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AR 361/86 GUARANTEE REGULATION

(Consolidated up to 62/2013)

ALBERTA REGULATION 361/86

Government Organization Act

GUARANTEE REGULATION

Guarantee purposes

1   The Minister may authorize the Government to provide guarantees for the repayment of principal and the payment of interest in respect of loans made for or to the following:


                                 (a)    the cost of acquiring land for housing;

                                 (b)    the cost of clearing or breaking land for housing;

                                 (c)    the cost of sloping, levelling or otherwise preparing land for housing;

                                 (d)    the cost of improving or developing land for housing;

                                 (e)    the cost of designing, constructing, maintaining or improving housing;

                                 (f)    the cost of providing sewer, water and other utilities in respect of housing;

                                 (g)    the cost of landscaping or otherwise improving the appearance of housing;

                                 (h)    any other purpose that the Minister considers incidental to or proper, necessary or desirable in connection with housing;

                                  (i)    the Alberta Urban Municipalities Association;

                                  (j)    the Alberta Association of Municipal Districts and Counties;

                                 (k)    a regional planning commission as defined in the Planning Act.

AR 361/86 s1

Application

2(1)  An application for a guarantee by the Government of the repayment of principal and the payment of interest may be made by an applicant who has or is proposing to undertake a contractual obligation to repay a loan assumed or that will be assumed in respect of a purpose, association or commission mentioned in section 1.

(2)  An application under subsection (1) shall be made in writing to the Minister and shall contain the following information:

                                 (a)    name of the applicant;

                                 (b)    the name of the association or commission, if applicable, and the purpose with respect to which the guarantee of the loan is required;

                                 (c)    details of the loan;

                                 (d)    details of what the guarantee will be used for and details of the loan that is or will be assumed;

                                 (e)    any other information that the Minister may require.

AR 361/86 s2

Approval

3(1)  Subject to section 71 of the Financial Administration Act, if the Minister is satisfied that the applicant meets the requirements of section 2 and any condition required by the Minister, the Minister may authorize the President of Treasury Board and Minister of Finance to give, on behalf of the Government, a guarantee in respect of a loan.

(2)  An authorization under subsection (1) shall include the following:

                                 (a)    the name of the applicant;

                                 (b)    the name of the association or commission, if applicable, and the use and purpose for which the loan to which the guarantee is to apply is to be employed;

                                 (c)    the security, if any, to be taken by the Government;

                                 (d)    a description of the loan assumed or to be assumed by the applicant in respect of which the guarantee may be given, including any security to be given by the applicant and, if applicable,

                                           (i)    the principal amounts,

                                          (ii)    the rate of interest, and

                                         (iii)    any fees

                                          to be paid by the applicant;

                                 (e)    a statement of the conditions under which the Government may become liable under the guarantee;

                                 (f)    a statement of the conditions under which the guarantee may or shall be terminated;

                                 (g)    a declaration that the applicant will quarterly, or at such shorter intervals as may be specified, provide the President of Treasury Board and Minister of Finance with a report showing details of

                                           (i)    the loan, including the amount or nature of any advances,

                                          (ii)    the performance of the loan from the date it was assumed including the amount and date of any payment, and

                                         (iii)    the extent of the loan on the last day of each month of the period covered by the report;

                                 (h)    verification that notice will be given to the President of Treasury Board and Minister of Finance when the applicant is in default on the loan;

                                  (i)    financial statements by the applicant;

                                  (j)    any other terms or conditions that the Minister may require.

AR 361/86 s3;251/2001;27/2002;68/2008;31/2012;62/2013