Legislative Assembly of New Brunswick
Status of Legislation - First Reading Bill
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An Act to Amend the Provincial Loans Act

Legislature :
55
Session :
3
Bill No. :
20
Member :
Hon. Volpé
First Reading :
2005-12-13
Second Reading :
2005-12-14
Committee of the Whole :
2006-6-21
Amended :
Third Reading :
2006-6-21
Royal Assent :
2006-6-22
Download PDF :
Bill 20

Text of Bill :
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:



1                           Subsection 15(1) of the Provincial Loans Act, chapter P-22 of the Revised Statutes, 1973, is amended



(a)               by repealing paragraph (a) and substituting 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)               by repealing paragraph (b) and substituting the following:



(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)               by repealing paragraph (c).



2                           Section 15.1 of the Act is repealed and the following is substituted:



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)



"securities lending arrangement" means an arrangement under which



(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. (mécanisme de prêt de valeurs)



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



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.



EXPLANATORY NOTES



Section 1



(a) to (c) The existing provisions read as follows:



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 the Government of Canada, any province of Canada or any municipality in the Province of New Brunswick;



(b)               obligations guaranteed by the Government of Canada, any province of Canada or any agency of the Province of New Brunswick;



(c)                obligations of a religious or educational corporation when secured by a first mortgage on property and designated as being a trustee investment by an Act of the Legislature; and....



Section 2



The existing provision reads as follows:



15.1(1)          Upon the approval of the Minister, the custodian of a sinking fund under section 19 may lend a portion of the securities in the sinking fund to any person, upon such terms and conditions as the custodian considers advisable.



15.1(2)          Notwithstanding section 21, any income made by the lending of securities under subsection (1), net of custodial fees and any other expenses relating to the lending of securities, shall be paid into the sinking fund.

 

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