Revised Statutes of Newfoundland 1990 Chapter G-5

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Revised Statutes of Newfoundland 1990

CHAPTER G-5

AN ACT TO RATIFY, CONFIRM AND ADOPT CERTAIN AGREEMENTS ENTERED INTO BETWEEN THE GOVERNMENT OF THE PROVINCE, KRUGER INC. AND OTHER PARTIES RESPECTING THE FUTURE OPERATION AND MODERNIZATION OF THE CORNER BROOK NEWSPRINT MILL
Analysis

1. Short title

2. Agreement with Kruger Inc.

3. Agreement with banks authorized

4. Agreement with CBP&P Ltd. authorized

5. Funding

6. A further agreement

7. Guarantee and mortgage

8. Public Utilities Act

9. Agreements amended

10. Agreements not part of law

Short title

1. This Act may be cited as the Government-Kruger Agreements Act.

1984 c30 s1

2. The Agreement executed and delivered by and between the Crown as represented by the Honourable the Minister of Forest Resources and Lands of the 1st part and Kruger Inc. of the 2nd part and deposited with the Clerk of the Executive Council is ratified, confirmed and adopted from September 18, 1984.

1984 c30 s2

3. (1) The Honourable the Minister of Finance on behalf of the Crown is authorized to enter into, execute and deliver an agreement with The Mercantile Bank of Canada, The Royal Bank of Canada, Bank of Montreal, The Toronto-Dominion Bank and Bank of America Canada the terms of which shall be substantially similar to the terms of a draft agreement deposited with the Clerk of the Executive Council.

(2) The Honourable the Minister of Finance on behalf of the Crown is authorized to enter into, execute and deliver agreements with The Mercantile Bank of Canada, The Royal Bank of Canada, Bank of Montreal, The Toronto-Dominion Bank and Bank of America Canada the terms of which shall be substantially similar to the terms of the draft agreements set out in Schedules A, B and C of the agreement referred to in subsection (1).

(3) The agreements authorized to be executed and delivered under subsections (1) and (2) shall, upon their execution and delivery in accordance with those subsections, be valid and binding upon the parties to the agreements.

1984 c30 s3

4. (1) The Honourable the Minister of Finance on behalf of the Crown is authorized to enter into, execute and deliver an agreement with Corner Brook Pulp and Paper Limited and Kruger Inc. the terms of which shall be substantially similar to the terms of a draft agreement deposited with the Clerk of the Executive Council.

(2) The agreement authorized to be executed and delivered under subsection (1) shall, upon its execution and delivery in accordance with that subsection, be valid and binding upon the parties to the agreement.

1984 c30 s4

5. (1) Subsection 25(6) of the Financial Administration Act does not apply to the agreements referred to in sections 3 and 4.

(2) A payment that the Crown may be required to make under an agreement referred to in this Act, other than the agreement referred to in section 6, or to fulfil a guarantee or a part of a guarantee referred to in Schedules A and B of the agreement referred to in section 3, shall be paid by the Minister of Finance out of the Consolidated Revenue Fund.

1984 c30 s5

6. The Honourable the Minister of Intergovernmental Affairs, the Honourable the Minister of Development and the Honourable the Minister of Forestry and Agriculture on behalf of the Crown may enter into an agreement with the Government of Canada and Corner Brook Pulp and Paper Limited to be executed concurrently with the agreements referred to in sections 3 and 4 providing for grants to be made by the federal and provincial governments for the modernization of the Corner Brook mill, as defined in that agreement, in the amounts and in accordance with the terms and conditions specified in that agreement.

1984 c30 s6

7. (1) Notwithstanding anything contained in the Public Utilities Act, but subject to the execution and delivery by the Honourable the Minister of Finance of the agreements referred to in sections 3 and 4, Deer Lake Power Company Limited shall have full authority to execute and deliver to the banks referred to in section 3

(a) an unconditional, unlimited and irrevocable guarantee for an indebtedness owing under the loan agreement as defined in the agreement referred to in section 3 by Corner Brook Pulp and Paper Limited to the banks; and

(b) a mortgage containing fixed and floating charges assigning, transferring and conveying all or part of the assets of Deer Lake Power Company Limited as security for the guarantee referred to in paragraph (a).

(2) In implementing the power policy declared in section 3 of the Electrical Power Control Act and in carrying out its duties and exercising its powers under section 4 of that Act and the Public Utilities Act, the Board of Commissioners of Public Utilities shall not take into account the guarantee and mortgage referred to in subsection (1).

1984 c30 s7

8. (1) The rates set out in clauses 7.02 of Schedules A and B of the agreement referred to in section 3 are considered to be interim rates for the purposes of subsection 75(1) of the Public Utilities Act.

(2) If the Board of Commissioners of Public Utilities fails to confirm the rates specified in clauses 7.02 of Schedules A and B of the agreements referred to in section 3 when making a final order with respect to the rates, tolls and charges to be applied under the terms of the agreements set out in Schedules A and B of the agreements referred to in section 3, the board shall not exercise its authority under subsection 73(3) of the Public Utilities Act and clauses 7.03 of Schedules A and B of the agreements referred to in section 3 shall apply in the circumstances.

1984 c30 s8

9. (1) Subject to the approval of the Lieutenant-Governor in Council, the Honourable the Minister of Finance on behalf of the Crown is authorized to enter into, execute and deliver agreements amending the agreements referred to in this Act.

(2) An amending agreement entered into under subsection (1) shall be laid before the House of Assembly within 15 days after it was executed by the Minister of Finance if the House of Assembly is then sitting, and if it is not, then within 15 days after the beginning of the next session.

(3) An amending agreement referred to in subsection (1)

(a) shall not change the purchase price to be paid under clause 14 of the agreement referred to in subsection 3(1);

(b) shall not change the price for power to be paid under clauses 7.01, 7.02 and 7.03 of each of the agreements contained in Schedules A and B of the agreements referred to in subsection 3(1); and

(c) shall not change the amount of the loan to be made by the province to the parties under clause 3.1 of the agreement referred to in section 4.

1987 c27 s1

10. The agreements referred to in this Act do not form part of this Act.

1984 c30 s9