Skip to main content
The Rural Development Bonds Amendment Act

This is an unofficial version.
If you need an official copy, contact Statutory Publications.

S.M. 2000, c. 48

THE RURAL DEVELOPMENT BONDS AMENDMENT ACT


 

(Assented to August 18, 2000)

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

C.C.S.M. c. R175 amended

1         The Rural Development Bonds Act is amended by this Act.

2         The title is amended by striking out "RURAL" and substituting "COMMUNITY".

3(1)      In the following provisions, "rural" is struck out wherever it occurs and "community" is substituted:

(a) subsections 1(1) to (3) and 2(2);

(b) clauses 3(1)(b) and (k);

(c) subsections 12(1), (2), (4) and (5);

(d) section 13;

(e) subsections 14.1(1), 15(1) and 16(3) and (4);

(f) sections 18 and 19;

(g) subsections 20(2) to (6);

(h) sections 21 and 22;

(i) subsection 23(3);

(j) section 25;

(k) subsections 29(3) and 30(1) and (2);

(l) section 38;

(m) subsection 39(1).

3(2)      In the following provisions, "Rural" is struck out and "Community" is substituted:

(a) the definition "review committee" in subsection 1(1) of the English version;

(b) subsection 14(1) of the English version.

3(3)      The headings for Parts 2 and 3 are amended by striking out "RURAL" and substituting "COMMUNITY".

4(1)      Clause 3(1)(a) is repealed and the following is substituted:

(a) set out a name for the corporation that includes the words

(i) "rural development bond corporation", if the corporation is incorporated before September 1, 2000, and

(ii) "community development bond corporation", if the corporation is incorporated on or after that day;

4(2)      Subsections 3(3) and (4) are repealed.

5(1)      Subsection 5(1) is amended by adding ", the words "community development bond corporation"," before "or any similar words".

5(2)      Subsection 5(2) is amended by adding ", the words "community development bond"," before "or any similar words".

6         The following is added after subsection 12(5):

Application of payments

12(6)     All amounts received by any of the following persons from an eligible business or from the sale of assets of an eligible business shall be applied to reduce the principal amount of the bond issued to finance the eligible business before any amount is applied to the interest payable on the bond:

(a) the bond corporation, if the Government of Manitoba has become liable under subsection (2) to pay on its guarantee of the bond;

(b) a person appointed under section 35.1; or

(c) a receiver or receiver-manager appointed under section 35.

7         The following is added after section 12:

Assignability of security interest

12.1(1)   Every security interest granted to a bond corporation in connection with its investment in an eligible business is assignable to the Government of Manitoba as security without the consent of the eligible business.

Mandatory assignment of security interest

12.1(2)   A bond corporation shall assign to the Government of Manitoba, at the request of the minister, every security interest granted to the corporation in connection with its investment in an eligible business.

8         Clause 13(b) is amended by striking out "or" at the end of subclause (i), by adding "or" at the end of subclause (ii) and by adding the following after subclause (ii):

(iii) exercise any or all of the Government's rights under a security interest assigned to it under section 12.1.

9         Subclause 15(1)(f)(i) is amended

(a) in paragraph (C), by adding "except in the case of an eligible business to which The Cooperatives Act applies," before "its shareholders"; and

(b) by adding the following after paragraph (C):

(D) in the case of an eligible business to which The Cooperatives Act applies, any information requested by the minister respecting memberships or investment shares issued by the eligible business,

10        Subsection 35(1) is repealed and the following is substituted:

Appointment of receiver or receiver-manager

35(1)     Subject to subsection (3), the minister may appoint a receiver or receiver-manager of a bond corporation if the minister is satisfied that

(a) a circumstance described in clause 34(a) or (b) has arisen with respect to the corporation;

(b) an eligible business is in default under the terms of any agreement relating to the corporation's investment in the eligible business; or

(c) the Government of Manitoba is, or is about to become, liable under subsection 12(2) to pay on its guarantee of a bond issued by the corporation.

11        The following is added to Part 5 after section 35:

Appointment of agent

35.1(1)   If

(a) an eligible business is in default under the terms of any agreement relating to a bond corporation's investment in the eligible business; or

(b) the minister is satisfied that the Government of Manitoba is, or is about to become, liable under subsection 12(2) to pay on its guarantee of a bond issued by a bond corporation;

the minister may appoint a person to manage and administer, on behalf of the bond corporation, the corporation's investment, and may establish the terms of the appointment.

Authority of agent

35.1(2)   A person appointed to manage and administer an investment under subsection (1) has, subject to the terms of the appointment, the authority to exercise, on behalf of the bond corporation, every right that the bond corporation has in connection with that investment.

12        Section 40 is amended

(a) by striking out "Rural" and substituting "Community"; and

(b) by striking out "R175" and substituting "C160".

Scope of existing expenditure authority

13        Any unexpended and unabated expenditure authority voted for the rural development bonds program in an annual Loan Act before 2000 is deemed to have been voted for the community development bonds program.

Coming into force

14        This Act comes into force on September 1, 2000.