OC2003-306
2003-06-11
Treasury Board
Loan and Guarantee Act, 1957
Under authority of The Local Authority Guarantee Act, 1957, the
Lieutenant Governor in Council is pleased to approve the proposal
of the Town of Stephenville to borrow from a chartered bank, or
other financial institution, an amount not exceeding $120,650 for
the purpose of financing its recreation 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 $120,650 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 Stephenville on a date to be designated
by the Honourable the Minister of Municipal and Provincial Affairs,
an amount not exceeding $120,650 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.