Under authority of The Local Authority Guarantee Act, 1957, the Lieutenant Governor in Council is pleased to approve the proposal of the Town of Bonavista to borrow from a chartered bank, or other financial institution, an amount not exceeding $6,151 for the purpose of financing its paving and/or road reconstruction project, including engineering and related costs, together with the amount required to capitalize the Provincial share of the related accrued interest on the project up to the date of substantial completion of the project, and for an additional period of six months beyond that date, if required. The Lieutenant Governor in Council further approves the following:
1. Pending legislative sanction, the Honourable the Minister of Finance is authorized to issue such Government guarantees as may be required for an amount not exceeding $6,151 together with the amount required to capitalize the Provincial share of the related accrued interest on the project up to the date of substantial completion of the project, and for an additional period of six months beyond that date, if required;
2. The Newfoundland Municipal Financing Corporation is directed to advance to the Town of Bonavista on a date to be designated by the Honourable the Minister of Municipal and Provincial Affairs, an amount not exceeding $6,151 together with the amount required to capitalize the Provincial share of the related accrued interest on the project up to the date of substantial completion of the project, and for an additional period of six months beyond that date, if required, for the purpose of repaying the loan approved; the said loan by the Corporation to be repaid by the municipality over such a period as may be agreed upon by the Honourable the Minister of Municipal and Provincial Affairs and the Newfoundland Municipal Financing Corporation.
The Department of Municipal and Provincial Affairs agrees to pay, by way of new grants, 100% of the cost of the approved project amount, together with all the capitalized interest which is the Provincial share of the related accrued interest on the project up to the date of substantial completion of the project, and for an additional period of six months beyond that date if required. Any interest accruing beyond the six month period on the Province's share is to be paid from the budget provision of the relevant annual current account centres of the Department of Municipal and Provincial Affairs.