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The Loan Act, 1988

S.M. 1988-89, c. 22

Bill 35, 1st Session, 34th Legislature

The Loan Act, 1988

(Assented to December 20, 1988)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Power to borrow and expend

1(1)        The Lieutenant Governor in Council may authorize the raising of money by way of loan upon the credit of the government and the expenditure of money for the purposes designated in the Schedule in the amount appearing opposite each designation in the Schedule.

Effect of raising money for Business Support Programs

1(2)        Notwithstanding that there are specific purposes designated under Business Support in the Schedule, money raised under authority of this Act for Business Support shall be raised for the total requirements of Business Support and not for any particular specific purpose and money so raised abates by the amount so raised the authority to raise money for Business Support without relation to the specific purpose for which the money is used and the use of money so raised for any specific purpose does not affect the use of any other money so raised for the same specific purpose.

Recital in Orders in Council

1(3)        A recital or declaration in an Order of the Lieutenant Governor in Council authorizing the expenditure of moneys for Business Support, that it is necessary that an advance, loan, purchase of stock or guarantee be defined as an expenditure for the purposes so designated shall be conclusive proof of that fact.

Additional borrowing authority

2(1)        Subject to subsection (2), in addition to authority granted under section 1, the government may raise up to $150,000,000 by way of loan for expenditure for any purpose that the Minister of Finance, with the approval of the Lieutenant Governor in Council, may designate.

Commitment and expenditure authority

2(2)        Money raised under the authority of subsection (1) may not be expended prior to April 1, 1989, but, with the approval of the Lieutenant Governor in Council, commitments may be made prior to as well as after that date for the expenditure of the money.

Cancellation

2(3)        Authority for the government to raise up to $77,000,000 by way of loan upon the credit of the government pursuant to section 3 of The Loan Act, 1986(2) is rescinded.

Power to authorize borrowing by government for Crown Corporations

3(1)        Subject to subsection (2), the Lieutenant Governor in Council may authorize the raising of money by way of loan upon the credit of the government and the expenditure of money so raised by way of advances by the government to The Manitoba Telephone System, Manitoba Mineral Resources Ltd., Manitoba Data Services, Communities Economic Development Fund, and Manitoba Hazardous Waste Management Corporation (hereinafter referred to collectively as "corporations" and individually as a" corporation"), in amount not exceeding in the aggregate the sum appearing opposite the name of that corporation in the Schedule.

Limitation thereon

3(2)        To the extent that The Manitoba Telephone System raises money by way of loan as provided in section 4, the amount that may, on the authority of the Lieutenant Governor in Council, be raised upon the credit of the government under subsection (1) for advances to that corporation is abated.

Limit on borrowing

4           The Manitoba Telephone System may, by the issue and sale of its securities as provided in The Manitoba Telephone Act, raise money by way of loan to the extent but not exceeding the amount appearing opposite its name in the Schedule hereto reduced by the amount, if any, that the government has raised under this Act for advances to it.

Use of money borrowed

5           Money raised and advanced by the government to a corporation or raised by The Manitoba Telephone System as provided in The Manitoba Telephone Act and this Act by the issue and sale of its securities, shall be expended by such corporation for its purposes.

Saving clause

6           Nothing in this Act limits

(a) the power of the corporations to raise money by way of loan under the respective Acts governing them for the purpose of repayment, refunding, refinancing or renewal of the whole or any part of any loan or advance made to a corporation by the government, or of securities issued by a corporation; or

(b) the authority of the corporations to exercise any of the powers granted by those Acts for any of the purposes mentioned in this section.

Guarantee of corporations' securities

7           In the manner provided in The Manitoba Telephone Act, the government may, on any terms that may be approved by the Lieutenant Governor in Council, guarantee the payment of the principal, interest and premium, if any, of any securities issued by The Manitoba Telephone System to secure the repayment of money borrowed under the authority of this Act.

Supplementary powers

8           The powers and authority herein granted to and conferred upon the Lieutenant Governor in Council or the government or the corporations do not affect but are in addition to the power and authority conferred upon them or any of them by any other Act.

Coming into force

9           This Act comes into force on the day it receives the royal assent.

SCHEDULE

The Manitoba Telephone System $45,500,000
Federal-Provincial Water and Sewer Agreement 33,500,000
Business Support 17,900,000
   Industrial Opportunities Program $13,500,000
   Manitoba Potash Corporation 22,400,000
   Manufacturing Adaptation Program 1,000,000
   Venture Capital Program 1,000,000
Manitoba Mineral Resources Ltd. 16,000,000
Manitoba Data Services 5,000,000
Manitoba Hazardous Waste Management Corporation 2,200,000
Communities Economic Development Fund 1,000,000
$ 121,100,000