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SNL1957 CHAPTER 70

THE LOAN AND GUARANTEE ACT, 1957

Amended:

1960 No69; 1962 No52; 1966-67 Nos 6 & 91; 1969 No58; 1980 c12; 2001 cN-3.1 s2

Schedule Amendments - 1958 No31; 1959 No53; 1960 No69;
1961 No20; 1962 No52; 1963 No50; 1964 No83; 1965 No43;
1966 No50; 1966-67 No91; 1968 No85; 1969 No58 (s2 deemed in force on March 20, 19 62); 1970 No37; 1971 No59; 1972 No53;
1973 No75; 1974 No19; 1975 No46; 1975-76 No74; 1977 c73;
1978 c47; 1980 c12; 1982 c18; 1983 c6; 1983 c37; 1985 c3; 1986 c21 (paragraph 5(1)(e) deemed in force on June 28, 1985 ); 1987 c31; 1989 c8; 1989 c27; 1990 c5; 1990 c41; 1991 c6; 1992 c4; 1993 c11; 1993 c30; 1994 c6; 1994 c16; 1995 c9; 1996 c6; 1998 c5; 1999 c17;
2000 c21; 2001 c26; 2004 c7; 2005 c6; 2005 c54; 2006 c41; 2008 c12; 2009 c14; 2010 c20; 2011 c21; 2013 c22

(See also 1973 No13)

CHAPTER 70

AN ACT TO PROVIDE FOR THE ADVANCE AND GUARANTEE OF LOANS BY THE GOVERNMENT AND TO AMEND CERTAIN STATUTORY PROVISIONS RELATING TO LOANS AND GUARANTEES

(Assented to June 12, 1957)

Analysis


       
1.   Short title

       
2.   Interpretation

       
3.   Advance or guarantee of loans

       
4.   Guarantee of bonds and debentures

       
5.   Terms and conditions and form of guarantee in certain cases

      5A.   Execution of guarantee by Minister of Finance or other Minister

       
6.   Principal only or both principal and interest may be guaranteed in currency of Canada or of the United States of America

       
7.   Partial advances or guarantees may be made

       
8.   Payments by Minister

      8A.   Where moneys loaned to certain borrowers by Newfoundland and Labrador Municipal Financing Corporation

      8B.   Where moneys loaned to borrowers by Newfoundland and Labrador Industrial Development Corporation

       
9.   Payment of interest deferred in certain cases

     
10.   Repeal and substitution Sec. 4B of the Act No. 59 of 1954

     
11.   Amendment and substitution of agreements

     
12.   Expiry generally


Schedule


Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

Short title

        1. This Act may be cited as The Loan and Guarantee Act, 1957 .

1957 No70 s1

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Interpretation

        2. In this Act

             (a)  "borrower" means any person or corporation, or any Board of Education, common board, committee or other governing body appointed under The Education Act , chapter 101 of The Revised Statutes of Newfoundland, 1952, named in the first column of the Schedule;

          (a.1)  "date of issue" means the date on which the statutory amount is issued as set out in the third column of the Schedule opposite the name of the borrower concerned;

          (a.2)  "date of expiry" means, where applicable, the date on which the statutory amount expires as set out in the fourth column of the Schedule opposite the name of the borrower concerned;

             (b)  "Minister" means a Minister designated by the Lieutenant-Governor in Council to enter into on behalf of the Crown any agreement authorized by this Act, or, where the agreement was made before the enactment of this Act, the Minister who executed the agreement; and

             (c)  "statutory amount" means the amount set out in the second column of the Schedule opposite the name of the borrower concerned.

1957 No70 s2; 1980 c12 s1

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Advance or guarantee of loans

        3. Subject to this Act and the approval of the Lieutenant-Governor in Council, the Minister has and shall be deemed to have had power acting for and on behalf of the Crown in right of Newfoundland and Labrador,

             (a)  to advance to any borrower a loan not exceeding the statutory amount with or without interest or to guarantee the repayment of a loan not exceeding the statutory amount with or without interest advanced to any borrower and to advance the loan to or guarantee the repayment of the loan by the borrower upon such security as the Lieutenant-Governor in Council shall deem satisfactory;

             (b)  to make with any borrower an agreement containing the terms and conditions of the advance or guarantee and of the repayment with or without interest of any loan of an amount not exceeding the statutory amount or any agreement relating in any way whatsoever to any such loan; and

             (c)  to guarantee the repayment of any loan referred to in paragraph (a) under a revolving credit with the liability of the guarantor limited to the statutory amount.

1957 No70 s3; 2001 cN-3.1 s2

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Guarantee of bonds and debentures

        4. (1) Subject to this Act and the approval of the Lieutenant-Governor in Council, the Minister has and shall be deemed to have had power acting for and on behalf of the Crown in right of Newfoundland and Labrador

             (a)  to guarantee the repayment of bond or debenture issues of any borrower in such form and containing such terms and conditions and at such rate of interest and at such times as the Lieutenant-Governor in Council determines where such issues are made for an amount not exceeding the statutory amount; and

             (b)  pending the issue and sale of any bond or debenture issue referred to in paragraph (a) to advance to or guarantee the repayment by the borrower of an interim loan, with or without interest, not exceeding the statutory amount, if provision satisfactory to the Attorney General is made for the repayment of the interim loan together with interest, if any, out of the proceeds of the bond or debenture issue and for making the repayment of the interim loan and interest, if any, a first charge upon such proceeds after deducting the costs and expenses, including commission charges, of and incidental to the floating of the bond or debenture issue.

             (2)  The repayment of a bond or debenture issue may be guaranteed under subsection (1) even when an interim loan to the borrower issuing the bond or debenture issue has already been advanced or guaranteed under that subsection and even though pending the repayment of the interim loan the liability of the Crown will exceed the statutory amount, but the liability of the Crown in respect of the bond or debenture issue and in respect of the interim loan shall not subject to Section 6 exceed double the statutory amount.

             (3)  The aggregate of the loans advanced and the guarantees made by the Crown to or in respect of any borrower under Section 3 and this section, exclusive of the amount of any interim loan advanced or guaranteed under subsection (1) of this section shall not subject to Section 6 exceed the statutory amount.

1957 No70 s4; 2001 cN-3.1 s2

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Terms and conditions and form of guarantee in certain cases

        5. The Lieutenant-Governor in Council may, by order, prescribe the principal terms and conditions of any guarantee authorized to be made under Section 3 or Section 4 and direct that the form of the guarantee shall be such as the Attorney General may approve and further direct that such additional terms and conditions as the Attorney General may approve and that are not inconsistent with those prescribed by the Lieutenant-Governor in Council shall be included in the guarantee, and whenever an order is made under this section the guarantee to which it relates shall be made in accordance with the order, and when so made such guarantee shall have the same force and effect of law for all purposes as if all of the terms and conditions thereof had been approved by the Lieutenant-Governor in Council.

1957 No70 s5

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Execution of guarantee by Minister of Finance or other Minister

     5A. A guarantee made under this Act shall be signed for and on behalf of the Crown in right of Newfoundland and Labrador by the Minister of Finance or such other Minister as the Lieutenant-Governor in Council may authorize and where the repayment of a bond or debenture is guaranteed the form of the guarantee shall be endorsed on each certificate issued relating to the bonds or debentures in respect of which the guarantee is authorized and the signature of the Minister of Finance or other Minister may be engraved, lithographed or otherwise mechanically reproduced on the certificate.

1960 No69 s2; 2001 cN-3.1 s2

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Principal only or both principal and interest may be guaranteed in currency of Canada or of the United States of America

        6. (1) The power to guarantee the repayment of loans including interim loans or to guarantee the repayment of bond or debenture issues, conferred by Section 3 or Section 4 includes and shall be deemed to have included

             (a)  the power to make any of such guarantees as to principal only or as to principal together with interest at a rate approved by the Lieutenant-Governor in Council; and

             (b)  the power to guarantee the repayment of any of such loans or bond or debenture issues together with the payment of interest thereon, in the currency of Canada or of the United States of America .

             (2)  Where the payment of any interest referred to in subsection (1) is or has been guaranteed, the Minister acting for and on behalf of the Crown in right of Newfoundland and Labrador may and shall be deemed to have had power to incur liability in excess of the statutory amount to the extent of the guarantee of interest.

1957 No70 s6; 2001 cN-3.1 s2

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Partial advances or guarantees may be made

        7. The power conferred by Section 3 or Section 4 to advance or to guarantee the repayment of loans including interim loans or to guarantee the repayment of bond or debenture issues includes and shall be deemed to have included the power, from time to time, to make part of such loans, to guarantee the repayment of part of such loans or to guarantee the repayment of part of such issues of bonds or debentures, as the case may be, but the aggregate of the loans advanced and the guarantees made under this Act by the Crown to or in respect of any borrower, exclusive of any interim loan advanced or guaranteed under Section 4 to or in respect of that borrower shall not subject to Section 6 exceed the statutory amount.

1957 No70 s7

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Payments by Minister

        8. Any payment that the Crown may be required to make under this Act shall be paid by the Minister of Finance out of the Consolidated Revenue Fund of the province.

1957 No70 s8

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Where moneys loaned to certain borrowers by Newfoundland and Labrador Municipal Financing Corporation

     8A. (1) Where moneys are advanced by way of loan by the Newfoundland and Labrador Municipal Financing Corporation to a Board of Trustees appointed under Section 8 of The Rural Electrification Act, 1963 , from moneys borrowed or raised by the Newfoundland and Labrador Municipal Financing Corporation upon guarantee of Her Majesty in right of the province, the statutory amount applicable to such Board of Trustees is reduced to the extent of the moneys so advanced to that Board of Trustees.

             (2)  Subsection (1) applies in respect of any

             (a)  statutory amount, or

             (b)  part of a statutory amount

appearing in the Schedule as now or hereafter amended where such statutory amount or part of a statutory amount is not or has not been the subject of a loan or guarantee by Her Majesty in right of the province under this Act.

             (3)  Where, under the provisions of The Rural Electrification Act, 1963 , as now or hereafter amended, the assets and other property and liabilities of one Board of Trustees appointed under Section 8 of the said Act are vested in and imposed on another such Board of Trustees, any reference in the Schedule as now or hereafter amended to the first-mentioned Board of Trustees is deemed a reference to the other such Board of Trustees.

1966-67 No6 s2; 2001 cN-3.1 s2

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Where moneys loaned to borrowers by Newfoundland and Labrador Industrial Development Corporation

     8B. (1) Where moneys are advanced by way of loan to a borrower by the Newfoundland and Labrador Industrial Development Corporation from moneys borrowed or raised by the Newfoundland and Labrador Industrial Development Corporation upon guarantee of Her Majesty in right of the province, the statutory amount applicable to such borrower is reduced to the extent of the moneys so advanced to that borrower.

             (2)  Subsection (1) applies in respect of any

             (a)  statutory amount, or

             (b)  part of a statutory amount

appearing in the Schedule as now or hereafter amended where such statutory amount or part of a statutory amount is not or has not been the subject of a guarantee or loan by Her Majesty in right of the province under this Act.

1966-67 No91 s2; 2001 cN-3.1 s2

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Payment of interest deferred in certain cases

        9. Where any loan has been or is advanced to a borrower under Section 3 on behalf of the Crown in right of Newfoundland and Labrador, the Lieutenant-Governor in Council may by order and subject to such terms and conditions as he may deem desirable defer, for such period as he may prescribe, the payment of interest on and the commencement of the amortization of the loan, and when an order is made under this section it shall have the same force and effect as if it was incorporated in any agreement relating to the loan made between the Crown and the borrower.

1957 No70 s9; 2001 cN-3.1 s2

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Repeal and substitution Sec. 4B of the Act No. 59 of 1954

      10. Section 4B of The Loan and Guarantee Act, 1954 , the Act No. 59 of 1954, as enacted by the Act No. 49 of 1956, is repealed and the following substituted therefor:

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Principal only or both principal and interest may be guaranteed in currency of Canada or of the United States of America

     4B. (1) The power to guarantee the repayment of loans or to guarantee the repayment of bond or debenture issues conferred by this Act includes and shall be deemed to have included

             (a)  the power to make any of such guarantees as to principal only or as to principal together with interest at a rate approved by the Lieutenant-Governor in Council; and

             (b)  the power to guarantee the repayment of such loans or bond or debenture issues together with the payment of interest thereon, in the currency of Canada or of the United States of America .

             (2)  Notwithstanding anything to the contrary contained in this Act, where the payment of any interest referred to in subsection (1) is or has been guaranteed, the Minister acting on behalf of the Crown in right of Newfoundland may and shall be deemed to have had power to incur liability in excess of the statutory amount to the extent of the guarantee of interest.

1957 No70 s10

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Amendment and substitution of agreements

      11. Where any loan has before the enactment of this section been advanced or the repayment of which has been guaranteed by the Government or is advanced or guaranteed thereafter under The Loan and Guarantee Act, 1950 , the Act No. 43 of 1950, The Loan and Guarantee Act, 1951 , the Act No. 53 of 1951, The Loan and Guarantee Act, 1954 , the Act No. 59 of 1954, or under any special Act of the Legislature in force at the time of the enactment of this section, or where any loan referred to in Section 3 of this Act has been or is advanced to any borrower or the repayment of which has been or is guaranteed by the Government, the Minister who executed or executes the agreement on behalf of the Crown with the borrower with regard to the loan or any other Minister designated by the Lieutenant-Governor in Council for the purpose may, with the prior approval of the Lieutenant-Governor in Council, amend the agreement from time to time or may cancel the agreement and substitute therefor another agreement, which may also from time to time be amended or cancelled and substituted for under this section, and the amendment or substituted agreement may contain such terms and conditions and may be made for such consideration as the Lieutenant-Governor in Council may approve, and, without limiting the generality of the foregoing, the amended or substituted agreement may

             (a)  take effect from any date before or after the coming into force of this section;

             (b)  alter the security upon which the loan is advanced or guaranteed;

         (bA)  extend

                      (i)  the time for repayment of the loan, if such loan is advanced by the Government, or

                     (ii)  the period of the guarantee of the loan, if such loan is guaranteed by the Government,

with or without interest, as the case may be;

             (c)  alter the rate of interest, if any;

             (d)  forgive any unpaid interest or part thereof; or

             (e)  accept in satisfaction of any unpaid interest or unpaid principal of a loan advanced or guaranteed by the Government or part thereof any property real or personal in substitution for money,

but shall not alter the statutory amount of the loan concerned, and any such amendment or substituted agreement shall have the same force and effect as if it were contained in or was, as the case may be, the original agreement between the Crown and the borrower.

1962 No52 s2; 1969 No58 s2

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Expiry generally

      12. Notwithstanding anything contained in this Act, where any loan, interim loan, guarantee of a loan or any guarantee of a bond or debenture

             (a)  was issued or advanced to a borrower under this Act before the coming into force of this section; and

             (b)  is no longer outstanding or in use,

such loan, interim loan, guarantee of a loan, bond or debenture is deemed to have expired.

1980 c12 s2

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Schedule

(Schedule not consolidated)

1957 No 70 Sch; 1958 No31 s2; 1959 No53 s2; 1960 No69 s3; 1961 No20 s2; 1962 No52 s3; 1963 No50 s2; 1964 No83 s2; 1965 No43 s2; 1966 No50 s2; 1966-67 No91 s3; 1968 No85 s2; 1969 No58 s3; 1970 No37 s2; 1971 No59 s2; 1972 No53 s2; 1973 No75 s2; 1974 No19 s2; 1975 No46 s2; 1975-76 No74 s2; 1977 c73 s1; 1978 c47 s2; 1980 c12 s3; 1982 c18 s1; 1983 c6 ss1&2; 1983 c37 ss1-3; 1985 c3 ss1-5; 1986 c21 ss1-5; 1987 c31 ss1-6; 1989 c8 ss1-9; 1989 c27 ss1-4; 1990 c5 ss1-4; 1990 c41 ss1-8; 1991 c6 ss1-3; 1992 c4 ss1-5; 1993 c11 ss1-7; 1993 c30 ss1-7; 1994 c6 ss1-4; 1994 c16 ss1-6; 1995 c9 ss1&2; 1996 c6 ss1-7; 1998 c5 ss1-6; 1999 c17 ss1-4; 2000 c21 ss1&2; 2001 c26 ss1-5; 2004 c7 ss1-5; 2005 c6 s1; 2005 c54 ss1&2; 2006 c41 ss1-3; 2008 c12 ss1-3; 2009 c14 s1; 2010 c20 ss1-2; 2011 c21 s1; 2013 c22 s1