1.1(1)Except as provided in this section, this Act does not apply to debentures issued by a municipality to the New Brunswick Municipal Finance Corporation.

1.1(2)A debenture to be issued to the New Brunswick Municipal Finance Corporation under the New Brunswick Municipal Finance Corporation Act shall be in a form and shall be subject to such terms and conditions as are acceptable to the New Brunswick Municipal Finance Corporation.

1.1(3)A record of any debenture issued to the New Brunswick Municipal Finance Corporation shall be kept by the clerk of the municipality issuing the debentures in the Debenture Register Book referred to in section 11.

1.1(4)Each debenture shall be sealed with the seal of the municipality issuing the debenture and shall be signed by the mayor and the clerk thereof.

3(1)Each debenture shall be sealed with the seal of the municipality issuing the debenture and signed by the mayor and clerk thereof.

3(2)The interest coupons shall be signed by the clerk but need not be sealed.

3(3)Notwithstanding this Act, the lithographed signature of the clerk to the coupons attached to the debentures issued under the provisions of this Act shall be as good and valid to all intents and purposes, as if the same had been signed by the clerk in his own handwriting.

4(1)Each debenture shall be payable to bearer at a time and place certain to be stated on the face of the debenture, and shall, unless registered as herein provided, be negotiable by delivery.

6(1)Unless otherwise provided in the Act authorizing the issue thereof, the interest on the debentures shall be payable half-yearly.

6(2)Interest coupons, in the form prescribed by regulation, shall be printed or impressed upon paper similar to that on which the debenture itself is printed or impressed; if printed or impressed on a sheet separate from the debenture itself, such sheet shall be firmly attached to the debenture, either at the top or at the left hand margin.

7(1)Unless otherwise provided, a municipality issuing debentures shall provide a sinking fund sufficient to pay the principal of the debentures within a period not exceeding thirty years from the date of issue.

7(2)All premiums realized from the sale of the debentures shall be paid into the sinking fund.

10(1)Notwithstanding anything herein contained, any municipality authorized by an Act of the Legislature to make an issue of debentures may, subject to the provisions of that Act,

10(2)When issued in serial form the amount of debentures to mature each year shall be such that the total amount required each year for redemption of debentures and interest on outstanding debentures shall be, as near as may be, uniform over the term of the issue; but, the amounts to be redeemed in the early years may be increased and the amounts to be redeemed in later years correspondingly reduced at the discretion of the issuing municipality.

10(3)When issued partly in serial form and partly for a fixed term, the retirement of the serial debentures as they mature shall be considered as full satisfaction of sinking fund requirements on the total amount issued.

10(4)When issued partly in serial form and partly for a fixed term, the fixed term debentures may be refunded on maturity by the issue of debentures in serial form maturing annually over the balance of the term originally authorized.

13(1)Debentures so registered are not negotiable by delivery, but are transferable only by the registered holder or his attorney, by entry in the Debenture Register Book of the municipality issuing the same, and a copy of the entry endorsed upon the debenture.

13(2)The registration of a debenture may be cancelled by being transferred in the Debenture Register Book to bearer, and so endorsed, whereupon the debenture is negotiable by delivery until re-registered.

13(3)Interest coupons are, in all cases, negotiable, whether the respective debentures to which they are attached are registered or not.

13(4)Debentures are subject to successive registration and transfers to bearer at the option of the holders.

19(1)Any municipality having an outstanding bonded indebtedness may, when it can do so advantageously, refund the same, and in order to realize the funds necessary for that purpose, may, from time to time, raise such loans as may be required to refund the whole or any part of the indebtedness by the issue of debentures or other securities therefor for such term not exceeding thirty years and at such rate of interest as the municipality authorizes.

19(2)The loans shall be borrowed upon the credit of the municipality making the same, and the principal and interest is chargeable upon its revenues.

23(1)A sinking fund provided by a municipality under the authority of this Act or any Act of the Legislature shall be invested in such securities as are approved by the Commissioner.

23(2)Any sale of securities included in a municipal sinking fund is subject to the approval of the Commissioner.

23(3)Except with respect to a withdrawal of any security that is ordered or authorized by the Commissioner pursuant to subsection 25.1(1), any resolution of a municipality providing a sinking fund that would have the effect of diverting any such fund, or any part thereof, to a purpose other than that for which the sinking fund was provided, shall be null and void, and any person having control of any such fund, who allows or permits it or any part thereof to be diverted to a purpose other than that for which it was provided, is guilty of a malfeasance of office and is liable for any loss sustained by the holder of any debenture for which the sinking fund was to provide payment at its maturity.

25(1)Notwithstanding the provisions of any special or general Act, any municipality may pay the amounts standing to the credit of any of its sinking fund accounts, as well as the sums levied from year to year for sinking fund purposes, to a trust company approved for the purpose by the Lieutenant-Governor in Council.

25(2)Where a municipality avails itself of the right conferred by subsection (1), the trust company approved as aforesaid shall receive from the treasurer of the municipality the sums so paid, and shall issue a proper receipt therefor, and the funds shall be held by the trust company approved as aforesaid and appropriated to the purposes for which they were respectively received, and shall be invested in securities authorized under section 23 of this Act.

25.1(1)The Commissioner may, when he considers it advisable, order or authorize a municipality to withdraw all or a portion of those securities included in its sinking fund, which, in his opinion, are in excess of those required to retire, at maturity, the principal of the debenture for which such sinking fund was established.

25.1(2)Securities withdrawn from a municipal sinking fund upon the order or authorization of the Commissioner pursuant to subsection (1) shall be sold by the municipality upon terms and conditions to be prescribed by the Commissioner, and the proceeds of such sale shall be applied only to finance or to aid in the financing of a capital expense approved by the Commissioner.

25.1(3)Where funds are invested in securities by a trust company pursuant to subsection 25(2) and such securities are the subject matter of an order or authorization of the Commissioner pursuant to subsection (1), the trust company shall forthwith, upon receipt of a copy of the order or authorization, yield up and surrender to the municipality those securities so ordered or authorized to be withdrawn pursuant to subsection (1).

25.1(4)Any resolution of a municipality that