The Loan Act, 1986 2

S.M. 1986-87, c. 41

The Loan Act, 1986 2

(Assented to September 10, 1986)

MOST GRACIOUS SOVEREIGN:

WHEREAS it appears by message from Her Honour Pearl McGonigal, Lieutenant Governor of The Province of Manitoba 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, (2)".

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 is a specific purpose 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.

Additional borrowing authority.

3(1)

In addition to authority granted under section 2 for the raising of money by way of loan or loans upon the credit of the government for the purposes designated in Schedule A, subject to subsection (2), authority is granted to the government to raise up to $100,000,000 by way of loan or loans upon the credit of the government for expenditure for any purpose or purposes that the Minister of Finance, with the approval of the Lieutenant Governor in Council may designate.

Commitment and expenditure authority.

3(2)

Money raised under the authority of subsection (1) may not be expended prior to April 1, 1987; however, with the approval of the Lieutenant Governor in Council commitments may be made prior to as well as after that date for the expenditure of the money.

Cancellation of existing additional borrowing authority.

3(3)

Authority for the government to raise up to $100,000,000 by way of loan or loans upon the credit of the government pursuant to section 3 of "The Loan Act, 1984 (2)" is hereby rescinded.

Effect of raising money for Manitoba Jobs Fund.

4(1)

Money raised under authority of this Act for Manitoba Jobs Fund in Schedule A shall be raised for the total requirements for Manitoba Jobs Fund and not for any particular specific purpose and money so raised abates by the amount so raised the authority to raise money for Manitoba Jobs Fund without relation to any specific purpose for which the money is used, and, notwithstanding that there are no specific purposes designated under Manitoba Jobs Fund in Schedule A, the Lieutenant Governor in Council may designate any purpose for which the money raised for Manitoba Jobs Fund may be expended, and may determine the form and nature of the specific programs established under Manitoba Jobs Fund including the terms and conditions under which any specific program will operate, and the use of money for any specific purpose does not affect the use of any other money raised for that same specific purpose.

Recital in Orders in Council.

4(2)

A recital or declaration in an Order of the Lieutenant Governor in Council authorizing the expenditure of money provided for Manitoba Jobs Fund for any purpose designated by the Lieutenant Governor in Council, that it is necessary that an advance, loan, or guarantee be defined as an expenditure under the Manitoba Jobs Fund shall be conclusive proof of that fact.

Authority for expenditure.

4(3)

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

(a) from money authorized to be raised and expended under this Act to an amount not exceeding in the aggregate the sum set out opposite Manitoba Jobs Fund in Schedule A; or

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

Receipts.

4(4)

Where expenditures under this Act have been made from the Manitoba Jobs Fund, receipts or recoveries pertaining thereto shall be used to retire, or provide for the retirement of any debt incurred to raise money for such expenditures.

Power to authorize the borrowing by government for Crown corporations.

5(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 Agricultural Credit Corporation, The Manitoba Hydro-Electric Board, The Manitoba Housing and Renewal Corporation, Manfor Ltd., Manitoba Hazardous Waste Management Corporation, Communities Economic Development Fund, and Venture Manitoba Tours Ltd. (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.

5(2)

To the extent that a corporation raises money by way of loan as provided in section 6, 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.

6

Each corporation with the exception of Manfor Ltd., Manitoba Hazardous Waste Management Corporation, Communities Economic Development Fund and Venture Manitoba Tours Ltd. may, by the issue and sale of its securities as provided in The Agricultural Credit Corporation Act, The Manitoba Hydro Act, or The Housing and Renewal 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.

7

Money raised and advanced by the government to a corporation or raised by a corporation as provided in The Agricultural Credit Corporation Act, The Manitoba Hydro Act, or The Housing and Renewal 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.

8

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 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.

9

In the manner provided in The Agricultural Credit Corporation Act, The Manitoba Hydro Act, or The Housing and Renewal 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.

Manitoba Properties Inc. Guarantees.

10

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 debt obligations of, or securities issued by Manitoba Properties Inc. to secure the repayment of money borrowed by Manitoba Properties Inc., the aggregate of such guarantees not to exceed the amount set out opposite Manitoba Properties Inc. in Schedule A.

Energy Conservation Loan Fund.

11(1)

The Lieutenant Governor in Council may

(a) establish the Energy Conservation Loan Fund and approve loan programs in respect thereof; 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 raised and expended under this Act to an amount not exceeding in the aggregate the sum set out opposite Energy Conservation Loan Fund in Schedule A; or

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

Canada-Manitoba Tourism Agreement Programs.

12(1)

The Lieutenant Governor in Council may make regulations

(a) establishing programs of assistance under the Canada-Manitoba Tourism Agreement 1985-90 by way of loans in respect of the construction of and expansion of tourist facilities and attractions in Manitoba; and

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

Administrative direction.

12(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.

12(3)

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

Authority for expenditure.

12(4)

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

(a) from money authorized to be raised and expended under this Act to an amount not exceeding in the aggregate the sum set out opposite Tourism Agreement 1985-90 in Schedule A; or

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

Authority to borrow for advances to the University of Manitoba.

13(1)

Subject to section 15, the Lieutenant Governor in Council may authorize, for the purpose of making advances by way of loan to the University of Manitoba (hereinafter referred to as the "university"), the raising of money by way of loan or loans upon the credit of the government, and the expenditure of the money so raised for such purposes, in amounts not exceeding in the aggregate the amount set opposite the designation The University of Manitoba in Schedule A.

Terms of advances.

13(2)

Each advance made by way of loan under subsection (1) shall be made on such terms as to repayment, rate of interest, and other matters, as may be prescribed by the Lieutenant Governor in Council.

Authority of the university to borrow.

14

Notwithstanding any other Act of the Legislature, the university may, for its purposes, by the issue and sale of its securities, or otherwise, borrow money on its credit

(a) subject to section 15, in amounts not exceeding in the aggregate the amount set opposite the designation The University of Manitoba in Schedule A; and

(b) in addition thereto, in such amounts as may be necessary to provide the net sum required for the repayment, refunding, refinancing, or renewal, in whole or in part, of any advance by way of loan made by the government to the university under this Act or any other Act of the Legislature, or to repay, refund, refinance, or renew, any notes, bonds, debentures, or other securities, issued by the university under this Act or any other Act of the Legislature, the repayment of the principal of which or of the interest thereon, or both, is guaranteed by the government.

Abatement of advances and authority to borrow for the university.

15(1)

Where the university raises money by way of loan under the authority conferred under clause 14(a), the amounts that may thereafter be advanced by way of loan to the university and raised by the government by way of loan under section 13, are abated to the extent of the money so raised by the university.

Abatement of authority of the university to borrow.

15(2)

Where an advance by way of loan is made to the university under section 13, the amount that may be thereafter borrowed by the university under clause 14(a), is abated to the extent of the advance so made.

Method of loan.

16(1)

The securities or any other method of borrowing authorized under section 14, shall be in such form or manner, shall bear such rates of interest, shall be payable as to principal, interest, and premium if any, at such times and places in such amounts and in such manner as the university, with the approval of the Lieutenant Governor in Council, may determine, may bear the seal of the university and together with any coupons attached thereto, if any, shall bear the manual, engraved, lithographed, printed, or otherwise mechanically reproduced signature of the chairman of the board of governors, president, or other executive officer of the university and shall be countersigned by the comptroller or treasurer thereof; and any such mechanically reproduced signature shall for all purposes be valid and binding upon the university notwithstanding that any person whose signature is so produced has ceased to hold office before the date of the security or before the issue thereof.

Exercise of authority to borrow by the university.

16(2)

The university may exercise its borrowing powers by either by-law or resolution and a recital or declaration in the by-law, resolution or minutes of the university to the effect that the amount of the loan so authorized is required for its purposes and is necessary to realize the net sum required for such purposes, is conclusive proof of that fact.

Guarantee of university's securities.

17(1)

The Lieutenant Governor in Council may authorize the Minister of Finance on behalf of the government to guarantee the repayment of the principal and interest of any loan made by the university pursuant to the authority contained in section 14.

Form of guarantee.

17(2)

The guarantee may be in such form as the Lieutenant Governor in Council may approve and shall be signed on behalf of the government by the Minister of Finance or an officer designated by the Lieutenant Governor in Council for that purpose; and the signature shall be conclusive proof for all purposes of the validity of the guarantee and that the relevant provisions of this Act have been complied with.

Minister of Finance may act as agent for the university.

18

The Minister of Finance may act as agent for the university with respect to the sale or other disposition of any notes, bonds, debentures or other securities, that may be guaranteed under section 17.

Small Business Loans Fund.

19(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.

19(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.

19(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.

19(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.

Supplementary powers.

20

The powers and authority herein granted to and conferred upon the Lieutenant Governor in Council or the government or the corporations or the university 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.

21

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


SCHEDULE A

Manitoba Jobs Fund $ 40,000,000
The Manitoba Agricultural Credit Corporation Farm Start 5,000,000
The Manitoba Hydro-Electric Board 6,200,000
The Manitoba Hydro-Electric Board - Limestone 940,000,000
The Manitoba Housing and Renewal Corporation 70,800,000
Manfor Ltd 13,500,000
Manitoba Hazardous Waste Management Corporation... 2,500,000
Manitoba Properties Inc 37,500,000
Communities Economic Development Fund 1,600,000
Energy Conservation Loan Fund 50,000,000
Tourism Agreement 1985-90 8,000,000
The University of Manitoba 10,000,000
Venture Manitoba Tours Ltd 1,500,000
Small Business Loans Fund 10,000,000
$1,196,600,000