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This is not an official version. POINT IN TIME |
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| June 8, 2004 to June 8, 2004 |
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Repealed on
June 9, 2004 SNL1957 CHAPTER 71 THE LOCAL AUTHORITY GUARANTEE ACT, 1957 Amended: 1958 No32; 1964 No66; 1966-67 No7; 1980 c13; 1981 c85; Schedule Amendments - 1958 No32; 1959 No70; 1960 No51; 1961 No21; 1962 No50; 1963 No60; 1964 No66; 1965 No44; 1966 No33; (See also 1973 No13)
CHAPTER 71 AN ACT TO PROVIDE FOR THE RAISING OF MONEYS BY CERTAIN LOCAL AUTHORITIES AND TO AMEND CERTAIN STATUTORY PROVISIONS RELATING TO LOANS AND GUARANTEES (Assented to June 12, 1957)
4A.
Form of guarantee in certain cases
4B.
Execution of guarantee
7A.
Certificate on bonds and debentures
8A.
Where moneys loaned to Local Authorities by
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 Local Authority Guarantee Act, 1957 . Interpretation 2. In this Act (a) "Local Authority" means a Town Council or other corporation incorporated by or under statute and named in the first column of the Schedule; (b) "statutory amount" means the amount set out in the second column of the Schedule opposite the name of the Local Authority concerned; (c) "statutory term" means the period set out in the third column of the Schedule opposite the name of the Local Authority concerned. Guarantee of bonds, debentures or loans 3. (1) Subject to this Act and the approval of the Lieutenant-Governor in Council, the Minister of Municipal Affairs and Supply has and shall be deemed to have had power acting for and on behalf of the Crown in right of Newfoundland and Labrador (a) (i) to guarantee the repayment of a bond or debenture issue with or without interest made by any Local Authority where the said issue is made for an amount not exceeding the statutory amount and for a period not exceeding the statutory term; and (ii) pending the issue and sale of any bond or debenture issue referred to in this paragraph to advance to or guarantee the repayment by any Local Authority 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; or (b) instead of guaranteeing the repayment of a bond or debenture issue referred to in paragraph (a), to make loans to, or guarantee the repayment of loans made to any Local Authority, with or without interest, not exceeding the statutory amount for a period not exceeding the statutory term. (2) The repayment of a bond or debenture issue may be guaranteed under subsection (1) even when an interim loan to the Local Authority 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 a Local Authority under 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 No71 s3; 2001 cN-3.1 s2 Form of guarantee 4. Subject to Section 4A, when any guarantee is made under this Act the guarantee shall be given in the following form: Guarantee Pursuant to The Local Authority Guarantee Act, 1957 , The Act No. 71 of 1957, of the Legislature of Newfoundland and Labrador the Crown in right of Newfoundland and Labrador hereby unconditionally guarantees to the holder of the within bond (or debenture, as the case may be) the payment on the respective due dates of the principal moneys and interest to become due in respect thereof. 1958 No32 s2; 2001 cN-3.1 s2 Form of guarantee in certain cases 4A. When a loan that is raised otherwise than by way of a bond or debenture issue is guaranteed under this Act, the Lieutenant-Governor in Council may, by order, prescribe the principal terms and conditions of the guarantee 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 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 the provisions of Section 4 shall not apply to the guarantee, and when the guarantee is made in accordance with the order it 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 and as if the guarantee was made in the form prescribed by Section 4. Execution of guarantee 4B. A form of guarantee prescribed by Section 4 or under Section 4A shall be signed on behalf of the Crown in right of Newfoundland and Labrador by the Minister of Municipal Affairs and Supply, and where the repayment of a bond or debenture issue is guaranteed the form of the guarantee shall be endorsed on all certificates issued relating to the bonds or debentures in respect of which the guarantee is authorized and the signature of the Minister may be engraved, lithographed or otherwise mechanically reproduced on the certificate. 1958 No32 s2; 2001 cN-3.1 s2 Partial advances or guarantees may be made 5. The power conferred by Section 3 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, but the aggregate of the loans advanced and the guarantees made by the Crown to or in respect of any Local Authority exclusive of any interim loan advanced or guaranteed under Section 3 to or in respect of that Local Authority shall not subject to Section 6 exceed the statutory amount. Principal only or both principal and interest may be guaranteed in currency of 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 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
(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 1957 No71 s6; 2001 cN-3.1 s2 Signatures may be lithographed 7. Where any bond or debenture issue is guaranteed under this Act and if the Lieutenant-Governor in Council so directs, the signature on the guarantee of the Minister of Municipal Affairs and Supply, the signature on the bonds or debentures of the appropriate mayor or chairman and the signature of the appropriate officer of the Local Authority on the coupons, if any, attached to the bonds or debentures may be lithographed or otherwise mechanically reproduced. Certificate on bonds and debentures 7A. (1) Every bond or debenture issued by a Local Authority shall have thereon the following certificate:
This bond (debenture) is valid and binding according to its terms, and its validity is not open to question in any court in the
Dated at Deputy Minister of Municipal Affairs. (2) The certificate on a bond or debenture when signed by the Deputy Minister of Municipal Affairs is conclusive that (a) the Local Authority had full power and authority in law and in fact to make and issue the bond or debenture, (b) the bond or debenture has been lawfully and validly made and issued and is valid and binding on the Local Authority according to its terms, and (c) the validity of the bond or debenture is not open to question in any court in the province. (3) The Deputy Minister of Municipal Affairs may cause his signature to be impressed by machinery on the certificate given by him under this section, and the certificate on which his signature has been so impressed is as good and valid for all purposes as if it had been subscribed in the proper handwriting of the Deputy Minister. 1964 No66 s2; 2001 cN-3.1 s2 Manner of payment 8. Any moneys which may become payable by the Crown in right of Newfoundland and Labrador in respect of any guarantee or loan made under this Act may be paid out of the Consolidated Revenue Fund of the province. 1957 No71 s8; 2001 cN-3.1 s2 Where moneys loaned to Local Authorities by 8A. (1) Where moneys are advanced by way of loan to a Local Authority by the Newfoundland and Labrador Municipal Financing Corporation 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 Local Authority is reduced to the extent of the moneys so advanced to that Local Authority. (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. (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 No7 s2; 2001 cN-3.1 s2 Repeal and substitution Sec. 3C of the Act No. 58 of 1952 9. Section 3C of The Local Authority Guarantee Act, 1952 , the Act No. 58 of 1952, as enacted by the Act No. 38 of 1956, is repealed and the following substituted therefor: Principal only or both principal and interest may be guaranteed in currency of 3C. (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 (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 of Municipal Affairs and Supply 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. Amdt. Schedule 10. The Schedule to The Local Authority Guarantee Act, 1952, is amended by deleting the following items added to that Schedule by the Act No. 33 of 1955 and the Act No. 38 of 1956:
Expiry of loans, etc. 11. Every loan, interim loan or guarantee of a loan advanced to a Local Authority under this Act and every bond or debenture issued by a Local Authority, which is guaranteed under this Act, shall expire (a) at the end of the statutory term, or
(b)
on the day the 1980 c13 s1; 1981 c85 s10; 2001 cN-3.1 s2 Expiry generally 12. Where any loan, interim loan, guarantee of a loan or any guarantee of a bond or debenture (a) was issued or advanced to a Local Authority under this Act before the coming into force of this section; and (b) is no longer utilized by a Local Authority under this Act, such loan, interim loan, guarantee of a loan, bond or debenture is deemed to have expired. Schedule (Schedule not consolidated) 1957 No71 Sch; 1958 No32 s3; 1959 No70 s2; 1960 No51 s2; 1961 No21 s2; 1962 No50 s2; 1963 No60 s2; 1964 No66 s3; 1965 No44 s2; 1966 No33 s2; 1966-67 No51 s2; 1968 No57 s2; 1969 No65 s2; 1970 No52 s2; 1971 No54 s2; 1972 No58 s2; 1973 No73 s2; 1974 No20 s2; 1975 No45 s2; 1975-76 No35 s1; 1977 c74 s1; 1978 c35 s15; 1978 c46 s1; 1979 c20 s1; 1980 c13 s2; 1981 c36 s1; 1982 c19 s1; 1983 c36 s1; 1986 c22 s1; 1987 c32 s1; 1989 c7 s1; 1989 c26 s1; 1990 c4 s1; 1990 c42 s1; 1991 c5 s1; 1992 c5 s1; 1993 c10 s1; 1993 c31 s1; 1994 c7 s1; 1994 c17 s1; 1995 c8 s1; 1996 c36 s1; 1999 c5 s1; 1999 c16 s1; 2000 c19 s1; 2001 c25 s1; 2004 c8 s1 ŠEarl G. Tucker, Queen's Printer |