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Local, Personal and Private Statutes


SNL1978 CHAPTER 9

THE CITY OF ST. JOHN’S (LOAN) ACT, 1978

Amended:

1980 c29 ss2 to 4; 1981 c74; 1983 c74; 1986 c48; 1993 c43; 2002 c9

CHAPTER 9

AN ACT TO EMPOWER THE ST. JOHN'S MUNICIPAL COUNCIL TO RAISE A LOAN FOR MUNICIPAL PURPOSES BY THE ISSUE OF BONDS

(Assented to June 6, 1978)

Analysis


        1.   Short title

        2.   Interpretation

        3.   Power to borrow

        4.   Repayment

        5.   Priority

        6.   Issuance and sale

        7.   Signing of bonds and coupons

        8.   Application of proceeds

        9.   Sinking fund

      10.   Ancillary powers

      11.   Appointment of transfer agent


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 City of St. John’s (Loan) Act, 1978.

1978 c9 s1

Interpretation

        2. In this Act

             (a)  "bonds" means the bonds referred to in section 3;

             (b)  "City" means the City of St. John's constituted by The City of St. Johns Act;

             (c)  "Council" means the St. John's Municipal Council referred to in The City of St. Johns Act; and

             (d)  "minister" means the minister appointed under the Executive Council Act to administer this Act.

1978 c9 s2; 2002 c9 s1

Power to borrow

        3. (1)  The Council may borrow upon the credit of the City, by the issue and sale of bonds of the City at an interest rate to be set by the Council, such amounts as may from time to time be approved, in writing, by the minister.

             (2)  The payment of the bonds and interest thereon authorized under subsection (1) may be secured by a charge upon the assets and revenue of the City.

1978 c9 s3; 1981 c74 s1; 1983 c74 s1; 1986 c48 s1; 2002 c9 s2

Repayment

        4. The bonds are to be repayable within forty years from the date of their issue.

1978 c9 s4

Priority

        5. The bonds rank as obligations of the City pari passu with all existing bonds or debentures of the City.

1978 c9 s5

Issuance and sale

        6. The bonds may be issued and sold in such kind, numbers, and amounts and at such times as the Council may decide, but no bonds shall be issued or sold by the Council until the proceeds of the sale of such bonds are from time to time immediately required by the Council for any of the purposes authorized in section 8 and after the issue and sale of the bonds has been approved by the minister.

1978 c9 s6; 2002 c9 s3

Signing of bonds and coupons

        7. (1) The bonds shall be signed on behalf of the City by

             (a)  the Mayor, whose signature on the bonds may be lithographed or otherwise mechanically reproduced; and

             (b)  the City Manager, the City Clerk, or a trustee authorized by resolution of the Council.

             (2)  Any interest coupon attached to the bonds shall be signed by the City Manager, whose signature may be lithographed or otherwise mechanically reproduced.

1978 c9 s7; 1980 c29 s1; 1993 c43 s1

Application of proceeds

        8. Subject to the prior approval, in writing, of the minister, the bonds may be issued and sold and the proceeds from the sale applied towards the financing of any municipal projects or improvements for the benefit of the City and within the powers of the Council and for the repayment in whole or in part of any loan, debt or bond issue of the Council.

1978 c9 s8; 2002 c9 s4

Sinking fund

        9. (1) The Council may establish a sinking fund for the redemption of bonds, if other than serial bonds.

             (2)  The sinking fund established under subsection (1) shall be under the control of the province, or a bank or trust company appointed by the Council as trustees for the holders of the bonds.

             (3)  The Council shall pay into a sinking fund each year an amount at least equivalent to two and one-half per cent of the principal amount of all bonds issued under this Act and in addition an amount equivalent to the yearly interest on all bonds retired by the Council under section 8.

             (4)  The Council may provide for the application of moneys in a sinking fund from time to time to the reduction of the principal amount of the bonds by the retirement of any of the bonds, either by drawing or by purchase in the market or both, and all bonds so retired shall be cancelled.

             (5)  The Council may empower the trustees for the holders of the bonds to invest moneys contained in the sinking fund from time to time in any trustee investments authorized by The Trustee Act.

             (6)  Subject to subsections (4) and (5), the sinking fund shall be applied towards payment of the bonds on maturity.

1978 c9 s9; 1980 c29 s3

Ancillary powers

      10. Subject to the Act, the Council may exercise all such powers as may be necessary or proper for conducting all business connected with

             (a)  the raising of the borrowing authorized under subsection (1) of section 3;

             (b)  the issue of the bonds;

             (c)  the management of the bonds and the payment of interest thereon; and

             (d)  the making of proper provision for the payment of the borrowing authorized under subsection (1) of section 3.

1978 c9 s10

Appointment of transfer agent

      11. Without limiting the generality of section 10, the council may appoint the province to be and act as transfer agent with respect to the bonds issued under this Act.

1980 c29 s4