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Municipal Hospitals Loan Regulations made under Section 6 of the
Municipal Hospitals Loan Act
R.S.N.S. 1989, c. 303
N.S. Reg. 29/62 (March 14, 1962)
as amended by N.S. Reg. 30/62 (May 14, 1962)
1 In these regulations
(a) "Act" means the Municipal Hospitals Loan Act;
(b) "Minister" means the Minister of Health and Wellness.
[Note: the reference to the Minister has been updated in accordance with Order in Council 2011-15 under the Public Service Act, R.S.N.S. 1989, effective January 11, 2011.]
Applications for loans
2 Every application for a loan under the Act shall be made in writing to the Minister.
3 Every application for a loan shall show
(a) the name of the municipality;
(b) the amount of the loan required;
(c) the purposes for which the loan is required;
(d) the total amount expended or to be expended by the municipality exclusive of any grants received from Canada or the Province;
(e) the amount borrowed or to be borrowed from other sources for the project and the terms of repayment of any such loans;
(f) that the Health Services and Insurance Commission has approved in principle the plans for the establishment of the new or additional hospital or for the alteration of an existing hospital;
[Note: the reference to the Hospital Insurance Commission has been updated in accordance with the Health Services and Insurance Act, S.N.S. 1973, c. 8, s. 30.]
(g) subject to the provisions of the Act and these regulations, the proposed terms of repayment of any loan granted under the Act; and
(h) such further or other information as the Minister may require.
4 Except as provided in these regulations, no special form of application shall be required.
Terms of repayment
5 (1) Every loan made under the Act together with interest thereon shall be repayable in equal or such other annual instalments of one thousand dollars or multiples thereof, as directed by the Governor in Council over a period not exceeding twenty years, provided that in no case shall less than fifty percent of the principal amount of any loan be repaid within one-half of the total repayment period provided for any loan made under the Act.
(2) The first payment on any loan shall be made within one year from the date of the loan or the last advance thereof, where the loan is advanced in instalments, provided that where a municipality has borrowed additional funds for the same purposes as set forth in any application for a loan under the Act, then the Governor in Council may specify a date not more than eleven years after the date of the loan or the last advance thereof, as the case may be, on which such repayments are to commence.
(2A) Notwithstanding any other provision of these regulations, where a municipality has borrowed additional funds for the same purposes as set forth in an application for a loan under the Act, if the first repayment on account of the loan made under the Act is not later than one year and the final repayment is not later than twenty years after the date of the loan or the last advance thereof, the Governor in Council may authorize the municipality to repay the loan at a rate that will provide for repayment of not less than fifty percent of the principal amount of the loan within two-thirds of the total repayment period.
Subsection 5(2A) added: N.S. Reg. 30/62.
(3) The Governor in Council shall fix the rate of interest to be paid on each loan at the time of the approval thereof, having regard to the prevailing rate of interest being paid by the Province for funds borrowed for Provincial purposes and the cost of administering the loan.
(4) Notwithstanding any other provision contained in these regulations, where a municipality has borrowed additional funds for the same purposes as set forth in any application for a loan under the Act, the total number of years for the repayment of a loan made under the Act shall not be greater than the total number of years required for the repayment of such other loan.
Security for loans
6 (1) A municipality receiving a loan under the Act shall issue and deliver to the Province debentures equal to the principal amount of the loan.
(2) Debentures issued by a municipality shall
(a) be issued in serial form in denominations of one thousand dollars, or multiples thereof, in accordance with the provisions of Chapter 296 of the Revised Statutes of Nova Scotia, 1989, the Municipal Affairs Act;
[Note: the Municipal Affairs Act is repealed by the Municipal Government Act, S.N.S. 1998, c. 18, s. 566. Forms of debentures are covered in Section 94 of the Municipal Government Act. ]
(b) be redeemable in annual instalments in accordance with the terms of repayment for the loan made under the Act; and
(c) contain such further terms and conditions as may be required by the Minister.
7 (1) The Governor in Council may specify the manner in which any loan made under the Act will be advanced to a municipality, provided that where the loan is to be advanced in instalments, then no instalment shall be paid unless the municipality satisfies the Minister that it has expended on the project an amount equal to the advance exclusive of any work or services covered by any prior advance.
(2) Where the principal amount of the loan is advanced by instalments, the municipality shall, at the date of each such advance, issue a sufficient number of debentures to the Province to cover in total all advances including the last such advance.
(3) Debentures issued for the purposes of this Section shall form part of the issue made by a municipality to secure the principal amount of any loan made under the Act.
Application and repeal
8 All regulations heretofore made by the Governor in Council pursuant to the Act are repealed.
9 These regulations shall apply to all loans heretofore or hereafter made pursuant to the Act.