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The Hospital Capital Financing Authority Act
This is an unofficial version.
If you need an official copy, use the bilingual (PDF) version.

This version is current as of May 24, 2017.
It has been in effect since May 1, 2002.

Note: Earlier consolidated versions are not available online.


 

C.C.S.M. c. H125

The Hospital Capital Financing Authority Act

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

Definitions

1           In this Act,

"authority" means The Manitoba Hospital Capital Financing Authority; (« Office »)

"health region" means a health region established or continued under The Regional Health Authorities Act; (« région sanitaire »)

"hospital" means

(a) an institution or other facility in Manitoba for the care and treatment of persons who are ill or injured,

(b) an institution or other facility owned and operated by a non-profit corporation for the purpose of providing personal care as defined in The Health Services Insurance Act,

(c) an institution or other facility owned and operated by a non-profit corporation for the purpose of providing health services or social services or both and for which the corporation receives funds under The Health Services Insurance Act, and

(d) any institution designated in the regulations as a hospital for the purposes of this Act; (« hôpital »)

"operator" means a person, board of directors, board of management or management committee who or which operates, conducts, or manages a hospital; (« administrateur »)

"regional health authority" means a regional health authority established or continued under The Regional Health Authorities Act. (« office régional de la santé »)

"securities" means bonds, debentures, promissory notes, and other evidence of debt. (« valeurs mobilières »)

S.M. 1992, c. 35, s. 58; S.M. 1996, c. 53, s. 84.

Authority continued

2(1)        The Minister of Finance, the member of the Executive Council who is charged with the administration of The Health Services Insurance Act, and the Deputy Minister of Finance are continued as a body corporate under the name: "The Manitoba Hospital Capital Financing Authority".

Chairman

2(2)        The Minister of Finance shall be chairman of the authority and the Deputy Minister of Finance shall be the secretary of the authority.

Quorum

2(3)         Two members of the authority constitute a quorum for the transaction of business.

Vacancies

2(4)        A vacancy in the membership does not impair the power of the two remaining members to act.

Meetings

2(5)        Members of the authority shall meet at such times and places as the chairman may determine.

Objects of authority

3(1)        The object of the authority is to assist operators of hospitals to finance their capital expenditures by ensuring an orderly market for the sale of securities issued by operators of hospitals and by purchasing securities issued by operators of hospitals with money borrowed by the authority.

Approval of hospital borrowing

3(2)        No operator of a hospital may issue securities to finance capital expenditures without the approval of the authority.

Reimbursement of expenses

4           An operator of a hospital that sells securities to the authority shall reimburse the authority for all charges and expenses incurred in connection with the purchase of the securities, and the sale of securities of the authority for the purposes of raising money for the purchase of those securities of that hospital, in such manner, and at such time as the authority may from time to time determine.

Head office

5           The head office of the authority shall be in The City of Winnipeg.

Staff

6           The authority may employ such officers and servants as it deems necessary for its purposes; and their remuneration shall be set and paid by the authority.

Audit

7           The authority shall establish and maintain an accounting system satisfactory to the Minister of Finance; and the accounts of the authority shall be audited by the Auditor General.

S.M. 2001, c. 39, s. 31.

Power to borrow

8(1)        Subject to approval of the Lieutenant Governor in Council, and to subsection (4), the authority, through the Minister of Finance as its agent, for any of the purposes of this Act, may borrow from time to time such sums of money as it may deem requisite, and may issue securities bearing interest at such rate or rates, and payable as to principal and interest at such time or times, at such place or places and in the currency or currencies of such countries, or in units of monetary value, as the authority may determine; and the securities may be made redeemable or payable in advance of maturity, either at the option of the authority or on demand of the holder thereof, at such time or times, and at such price or prices, and either in whole or in part, as the authority may provide.

Purposes of Act

8(2)        In addition to the purposes set out in section 3, the purposes of this Act without limiting the generality of that expression, include

(a) the payment, refunding, or renewal, from time to time, of the whole or any part of any securities issued by the authority; and

(b) the payment of any other liability or indebtedness of the authority.

Necessity of borrowing

8(3)        Subject to subsection (4), the authority may borrow money from time to time, by the issue of its securities as aforesaid in such principal amounts and at such price or prices as will realize the net sum required by the authority for the purposes of this Act; and a recital or declaration in the resolution of the authority authorizing the issue of the securities to the effect that it is necessary to issue the securities in the principal amount so authorized to realize the net sum required for the purposes of this Act is conclusive evidence of that fact.

Limit on borrowing

8(4)        The authority shall not borrow more than is necessary

(a) to raise the aggregate of the amounts that the authority is authorized under Acts of the Legislature to raise by borrowing; or

(b) to raise amounts required for the purposes mentioned in subsection (2).

Securities exchangeable

8(5)        Such securities and the interest coupons, if any, attached thereto shall be exchangeable for other securities of the same issue on such terms and conditions, as may be determined.

Seal

8(6)        The securities of the authority shall be sealed with the seal of the authority, shall bear the signature of the chairman of the authority, and shall be countersigned by the secretary of the authority or by one of such other persons as the authority may by resolution determine; and the interest coupons, if any, attached to the securities shall be signed by the chairman of the authority; but the seal of the authority on the securities, the signature of the chairman on the securities, and the signature of the chairman on the interest coupons, if any, attached to the securities, may be engraved, lithographed, printed, or otherwise mechanically reproduced.

Effect of printed seal and signature

8(7)        The seal of the authority when so mechanically reproduced has the same force and effect as if manually affixed; and the mechanically reproduced signature of the chairman of the authority is for all purposes valid and binding upon the authority, notwithstanding that the person whose signature is so reproduced has ceased to hold office before the date of the security or before the date of its delivery.

Sinking fund

8(8)        The authority, with the approval of the Lieutenant Governor in Council, may provide for the creation, management, and application of sinking funds or other means of securing the repayment of any securities issued by it, including the redemption by call of any securities issued subject to redemption in advance of maturity.

Guarantee

9(1)        With the approval of the Lieutenant Governor in Council, the Minister of Finance may, on behalf of the Government of Manitoba, guarantee the payment of the principal and interest of any securities issued by the authority; and any such guarantee shall be in such form or forms as the Lieutenant Governor in Council may determine.

Signature on guarantee

9(2)        A guarantee under subsection (1) shall bear the manual signature, or the engraved, lithographed, printed, or otherwise mechanically reproduced signature, of the Minister of Finance or the manual signature, or the engraved, lithographed, printed, or otherwise mechanically reproduced signature, of such other officer or officers of the Department of Finance as may be designated by the Lieutenant Governor in Council.

Effect of printed signatures

9(3)        The engraved, lithographed, printed, or otherwise mechanically reproduced signature of the Minister of Finance or of any such other officer or officers shall be deemed for all purposes to be the signature of the Minister of Finance or such other officer or officers, and is binding upon the government, notwithstanding that the person whose signature is so reproduced may not have held office at the date of the securities or at the date of the delivery thereof, and notwithstanding any change in the office of any of those persons between the time when the signature is affixed and the date of delivery of the securities.

Evidence of compliance of section

9(4)        In the hands of a holder of any such securities a guarantee signed in accordance with subsection (2) is conclusive evidence that this section has been complied with, and the government becomes liable for the payment of the principal and interest of the securities guaranteed according to the tenor thereof.

Payment of guarantees

9(5)        The Lieutenant Governor in Council may make arrangements for the supply of money necessary to fulfil a guarantee given under this section; and the Minister of Finance may advance the amount necessary out of the Consolidated Fund.

Deduction from payments

10(1)       The authority may make arrangements with the Minister of Health to deduct from payments made out of the Manitoba Health Services Insurance Fund to operators of hospitals or, where a hospital is in a health region, to a regional health authority for the health region, amounts necessary for the repayment of the principal of and the interest on securities issued by operators of hospitals after the coming into force of this Act, or for sinking funds created in respect thereof.

Power of Lieutenant Governor in Council

10(2)       The Lieutenant Governor in Council may direct the Minister of Health to make the deductions referred to in subsection (1).

Minister of Finance as Trustee

10(3)       The amounts referred to in subsection (1) shall be deposited with the Minister of Finance and credited to the Consolidated Fund and may be invested until required for the purpose of paying the principal of and the interest on securities issued by operators of hospitals.

Use of earnings of trust funds

10(4)       The Minister of Finance may use any earnings received from the investment of funds deposited under subsection (3) except funds specifically designated for sinking funds for the purpose of implementing in whole or in part any guarantee made by the authority pursuant to section 12 or the purpose of providing funds for deficiency payments pursuant to section 11.

S.M. 1992, c. 35, s. 58; S.M. 1996, c. 59, s. 96; S.M. 1996, c. 53, s. 84; S.M. 1997, c. 41, s. 22.

Deficiency payments

11          Where payments made to an operator of a hospital which is not in a health region are less than the amounts approved by the Minister of Health as operating costs including the amounts required for the payment of the principal of and the interest on securities issued after the coming into force of this Act by the operator of that hospital, or the hospital ceases to receive payments in respect of the payment of principal and interest on such securities by reason of the fact that the hospital ceases to operate, or otherwise, the Minister of Finance may pay the amount of deficiency to the authority for the account of that hospital and charge the amount of the deficiency to the Consolidated Fund with no further authority other than this Act being required.

S.M. 1992, c. 35, s. 58; S.M. 1996, c. 53, s. 84.

Guarantees

12(1)       The authority may guarantee the principal of or the interest on, or the principal of and the interest on securities issued by operators of hospitals.

Guarantee construed to be liability

12(2)       Where a guarantee is made pursuant to subsection (1) it shall be construed to be a liability for the purposes of subsection 8(2).

Exemption from taxation

13          The authority is not liable to taxation, except in so far as Her Majesty in right of the province is liable.

Regulations

14          For the purpose of carrying out the provisions of this Act according to their intent, or for the purpose of providing for matters in respect of the administration of this Act for which no provision is made in this Act, the Lieutenant Governor in Council may make such regulations as are ancillary thereto and are not inconsistent therewith; and every regulation made under, and in accordance with the authority granted by, this section has the force of law.

Application of Corporations Act

15          The Corporations Act does not apply to the authority.

Agent of Crown

16          The authority is an agent of Her Majesty in right of the province.