|This Act has "Not in Force" sections. See the Table of Legislative Changes.|
|1.1||Modifications required in respect of northern municipality|
|3||Objects of the authority|
|6||Treasurer and secretary|
|7||Board of Trustees|
|8||General financing transaction powers|
|9||Request for financing|
|10||Issue of securities|
|11.1||Financing in relation to local government agreements|
|12||Application of sections of the Local Government Act|
|15||Debt reserve fund|
|16||Short term pooled investment funds|
|18||Variable tax rate system|
|21||Authority is a municipality for certain purposes|
|24||Restriction on security issuing bylaw by regional district|
|25||Notice of intention|
|27||Obligations of regional districts|
|27.1||Obligations of regional hospital districts|
|28||Application of other Acts|
|29||Power to make regulations|
1 In this Act:
"authority" means the Municipal Finance Authority of British Columbia continued under section 2;
"collector" means the collector of each municipality or the Surveyor of Taxes;
"northern municipality" has the same meaning as in section 25 of the Municipalities Enabling and Validating Act (No. 3);
"pooled investment fund" means a fund established under section 16, in which money received by the authority from regional districts and municipalities may be combined in common for the purpose of investment in the manner and to the extent referred to in that section and in agreements made under section 16 (1);
"population" means population as defined in the Community Charter;
"public institution" means
(b) a hospital under Part 1 of the Hospital Act,
(c) a regional hospital district under the Hospital District Act,
(d) a board of school trustees or a francophone education authority under the School Act,
(e) a university under the University Act,
(e.1) the University of Northern British Columbia continued under the University of Northern British Columbia Act,
(e.2) Royal Roads University continued under the Royal Roads University Act,
(e.4) the Thompson Rivers University continued under the Thompson Rivers University Act,
(f) an institution under the College and Institute Act, and
(g) the British Columbia Institute of Technology under the Institute of Technology Act;
"regional district" includes,
(iii) a regional hospital district under the Hospital District Act, other than the Greater Vancouver Regional Hospital District,
if a notice of intention has been given under section 25;
"securities" means bonds, debentures, deposit certificates, promissory notes or other evidences of indebtedness;
"trustees" means the Board of Trustees constituted under section 7.
(2) For the purpose of applying sections 15 (3) (b) and 26 (1) to the northern municipality, the references in those sections to the chair and financial officer of the regional district are to be read as references to the mayor and financial officer of the northern municipality.
(3) The number of votes to which a regional district is entitled is that number obtained by dividing the population of the regional district by 50 000, except that if the resulting quotient is not an integer the number of votes is the next highest integer.
(4) The number of members to which a regional district is entitled is that number obtained by dividing the number of votes to which a regional district is entitled under subsection (3) by 5, except that if the resulting quotient is not an integer the number of members is the next highest integer.
(9) Not later than the last day of February in each year, the regional board of each regional district must appoint from among its directors the required number of persons as members of the authority for that year or until a successor is appointed.
(10) The regional board of each regional district may appoint from among its directors, persons to act as alternate members, who are to take the place of, and have the vote of, a specified member of the authority in the case of a necessary absence from a meeting of the authority.
(12) Despite any other provision in this section, a person who is a member or alternate member of the authority on the date this subsection comes into force and who was appointed by the regional board of the Northern Rockies Regional District continues as a member or alternate member of the authority until a successor is appointed by the council of the northern municipality.
3 The objects of the authority are the following:
(a) providing financing for regional districts and their member municipalities by the issue of securities of the authority and the lending of the proceeds from those securities to the regional district on whose request the financing is undertaken;
4 (1) At its first meeting, to be held not later than March 31 in each year, the members of the authority must elect one of their number as chair to hold office until a successor is elected and for this purpose each member has one vote.
(2) Subject to subsection (1), the members of the authority must meet at the times and places determined by the chair, but any 6 members of the authority may, at any time, by notice in writing directed to the chair, require a meeting to be called.
(6) A resolution that is approved in writing, or by telex, telegraph, telephone or other similar means of communication confirmed in writing or other graphic communication, by a majority of the members is as valid as if it were passed at a meeting of the members properly called and constituted.
(2) Sections 236 and 237 of the Local Government Act apply to the secretary and treasurer respectively.
7 (1) The executive and administrative powers and duties of the authority are to be exercised and performed by a Board of Trustees, consisting of the chair of the authority and 9 other members of the authority, so that the trustees are
(8) A resolution that is approved in writing or by telex, telegraph, telephone or other similar means of communication confirmed in writing or other graphic communication, by a majority of the trustees is as valid as if it were passed at a meeting of the trustees properly called and constituted.
(2) Without limiting subsection (1), securities and interest coupons may be held by a depository agency in a book-based system for the central handling of securities and interest coupons that provides for the transfer of the securities by bookkeeping entry without physical delivery of the securities or interest coupons.
9 The authority must review the outstanding requests for financing, and in consideration of the relevant market and economic conditions, may authorize the issue and sale of securities to raise a specified amount in the manner determined by the trustees.
(b) issue securities of the authority bearing interest at the rate and payable as to principal and interest at the time, and the place, and in the currency of the countries the trustees may determine.
(c) the issue of securities in amounts sufficient to realize the amount of any securities called in and paid before maturity for a term not longer than the remainder of the term of the securities called in and paid;
(4) The trustees may issue securities of the authority, in the principal amounts that, after payment of any discount and the costs of issue and sale, will realize the net amounts authorized by the authority under section 9.
(5) The recital or declaration in the resolution of the trustees authorizing the issue of securities to the effect that it is necessary to issue securities in the principal amount so authorized to realize the net amount, is conclusive evidence of that fact.
(7) The securities and the interest coupons, if any, attached to them are to be in the form and are to be exchangeable for other securities of the same issue on any terms and conditions the trustees may determine.
(8) The securities and interest coupons of the authority must be signed by the chair or by a person or persons designated by the trustees and countersigned by the treasurer or by a person or persons designated by the trustees.
(10) The engraved, lithographed or printed signature of a person required to execute a security or interest coupon under subsection (8) is for all purposes the signature of that person and is binding on the authority even if the person whose signature is reproduced may not have held office at the date of the securities or interest coupons or at their date of delivery.
(12) At the request of a municipality, the trustees may allot a specified amount of any issue of securities of the authority to that municipality on its written undertaking to sell that amount by public subscription only.
11 (1) The authority may enter into agreements with a public institution under which the authority provides financing for one or more of the following purposes, as applicable to the public institution:
(c) financing under section 181 [municipal temporary borrowing under loan authorization bylaw] of the Community Charter or section 409 [regional district temporary borrowing under loan authorization bylaw] of the Local Government Act;
(d) borrowing by way of temporary loan to meet current operating expenditures under section 31 of the Hospital District Act;
(e) borrowing in anticipation of the receipt of current revenues under the Hospital Insurance Act;
(f) borrowing to meet current operating expenses under section 139 (1) of the School Act;
(g) borrowing in anticipation of the receipt of current revenues under section 31 (1) of the University Act;
(h) borrowing in anticipation of the receipt of current revenues under section 33 (1) of the College and Institute Act.
(a) to a local government who is a party to an agreement under section 175 [municipal liabilities under agreements] of the Community Charter or section 403 [borrowing and liability: application of Community Charter] of the Local Government Act, or
12 Sections 760 to 763 of the Local Government Act apply to securities issued by the authority.
13 The trustees may provide for registration or recognition of the authority in a foreign country or place, and may designate persons there, according to the laws of the foreign country or place, to represent the authority and to accept service for and on behalf of the authority of a proceeding.
(a) to provide for the creation, management and application of sinking funds or other means of securing the repayment of securities issued by the authority, including the redemption by call of securities issued subject to redemption in advance of maturity, and
(b) subject to approval by the inspector of municipalities, if the amount of money in a sinking fund for which securities are outstanding together with anticipated interest earnings for that fund is greater than the amount anticipated to be required to repay the debt or discharge the obligation, to declare that there is an anticipated surplus in the fund of a specified amount.
(3) Money at the credit of the sinking fund that cannot be immediately applied toward paying the debt or discharging the obligation because no part of the debt or obligation is yet payable may be invested or reinvested by the trustees in any of the following:
(c) securities of a municipality or regional district in British Columbia, or of a local, municipal or regional government in another province of Canada, maturing not later than the securities, the repayment for which the sinking fund was created;
(4) For the purposes of subsection (3), all the securities, deposits, shares or evidences of indebtedness must be held to the credit of the sinking fund account, together with any interest, premium or exchange derived from them.
(5) If more than one sinking fund account is involved, the securities and the interest, premium or exchange derived from them must be allocated in proportion to the money of the accounts used for the purchase.
(6) Instead of investing money to the credit of the sinking fund in accordance with subsection (3) and (4), the trustees may apply any of the money standing to the credit of the sinking fund to the purchase of securities of the authority maturing not later than the securities for which the sinking fund account was created.
(9) If the trustees consider it advantageous to the authority, they may, in advance of payments that become due under agreements with regional districts, borrow temporarily to purchase securities of the authority.
(12) If there is, at any time, standing to the credit of the sinking fund account of a debt of the authority a surplus over the amount required to be in that account in accordance with the provisions of the bylaw or resolution under which the debt is created, the trustees may
(a) with the approval of the inspector of municipalities, provide for the application of the surplus or part of it to the payment of the amount required for the sinking fund in the succeeding year, and
(13) If the authority declares that there is an anticipated surplus in a sinking fund under subsection (1) (b), the trustees may, with the approval of the inspector of municipalities, make any provision for the application of the anticipated surplus including, without limitation, that the surplus or a portion of the surplus must be paid or credited to the regional districts for which financing was undertaken by that sinking fund issue in proportions that take into account the following:
(14) If a regional district receives payment or credit under subsection (11) or (13), it must distribute that payment or credit in accordance with any written directions as to proportions for distribution that the trustees may make.
(15) If there is at any time at the credit of the sinking fund account of a debt of the authority an amount less than the amount required in the account in accordance with the provisions of the bylaw or resolution under which the debt is created, the trustees may, despite the terms of the agreements with the regional districts relating to the debt and despite any payment or credit made under subsection (13), require the regional districts to pay over to the authority the amount of the deficit in proportion to the amount that each regional district shared in the proceeds of the debt.
(2) Each regional district sharing in the proceeds of a security issue of the authority must pay over to the authority to repay the obligations to the authority under that security issue an amount equal to
(a) 1/2 the average annual instalment of principal and interest in respect of its own borrowing under section 411 [security issuing bylaws] of the Local Government Act, and
(b) 1/2 the average annual instalment of principal and interest as set out in the agreements entered into with, or securities issued to, the regional district by member municipalities with respect to financing under section 410 of the Local Government Act.
(b) each regional district must, without further requirement of bylaw or resolution, secure the balance of its liability to the debt reserve fund under this section by issuing to the authority a non-interest bearing demand note for the balance, bearing the signature of the chair and countersigned by the regional district financial officer or another officer designated by the regional board;
(c) a member municipality of the regional district must, without further requirement of bylaw or resolution, secure the balance of its liability to the regional district by issuing to the regional district a non-interest bearing demand note for the balance, bearing the signature of the mayor and countersigned by the municipal financial officer or another officer designated by the council.
(4) If an amount required under subsection (2) has not been paid over to the authority at the dates of the settlement of the proceeds of a security issue, the authority must deduct the amounts required for the debt reserve fund from the proceeds.
(6) For the purposes of subsection (5) the securities, deposits, shares or other evidences of indebtedness must mature or be callable within 5 years, and at least 25% of the amount to the credit of the fund must be callable within 90 days.
(9) Despite subsections (7) and (8), if a municipality has discharged its obligation to a regional district with respect to a security issue, the authority may, during the term of the issue, repay to the regional district for the credit of the municipality a portion of the money that is an obligation to the regional district under subsections (7) and (8), and the money paid must be applied to reduce that obligation.
(10) If, at any time, the authority does not have sufficient funds to meet payments or sinking fund contributions due on its obligation, the payments or sinking fund contributions must be made from the debt reserve fund.
(a) may, if they are of opinion that the payments made from the fund under subsection (10) may not be recovered under the terms of the loan agreements within a reasonable period, levy or impose on all taxable land and improvements in British Columbia rates sufficient to restore the fund to a level not greater than the amount that would have been in the fund had no payments been made, and
(12) This section does not apply to issues of the authority having a term of 2 years or less, and, if at any time the authority does not have sufficient funds to meet payments or sinking fund contributions due on those short term obligations, the trustees, in the name of the authority, by resolution, must levy or impose on all taxable land and improvements in British Columbia rates sufficient to meet the payments or sinking fund contributions.
(13) If, after a levy under this section, all or part of the deficiency is recovered from the delinquent regional district, any money not required to maintain the debt reserve fund must be transferred to the operating fund established under section 17.
16 (1) The authority may enter into agreements with public institutions and institutions prescribed under subsection (7) under which, on the terms and conditions established in the agreements, the authority, in its own name or otherwise, holds and invests money received from the institution for the purpose of investment in pooled investment funds as permitted for the institution.
(d) commercial paper issued by a company incorporated under the laws of Canada or of a province, the securities of which are rated in the highest rating category by at least 2 recognized security rating institutions;
(e) investments permitted under the provisions of the Trustee Act respecting the investment of trust property by a trustee;
(f) despite the provisions of the Financial Administration Act, pooled investment portfolios established under that Act.
(4) If money is to be invested in a pooled investment portfolio under subsection (3) (f), the Minister of Finance may enter into agreements with the authority to sell units of participation in a portfolio to the authority.
17 The authority must establish an operating fund to meet the annual operating budget of the authority, and for this purpose may, in any year, impose rates not higher than the prescribed rates of all taxable land and improvements in British Columbia.
"property class" means a class of property prescribed by the Lieutenant Governor in Council under section 19 of the Assessment Act;
"variable tax rate system" means a system under which individual tax rates are determined and imposed for each property class.
19 (1) The rates authorized by sections 15 and 17 must be levied on the net taxable value of land and improvements on the basis provided by section 26 of the Hospital District Act.
(2) Any member is entitled to be reimbursed for reasonable expenses incurred by the member in connection with attending meetings of the authority or of the trustees or engaging in the business of the authority specifically authorized by the trustees.
21 For the purposes of the Municipal Finance Authority Act and the objects of the Municipal Finance Authority of British Columbia, the authority is a municipality.
24 (1) After April 3, 1970 and despite the Local Government Act, the regional board of a regional district must not adopt
25 Any of the following may give written notice to the authority and to the inspector of municipalities that, on and after a date specified in the notice, it intends to finance its capital requirements through the authority:
(d) a regional hospital district under the Hospital District Act, other than the Greater Vancouver Regional Hospital District.
26 (1) If the authority is to finance on behalf of a regional district and its member municipalities, the security issuing bylaw of the regional district under the Local Government Act may provide that the chair and financial officer of the regional district, on behalf of the regional district, are to enter into an agreement with the authority providing for the payment by the regional district to the authority of the amounts required to meet the obligations of the authority with respect to its borrowing.
(3) An agreement under this section may provide that if the debt, and all securities issued for it, are called in, either at the option of the trustees or the holders, in accordance with the terms of the security and paid at any time before maturity on the terms and on the notice or otherwise as may be specified in the agreement, the trustees must issue securities for terms not longer than the remainder of the terms of the securities so called in and paid, sufficient to realize the principal amount of the securities so called in and paid.
(4) If securities that are the subject of an agreement under subsection (3) are called in and paid in advance of maturity, the trustees must amend the agreements entered into in respect of those securities between
to provide for the repayment of the principal amount provided for in the agreements together with the interest to be paid on unpaid amounts.
(5) Amendments to the agreements made under subsection (4) must immediately be forwarded to the regional districts and municipalities involved, and despite the Local Government Act, the Community Charter or this Act, have the same effect as the amount originally set out in the agreements.
(6) If a regional district enters into an agreement under subsection (3), the agreement must also include a provision that all costs of any redemptions of securities before maturity and reissuing are to be at the sole expense of each regional district involved.
27.1 The following are jointly and severally liable for obligations arising under a security issued by a regional hospital district to the authority:
28 (1) Division 2 [Audit] of Part 6 of the Community Charter applies to the authority.
(2) The Business Corporations Act does not apply to the authority.
(3) Section 24 does not apply to borrowing under Part VIII of the National Housing Act (Canada).
29 The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.
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