Bill 69 (Legislature 3, Session 1)

L3 S1 10581

Alberta — Bills

BILL No. 69 of 1913 (Second Session).

An Act to authorize the Guarantee of Certain Securities of the Central Canada Railway Company. (Assented to 1913.) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1.

The Lieutenant Governor in Council is hereby author ized on such terms and conditions not inconsistent with the provisions of this Act as may be agreed upon with the Cen tral Canada Railway Company (hereinafter called the com pany) to guarantee the payment of the principal and interest of the bonds, debentures, debenture stock or other securities (hereinafter called the securities) of the company in respect of that portion of the line of the company's railway from a point where the said railway joins the Edmonton, Dun vegan and British Columbia Railway to a point at or near Peace River Landing, thence in a general westerly direction to a point in township eighty-one (81), range four (4), west of the sixth principal meridian, a total distance of one hun dred miles, to the extent of twenty thousand dollars ($20,. 000) per mile of such line. 2.

The certificate of the Minister of Railways and Tele phones of the Province of Alberta as to the mileage of the said line of railway shall, for the purposes of this Act and of the guaranteed securities, be conclusive, but the said Min ister may issue interim certificates from time to time based upon the estimated mileage of the said line, or fixing tem porarily the mileage with regard thereto. Final certificates shall be ultimately issued by the said Minister with regard to the said line to accord with the miles and fractions of miles of the said line actually constructed between the points authorized.

The said securities may be made payable in whole or in

part in lawful money of Canada or in its equiv alent in sterling or other money. Interest thereon shall be payable at the rate of four and one-half per cent. per annum half-yearly. The principal shall be payable in thirty years from the passing of this Act. 3.

The said securities shall be secured by one or more deeds of trust by way of mortgage or charged to a trustee or trustees approved by the Lieutenant Governor in Council and such deed or deeds of trust shall grant a first mortgage or charge upon the line of railway included therein and with respect to the mileage of which the securities secured thereby are issued, and the rolling stock and equipment, present and future, acquired for the purposes of the said line so in cluded in such deed or deeds of trust respectively, and the tolls, revenues and income :}rising and to arise therefrom, and the rights, privileges, franchises and powers of the com pany now or hereafter held or enjoyed in respect of the said line and the operation and maintenance thereof.

2 4. The kind of securities to be guaranteed, and the form and term:-~ Uicrcof, and U10 form and 1ict'lliK of i.he deed or deeds of trust by way .of mortgage securing them, aml the times and manner of the issue of the securities, and the dis position of the moneys to be raised thereon hy Kale, pledge or otherwise, pending the expenditure of such moneys for the purposes of the said line of railway, and the form and manner of the guarantee or guarantees from time to time or at any time given in respect thereof shall be such as the Lieutenant Governor in Council may approve. 5.

The said guarantee or guarantees shall be signed by the Provincial Treasurer or such other officer as may be designated by the Lieutenant Governor in Council and upon being so signed the Province of Alberta shall become liable for the payment of the principal and interest of the securi ties guaranteed according to the tenor thereof, and the Lieutenant Governor in Council is hereby authorized to make arrangements for supplying the money necessary to fulfil the requirements of the said guarantee or guarantEes and to advance the amount necessary for that purpose out of the general revenue of the province, and in the hands of any purchaser, pledgee or other person acquiring any of such securities the said guarantee or guarantees so signed shall be conclusive evidence that the requirements of this Act with respect to the guaranteed securities and the deed of trust and all matters relating thereto have been complied with. · 6.

All moneys realized by sale, pledge or otherwise of the securities hereby authorized shall be paid directly by the purchaser, subscriber, pledgee or lender into a bank or banks approved by the Lieutenant Governor in Council to the credit of a special account in the name of the Treasurer of the Province or to such other credit as the Lieutenant Gov ernor in Council may direct; and if money be borrowed by tte company upon pledge or otherwiEe of any of the securi ties prior to sale thereof, which money shall be paid in as aforesaid, the amount so paid in shall be deducted from the purcha~:e price sub~equently received for the securities so borrowed upon, and the balance only shall be paid in; and securities borrowed upon may after the loans thereon have been paid or discharged by the company be issued or re issued, and shall be secured by the said deed or deeds of trust and entitled to the benefit thereof notwithstanding such loans and payments or discharge.

The balances at the credit of the special account or accounts shall be credited with interest at such times and at such rates as may be agreed upon between the company and the bank holding same and the said balances shall from time to time be paid out to the company or its nominees in monthly payments as far as is practicable as the construction of the line of railway is proceeded with to the satisfaction of the government according to the specifications fixed by contract between the government and the company, and from time to time as the said work of construction proceeds the government shall out of the said balances pay to the company or its nominees in monthly payments as far as is practicable such sums as an engineer appointed by the Lieutenant Governor in Council shall certify as justified, having regard to the proportion of work done upon the said line of railway as comp9-red with the whole work done and to be done upon such line.

The balance, if any, of the proceeds of such

3 securities which may remain after the completion of the said line of railway, shall be paid over to the company or its nominceR.

Pending completion of tho said line the balances at the credit of such special accounts shall, until paid out as above provided for, be deemed part of the mort gaged premises under said deed or deeds of trust and shall not be taken to be public moneys, received by the province: Provided, also, that the Lieutenant Governor in Council may upon the request of the company by order-inrcouncil alter the deposit of the said money or any portion or' balance thereof by approving of any other bank or banks than, and in the place and stead of, those originally approved of for the deposit therein of any of the said money or any portion or balance thereof, and any such money the deposit of which is so changed into any other bank or banks than those origi nally approved of, shall be doposited to the same credit and be subject to the same provisionR as arc herein provided for in respect of the original deposit or deposits. 7.

Work to the value of at least fifty (50) miles of con structed line shall be done by the company upon the !:'aid line on or before the 31st December, 1914, and the said line shall be completed and ready for traffic on or before the 31st December, 1917. 8.

The said line shall be constructed to a general standard in all respects, apart from grades and curvature (as to wbich the character of the country through which the lines pass Rhall be taken into consideration) not inferior to the standard fixed by the specifications of the main line of the Edmonton, Dunvegan & British Columbia Railway, and to the satis faction of the Minister of Railways and Telephones. 9.

Any payment by the province of principal or interest on the said securities, pursuant to the guarantee thereof, shall not in any event be taken to affect the liability of tb e company therefor under the securities so paid or under the deed or deeds of trust securing the payment thereof, but such liability shall remain unimpaired and enforceable by tf e province against the company.

The province shall be sub rogated as againRt the company to all rights, privileges and powers to which the holders of the respective securities so paid were entitled by virtue of such securities, or of the said deed or deeds of trust prior to payment by the province under its guarantee, and shall with respect to the securities so paid be in the same position as a holder of securities upon which the company has made default. 10. Subject to the proviso in this

section contained, tbe deed or deeds of trust (hereinafter called the original instru ments) securing the securities hereby authorized to be guar anteed may provide for the issue from time to time and ranking pari passu with the said securities and without preference or priority one over the other of additional secur rities of similar kind, tenor and effect in respect of the mileage of the said line, and also additional securities of similar kind, tenor and effect also ranking pari passu and without pre ference or priority as aforesaid in respect of additional lines of railway in the Province of Alberta to be hereafter con structed by the company, but not exceeding twenty thousand dollars ($20,000) per mile of such additional lines; provided always, that before any such additional securities are issued the guarantee by the province of the payment of the principal

4 and interest thereof shall first have been authorized and the amounts to be issued per mile in respect of such lines shall first have been fixed by the Legislative Assembly and that such guarantee shall first have been given pursuant thereto. 11.

A supplementary deed or deeds of trust (herein called supplementary instruments) covering the said line in respect of which additional securities are authorized to be issued or such additional lines as aforementioned, as the case mtty be, in the form approved by the Lieutenant Gov ernor in Council shall from time to time be taken to the trustees of the original instruments, and such additional securities shall be issued under the terms of the original instruments and supplementary instruments which, together with the mortgaged premises covered by the original ai,id supplementary instruments, shall form the security for all securities issued thereunder in the same manner and with the same effect as if the original instrument and supple mentary instrument or instruments formed together but one instrument· and as if all the securities issued or to be issued under the original or supplementary instruments were issued under one instrument. 12.

Should the constructed mileage of the said line herein mentioned be less than the mileage herein estimated, bY reason whereof there remains- : A surplus of authorized mileage in respect of whi.ch no securities at the rates respectively specified with regard thereto were actually issued or guar anteed; or A surplus of proceeds of the moneys realized by sale, pledge or otherwise of guaranteed securities issued in respect thereof, the Lieutenant Governor in Council may guarantee addi tional securities in respect of such surplus of mileage or authorize the application of such surplus of proceeds, whichever may be the case, in or in respect of the further construction by the company of extensions of the said line or of branches therefrom, or of other lines of railway in Alberta approved by the Lieutenant Governor in Council.

(2) A supplementary deed or deeds of trust covering the mileage further constructed by the company under this

section shall be taken to the trustees of the original instru ments mentioned in sections 10 and 11 of this Act, and the provisions of

section 11 shall, where not inconsistent with this section, apply to the supplementary deeds executed under this

section and to the securities which may be issued and guaranteed in pursuance hereof.

No. 69 F£RS'l' SESSION THIRD LEGISLATURE 4 GEORGE V 1913 (SECOND SESSION) BILL

An Act to authorize the Guarantee of Certain Securities of the Central Canada Railway Company. Receive<l and read the First time ................. . Second time ............... . Third time ................ . EDMONTON: J. W. JEJI'JI'JDBT, Government Printer A.D. 1913 Title: 1913 (3rd, 1st) Bill 69,

An Act to authorize the Guarantee of Certain Securities of the Central Canada Railway Company

Document details

Collection	Alberta — Bills
Citation	L3 S1 10581
Type	bill
Volume / chapter	L3 S1 10581
Language	en
Format	json
Source	PROVINCIAL
Identifier	ed3a51ca5d426536a213c616131b96ef672247dd

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