Acts and Regulations

2016, c.107 - Provincial Loans Act

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Current to 1 January 2024
2016, c.107
Provincial Loans Act
Deposited December 23, 2016
Definitions
1The following definitions apply in this Act.
“Consolidated Fund” means, despite any other Act, the aggregate of all public money that is on hand and on deposit to the credit of the Province.(Fonds consolidé)
“funded debt” means securities issued by the Province having a term to maturity of more than one year from their date of issue and that are not subject to serial repayment.(dette consolidée)
“Minister” means the Minister of Finance and Treasury Board or the Acting Minister of Finance and Treasury Board or any officer of the Department of Finance and Treasury Board designated by the Minister or Acting Minister to act on his or her behalf.(ministre)
“securities” means securities issued by the Province and includes bonds, debentures, notes, interest-bearing and non-interest-bearing treasury bills, certificates of indebtedness and any other securities representing part of the public debt of the Province.(valeurs mobilières)
R.S.1973, c.P-22, ss.1(1); 2019, c.29, s.129
Temporary loan or issue and sale of securities
2(1)Subject to subsections (2) and (3), the Minister may, on the terms and conditions the Minister considers advisable, raise by way of temporary loan from any chartered bank, corporation or government or by the issue and sale of securities having a term to maturity of one year or less
(a) sums of money required to make any expenditures authorized by any Act of the Legislature,
(b) sums of money required by a Crown agency for temporary purposes if the Crown agency is authorized to borrow for temporary purposes, and
(c) sums of money required by a regional health authority, as defined in the Regional Health Authorities Act, for temporary purposes if the regional health authority is authorized to borrow for temporary purposes.
2(2)The aggregate principal amount of all such temporary indebtedness outstanding at any one time shall not exceed the maximum established by Order in Council.
2(3)The Minister may borrow sums of money in accordance with this Act only for Crown agencies that have been designated by the Lieutenant-Governor in Council.
2(4)The amounts borrowed by the Minister for a Crown agency or regional health authority shall be loaned to the Crown agency or regional health authority on the terms and conditions the Minister considers appropriate.
R.S.1973, c.P-22, s.2; 1983, c.70, s.1; 2000, c.33, s.1; 2002, c.1, s.18
Power of Lieutenant-Governor in Council to raise money
3(1)In addition to all sums of money authorized to be raised by any other Act of the Legislature, the Lieutenant-Governor in Council may raise the sums required for any or all of the following purposes:
(a) payment, refunding or renewal of the whole or any part of any loan raised or securities issued under this or any other Act or reimbursing the Consolidated Fund for money expended or to be expended from it for the payment of loans or securities of the Province at their maturity or on redemption in advance of maturity despite that the raising of sums for these purposes has the effect of increasing the amount of the public debt or of extending the term of years, if any, set by the Act authorizing the raising of the loan or the issue of the securities being paid, refunded or renewed; or
(b) payment of the whole or any part of any loan, of any liability or of any other obligations, payment of which is guaranteed or assumed by the Province or any agency of the Province.
3(2)A recital or declaration in the Order in Council authorizing the issue and sale of securities to the effect that the amount of the securities is necessary to realize the net sum required to be raised is conclusive evidence of that fact.
R.S.1973, c.P-22, s.3
Issue and sale of securities
4If, by this or any other Act, authority is given to the Lieutenant-Governor in Council to raise sums of money, then, unless there is some provision to the contrary in the Act by which the authority is given, the sums shall be raised by the issue and sale of securities having a term to maturity of more than one year, on the terms and conditions the Lieutenant-Governor in Council considers advisable.
R.S.1973, c.P-22, s.4
Power of Minister to raise money
5(1)If, by this or any other Act, authority is given to the Lieutenant-Governor in Council to raise sums of money, the Lieutenant-Governor in Council may, by Order in Council, authorize the Minister to raise the sums of money.
5(2)Each Order in Council under subsection (1) shall state the maximum aggregate principal amount of money that may be raised under that Order and any terms and conditions that the Lieutenant-Governor in Council considers advisable.
5(3)Except as otherwise provided in this section, the Minister has the same powers, rights and authority that the Lieutenant-Governor in Council has under the authority given to the Lieutenant-Governor in Council to raise sums of money.
5(4)Despite section 4, the Minister may, on the terms and conditions the Minister considers advisable, raise sums of money under this section by way of loan, in whole or in part, or through the issue and sale of securities, in whole or in part, that have a term to maturity of more than one year.
5(5)Sums of money raised by the Minister under this section shall be raised in accordance with the Order in Council under subsection (1), any terms and conditions not in conflict with those in the Order in Council that the Minister considers advisable, this Act and, if authority is given to the Lieutenant-Governor in Council to raise sums of money under any other Act, that other Act, except that, if there is a conflict between this Act and the other Act, this Act prevails.
5(6)If the Minister raises sums of money under this section, the Minister shall as soon as practicable, but in no case later than 30 days after the sums are received, provide the Lieutenant-Governor in Council with a statement of the sums of money raised, the rate of interest or the yield to the investor and any other terms and conditions the Minister considers advisable.
1996, c.40, s.1
Currency
6The authority granted under this Act or any other Act of the Legislature to raise sums of money by way of loan in whole or in part or through the issue of securities in whole or in part shall be deemed to be authority to raise the sums in Canadian currency or to raise,
(a) if the authority was granted before June 1, 1989,
(i) the same number of dollars in principal amount in currency of the United States of America, or
(ii) an equivalent principal amount in any other currency, that amount to be calculated in accordance with the prevailing rate of exchange between the Canadian dollar and the currency concerned as quoted by any chartered bank in Canada on the last business day preceding the day on which the Lieutenant-Governor in Council authorizes the loan or the issue of securities, or
(b) if the authority is granted on or after June 1, 1989, an equivalent principal amount in any other currency, that amount to be calculated in accordance with the prevailing rate of exchange between the Canadian dollar and the currency concerned as quoted by any chartered bank in Canada on the last business day preceding the day on which the Lieutenant-Governor in Council authorizes the loan or the issue of securities or, if the Minister is authorized to raise sums of money under section 5, on the last business day preceding the day on which the Minister approves the loan or issue of securities.
R.S.1973, c.P-22, s.5; 1989, c.32, s.1; 1996, c.40, s.2
Redemption of securities
7Any securities issued under this or any other Act before or after the commencement of this Act may be made redeemable in advance of maturity, at the option of the holder or the Province, at the time and price and on the notice specified by the Lieutenant-Governor in Council at the time the issue is authorized or, if the Minister is authorized to raise sums of money under section 5, at the time and price and on the notice the Minister specifies at the time the Minister approves the issue of securities.
R.S.1973, c.P-22, s.6; 1996, c.40, s.3
Manner of execution of securities
8Securities shall be executed in the manner the Lieutenant-Governor in Council provides or, if the Minister is authorized to raise sums of money under section 5, in the manner the Minister considers advisable.
R.S.1973, c.P-22, s.7; 1996, c.40, s.4
Securities and loans to be a charge on the Consolidated Fund
9The sums of money required for payments in respect of securities and loans of the Province, including sinking fund payments, principal, interest and premium on redemption, if any, shall be a charge on, and shall be paid out of, the Consolidated Fund and shall be statutory appropriations that do not require to be voted annually by the Legislature.
R.S.1973, c.P-22, s.8
Declarations respecting securities
10The Lieutenant-Governor in Council or, if the Minister is authorized to raise sums of money under section 5, the Minister may make all declarations or may authorize a person to make all declarations, and may do, or authorize a person to do, all acts, matters and things considered necessary to comply with any law in force in Canada or any other country, or in any political subdivision of Canada or another country, relating to the issue, registration or sale of any securities or the qualification of a security under securities laws.
R.S.1973, c.P-22, s.9; 1996, c.40, s.5
Registrar or agents respecting securities
11The Lieutenant-Governor in Council or, if the Minister is authorized to raise sums of money under section 5, the Minister may appoint one or more registrars or other agents within the Province or elsewhere and may grant to those persons the powers, rights and authorities that are required or useful in connection with the issue, authentication, registration, transfer, exchange, substitution, sale or payment of securities or in respect of securities.
R.S.1973, c.P-22, s.10; 1996, c.40, s.6
Fiscal agents or underwriters
12The Minister may appoint one or more fiscal agents or underwriters to negotiate loans or sell securities and may agree with them as to the rate of compensation or discount to be received by them for the services.
R.S.1973, c.P-22, s.11
Financial arrangements by Minister to manage public debt
13When the Minister considers it advisable for the sound and efficient management of the public debt of the Province, the Minister may enter into agreements or contracts or engage in other activities of a financial nature that the Minister considers appropriate, including, but not limited to, currency agreements, forward exchange contracts and interest rate agreements and any combination of the agreements, contracts or activities under this section.
1996, c.40, s.7
Sinking funds
14The Minister shall maintain one or more sinking funds for the payment of funded debt either at maturity or on redemption in advance of maturity.
R.S.1973, c.P-22, s.12
Payment of money into sinking funds
15(1)On or before the anniversary date of each issue of funded debt issued to the Receiver General for Canada and outstanding as of March 31, 1980, and each issue of funded debt issued after March 31, 1980, there shall be paid into the sinking funds the Canadian currency equivalent of not less than 1% of the then outstanding principal amount of the issue.
15(2)For the purposes of calculating the sinking fund payments
(a) with respect to an issue of funded debt the issue of which was authorized before June 1, 1989,
(i) one dollar of Canadian currency shall be equal to one dollar of United States currency, and
(ii) currencies other than United States currency shall be converted to Canadian currency at the prevailing rate of exchange as quoted by any chartered bank in Canada on the last business day preceding the relevant anniversary date, and
(b) with respect to an issue of funded debt the issue of which was authorized on or after June 1, 1989, currencies other than Canadian currency shall be converted to Canadian currency at the prevailing rate of exchange as quoted by any chartered bank in Canada on the last business day preceding the relevant anniversary date.
R.S.1973, c.P-22, s.14; 1980, c.44, s.2; 1989, c.32, s.2
Investment of money in sinking funds
16Subject to any special provisions relating to sinking fund money, sinking fund money may be invested in any of the following:
(a) direct obligations of
(i) the Government of Canada,
(ii) any province of Canada,
(iii) any municipality in the Province, or
(iv) any national government, other than Canada, if the Province has issued securities in that national government’s currency and those securities have not yet matured;
(b) obligations guaranteed by
(i) the Government of Canada,
(ii) any province of Canada,
(iii) any agency of the Province, or
(iv) any national government, other than Canada, if the Province has issued securities in that national government’s currency and those securities have not yet matured; and
(c) deposit receipts, deposit notes, certificates of deposit, acceptances and other similar instruments issued or endorsed by any Canadian chartered bank.
R.S.1973, c.P-22, ss.15(1); 2006, c.14, s.1
Transfer or loan of qualified securities under a securities lending arrangement
17(1)The following definitions apply in this section.
“custodian” means a custodian of a sinking fund under section 21. (dépositaire)
“lender” means the Province. (prêteur)
“qualified security” means an investment referred to in section 16. (valeur mobilière admissible)
“securities lending arrangement” means an arrangement under which (mécanisme de prêt de valeurs mobilières)
(a) the lender transfers or lends at any particular time a qualified security to a person with whom the lender deals at arm’s length in exchange for acceptable collateral,
(b) it may be reasonably expected, at the particular time, that the person to whom the lender transfers or lends the qualified security will transfer or return after the particular time to the lender a security that is identical to the one transferred or lent, and
(c) the lender’s risk of loss or opportunity for gain or profit with respect to the security is not changed in any material respect.
17(2)On the approval of the Minister, any qualified security of the lender that is held in a sinking fund under this Act may be transferred or lent under a securities lending arrangement of the fund’s custodian.
17(3)Despite section 22, any income made as a result of a securities lending arrangement under subsection (2), net of custodial fees and any other expenses relating to the arrangement, shall be paid into the sinking fund.
1996, c.40, s.8; 2006, c.14, s.2
Mutilation, loss, theft or destruction of securities
18In the event of the reported mutilation, loss, theft or destruction of any securities by a holder of them, the Minister may pay the amount of the securities out of the Consolidated Fund or may provide replacement securities of an equivalent aggregate principal amount of the same maturity and bearing the same rate of interest and may take a bond of indemnity in the amount and form the Minister considers advisable indemnifying the Province against loss in respect of the payment or replacement.
R.S.1973, c.P-22, s.16
Substitution of classes of securities
19The Lieutenant-Governor in Council or, if the Minister is authorized to raise sums of money under section 5, the Minister may, as the interests of the public service require, change the form of any part of the then existing funded debt by substituting one class of securities for another, if neither the principal amount of the debt nor the annual charge for interest is increased by the substitution, and if a security bearing a lower rate of interest is substituted for one bearing a higher rate of interest, the principal may be increased by an amount not exceeding the difference between the then present values of the securities, but such a substitution shall not be made unless the prior consent of the holder of the security for which another is substituted is obtained, or the security is previously purchased or redeemed by or on account of the Province, and the substitution may be made by the sale of a security of one class and the purchase of that for which it is desired to substitute it.
R.S.1973, c.P-22, s.17; 1996, c.40, s.9
Immunity
20No officer or person employed in the inscription, transfer, management or redemption of any securities or in the payment of any interest on securities is liable in any way to any person for anything done by him or her in carrying out those functions or is bound to see to the execution of any trust, expressed or implied, to which the securities are subject.
R.S.1973, c.P-22, s.18
Custody of investments
21Investments held in the Consolidated Fund or sinking funds of the Province or retained in trust by the Province shall be under the custody of one or more bodies corporate designated by the Minister or under the joint custody of two or more natural persons designated by the Minister.
R.S.1973, c.P-22, s.19; 1984, c.12, s.1
Money raised to be paid into Consolidated Fund
22All sums of money raised by loan and by the issue and sale of securities shall be paid to the Minister and shall form part of the Consolidated Fund.
R.S.1973, c.P-22, s.21
Increase in the public debt
23Nothing in this Act authorizes any increase of the public debt without the express authority of the Legislature, except in the manner and to the extent mentioned in this Act.
R.S.1973, c.P-22, s.23
Power of Minister to destroy securities
24Despite anything in this Act or in any other Act, the Minister may authorize the destruction of any securities
(a) if the securities have not been issued,
(b) if the securities have been received in exchange for other securities of the Province,
(c) if the securities have been paid and cancelled, or
(d) if the securities have been purchased as investments by the sinking funds of the Province, in which case, the securities, when destroyed, shall cease to be a charge on the Consolidated Fund.
R.S.1973, c.P-22, s.24
Administration
25The Minister is responsible for the administration of this Act and may designate any officer of the Department of Finance and Treasury Board to act on the Minister’s behalf.
R.S.1973, c.P-22, ss.1(2); 2019, c.29, s.129
Regulations
26The Lieutenant-Governor in Council may make regulations
(a) designating the Crown agencies for which the Minister may borrow sums of money in accordance with this Act;
(b) respecting any other matter that may be necessary for the proper administration of this Act.
R.S.1973, c.P-22, s.25; 1983, c.70, s.2
N.B. This Act was proclaimed and came into force February 9, 2017.
N.B. This Act is consolidated to December 20, 2019.