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Copyright © 2000: Queens Printer,
Revised Statutes of Newfoundland 1990
AN ACT TO PROVIDE FOR LOANS TO FISHERS AND RESPECTING THE FISHERIES LOAN BOARD
1. This Act may be cited as the Fisheries Loan Act.
RSN1970 c134 s1Back to Top
2. In this Act
(a) "bank" means a bank to which the Bank Act (Canada) applies;
(b) "board" means the board continued by this Act;
(c) "company" means a company incorporated under The Companies Act or incorporated or continued under the Corporations Act which owns land, plant or equipment in the province and regularly carries on the business of catching, purchasing, preparing for sale or selling fish or fish products or the business of constructing and equipping wooden fishing vessels;
(d) "group of fishers" means 2 or more fishers;
(e) "fisher" means a person who is engaged in the catching and taking of fish from the sea;
(f) "fund" means the fund created by this Act;
(g) "minister" means the Minister of Fisheries or other minister charged with the administration of this Act; and
(h) "society" means a Co-operative Society registered under the Co-operative Societies Act, a reasonable proportion of the business of which, in the opinion of the board, is the catching, handling on behalf of fishers, preparing for market or marketing of fish or fish products.
RSN1970 c134 s2; 1986 c12 Sch; 1987 c38 Sch BBack to Top
3. (1) The Fisheries Loan Board of Newfoundland is continued and shall consist of not fewer than 5 members to be appointed by the Lieutenant-Governor in Council.
(2) The Lieutenant-Governor in Council shall designate 1 member of the board to be chairperson of the board and another member of the board to be deputy chairperson of the board.
(3) The deputy chairperson of the board shall, in the absence or incapacity of the chairperson, exercise the powers and perform the duties of the chairperson.
(4) With the exception of the managing director appointed under section 4, the members of the board shall be appointed for 1 year and are eligible for reappointment.
(5) The chairperson of the board shall report directly to the Deputy Minister of Fisheries.
(6) Where a vacancy occurs in the board because of the death, resignation or illness of a member, the Lieutenant-Governor in Council may appoint a person to replace that member.
(7) Nothing in this Act shall be construed to prevent the Lieutenant-Governor in Council from designating a member of the board to be a member of another board.
(8) A majority of the members of the board shall constitute a quorum.
(9) The members of the board except employees of the government of the province shall receive remuneration and allowances at a rate determined by the Lieutenant-Governor in Council.
(10) The board shall be a body corporate.
(11) A contract, agreement or other document executed by the board shall be signed by
(a) the chairperson or the deputy chairperson;
(b) 1 other person designated by the board who is either a member of the board or an employee of the board; and
(c) shall be sealed with the seal of the board.
RSN1970 c134 s4; 1980 c32 s1; 1989 c38 s2Back to Top
4. (1) There shall be appointed in the manner authorized by law a managing director of the board and other officers and employees that may be necessary for the purpose of this Act.
(2) The managing director of the board shall report directly to the Deputy Minister of Fisheries.
1989 c38 s3Back to Top
5. There shall be a fund for the purpose of this Act to be known as the Fisheries Loan Fund into which all money appropriated by the Legislature or otherwise received for the purpose of this Act shall be paid.
RSN1970 c134 s6Back to Top
6. The board shall, in accordance with the regulations, administer the fund and other money that may come under its control for the purpose of improving and developing the fishing industry of the province, particularly by making loans or advances to fishers and to other persons, associations, societies or companies engaged either directly or indirectly in the catching, handling, processing or distributing of fish or fish products.
RSN1970 c134 s7Back to Top
7. The board may, particularly, but not so as to restrict the generality of section 6
(a) make loans to a fisher or groups of fishers for
(i) the purchase, repair or improvement of hulls or boats to be used in fishing,
(ii) the purchase of new engines for new or replacement installation in hulls owned by fishers to be used in fishing, and
(iii) the purchase of fishing gear including net winches, line winches, drag winches and other similar gear whether mounted on ship or not and commonly used in either purse seining, Danish seining, long lining, deep net fishing, or the dragging of fish and scallops; and
(b) make loans to or on behalf of societies or companies
(i) for assisting in the construction of plants and the purchase of plant equipment generally and other types of capital expenditure which, in the opinion of the board, are proper expenditures for which loans should be made by it,
(ii) to build hulls or boats under contract between the board, company and builder,
(iii) to build hulls or boats under contract between the board, society and builder,
(iv) for the purchase of new or old hulls or boats not built under contract with the board,
(v) for the purchase of engines and auxiliary equipment, and
(vi) for the purchase of fishing gear and equipment.
RSN1970 c134 s8Back to Top
Conditions for obtaining loan
8. The board may make a loan to a fisher who
(a) is of legal age;
(b) is a Canadian citizen ordinarily resident in the province; and
(c) satisfies the other conditions that the Lieutenant-Governor in Council may prescribe by regulation.
1980 c32 s2Back to Top
Board may guarantee loan
9. Where a bank has made a loan for a purpose prescribed by this Act or the regulations as a result of an application made to and approved by the board, the board may guarantee repayment of the loan.
RSN1970 c134 s9Back to Top
10. The board may enter into an agreement with the Government of Canada or with an organization, whether public or private, for the better carrying out of the purpose of this Act on those terms and conditions that may be approved by the Lieutenant-Governor in Council.
RSN1970 c134 s10Back to Top
Repayment of loans
11. (1) All repayments in respect of a loan made by the board including interest on the loan and including the proceeds of the sale of all boats or other equipment repossessed by the board shall be paid into the fund.
(2) All money received by the board shall be deposited to the credit of the fund in an account to be kept by the minister and all money required by the board shall be paid out of the fund by the minister following a recommendation or approval by the board.
RSN1970 c134 s11; 1974 No66 s2Back to Top
Money constitutes trust
12. Where a fish processor, under an authorization given by a fisher, retains a portion of the gross earnings due the fisher as payment for fish delivered by the fisher to the processor for remission to the board on behalf of the fisher as part of a repayment of a loan made by the board to the fisher, the processor is considered to hold the portion due to the board in trust for the board whether or not the amount has in fact been kept separate and apart by the processor and the portion becomes a lien in favour of the board upon the assets of the processor that in the ordinary course of business would be entered in books of account whether or not so entered.
1985 c18 s1Back to Top
Board may remit interest
13. Where, as a result of a failure of a fish processor to remit to the board an amount deducted from a fisher's gross earnings for remission to the board on behalf of the fisher, the repayment by the fisher of a loan made by the board to the fisher falls into arrears and the fisher becomes as a result liable to pay interest to the board in respect of the amount of the repayment that is in arrears, the board may forgive, in whole or in part, the interest owing.
1985 c18 s1Back to Top
14. (1) The Lieutenant-Governor in Council may make regulations
(a) prescribing the manner in which applications for loans are to be made;
(b) prescribing the terms and conditions on which loans may be made;
(c) prescribing the manner and conditions on which fishers may sell or transfer a boat or equipment in respect of which a loan has not been fully repaid;
(d) prescribing penalties that the board may impose on a fisher who sells outside the province or outside the fishing industry a boat or equipment in respect of which a loan has been made;
(e) requiring a fisher who, as a result of selling a boat or equipment in respect of which he or she has obtained a loan, obtains an amount of money in excess of the balance of the loan to apply that amount in excess towards a new loan obtained under this Act;
(f) prescribing or limiting the size or type of boats and equipment for or in respect of which loans may be made;
(g) prescribing or limiting the amount of a loan;
(h) deferring the payment of the whole or a part of a loan for those reasons that the board may determine;
(i) fixing the rate of interest on loans;
(j) providing for the commuting of payments due to the board;
(k) prescribing the form of a mortgage and the manner of its execution;
(l) prescribing or regulating the form and contents of an agreement between a fisher and a boat builder for the construction of a fishing boat in respect of which a loan may be made or guaranteed;
(m) prescribing the conditions under which a shipyard or builder may be approved for the purpose of the construction of a fishing boat in respect of which a loan may be made or guaranteed;
(n) prescribing or approving the design, plans and specifications for fishing boats in respect of which a loan may be made or guaranteed;
(o) prescribing the purposes for which loans may be made;
(p) prescribing in the event of default in the repayment of a guaranteed loan the legal or other measures to be taken by the bank and the procedure to be followed for the collection of the amount of the loan outstanding, the disposal or realization of security for the repayment of the loan held by the bank and the rate of interest to be charged on overdue payments;
(q) prescribing the method of determination of the amount of loss sustained by a bank as a result of default in repayment of a guaranteed loan and the procedure to be followed by a bank in making a claim for loss sustained by it in respect of a guaranteed loan;
(r) prescribing the steps to be taken by a bank to effect on behalf of the minister collection of a guaranteed loan in respect of which payment has been made by the minister to the bank under this Act and providing that on failure by the bank to take those steps the amount of the payment may be recovered from the bank by the minister;
(s) requiring reports to be made periodically to the minister by a bank in respect of guaranteed loans;
(t) dividing the province into regions for the purpose of this Act and the regulations;
(u) prescribing the manner in which meetings of the board shall be called, the time and place of meetings and the manner in which business is to be conducted at meetings; and
(v) generally, for the more effective carrying out of the purpose of this Act.
(2) Regulations made under subsection (1) may be made with retroactive effect to a date stated in the regulations which shall not in any event be more than the period of 12 months before the date of publication in the Gazette.
RSN1970 c134 s12; 1980 c32 s3; 1989 c38 s4Back to Top
Employees to be bonded
15. (1) A person, other than an employee of the government of the province, employed in the work of the board whose duty it may be to receive or handle money on behalf of the board shall, before entering upon the duties of his or her office, provide a bond or covenant of some guarantee company to be approved by the minister to secure the accounting by that person of all money that may come into his or her hands.
(2) A bond or covenant shall be in a form and for an amount that the board determines and the board shall pay the premium for that bond or covenant.
RSN1970 c134 s13Back to Top
Financial year of board
16. The financial year of the board shall correspond to the financial year of the government of the province.
RSN1970 c134 s14Back to Top
Financial statement and report
17. (1) The board shall, not later than August 30 in each year, prepare and submit to the minister a financial statement setting out the assets and liabilities of the board and the receipts and expenditures of the board for the previous financial year, together with a report concerning the work of the board during the previous financial year.
(2) The statement and report shall be laid before the House of Assembly within 15 days after they are submitted to the minister if the House of Assembly is then in session, and, if not, then within 15 days after the beginning of the next session.
RSN1970 c134 s15; 1988 c11 s1Back to Top
Certificate of auditor general
18. The financial statement referred to in section 17 shall be signed by the managing director and 1 other member of the board and certified by the auditor general and shall have attached a report on it which the auditor general may have made to the board.
RSN1970 c134 s16; 1989 c38 s5Back to Top
Minutes of meetings
19. The managing director shall keep regular minutes of the meetings of the board and shall ensure that complete books of account and records are kept.
RSN1970 c134 s17; 1989 c38 s6Back to Top
Audit of board
20. (1) The auditor general shall audit the accounts of the board and has authority to call for and shall be supplied by the board with all books and vouchers which he or she considers necessary for the audit.
(2) Where the auditor general makes an interim examination of the accounts of the board during the course of a financial year a report of the examination shall be submitted to the Deputy Minister of Fisheries and to the minister and the minister shall lay the report before the House of Assembly with the statement and report referred to in section 17.
RSN1970 c134 s18; 1989 c38 s7Back to Top
Payment into fund
21. The managing director shall pay into the Consolidated Revenue Fund out of the fund the money, at the intervals and in the manner that the Lieutenant-Governor in Council may by order direct.
1985 c18 s2; 1989 c38 s8
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