Municipal Loan and Building Fund Act

Short title

1 This Act may be cited as the Municipal Loan and Building Fund Act. R.S., c. 305, s. 1.

Interpretation

2 In this Act,

(a) "Building Fund" means such sums of money as are from time to time provided for the purposes of this Act as a building fund;

(b) "Loan Fund" means such sums of money as are from time to time provided for the purposes of this Act as a municipal loan fund;

(c) "municipality" includes a city, town and municipality and any village to which the Village Service Act applies. R.S., c. 305, s. 2.

Source of funds

3 For the purposes of this Act, the Governor in Council may from time to time, out of sums chargeable to Capital Account or out of the Special Reserve Account of the Province or out of the revenues of the Province, pay into the Building Fund sums not exceeding in the aggregate two million, seven hundred and fifty thousand dollars and into the Loan Fund sums not exceeding in the aggregate forty million dollars. R.S., c. 305, s. 3.

Use of Loan Fund

4 The Governor in Council may out of the Loan Fund make loans to any municipality for the purpose of constructing, altering, extending or improving the waterworks or water system or the public sewers or drains in the municipality and acquiring or purchasing materials, equipment and plant deemed requisite or advisable therefor or for the purpose of erecting, acquiring, purchasing or adding to buildings for public schools or city or town halls or for county court houses, county jails or municipal buildings. R.S., c. 305, s. 4.

Use of Building Fund

5 (1) The Governor in Council may out of the Building Fund make grants to any city or town for the purpose of aiding the construction or extension of buildings for junior or senior high schools in the city or town.

Construction of high school

(2) Where the said construction or extension is partly for the purpose of a junior or senior high school and partly for the purpose of a grade school, the payments authorized by this Act shall be in relation only to that portion of the building to be used or occupied for the purpose of a junior or senior high school in accordance with a certificate of the Minister of Education. R.S., c. 305, s. 5.

Special accounts

6 For the purposes of this Act, there shall be established in the office of the Minister of Finance a special account to be known as the "Municipal Loan Fund" into which shall be paid or credited all sums which may from time to time be provided for the purposes of this Act as a municipal loan fund and a special account to be known as the "Municipal Building Fund" into which shall be paid or credited all sums which may from time to time be provided for the purposes of this Act as a municipal building fund. R.S., c. 305, s. 6.

Loan or repayment of loan

7 All loans made under this Act shall be made out of the Loan Fund and all repayments in respect of any such loans shall be credited to the Loan Fund and subject to the other provisions of this Act may be re-loaned by the Governor in Council for the purposes of this Act. R.S., c. 305, s. 7.

Administration expenses

8 Any administration expenses in connection with any such loan or grant shall be administration expenses of the Department of Municipal Affairs but shall not be a charge upon either of the funds. R.S., c. 305, s. 8.

Regulations

9 (1) The Governor in Council may from time to time make regulations not inconsistent with this Act

(a) limiting the amounts of loans;

(b) prescribing or limiting the purposes for which loans may be made;

(c) prescribing the nature of the security to be required before a loan is made;

(d) prescribing the manner in which applications for loans shall be made;

(e) fixing the interest rates on loans;

(f) classifying the cities and towns of the Province for the purposes of this Act;

(g) prescribing in respect of any class the percentage of the cost of any junior or senior high school which may be paid out the the Building Fund;

(h) limiting the amount of grants from the Building Fund;

(i) prescribing in respect of any matter for which no provision or incomplete provision has been made.

Regulations effective on publication

(2) Such regulations shall be published in the Royal Gazette and upon such publication shall become effective in all respects as if enacted in this Act. R.S., c. 305, s. 9.