Orders in Council Database

WHEREAS the Student Loan Corporation of Newfoundland and Labrador (hereinafter called "Corporation") is authorized under Section 14.6 of the Student  Financial Assistance Act, being Chapter S-29.01 of the Statutes of Newfoundland and Labrador, 2002, as amended, (hereinafter called the "Act") to borrow money in such manner as the Corporation deems appropriate and secure the repayment thereof by the creation and issue of bonds, debentures, notes or other securities of the Corporation, at such rate of interest and in such form 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 the Corporation has, by Resolutions of its Board of Directors passed at a meeting held on September 29, 2011 (the “Resolution”), authorized the creation and sale of a floating rate note in the principal amount of $110,000,000 in lawful money of Canada, which will be dated September 30, 2011, will mature September 30, 2021, and will bear interest at the 3-month Canadian dollar bankers acceptances rate less ten basis points,  payable quarterly in arrears (hereinafter called the “Note”);

AND WHEREAS the Lieutenant Governor in Council has approved in principle the establishment by the Corporation, in consultation with the Department of Finance and the Department of Justice, of terms and conditions including repayment terms for the Note, with negotiated terms and conditions to be approved by the Minister of Finance (under delegation pursuant to Section 14.6 of the Student Financial Assistance Act), and to be approved by the Clerk of the Executive Council, when required, without further reference to Cabinet;

AND WHEREAS the Financial Administration Act provides authority for the Province to assume the debt of a crown corporation pursuant to Section 55.1 of the Act and the Lieutenant Governor in Council has provided its approval for this to be done with the approval of the Minister of Finance and the Clerk of the Executive Council, to be effective September 30, 2011;

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

1.  The Resolutions of the Board of Directors of the Corporation dated September 29, 2011 (a copy of which is on file with the Clerk of the Executive Council) be and they hereby are, in all respects, approved.

2.  The Corporation be and it is hereby authorized to create and issue the Note in the principal amount of $110,000,000 in lawful money of Canada, to be dated September 30, 2011, to mature on September 30, 2021, with the principal amount to be reduced by quarterly payments in amounts to be determined by the Corporation on each payment date and to bear interest at the 3-month Canadian dollar bankers acceptances rate less ten basis points, payable quarterly in arrears on March 31, June 30, September 30 and December 31 in each year of the currency of the Note, commencing with the first payment date on December 31, 2011, and to contain such other terms and conditions as are set forth in the Note with the form of Note approved by the Corporation (a copy of  which is on file with the Clerk of the Executive Council), which form of Note is hereby approved, and provided that such alterations may be made to the Note as shall be approved in accordance with the Resolutions of the Directors of the Corporation.

3.  Any two directors of the Corporation are hereby authorized, for and on behalf of the Corporation, to execute and deliver the Note in the principal amount of $110,000,000 and all of the provisions, terms and conditions of the Note, including the interest rate,  principal repayments, and the selling price of the Note, are hereby approved for the purpose of such execution and delivery; provided that such alterations may be made to the Note as shall be approved in accordance with the Resolutions of the Directors of the Corporation.

4.  On the authority of Section 55.1 of the Financial Administration Act, the Minister of Finance is authorized to assume the debt of the Corporation in the amount of $110,000,000 and to immediately redeem such debt; and the Minister of Finance is authorized in consideration of the foregoing to negotiate and accept a Floating Rate Note in the principal amount of $110,000,000 to mature on September 30, 2021; all steps required to effect these transactions are authorized.