Second Session, 44th General Assembly

49 Elizabeth II, 2000

BILL 30

AN ACT TO AMEND THE LOAN AND

GUARANTEE ACT, 1957

Received and Read the First Time

Second Reading

Committee

Third Reading

Royal Assent

HONOURABLE LLOYD MATTHEWS

Minister of Finance

Ordered to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

Clause 1 of this Bill would amend the

Schedule to The Loan and Guarantee Act, 1957 as follows:

Item 1 - Canadian Imperial Venture Corp.

Order in Council 2000-055 authorized a $500,000 loan guarantee for Canadian Imperial Venture Corp. The guarantee enabled the Company to meet its financial obligations under a farm out agreement to carry out oil exploration on the Port au Port Peninsula. The original expiry date of July 1, 2000 was extended to October 3, 2000 in order to allow the Company to complete well evaluation.

Item 2 - Ernst & Young Inc.

Order in Council 2000-041 approved a $1.5 million loan guarantee on behalf of Ernst & Young Inc., Receiver/Manager for Integrated Poultry Limited and its subsidiaries. The guarantee was put in place in the event it was needed to cover receivership costs until such time as the remaining assets are liquidated and the proceeds disbursed amongst creditors. The guarantee had an expiry date of September 30, 2000.

Item 3 - Newfoundland and Labrador Education Investment Corporation

Order in Council 2000-407 approved a $75 million loan guarantee for the Newfoundland and Labrador Education Investment Corporation. This is to provide financing for the construction of new school infrastructure, as well as the repair and renovation of existing facilities. The guarantee is presently securing an interim credit facility arranged with a bank. This interim financing will eventually be replaced with long term funding, also guaranteed by the province.

Item 4 - Newfoundland and Labrador Heritage Corporation

Order in Council 595-'99 authorized a $40 million loan guarantee to the Newfoundland and Labrador Heritage Corporation. The guarantee will accommodate financing for the planning, design and construction of the "Rooms", which is to house the Newfoundland Museum, archives and art gallery. The guarantee is presently securing an interim credit facility arranged with a bank. Interim financing will eventually be replaced with long term funding, also guaranteed by the province.

Items 5 and 6 - Torngat Fish Producers Co-operative Society Limited

Order in Council 2000-232 approved two loan guarantees aggregating $2.1 million for the Torngat Fish Producers Co-operative Society Limited. A $1.5 million guarantee is in support of an operating credit for the Co-op's "Makkovik" operation while a $600,000 guarantee is to provide an operating credit for its "Nain" operations. The latter guarantee is conditional on the Nain plant being operational in the 2000 fishing season.

Clause 2 of the Bill would amend the

Schedule to the Act, as enacted by

chapter 17 of 1999, by approving an increase of the loan guarantee for Marble Mountain Development Corporation from $300,000 to $500,000, and from $500,000 to $700,000 as authorized by Orders-in-Council 2000-013 and 2000-230. Order in Council 2000-509 authorized a further increase in the guarantee to $1,100,000.

At the time of the last amendment, as enacted by

chapter 17 of 1999, the date of issue for the $600,000 guarantee for the Torngat Fish Producers Co-operative Society Limited (expiry date May 31, 2000) was not available. Since that time, the guarantee agreement was executed and the date of issue, October 21, 1999, is now available to be added to the

Schedule to the Act.

A BILL

AN ACT TO AMEND THE LOAN AND

GUARANTEE ACT, 1957

Analysis

Schedule Amdt.

2. 1999 c.17

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

Canadian Imperial Venture Corp.

500,000

Mar. 10/00

Oct. 3/00

Ernst & Young Inc.

1,500,000

Mar. 24/00

Sept. 30/00

Newfoundland and Labrador Education Investment Corporation

75,000,000

Oct. 23/00

N/A

Newfoundland and Labrador Heritage Corporation

40,000,000

Apr. 4/00

N/A

Torngat Fish Producers Co-operative Society Limited

1,500,000

Jul. 27/00

May 31/01

Torngat Fish Producers Co-operative Society Limited

600,000

Jul. 27/00

May 31/01

1999 c.17

Schedule Amdt.

2. The

Schedule to the Act is further amended by amending the Schedule, as enacted by

chapter 17 of 1999, in

(

a) Item 4 - Marble Mountain Development Corporation

(

i) by striking out the statutory amount "$300,000" and substituting the statutory amount "$500,000" and by striking out the date of expiry "N/A" and substituting the date of expiry "July 31, 2000",

(ii) by striking out the statutory amount "$500,000" and substituting the statutory amount "$700,000" and by striking out the date of expiry "July 31, 2000" and substituting the date of expiry "N/A", and

(iii) by striking out the statutory amount "$700,000" and substituting the statutory amount "$1,100,000"; and

(

b) Item 9 - Torngat Fish Producers Co-operative Society Limited - by striking out the date of issue "N/A" and substituting the date of issue "October 21, 1999".

©Earl G. Tucker, Queen's Printer