BILL NO. 79
1st Session, 64th General Assembly
70 Elizabeth II, 2021
Private Member's Bill
Nova Scotia Recovery Bonds Act
First Reading: November 3, 2021
WHEREAS the Nova Scotia economy has suffered during the COVID-19 pandemic due to lockdowns and ongoing business interruptions;
AND WHEREAS Nova Scotia is entering a post-pandemic stage and it is time to rebuild our economy;
AND WHEREAS the sale of bonds can be used to help finance the capital costs for Nova Scotian entrepreneurs who enable Nova Scotia’s self-sufficiency;
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Nova Scotia Recovery Bonds Act.
2 In this Act,
(a) "funded initiative" means an initiative described in Section 6;
(b) "Minister" means the Minister of Finance and Treasury Board;
(c) "Nova Scotia Recovery Bonds" means savings bonds issued under Section 3;
(d) "Trust Fund" means the Nova Scotia Recovery Bonds Trust Fund established under Section 5;
(e) "prime rate" means the rate of interest charged by banks to their most credit-worthy borrowers for short-term business loans, as determined and published by the Bank of Canada for the month in which savings bonds are issued under Section 3.
3 On or before June 1, 2022, and subject to Section 7, the Minister shall issue savings bonds to be known as Nova Scotia Recovery Bonds, the proceeds of which will be used to aid entrepreneurs who engage in funded initiatives.
4 (1) Nova Scotia Recovery Bonds issued by the Minister must be
(a) secured by the Department of Finance and Treasury Board; and
(b) in denominations of $50 and such other amounts as the Minister determines.
(2) The aggregate face amount of the Nova Scotia Recovery Bonds may not be greater than $10,000,000.
(3) Nova Scotia Recovery Bonds must bear interest at the prime rate plus a rate of return determined by the Minister that is based on the valuation of
(a) the Province’s credit rating;
(b) the benefit to the economy of the funded initiatives; and
(c) interest collected on loans financed or guaranteed from the proceeds of such bonds.
(4) Payment of interest and principal with respect to a Nova Scotia Recovery Bond must be made from the General Revenue Fund.
5 (1) The Nova Scotia Recovery Bonds Trust Fund is established.
(2) Amounts equal to the revenue from the issuance of Nova Scotia Recovery Bonds and any gifts or bequests made to the Trust Fund must be paid into the Trust Fund.
6 Amounts in the Trust Fund must be available to finance funded initiatives including, but not limited to,
(a) growing local food production;
(b) developing pharmaceutical businesses; and
(c) developing health-related businesses.
7 The money required for the purpose of this Act must be paid out of money appropriated for that purpose by the Legislature.
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