngat Co-op runs a

number of fish processing facilities and buying stations along the north coast

of Labrador .

The co-op also operates a crab processing plant in Makkovik and holds an

offshore shrimp licence which provides a significant portion of the co-op's revenue.

A BILL

AN ACT TO

AMEND THE LOAN AND

GUARANTEE ACT, 1957

Analysis

Schedule

Amdt.

2. 1993

c11

Schedule Amdt.

3. 2004

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

Newfoundland and Labrador Immigrant Investor

Fund Limited

26,088,713

Apr. 29/05

June 30/10 to

Apr. 30/11

1993 c11

Schedule Amdt.

2. The

Schedule to the Act is further amended by

amending Item 5 - Newfoundland Symphony Orchestra Association, as enacted by

chapter 11 of 1993, by striking out the date of expiry "Mar. 31/05"

and substituting the date of expiry "Mar. 31/07".

2004 c7

Schedule Amdt.

3. 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,

2006" and substituting the date of expiry "May 31/07".

Earl G. Tucker,

Queen's Printer