Orders in Council Database

WHEREAS Newfoundland and Labrador Municipal Financing Corporation (hereinafter called "NLMFC") is authorized under the Municipal Financing Corporation Act, being Chapter M-21 of the Revised Statutes of Newfoundland and Labrador, 1990, (hereinafter called the "Act") to borrow money in such manner as NLMFC thinks appropriate and secure the repayment thereof by the creation and issue of a debenture(s) at such rate of interest and in such forms and upon such terms and conditions as the Lieutenant Governor in Council of the Province of Newfoundland and Labrador (hereinafter called the "Province") may approve;

AND WHEREAS under the Act, the Honourable the Minister of Finance, acting for and on behalf of Her Majesty in Right of the Province, is authorized to unconditionally guarantee as to principal, interest, premium, if any, and sinking fund payments, if any, any such debenture(s) so created and issued by NLMFC, subject to the prior approval of the Lieutenant Governor in Council of the Province;

AND WHEREAS by Resolutions of its Board of Directors dated, August 25, 2003, signed by the Secretary of NLMFC (a copy of which is on file with the Clerk of the Executive Council), NLMFC authorized the creation and sale of a debenture in the principal amount of $10,000,000 in lawful money of Canada, which is dated September 2, 2003, will mature February 15, 2012, and bears interest at a rate of 5.20%  per annum (hereinafter called the “Debenture”), and the sale thereof to the Trustees of the Newfoundland and Labrador Government Sinking Fund at the principal amount thereof  to replace the 9.75% debenture dated September 2, 1994 which matured on September 2, 2003;

AND WHEREAS NLMFC has requested the Province to unconditionally guarantee the payment of the principal of and interest on the Debenture as provided for in the Act;

AND WHEREAS it is expedient that the borrowing by NLMFC be authorized and that the unconditional guarantee be given;

BE IT THEREFORE ORDERED that under and by virtue of the Act:

 1)  The Resolutions of the Board of Directors of NLMFC dated August 25, 2003 be and they hereby are, in all respects, approved.

 2)  The Province unconditionally guarantees payment of the principal and interest on the Debenture, designated Series MFC-46, in the principal amount of $10,000,000 in lawful money of Canada, dated September 2, 2003, maturing on February 15, 2012 and bearing interest at the rate of 5.20% per annum, payable half-yearly on March 2 and September 2, with the final payment of interest being for the period from September 2, 2011 to February 15, 2012, and containing such other terms and conditions as are set forth in the Debenture approved by NLMFC (a copy of  which is on file with the Clerk of the Executive Council), which Debenture is hereby approved.

 3)  The guarantee of the Province endorsed on the Debenture, in the form set forth below, is hereby approved:

"Pursuant to the Municipal Financing Corporation Act, the Province of Newfoundland and Labrador  hereby unconditionally guarantees to the holder of the within  Debenture, the payment on the respective due dates of the principal and interest to become due in respect of this Debenture, as and when the same shall become due and payable.

Minister of Finance”

 4)  The guarantee shall be signed manually by, or with the engraved, lithographed, printed or otherwise mechanically reproduced facsimile signature of the Minister of Finance, acting for and on behalf of Her Majesty in Right of the Province, who is hereby so authorized, and that every such facsimile signature shall have the same force and effect as though it were a manual signature, and although the person  whose signature or facsimile signature as the Minister of Finance is appended to the guarantee be no longer in office at the date of the Debenture or on the date of its delivery, whether upon the original issuance thereof or upon any transfers or exchanges thereof, every such signature shall nevertheless be as fully effective and binding as though it were the manual signature of a person in office at the date of the Debenture and at the date of delivery thereof.