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The Loan Act, 1987

S.M. 1987-88, c. 70

The Loan Act, 1987

(Assented to July 17, 1987)

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

Power to borrow and expend.

1

Subject to subsection 11(2), The Lieutenant Governor in Council may authorize the raising of money by way of loan upon the credit of the government and the expenditure of money for the purposes designated in the Schedule in the amount appearing opposite each designation in the Schedule.

Additional borrowing authority.

2(1)

Subject to subsection (2), in addition to authority granted under section 1, the government may raise up to $150, 000, 000 by way of loan for expenditure for any purpose that the Minister of Finance, with the approval of the Lieutenant Governor in Council, may designate.

Commitment and expenditure authority.

2(2)

Money raised under the authority of subsection (1) may not be expended prior to April 1, 1988; 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.

2(3)

Authority for the government to raise up to $100, 000, 000 by way of loan upon the credit of the government pursuant to section 3 of The Loan Act, 1985 is rescinded.

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 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, Manitoba Data Services, The Manitoba Agricultural Credit Corporation, The Manitoba Housing and Renewal Corporation, The Manitoba Water Services Board, The Co-operative Loans and Loans Guarantee Board, The Manitoba Hospital Capital Financing Authority, Manitoba Mineral Resources Ltd. and, subject to subsection 11(2), The Manitoba Natural Gas Corporation (hereinafter referred to collectively as "corporations" and individually as a "corporation"), in amount not exceeding in the aggregate the sum appearing opposite the name of that corporation in the Schedule.

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 with the exception of Manitoba Data Services, The Co-operative Loans and Loans Guarantee Board and Manitoba Mineral Resources Ltd. may, by the issue and sale of its securities as provided in The Manitoba Telephone Act, The Agricultural Credit Corporation Act, The Housing and Renewal Corporation Act, The Manitoba Water Services Board Act, The Hospital Capital Financing Authority Act or, subject to subsection 11(2), The Natural Gas Supply Act, 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 the Schedule 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, The Housing and Renewal Corporation Act, The Manitoba Water Services Board Act, The Hospital Capital Financing Authority Act or, subject to subsection 11(2), The Natural Gas Supply Act 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, The Housing and Renewal Corporation Act, The Manitoba Water Services Board Act, The Hospital Capital Financing Authority Act or, subject to subsection 11(2), The Natural Gas Supply Act 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.

Guarantee for The Credit Union Stabilization Fund.

8

With the approval of the Lieutenant Governor in Council, the Minister of Finance, for and on behalf of the Government, may guarantee loans made to The Credit Union Stabilization Fund, however, the aggregate of the possible obligations of the government arising under guarantees given under this section shall not, at any time, exceed $25, 000, 000.

Debt assumption by The Manitoba Natural Gas Corporation

9

Subject to subsection 11(2), where The Manitoba Natural Gas Corporation assumes the debt of another company, the authority provided in the Schedule shall be abated by the par value of such debt assumed and The Manitoba Natural Gas Corporation shall be empowered to refund or refinance the debt so assumed in the same manner as if it were debt issued by The Manitoba Natural Gas Corporation.

Supplementary powers.

10

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.

11(1)

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

Effect of passage of Bill 68.

11(2)

The authority given by this Act to raise money for the purposes of The Manitoba Natural Gas Corporation and the references to that corporation and to The Natural Gas Supply Act in this Act shall only come into effect if Bill 68 of the present session of the Legislature, An Act to Govern the Supply of Natural Gas in Manitoba and to Amend the Public Utilities Board Act, is passed by the Legislature and proclaimed in force.


SCHEDULE

The Manitoba Telephone System $ 45,900,000
Manitoba Data Services 9,400,000
The Manitoba Agricultural Credit Corporation 69,000,000
The Manitoba Housing and Renewal Corporation 97,000,000
The Manitoba Water Services Board 12,000,000
The Co-operative Loans and Loans Guarantee Board 1,250,000
The Manitoba Hospital Capital Financing Authority 38,500,000
Manitoba Mineral Resources Ltd. 12,500,000
The Manitoba Natural Gas Corporation 175,000,000
$ 460,550,000