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The Loan Act, 1996

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S.M. 1996, c. 1

THE LOAN ACT, 1996


Table of Contents

(Assented to June 6, 1996)

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

Definition

1         In this Act, "corporation" means a corporation mentioned in Schedule A or B unless otherwise indicated.

Power to borrow

2         The Lieutenant Governor in Council may authorize the raising, by way of loan or loans, upon the credit of the government in accordance with the provisions of The Financial Administration Act and upon the credit of a corporation in accordance with its governing legislation, any sum or sums of money not exceeding in the aggregate the net sum of $100,000,000. that may be considered necessary for making any payments authorized or required by this Act or any subsequent Loan Act to be made out of the Consolidated Fund or for reimbursing the Consolidated Fund for any such payment made therefrom.

Limit on borrowing

3(1)      Subject to section 2, each corporation, other than The Manitoba Farm Mediation Board, Co-operative Loans and Loans Guarantee Board and Communities Economic Development Fund, may, with the approval of the Lieutenant Governor in Council, by the issue and sale of its securities raise money by way of loan to the extent but not exceeding in the case of each corporation, the amount appearing opposite its name in Schedule A or B, as the case may be, reduced by the amount, if any, that the government has advanced to it or that has been authorized to be advanced to it under this Act.

Limitation thereon

3(2)      To the extent that a corporation raises money by way of loan as provided in subsection (1), the amount that may, on the authority of the Lieutenant Governor in Council, be advanced to it under section 4 is abated.

Abatement of authority

3(3)      To the extent that a corporation raises money by way of loan as provided in subsection (1), the amount that the government may, on the authority of the Lieutenant Governor in Council, raise by way of loan or loans on the credit of the government under section 2 is abated.

Power to expend

4(1)      The Lieutenant Governor in Council may authorize the expenditure of money for the purposes designated in Schedule A in the amount appearing opposite each designation in Schedule A.

Existing expenditure authority

4(2)      The expenditure authority provided in subsection (1) is in addition to authority previously voted in annual Loan Acts but not yet expended or abated as set out in Schedule B and expenditures authorized pursuant to such previously voted authority shall be deemed to be authorized pursuant to this Act.

Lapse of expenditure authority

4(3)      Any expenditure authority provided in Schedule A or B of The Loan Act, 1995 and not included in Schedule B lapses and shall be written off.

Recital in Orders-in-Council

5         A recital or declaration in an Order of the Lieutenant Governor in Council authorizing the expenditure of moneys under this Act, that it is necessary that an advance, loan, purchase of stock or guarantee be defined as an expenditure for the purposes of this Act shall be conclusive proof of that fact.

Interest rate

6         The Minister of Finance shall, at least monthly, establish a schedule of interest rates to apply on advances made under this Act and such rates shall be not less than the rate of interest estimated at the time the rates are established to be the Province's cost of borrowing for the term over which the repayment of the advance is to be made.

Additional expenditure authority

7(1)      In addition to expenditure authority granted under section 4, the Lieutenant Governor in Council may authorize expenditures not exceeding in total an estimated aggregate amount of $200,000,000. for any purposes that the Minister of Finance may designate.

Amounts to be reported

7(2)      The amount of an expenditure authorized under this section shall be included in a report that is tabled in the Legislative Assembly by the minister within four months after the end of the fiscal year during which the expenditure is authorized and, if the Legislature is not then in session, within 15 days after the beginning of the next ensuing session of the Legislature, showing

(a) all authorizations granted and expenditures made under this section in that fiscal year;

(b) particulars as to whom the expenditures were made or authorized to be made;

(c) the purposes for which the expenditures were authorized or made;

(d) the terms and conditions, if any, related to each of the expenditures; and

(e) all repayments or cancellations of expenditures authorized or made under this section.

Cancellation

7(3)      Any authority for the government to make expenditures or commitments for any purposes that the Minister of Finance, with the approval of the Lieutenant Governor in Council, may designate pursuant to section 7 of The Loan Act, 1995 that remains unused on the day this Act receives royal assent is rescinded.

Use of money advanced

8         Money advanced by the government to a corporation or raised by a corporation pursuant to this Act by the issue and sale of its securities shall be expended by that corporation for its purposes.

Saving clause

9         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

10        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 a corporation pursuant to this Act to secure the repayment of money borrowed under the authority of this Act.

Establishment of loan funds

11(1)     The Lieutenant Governor in Council may

(a) establish and approve loan programs in respect of the purposes designated in Schedules Aand B; and

(b) determine the form and nature of a program established under clause (a) and the terms and conditions under which assistance will be provided.

Authority for expenditure

11(2)     The money necessary for carrying out the loan programs established under subsection (1) may be expended by the government

(a) from money authorized to be expended under this Act to an amount not exceeding in the aggregate the sum set out opposite each specific designation in Schedule A or B, as the case may be;

(b) from money authorized to be so paid and applied under any other Act of the Legislature.

Supplementary powers

12        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 on them by any other Act.

Coming into force

13        This Act is retroactive and is deemed to have come into force on April 1, 1996.