REVISED STATUTES, 1989
(f) "municipal enterprise" means any body corporate the borrowings of which are or may be guaranteed by a municipality, any body corporate to which a municipality may lend money and any body corporate the deficit of which is or may be paid by a municipality, and includes a school board as defined in the Education Act but does not include a hospital;
(ii) levy rates and taxes, or require a municipality or an official of a municipality to levy rates and taxes, other than or in addition to water or electric rates fixed or approved under the Public Utilities Act,
and includes fire protection commissioners incorporated under the Rural Fire District Act or to whom the Rural Fire District Act applies by virtue of Section 56 thereof but does not include a municipality of a county or district, an incorporated town, a city, village commissioners or a school board as defined in the Education Act. R.S., c. 301, s. 2.
(2) A number of the members of the Board shall be appointed upon the recommendation of the Union of Nova Scotia Municipalities and the number so appointed is that number that is nearest to being forty per cent of the total number of the members on the Board.
(3) No member of the Board shall participate in decisions respecting borrowings by the municipality or hospital by which the member of the Board is employed or of whose council or board, respectively, the member of the Board is a member.
(2) A quorum of the Board consists of a majority of the members of the Board and includes at least one member appointed on the recommendation of the Union of Nova Scotia Municipalities. R.S., c. 301, s. 5.
(4) The appointment of a member of the House of Assembly, including a member of the Executive Council, does not render such member of the House or of the Executive Council ineligible or disqualified from sitting or voting in the House of Assembly by reason of being a member of the Board and receiving remuneration, travelling or living expenses in respect of duties pertaining to the Board or by reason of any dealing by the Board with the Province.
(5) Members of the Board may include persons in the public service and persons who hold an office or appointment under any enactment, including an enactment of the Province or of the Parliament of Canada. R.S., c. 301, s. 6.
7 The object of the Corporation is to provide financial assistance for municipalities, municipal enterprises and hospitals through a central borrowing authority. R.S., c. 301, s. 7; 1998, c. 18, s. 569.
(d) purchase, take on lease or in exchange, hire or otherwise acquire and hold real or personal property and any rights or privileges that the Corporation considers necessary or convenient for the purpose of its business;
(g) lend money to municipalities, municipal enterprises and hospitals and accept and receive therefrom notes, bonds, debentures or any other security and sell, pledge, mortgage or otherwise dispose of or deal with such notes, bonds, debentures or securities;
(gb) subject to subsection (2), and without restricting the generality of clauses (a), (c) and (e), enter into financial transactions and agreements affecting the debt and financial assets of the Corporation;
(2) The Governor in Council may make regulations prescribing or prohibiting financial transactions or classes of financial transactions that the corporation may enter into pursuant to clause (gb) of subsection (1).
9 (1) Where a municipality is required pursuant to the Municipal Affairs Act to provide a sinking fund, the sums required therefor and the interest accruing thereon from time to time may be held and administered by the Corporation in trust for the municipality or assigned by the Corporation to the Minister of Finance in trust for the municipality.
10 (1) The notes, bonds, debentures and securities issued by the Corporation may be in such form and in such denomination, bear interest at such rate and be made payable as to principal, interest and premium, if any, at such time and at such place as the Board may determine.
(2) Notes, bonds, debentures or securities of the Corporation may be made redeemable or payable in advance of maturity either at the option of the Corporation or on demand of the holder thereof at any time and at such price and either with or without payment of a premium and either in whole or in part, as the Corporation may provide.
(3) The Board may sell or otherwise dispose of notes, bonds, debentures or securities on such terms and conditions as it deems advisable, either at the par value thereof or at less or more than the par value thereof, and may charge, pledge, mortgage, deposit or deal with any such securities as collateral security.
(4) A recital or declaration in any resolution of the Corporation authorizing the issue and sale of notes, bonds, debentures or securities of the Corporation for any purpose to the effect that it is necessary to issue and sell notes, bonds, debentures or securities of the Corporation for such purpose in the amount authorized by the resolution is conclusive evidence of the fact recited or declared. R.S., c. 301, s. 10.
11 The Board may make resolutions relating to such matters or things as appear to it to be requisite or proper for the conduct or regulation of the business or affairs of the Corporation and, without restricting the generality of the foregoing, including
(b) the disposition of all money received in respect of the business of the Corporation, the institutions in which the money is to be deposited, the manner in which such accounts are to be kept and managed and the manner in which withdrawals are to be made from such accounts;
(c) the borrowing by way of temporary loan from chartered banks by way of overdraft or line of credit or by pledging notes, bonds, debentures or any other security of the Corporation as security, or in any other manner, and the execution of bills of exchange, promissory notes or other instruments used in connection with temporary borrowings;
12 (1) The repayment of the principal, interest and premium, if any, of any borrowings by, or any notes, bonds, debentures or securities issued by, the Corporation may be guaranteed by the Province and any such guarantees require the approval of the Governor in Council.
(2) The guarantee, in such form and manner as the Governor in Council may approve, may be endorsed upon any note, bond, debenture or security issued by the Corporation and may be signed on behalf of Her Majesty by the Minister of Finance or by such other person as the Governor in Council may designate.
(3) The signature of the Minister of Finance, or the person designated by the Governor in Council, upon the guarantee endorsed upon a note, bond, debenture or security of the Corporation may be engraved, lithographed or otherwise mechanically reproduced.
(4) The signature of the Minister of Finance, or the person designated by the Governor in Council, upon the guarantee is conclusive proof that the relevant provisions of this Act have been complied with. R.S., c. 301, s. 12.
14 The Corporation may borrow in the currency of any country and notes, bonds, debentures or securities given for any money borrowed may be redeemable in the currency of any country. R.S., c. 301, s. 14.
(2) Subsection (1) does not apply to the issue of a note, bond, debenture or security of a school board, and the Corporation shall not accept a note, bond, debenture or security of a school board unless
(3) The Corporation shall not accept a note, bond, debenture or security of a hospital unless all requirements of the Hospitals Act or any other applicable enactment have been complied with by the hospital and the issue of the note, bond, debenture or security has been approved by the Minister of Health and Fitness. R.S., c. 301, s. 15.
16 (1) Notwithstanding the Municipal Affairs Act or any other general or special Act of the Legislature, no municipality or municipal enterprise shall issue or sell notes, bonds, debentures or securities except to the Corporation or to the Government of Canada, the Province, or another municipality, or to any department, agency or fund thereof.
(2) This Section does not apply to a temporary borrowing pending the issue of notes, bonds, debentures or securities or a borrowing by a municipality or municipal enterprise made in accordance with the Act under which the municipality or municipal enterprise is incorporated and for the purpose of defraying part of its annual current expenditure.
(3) This Section does not apply to a borrowing or part thereof by a municipal housing corporation where the municipal housing corporation obtains a borrowing guarantee from Canada Mortgage and Housing Corporation in respect of that borrowing or that part thereof, respectively. R.S, c. 301, s. 16.
(2) The Governor in Council shall, upon the recommendation of the Minister, appoint trustees to manage the affairs of the municipality or municipal enterprise and Sections 36 to 38 of the Municipal Affairs Act apply thereto mutatis mutandis.
(4) The Corporation may, by order of the Board, seize and sell property of a municipal enterprise to recover any amount in default, and for this purpose a loan by the Corporation to a municipal enterprise is a charge upon the property of the municipal enterprise. R.S., c. 301, s. 17; 1998, c. 18, s. 569.
(3) The Corporation may, with the approval of the Governor in Council, seize and sell property of a hospital to recover any amount in default, and for this purpose a loan by the Corporation to a hospital is a charge upon the property of the hospital. R.S., c. 301, s. 18.
(4) Where a document or notice must be served upon or given to the Corporation pursuant to this Section or the Proceedings against the Crown Act, it shall be served by delivering a copy to the office of the Attorney General or the Deputy Attorney General or any other barrister or solicitor employed in the Department of the Attorney General or by delivering a copy to a barrister or solicitor designated for that purpose by the Attorney General, and such service is and is deemed to be service upon the Corporation. R.S., c. 301, s. 20; 2010, c. 2, s. 133.
21 (1) The Board shall not later than the thirty-first day of December in each year submit to the Minister an estimate of its anticipated administration expenditures for the next following fiscal year.
(b) the municipalities, municipal enterprises and hospitals that have obtained financing through the Corporation, with the share payable by each municipality, municipal enterprise and hospital equal to the proportion that the total outstanding indebtedness to the Corporation, as reflected in its most recently audited financial statements, of the municipality, municipal enterprise or hospital bears to the total outstanding indebtedness to the Corporation for all municipalities, municipal enterprises and hospitals; or
(c) both the Corporation and the municipalities, municipal enterprises and hospitals, with the share payable by each municipality, municipal enterprise and hospital determined in accordance with the formula set out in clause (b).
(3) The sums required by the municipalities under this Section shall be held to be sums required for the ordinary lawful purposes of the municipalities and may be raised, levied and collected in the same manner and in all respects as other sums required for the ordinary lawful purposes of the municipalities are raised, levied and collected.
(4) The council of each municipality, on a requisition signed by the Chairman or other officer of the Corporation, shall pay over to the Corporation the municipality's share of the approved administration expenses of the Corporation. R.S, c. 301, s. 22; 1993, c. 32, s. 1.
(2) The auditor has a right of access at all times to the books and accounts of the Corporation and is entitled to require from the directors, officers and employees of the Corporation such information and explanation as may be necessary for the performance of the duties of the auditor.
(3) The auditor shall make all examinations that are in his opinion necessary to enable him to report accurately on the financial statements of the Corporation and on the state of the financial affairs of the Corporation. R.S., c. 301, s. 23.
24 A copy of the report of the auditor and the financial statements of the Corporation in the form prescribed by the Minister shall be deposited with the Minister, the Minister of Finance and the clerk of every municipality. R.S., c. 301, s. 24.
26 (1) Where the Province has guaranteed a repayment of principal, interest or premium, if any, of a borrowing, whether the borrowing is by note, bond, debenture or security, or any combination thereof, or in any manner whatsoever, of the Corporation and the Province is required to honour that guarantee, then the amount of the guarantee is a debt of the Corporation and the Corporation shall recover that amount as if there were a default to the Corporation by the municipal enterprises, municipalities and hospitals indebted to it, and subsections (3) and (4) of Section 17 apply thereto mutatis mutandis.