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“Consolidated Fund” means, notwithstanding 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 of New Brunswick having a term to maturity of more than one year from their date of issue and that are not subject to serial repayment;(dette consolidé)

“Minister” means the Minister of Finance or the Acting Minister of Finance or any officer of the Department of Finance designated by the Minister or Acting Minister to act on his behalf.(Ministre)

“securities” means securities issued by the Province of New Brunswick 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)

Administration

1(2)The Minister shall administer this Act and may designate any officer of the Department of Finance to act on his behalf.

1969, c.18, s.2

Temporary loan or issuance of securities

2(1)Subject to subsections (2), (3) and (4), the Minister may 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) such sums of money as are required to make any expenditures authorized by any Act of the Legislature;

(b) such sums of money as are required by a Crown agency for temporary purposes if the Crown agency is authorized to borrow for temporary purposes; and

(c) such sums of money as are 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 to be established by Order in Council.

2(3)Any loans or securities authorized under this section may be raised or issued and sold on such terms and conditions as the Minister deems advisable.

2(4)The Minister may only borrow money in accordance with this Act for Crown agencies which have been designated by the Lieutenant-Governor in Council.

2(5)The amounts borrowed by the Minister for a Crown agency shall be loaned to the Crown agency on such terms and conditions as the Minister deems appropriate.

2(6)The amounts borrowed by the Minister for a regional health authority shall be loaned to the regional health authority on such terms and conditions as the Minister deems appropriate.

1969, c.18, s.3; 1983, c.70, s.1; 2000, c.33, s.1; 2002, c.1, s.18

Power of Cabinet to raise money

3(1)In addition to all 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 therefrom for the payment of loans or securities of the Province at the maturity thereof or upon redemption in advance of maturity, notwithstanding that the raising of sums for such purposes has the effect of increasing the amount of the public debt or of extending the term of years, if any, fixed 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 or of any liability or of any other obligations, payment whereof is guaranteed or assumed by the Province or any agency thereof.

Evidence

3(2)A recital or declaration in the order of the Lieutenant-Governor in Council authorizing the issue and sale of securities to the effect that the amount of the securities so authorized is necessary to realize the net sum required to be raised is conclusive evidence of that fact.

1969, c.18, s.4

Sale of securities

4Where, 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, such sums shall be raised by the issue and sale of securities having a term to maturity of more than one year, on such terms and conditions as he deems advisable.

1969, c.18, s.5

Power of Minister to raise money

4.1(1)Where, 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 such sums of money.

4.1(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.

4.1(3)Except as otherwise provided in this section, the Minister has the same powers, rights and authority as the Lieutenant-Governor in Council has under the authority given to the Lieutenant-Governor in Council to raise sums of money.

4.1(4)Notwithstanding section 4, the Minister may, on such terms and conditions as 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.

4.1(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, where authority is given to the Lieutenant-Governor in Council to raise such sums of money under any other Act, that other Act, except that, where there is a conflict between this Act and the other Act, this Act prevails.

4.1(6)Where the Minister raises sums of money under this section, the Minister shall as soon as practicable, but in no case later than thirty days after the money is 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 such other terms and conditions as the Minister considers advisable.

1996, c.40, s.1

Currency

5The authority granted under this Act or any other Act of the Legislature to raise 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 such money in Canadian currency or to raise,

(a) where the authority was granted before the commencement of this section,

(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, such 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 business day next preceding the day on which the Lieutenant-Governor in Council authorizes the loan or the issue of securities, or

(b) where the authority is granted after the commencement of this section, an equivalent principal amount in any other currency, such 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 business day next preceding the day on which the Lieutenant-Governor in Council authorizes the loan or the issue of securities or, where the Minister is authorized to raise sums of money under section 4.1, on the business day next preceding the day on which the Minister approves the loan or issue of securities.

1969, c.18, s.6; 1989, c.32, s.1; 1996, c.40, s.2

Redemption of securities

6Any 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 such time and at such price and on such notice as may be specified by the Lieutenant-Governor in Council at the time the issue is authorized or, where the Minister is authorized to raise sums of money under section 4.1, at such time and at such price and on such notice as the Minister specifies at the time the Minister approves the issue of securities.

1969, c.18, s.7; 1996, c.40, s.3

Form of execution of securities

7Securities shall be executed in such manner as the Lieutenant-Governor in Council provides or, where the Minister is authorized to raise sums of money under section 4.1, in such manner as the Minister considers advisable.

1969, c.18, s.8; 1996, c.40, s.4

Securities and loans to be a charge on the Consolidated Fund

8The sums 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.

1969, c.18, s.9

Declaration respecting securities

9The Lieutenant-Governor in Council or, where the Minister is authorized to raise sums of money under section 4.1, the Minister may make all such declarations or may authorize some person to make all such declarations, and may do, or authorize some person to do, all such acts, matters and things as are deemed necessary to comply with any law in force in Canada or any other country or in any political subdivision thereof or therein, relating to the issue, registration, qualification under securities laws or sale of any securities.

1969, c.18, s.10; 1996, c.40, s.5

Registrar or agents respecting securities

10The Lieutenant-Governor in Council or, where the Minister is authorized to raise sums of money under section 4.1, the Minister may appoint one or more registrars or other agents within the Province or elsewhere and may grant to such persons such powers, rights and authorities as are required or useful in connection with the issue, authentication, registration, transfer, exchange, substitution, sale or payment of or in respect of securities.

1969, c.18, s.11; 1996, c.40, s.6

Fiscal agents or underwriters

11The Minister may appoint 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 such services.

1969, c.18, s.12

Financial arrangements by Minister to manage public debt

11.1When the Minister considers it advisable for the sound and efficient management of the public debt of the Province, the Minister may enter into such agreements or contracts or engage in such other activities of a financial nature as the Minister considers appropriate, including without limiting the generality of the foregoing, 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 Fund

12The Minister shall maintain one or more sinking funds for the payment of funded debt either at maturity or upon redemption in advance of maturity.

1969, c.18, s.13

Sinking Fund prior to 1 April 1980

13Sinking fund provisions relative to securities issued prior to April 1, 1980 and as provided for in the Order in Council authorizing the issue are hereby ratified and confirmed.

1969, c.18, s.14; 1980, c.44, s.1

Payment of money into sinking fund

14(1)On or before the anniversary date of each issue of funded debt issued and outstanding as of March 31, 1980 to the Receiver General for Canada and each issue of funded debt issued subsequent to March 31, 1980, there shall be paid into the sinking funds the Canadian currency equivalent of not less than one per cent of the then outstanding principal amount of such issue.

14(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 the commencement of this subsection,

(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 business day next preceding the relevant anniversary date, and

(b) with respect to an issue of funded debt the issue of which was authorized after the commencement of this subsection, 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 business day next preceding the relevant anniversary date.

1969, c.18, s.15; 1980, c.44, s.2; 1989, c.32, s.2

Investment of money in sinking fund

15(1)Subject to any special provisions relating thereto, sinking fund money may from time to time 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 of New Brunswick, or

(iv) any national government, other than Canada, if the Province of New Brunswick 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 of New Brunswick, or

(iv) any national government, other than Canada, if the Province of New Brunswick has issued securities in that national government’s currency and those securities have not yet matured; and

(c) Repealed: 2006, c.14, s.1

(d) deposit receipts, deposit notes, certificates of deposit, acceptances and other similar instruments issued or endorsed by any Canadian chartered bank.

15(2)Investments held in the sinking funds of the Province as at March 31, 1969, are hereby approved.

1969, c.18, s.16; 2006, c.14, s.1

Transfer or loan of qualified securities under a securities lending arrangement

15.1(1)The following definitions apply in this section.

“custodian” means a custodian of a sinking fund under section 19. (dépositaire)

“lender” means the Province of New Brunswick. (prêteur)

“qualified security” means an investment referred to in subsection 15(1). (valeur admissible)

“securities lending arrangement” means an arrangement under which(mécanisme de prêt de valeurs)

(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 this definition referred to as the “borrower”, in exchange for acceptable collateral,

(b) it may be reasonably expected, at the particular time, that the borrower will transfer or return after the particular time to the lender a security that is identical to the security so 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.

15.1(2)Upon 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.

15.1(3)Notwithstanding section 21, 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

16In the event of the reported mutilation, loss, theft, or destruction of any securities by a holder thereof, the Minister may pay the amount thereof 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 such amount and in such form as he deems advisable indemnifying the Province against loss in respect of such payment or replacement.

1969, c.18, s.17

Substitution of classes of securities

17The Lieutenant-Governor in Council or, where the Minister is authorized to raise sums of money under section 4.1, 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 the securities aforesaid for another, if neither the principal amount of the debt nor the annual charge for interest is thereby increased, and where 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 substitution shall not be made unless the 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 such 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.

1969, c.18, s.18; 1996, c.40, s.9

Immunity

18No officer or person employed in the inscription, transfer, management or redemption of any securities, or in the payment of any interest thereon, is bound to see to the execution of any trust, expressed or implied, to which the securities are subject, or is liable in any way to any person for anything so done by him.

1969, c.18, s.19

Custody of investments

19Investments 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.

1969, c.18, s.20; 1984, c.12, s.1

Security issued before 1 April 1969

20Nothing in this Act impairs or prejudicially affects the rights of the holder of any securities issued before April 1, 1969.

1969, c.18, s.21

Money raised to be paid into Consolidated Fund

21All 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.

1969, c.18, s.22

Provincial Loans Act, 1952

22All Orders in Council passed under Part II of the Provincial Loans Act, Chapter 180 of the Revised Statutes, 1952, are hereby ratified and confirmed.

1969, c.18, s.23

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 hereinbefore mentioned.

1969, c.18, s.24

Power of Minister to destroy securities

24Notwithstanding anything in this Act or in any other Act, the Minister may authorize the destruction of any securities

(a) if such securities have not been issued;

(b) if such securities have been received in exchange for other securities of the Province;

(c) if such securities have been paid and cancelled; or

(d) if such securities have been purchased as investments by the sinking funds of the Province in which case such securities when destroyed shall cease to be a charge upon the Consolidated Fund.

1969, c.18, s.25

Regulations

25The Lieutenant-Governor in Council may make regulations

(a) designating the Crown agencies for which the Minister may borrow money in accordance with this Act;

(b) for the better administration and carrying out of the provisions of the Act.

1969, c.18, s.26; 1983, c.70, s.2

N.B. This Act is consolidated to February 9, 2017.

P-22 - Provincial Loans Act

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