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The Communities Economic Development Fund Amendment Act

S.M. 1991-92, c. 38

Bill 61, 2nd Session, 35th Legislature

The Communities Economic Development Fund Amendment Act

(Assented to July 26, 1991)

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

C.C.S.M. c. C155 amended

1           The Communities Economic Development Fund Act is amended by this Act.

Section 1 amended

2           Section 1 is amended

(a)by striking out the definition "chairman" and substituting the following:

"chairperson" means the chairperson of the board; («président»)

(b)by adding the following in alphabetical order within the section:

"City of Winnipeg" has the same meaning as it has in The City of Winnipeg Act; («Ville de Winnipeg»)

"financial assistance" includes a loan or guarantee, a lease of personal property or real property, the purchase or sale of shares, assets or securities of a corporation, and the underwriting of the securities of a corporation; («aide financière»)

(c)by striking out the definition "remote and isolated communities".

Section 3 rep. and sub.

3           Section 3 is repealed and the following is substituted:

Object of fund

3(1)        The object of the fund is to encourage economic development

(a)in Northern Manitoba, as defined by the Lieutenant Governor in Council by regulation;

(b)subject to the approval of the Lieutenant Governor in Council, in the fishing industry in the province, by acting as a lending authority and administering a loan program with respect thereto; and

(c)in conjunction with financial assistance provided by the Government of Canada under any economic development program to assist aboriginal people in the province outside The City of Winnipeg;

with particular emphasis on the needs of small business enterprises and community development corporations.

Fund may provide financial and other assistance

3(2)        The fund may provide financial assistance and other assistance, as set out in subsection (3), to assist in the establishment of new economic enterprises and the development of existing economic enterprises.

Types of assistance

3(3)        The fund may provide, with or without charge,

(a)information and advice respecting the techniques, methods and practices required for the successful administration of economic enterprises;

(b)training for individuals, including employees, managers and directors, in an economic enterprise; and

(c)conferences, seminars and other meetings for the promotion of good management practices in economic enterprises.

Assistance provided with others

3(4)        For the purpose of providing assistance under subsection (3), the fund may enter into agreements with any individual, company, organization, business or level of government.

Subsection 6(1) amended

4(1)        Subsection 6(1) is amended by striking out "chairman" wherever it occurs, and substituting "chairperson".

Subsection 6(2) amended

4(2)        Subsection 6(2) is amended

(a)by striking out "by him" and "his or their";

(b)by adding "or her" after "his";

(c)by striking out "chairman" and substituting "chairperson".

Section 7 rep. and sub.

5           Section 7 is repealed and the following is substituted:

Power to provide financial assistance

7(1)         The fund may

(a)subject to the approval of the Lieutenant Governor in Council, establish a program of financial assistance for a class of applicants or economic enterprises; and

(b)provide financial assistance to an applicant for an economic enterprise if, in the opinion of the board,

(i)the applicant is engaged or about to engage in an economic enterprise in the province,

(ii)appropriate financial assistance is not otherwise available to the applicant on reasonable terms and conditions,

(iii)the nature and amount of investment in the economic enterprise by any person other than the fund indicate that the person is committed to the economic enterprise, and

(iv)the economic enterprise is reasonably likely to be successful.

Power respecting corporation

7(2)        Where the applicant referred to in subsection (1) is a corporation, the fund may

(a)enter into an underwriting agreement in respect of the whole or any part of an issue of securities of the corporation; and

(b)purchase or otherwise acquire the whole or any part of an issue of securities of the corporation from the corporation or a shareholder thereof, or from a person with whom the fund enters into an underwriting agreement in respect of the issue, and may later sell or otherwise dispose of any of the securities.

Fund may acquire personal property

7(3)        Where the fund provides financial assistance to a person, it may acquire by purchase or otherwise and, subject to a right of redemption by the person, hold any personal property used or to be used in the economic enterprise, and may later sell or otherwise dispose of the personal property.

Acquisition and lease of property

7(4)        The fund may acquire, by purchase or otherwise, and lease to a person to whom it provides financial assistance, any real or personal property used or to be used in the economic enterprise, and may later sell or otherwise dispose of any such property.

Fund may establish corporations

7(5)        Subject to the approval of the Lieutenant Governor in Council, the fund may cause to be incorporated, make loans to and operate a corporation, dispose of shares, assets or an interest in the shares or assets of the corporation, and grant options respecting the shares and assets to prospective purchasers of the corporation.

Section 8 amended

6           Section 8 is amended

(a)in the heading, by striking out "loans" and substituting "financial assistance";

(b)by renumbering it as subsection 8(1), and by adding the following after subsection (1):

Considerations re financial assistance

8(2) In determining whether to provide financial assistance under this Act, the board shall consider any criteria established by a by-law passed under subsection 15(1), or by a regulation made by the Lieutenant Governor in Council under subsection 24(1).

Subsections 9(1) and (3) repealed

7(1)        Subsections 9(1) and (3) are repealed.

Subsection 9(4) rep. and sub.

7(2)        Subsection 9(4) is repealed and the following is substituted:

Interest rates on financial assistance

9(4)        The board may by resolution fix or vary rates of interest payable in respect of loans or other financial assistance.

Subsection 9(6) repealed

7(3)        Subsection 9(6) is repealed.

Subsection 9(7) amended

7(4)        Subsection 9(7) is amended by striking out "No loan shall be made under this Act or financial assistance" and substituting "No financial assistance shall be".

Subsection 9(10) amended

7(5)        Subsection 9(10) is amended

(a)by repealing the heading preceding it and substituting "Information from applicant for financial assistance";

(b)by striking out "a loan or".

Subsections 10(1) and (2) rep. and sub.

8(1)        Subsections 10(1) and (2) are repealed and the following is substituted:

Supervision of financial assistance

10(1)       The fund shall supervise any financial assistance provided under this Act to ensure that the financial assistance is used for the purpose for which it is provided.

Record of supervision of financial assistance

10(2)       The board shall cause a record to be kept of the supervision of financial assistance provided under this Act.

Subsection 10(3) rep. and sub.

8(2)        Subsection 10(3) is repealed and the following is substituted:

Powers of board where money misapplied

10(3)       Where the board is of the opinion that financial assistance provided under this Act has not been used for the purpose for which it was provided, or if a security held by the board in respect of financial assistance provided under this Act depreciates in value, the fund may, notwithstanding the terms of any agreement with the recipient of the financial assistance, refuse to provide further financial assistance and, in the case of a loan, the fund may declare the amount of the loan to be due and payable, and the borrower shall immediately repay the money borrowed, with interest, and in default of payment the fund may use such remedies to recover the money as would be available if the time for repayment of the loan and interest had expired.

Section 11 amended

9           Section 11 is amended

(a)by striking out "made" and substituting "given";

(b)by striking out "therefor, the loan, shall" and substituting "for the loan, or as collateral security in support of it, the loan shall,"

Section 12 rep. and sub.

10          Section 12 is repealed and the following is substituted:

Fund to obtain progress reports

12          The fund shall from time to time obtain reports on the condition of any security it holds, and on the progress and prospects of economic enterprises and persons receiving financial assistance under this Act.

Section 13 amended

11          Section 13 is amended by adding "or other financial assistance" after "of any loan".

Section 14 amended

12          Section 14 is amended

(a)by striking out "chairman" wherever it occurs, and substituting "chairperson";

(b)by adding "or her" after "his".

Clause 15(1)(a) amended

13(1)       Clause 15(1)(a) is amended by striking out "loans generally, or any class of loans," and substituting "financial assistance, including loans or a class of loans,".

Subsection 15(2) amended

13(2)       Subsection 15(2) is amended

(a)by repealing the heading preceding it and substituting "Limit respecting financial assistance";

(b)by striking out "loan or other financial assistance shall be made or given" and substituting "financial assistance shall be given";

(c)by adding "or she" after "he".

Subsection 15(3) amended

13(3)       Subsection 15(3) is amended

(a)by striking out "making a loan or giving financial assistance" and substituting "providing financial assistance";

(b)by striking out "the loan or assistance is being made or given, to serve while any part of the loan remains unpaid;" and substituting "the financial assistance is provided, to serve while any part of the financial assistance is outstanding;".

Subsection 15(4) amended

13(4)       Subsection 15(4) is amended by adding "or she" after "he".

Subsection 15(5) amended

13(5)       Subsection 15(5) is amended

(a)by adding "or she" after "he", wherever it occurs;

(b)by adding "or herself" after "himself";

(c)by adding "or her" after "his".

Subsection 16(1) amended

14(1)       Subsection 16(1) is amended by striking out "chairman" wherever it occurs, and substituting "chairperson".

Subsection 16(2) amended

14(2)       Subsection 16(2) is amended

(a)by striking out "chairman" wherever it occurs, and substituting "chairperson";

(b)by adding "or she" after "he".

Subsection 21(4) amended

15          Subsection 21(4) is amended by striking out "chairman" and substituting "chairperson".

Subsection 22(1) amended

16(1)       Subsection 22(1) is amended by striking out "chairman" wherever it occurs, and substituting "chairperson".

Subsection 22(2) amended

16(2)       Subsection 22(2) is amended

(a)by adding "or she" after "he", wherever it occurs;

(b)by adding "or her" after "him".

Clauses 22(3)(b) and (c) rep. and sub.

16(3)       Clauses 22(3)(b) and (c) are repealed and the following is substituted:

(b)the amount of financial assistance provided, or to be provided, by the fund and the names of persons receiving the financial assistance;

(c)the terms under which financial assistance is provided or to be provided in each case.

Subsection 22(4) amended

16(4)       Subsection 22(4) is amended

(a)by repealing the heading preceding it and substituting "Special reports respecting loan";

(b)by adding "or she" after "he", wherever it occurs.

Subsection 24(1) rep. and sub.

17          Subsection 24(1) is repealed and the following is substituted:

Regulations

24(1)       The Lieutenant Governor in Council may make regulations

(a)defining "Northern Manitoba" for the purpose of clause 3(1)(b);

(b)establishing criteria for determining whether to provide financial assistance to an applicant or economic enterprise, or to a class of applicants or economic enterprises;

(c)respecting matters that are incidental to the purposes of this Act and for which no provision is made in this Act.

Subsection 26(6) amended

18          Subsection 26(6) is amended by adding "or after" after "before".

Subsection 28(1) amended

19          Subsection 28(1) is amended

(a)by striking out "chairman" and substituting "chairperson";

(b)by adding ", her" after "him".

Coming into force

20(1)       Subject to subsection (2), this Act comes into force on the day it receives royal assent.

Coming into force

20(2)       Section 18 is retroactive and is deemed to have come into force on December 14, 1990.