3rd Session, 42nd Legislature

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Bill 78

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

"reporting organization" means a reporting organization set out in the Schedule. (« organisme comptable »)

Borrowing authority of reporting organization

2(1)

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

2(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 reporting organization's governing legislation and approved by the Lieutenant Governor in Council.

Abatement of government's borrowing authority

2(3)

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

Guarantee abates borrowing authority

2(4)

The amount of a guarantee provided by a reporting organization reduces, and must not exceed the lesser of,

(a) the government's borrowing authority; and

(b) the reporting organization's unused borrowing authority under subsection (1).

Authority — interim loans and guarantees

2(5)

A reporting organization is deemed to have had the authority to borrow any amount loaned to it under subsection 2(3) of The Interim Appropriation Act, 2021 and any such loan is validated and declared to have been lawfully entered into.

Interim authority subsumed

2(6)

Any unused authority to borrow under subsection 2(3) or (4) of The Interim Appropriation Act, 2021 is subsumed by the authority provided under this Act.

LG in C may authorize advances

3

The Lieutenant Governor in Council may authorize amounts to be advanced under section 2.

Lapse of 2020-2021 borrowing authority

4

For greater certainty, any unused authority under section 3 of The Loan Act, 2020-2021 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 comes into force on the day it receives royal assent.

SCHEDULE