3rd Session, 42nd Legislature

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Bill 66

THE LOAN ACT, 2020-2021

(Assented to                                          )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions

1

The following definitions apply in this Act.

"government agency" means a government agency set out in the Schedule. (« organisme gouvernemental »)

"government's borrowing authority" means the unused portion of the authority provided to the government under section 2, or under a similar provision of a previous Loan Act, to borrow money for purposes other than to refinance debt. (« pouvoir d'emprunt du gouvernement »)

Increase in government's borrowing authority

2

The authority of the government to borrow for purposes other than to refinance debt is increased by $3,055,000,000.

Borrowing authority of government agency

3(1)

Subject to subsection (3), a government agency may borrow or raise for its purposes amounts not exceeding, in total, the amounts set out for the government agency in the Schedule. This is in addition to any amounts that a government agency may borrow

(a) to refinance debt; or

(b) under a statutory authority to borrow money for temporary purposes or working capital.

Manner of raising money

3(2)

Amounts borrowed or raised under subsection (1) may be borrowed or raised

(a) by means of a loan from the government; or

(b) subject to subsection (3), by any other means authorized by the government agency's governing legislation and approved by the Lieutenant Governor in Council.

Abatement of government's borrowing authority

3(3)

An amount borrowed or raised under clause (2)(b) reduces, and must not exceed, the government's borrowing authority.

Government agency guarantee abates borrowing authority

3(4)

The amount of a guarantee provided by a government agency reduces, and must not exceed the lesser of,

(a) the government's borrowing authority; and

(b) the government agency's unused borrowing authority under subsection (1).

Lapse of previous borrowing authority

4

Any unused authority under section 3 or 4 of The Loan Act, 2019 to borrow an amount set out in the Schedule to that Act lapses.

Additional authority for loans and guarantees

5(1)

Until changed by another Act of the Legislature, the total of the loans and guarantees that the government provides under section 63 of The Financial Administration Act in a fiscal year must not exceed $400,000,000.

Authority to borrow

5(2)

A government agency or other person that needs legislative authority to borrow an amount to be advanced to it by the government under section 63 of The Financial Administration Act is deemed to have that authority.

Coming into force

6

This Act is deemed to have come into force on April 1, 2020.

SCHEDULE