The Loan Act, 1986

S.M. 1986-87, c. 1

The Loan Act, 1986

(Assented to June 10, 1986)

MOST GRACIOUS SOVEREIGN:

WHEREAS it appears by message from Her Honour Pearl McGonigal, Lieutenant Governor of The Province of Manitoba, and the estimates accompanying it that the sums mentioned in Schedule A appended hereto are required for capital expenditure;

AND WHEREAS it is expedient that authority be given to borrow money not exceeding the sums set out in the said Schedule, appended hereto;

MAY IT THEREFORE PLEASE YOUR MAJESTY that it may be enacted and it is hereby enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Manitoba, as follows:

Short title.

1

This Act may be cited as: "The Loan Act, 1986".

Power to borrow and expend.

2(1)

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

Effect of raising money for The Manitoba Agricultural Credit Corporation.

2(2)

Notwithstanding that there are specific purposes designated under The Manitoba Agricultural Credit Corporation in Schedule A, money raised under authority of this Act for The Manitoba Agricultural Credit Corporation shall be raised for the total requirements of The Manitoba Agricultural Credit Corporation and not for any particular specific purpose and money so raised abates by the amount so raised the authority to raise money for The Manitoba Agricultural Credit Corporation 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.

Power to authorize the 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 or loans 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, The Manitoba Agricultural Credit Corporation, and Manitoba Development Corporation (hereinafter referred to collectively as "corporations" and individually as a "corporation"), in amount not exceeding in the aggregate the sum or sums appearing opposite the name of that corporation in Schedule A.

Limitation thereon.

3(2)

To the extent that a corporation 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

Each corporation may, by the issue and sale of its securities as provided in The Manitoba Telephone Act, The Agricultural Credit Corporation Act, or The Development Corporation Act, as the case may be, 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 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 a corporation as provided in The Manitoba Telephone Act, The Agricultural Credit Corporation Act, or The Development Corporation Act, as the case may be, and this Act by the issue and sale of its securities, shall be expended by the 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, renewal of the whole or any part of any loan or advance made to a corporation by the government, or of securities issued by the 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 Agricultural Credit Corporation Act, or The Development Corporation Act, as the case requires, the government may on such terms as 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 to secure the repayment of money borrowed under the authority of this Act.

The Manitoba Beef Stabilization Fund.

8

The Lieutenant Governor in Council may authorize the Minister of Finance to make advances from time to time to The Manitoba Beef Stabilization Fund upon such terms and conditions as may be deemed necessary, not exceeding, however, the amount set out for the purpose in Schedule A hereto.

Small Business Loans Fund.

9(1)

The Lieutenant Governor in Council may make regulations

(a) establishing programs of assistance by way of loans, to operators of small businesses; and

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

Administrative direction.

9(2)

The Lieutenant Governor in Council may direct one or more agencies of the government to administer a program established under subsection (1), in whole or in part, and to provide the assistance in accordance with the regulations respecting the program and upon an agency of the government being directed under this section to administer the program, it may administer the program and has all the power and capacity necessary to administer the program.

Internal administration.

9(3)

Notwithstanding subsection (2) the programs established under subsection (1) may be administered wholly or partly through a department of the government.

Authority for expenditure.

9(4)

The money necessary for carrying out the programs established under subsection (1) may be expended by the government from money authorized to be raised and expended under this Act to an amount not exceeding in the aggregate the sum set out opposite Small Business Loans Fund in Schedule A.

Additional guarantee authority.

10

The Lieutenant Governor in Council may authorize the Minister of Finance for and on behalf of the government to provide a guarantee to the purchaser of the shares of Flyer Industries Limited, guaranteeing the obligations of the vendor, the Manitoba Development Corporation, arising out of the sale of the shares of Flyer Industries Limited.

Supplementary powers.

11

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.

Commencement of Act.

12

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


SCHEDULE A

The Manitoba Telephone System $ 65,600,000
The Manitoba Agricultural Credit Corporation 7,500,000
Manitoba Development Corporation 65,000,000
Manitoba Beef Stabilization Fund 16,600,000
$154,700,000