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RURAL ELECTRIFICATION LOAN ACT

RURAL ELECTRIFICATION LOAN ACT

Chapter R‑19

Table of Contents

                1       Definitions

Part 1

                2       Maximum amount of loans

                3       Payment out of fund

                4       Application for loan

                5       Requirements before application approved

             6,7       Lien note

                8       Statement to accompany application

                9       Conditions of approval of application

              10       Certificate of approval

              11       When association may apply

              12       Statement

              13       Application

              14       Approval or disapproval of loan

              15       Collection and remission of payments

              16       Payments

              17       Acceleration

              18       Notice to members re payment of instalments

              19       Regulations - patented land on Metis settlements

              20       Notice of lien

              21       Creation of lien

              22       Duration of lien

              23       Cancellation of lien by Court

              24       Enforcement of lien

              25       Procedure in adjudicating claims

              26       Court order to sell

              27       Enforcement of deficiency by writ proceedings


              28       Receiver

              29       Appeal

              30       Computation of refund

              31       Refund

              32       Payment in advance of maturity

              33       Regulations

              34       Priority of construction of works

              35       Supervision of Alberta Utilities Commission

Part 2

              36       Loans

              37       Recommendation to make loan

              38       Advancing of loan

              39       Security

              40       Repayment

              41       Rules and regulations

              42       Review of loans by Legislative Assembly

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Definitions

1   In this Act,

                                 (a)    “association” means an association under the Rural Utilities Act that has as a principal object the supplying of electricity to its members;

                                 (b)    “Director” means the Director of Rural Electrification Associations under the Rural Utilities Act;

                                 (c)    “electricity” means electric power, energy or current;

                                 (d)    “member” means a member of an association;

                             (d.1)    “Minister” means the Minister determined under section 16 of the Government Organization Act as the Minister responsible for this Act;

                                 (e)    “note” means a lien note of a member referred to in section 6 or of a person referred to in section 7, as the case may be;

                                 (f)    “person” includes a partnership;

                                 (g)    “power company” means the electric power company with which an association or a person has an agreement to supply the association or person with electric power;

                                 (h)    “prescribed” means prescribed by regulations made pursuant to this Act;

                                  (i)    “works” means the poles, lines, conduits and structures for the distribution, transmission, carrying, measuring, supplying or conveying of electricity.

RSA 2000 cR‑19 s1;2006 c23 s70

Part 1

Maximum amount of loans

2   The aggregate amount of principal outstanding in loans made under this Act and the Rural Electrification Long‑term Financing Act at any time shall not be more than $75 000 000.

RSA 1980 cR‑18 s2;1983 c48 s2;1986 c30 s2;1994 c31 s10

Payment out of fund

3   Subject to this Act, payments may be made out of the General Revenue Fund by way of loans to associations or persons.

RSA 1980 cR‑18 s3;1984 c37 s3;1994 c31 s10

Application for loan

4(1)  Subject to sections 8 to 11, an association may apply for one or more loans under this Act.

(2)  Subject to sections 12 and 13, a person may apply for one or more loans under this Act.

(3)  A loan shall be for a period of 10 years or any lesser period desired by the applicant and approved by the Director.

(4)  A loan shall bear interest, payable annually,

                                 (a)    subject to clause (b)(ii), at the rate of 3 1/2% per year if the loan was approved under section 14(1) before July 1, 1991, and

                                 (b)    at the rate per year as provided for in the regulations

                                           (i)    if the loan was approved under section 14(1) on or after July 1, 1991, or

                                          (ii)    if the land respecting which there is a lien note covering the loan is sold on or after July 1, 1991.

(5)  Notwithstanding subsection (4)(b)(ii), if the land is sold by its owner to that owner’s son or daughter and the loan was approved before July 1, 1991, the interest rate remains payable at the rate of 3 1/2% per year.

(6)  A loan shall be repaid by annual payments sufficient to pay off the full amount of the principal within 10 years or the lesser period decided on by the applicant and the Director.

(7)  On an equitable adjustment of interest being made and subject to the approval of the Director, a loan may be repaid in full at any time.

RSA 1980 cR‑18 s5;1984 c37 s3;1991 c31 s3;1994 c23 s41

Requirements before application approved

5(1)  No application by an association for a loan shall be approved by the Director unless the association complies with and meets all the requirements of sections 8 to 11.

(2)  No application by a person for a loan shall be approved by the Director unless the person complies with and meets all the requirements of sections 12 and 13.

RSA 1980 cR‑18 s6;1984 c37 s3

Lien note

6(1)  The association shall obtain from those members who have not fully paid their share of the cost of constructing the works required by the association a lien note in duplicate in the prescribed form

                                 (a)    payable to the order of the association,

                                 (b)    in the amount that remains unpaid by the member to the association,

                                 (c)    bearing interest at the same rate as that payable by the association under section 4(4) and (5),

                                 (d)    setting out

                                           (i)    the date from which interest is to be computed,

                                          (ii)    the number and amount of the equal annual instalments of principal by which payment of the note is to be made, and

                                         (iii)    the date when each instalment of principal, and the accrued interest on the unpaid principal, is to be paid,

                                     and

                                 (e)    describing either

                                           (i)    the land to which the electricity is to be conveyed, or

                                          (ii)    any land in which the maker of the lien note has an interest, whether or not electricity is to be conveyed to that land,

                                          whichever the Director prescribes.

(2)  When land against which the association has a lien pursuant to section 21 is sold, the association shall refuse to supply electricity to the purchaser of the land until the purchaser becomes a member of the association and executes a lien note.

(3)  A lien note may be executed under subsection (2) only if, at the time the land is sold, the payments due under the existing note are not in arrears.

(4)  When the person to whom the electricity is to be conveyed is not the registered owner of the land to which the electricity is to be conveyed, the association may take a lien note made or co‑signed by the registered owner of the land.

(5)  The lien note shall be made and signed in the presence of an officer of the association obtaining it, and shall be certified by the officer.

(6)  The lien note shall affect the interest of the member in the surface rights of the land.

(7)  When all money payable under the lien note has been paid, the Director shall cancel the note.

RSA 1980 cR‑18 s7;1991 c31 s4

Lien note

7(1)  The Director shall obtain from a person who applies for a loan a lien note in duplicate in the prescribed form

                                 (a)    payable to the order of the Crown in right of Alberta,

                                 (b)    in the amount of the loan applied for,

                                 (c)    bearing interest at the same rate as that payable by the person under section 4(4) and (5),

                                 (d)    setting out

                                           (i)    the date from which interest is to be computed,

                                          (ii)    the number and amount of the equal annual instalments of principal by which payment of the note is to be made, and

                                         (iii)    the date when each instalment of principal, and the accrued interest on the unpaid principal, is to be paid,

                                     and

                                 (e)    describing either

                                           (i)    the land to which the electricity is to be conveyed, or

                                          (ii)    any land in which the person has an interest, whether or not electricity is to be conveyed to that land,

                                          whichever the Director prescribes.

(2)  When land against which the person has a lien pursuant to section 21 is sold,

                                 (a)    a new lien note may be executed by the purchaser of the land if, at the time the land is sold, the payments due under the existing lien note are not in arrears, and

                                 (b)    the Director may direct the power company to refuse to supply electric power to the purchaser of the land until the purchaser executes the lien note.

(3)  When the person applying for the loan is not the registered owner of the land to which the electricity is to be conveyed, the Director may take a lien note made or co‑signed by the registered owner of the land.

(4)  The lien note affects only the interest of the person signing it in the surface rights of the land.

(5)  When all money payable under the lien note has been paid, the Director shall cancel the note.

1984 c37 s3;1991 c31 s5

Statement to accompany application

8   Before applying to the Director for a loan, the association shall furnish the Director with a statement of

                                 (a)    the total estimated cost of constructing the works required,

                                 (b)    the proposed route of the distribution lines,

                                 (c)    the area to be served by its works, and

                                 (d)    the number of farmers in the area to be served

                                           (i)    who are willing to accept service, and

                                          (ii)    who are not willing to accept service

                                          from the works of the association.

RSA 1980 cR‑18 s8

Conditions of approval of application

9   If, after receiving the statement referred to in section 8 from an association, the Director considers

                                 (a)    that the proposed works of the association are not in the best interest of the majority of the inhabitants in the area to be served by the works,

                                 (b)    that the association does not contain sufficient members in all the circumstances of the case,

                                 (c)    that the proposed works of the association, in the opinion of the Director, are uneconomical or incapable of reasonable expansion or not properly planned, or

                                 (d)    that any other act, matter or thing with respect to the membership, association, or works of the association should first be done or made,

the Director may require the association to do any act or execute any agreement or instrument within the powers of the association before applying for a loan.

RSA 1980 cR‑18 s9

Certificate of approval

10   If the Director is satisfied

                                 (a)    that the application with respect to the works and membership of the association is in order,

                                 (b)    that the association and its proposed works are in the public interest, and

                                 (c)    that the proposed plan is economically feasible,

the Director shall permit the association to apply for a loan.

RSA 1980 cR‑18 s10

When association may apply

11(1)  When an association

                                 (a)    has entered into an agreement with an electric power company whereby the power company has agreed to supply the association and its members, or an extension of the association and its members, with electricity,

                                 (b)    has determined the cost of constructing the works required to supply each member of the association with electricity, and

                                 (c)    has received from each member at least $100 to meet the cost of constructing the works required to supply the member with electricity,

it may apply in the prescribed form to the Director for a loan under this Act.

(2)  With its application, the association shall furnish the Director with

                                 (a)    a statement of the total estimated cost of constructing the works required,

                                 (b)    a statement of the total amount of the money received from its members and the disposition, if any, made of the money,

                                 (c)    a statement of the membership of the association and the amount that each member has paid to the association,

                                 (d)    a statement of the amount that each member is required to pay to the association to meet the cost of constructing the works required to supply the member with electricity and the period within which the payment is to be made, and

                                 (e)    a copy of each lien note taken from the members who have not paid cash in full.

RSA 1980 cR‑18 s11

Statement

12(1)  Before applying to the Director for a loan, a person shall furnish the Director with a statement of

                                 (a)    the total estimated cost of providing the person with electricity, and

                                 (b)    the proposed route of the distribution lines.

(2)  If, after receiving the statement referred to in subsection (1) from a person, the Director considers that

                                 (a)    the proposed works, in the opinion of the Director, are uneconomical or not properly planned, or

                                 (b)    any other act, matter or thing with respect to the person or the works should first be done or made,

the Director may require the person to do any act or execute any agreement or instrument within the powers of the person before applying for a loan.

(3)  If the Director is satisfied that

                                 (a)    the application by a person is in order, and

                                 (b)    the proposed plan is economically feasible,

the Director shall permit the person to apply for a loan.

1984 c37 s3

Application

13(1)  When a person has

                                 (a)    entered into an agreement with an electric power company whereby the power company has agreed to provide the person with electricity,

                                 (b)    determined the cost of providing the person with electricity, and

                                 (c)    paid not less than $100 to the power company,

the person may apply to the Director for a loan under this Act.

(2)  With the application, the person shall furnish the Director with a statement of the total estimated cost of providing the person with electricity.

1984 c37 s3

Approval or disapproval of loan

14(1)  The Director in the Director’s discretion may either approve or disapprove the loan.

(2)  If the Director approves the loan, the Director shall enter into an agreement with the association or the person, as the case may be, in respect of the loan.

(3)  The agreement shall provide

                                 (a)    for the amount of the loan and the events or times on which advances of the loan are to be made,

                                 (b)    for the amounts and periods of repayment,

                                 (c)    if the applicant is an association, for the duties of the association with respect to the collection from the members of instalments of the principal, and of the accrued interest on the unpaid principal, and

                                 (d)    for any other matters or things the Director considers advisable.

(4)  When the agreement has been executed, the Director shall notify the Minister and the President of Treasury Board and Minister of Finance.

(5)  On receipt of the notice referred to in subsection (4),

                                 (a)    the Minister shall advance from the General Revenue Fund the amount of the loan to the Director who shall advance the amount to the association or the person in accordance with the terms of the loan, and

                                 (b)    the Minister has, on advancing the amount of the loan, a first charge on all the works of the association constructed and paid for wholly or in part out of the money loaned to the association.

(6)  If default is made by the association in any of its payments under the agreement referred to in subsection (2), the Minister is subrogated to the rights of the association in respect of lien notes of the members held by the association, and may enforce payment of the lien notes in the same manner and to the same extent as the association could enforce payment.

RSA 2000 cR‑19 s14;2006 c23 s70;2013 c10 s32

Collection and remission of payments

15(1)  The association shall collect from its members the amount of their annual payments and remit the money to the Director at the times set out in the agreement referred to in section 14, and the Director shall pay the money to the Minister for deposit in the General Revenue Fund.

(2)  If default is made by a member in the due payment of instalments of the principal, or accrued interest on the unpaid principal, in respect of a lien note made by the member, all money payable by the member under the member’s lien note becomes due and payable.

(3)  If a member defaults under subsection (2), the association shall instruct the power company to discontinue electric service to the member in question, and in its discretion may at any time take whatever action is necessary to enforce payment of the lien note.

(4)  Notwithstanding subsections (2) and (3), if a member who is in default of payment of instalments of the principal or of payments of accrued interest on unpaid principal in respect of a lien note later pays the arrears of accrued interest on the unpaid principal and of instalments on the principal, the association in its discretion

                                 (a)    may cancel its instructions to the power company and the power company may afterwards resume electric service to the member on payment of reconnection fees and other charges that are required of the member, and

                                 (b)    may reinstate the lien note of the member and afterwards the member shall pay the instalments of the principal, and of the accrued interest on the unpaid principal in accordance with the terms of the member’s lien note.

RSA 2000 cR‑19 s15;2006 c23 s70

Payments

16(1)  A person who receives a loan under this Part shall remit the annual payments to the Director at the times set out in the agreement referred to in section 14, and the Director shall pay the money to the Minister for deposit in the General Revenue Fund.

(2)  If default is made by a person in the due payment of instalments of the principal, or accrued interest on the unpaid principal, in respect  of a lien note made by the person, all money payable by that person under the person’s lien note becomes due and payable.

(3)  In the event of a default referred to in subsection (2), the Director shall instruct the power company to discontinue the supply of electric power to the person in default and shall take whatever action is necessary to enforce payment of the lien note.

(4)  The power company shall comply with an instruction given under subsection (3).

(5)  Notwithstanding subsection (2), if a person who is in default of payment of instalments of the principal, or accrued interest on the unpaid principal, in respect of a lien note later pays the arrears of accrued interest on the unpaid principal and of instalments on the principal, the Director in the Director’s discretion may reinstate the lien note and afterwards the person shall pay the instalments of the principal and the accrued interest on the unpaid principal in accordance with the terms of the lien note.

RSA 2000 cR‑19 s16;2006 c23 s70

Acceleration

17   Notwithstanding section 16, if the Director advances money to a person under section 14 and that money is not used to provide that person with electricity in accordance with the agreement referred to in section 14 within one year of the date on which the money was advanced, or any longer period to which the Director consents, all money payable by that person under the lien note becomes due and payable.

1984 c37 s3

Notice to members re payment of instalments

18   After the agreement referred to in section 14 has been executed, the association shall advise those members who have made lien notes that payments of instalments of principal, and payments of accrued interest on the unpaid principal, are to be made to the association on the due dates of them.

RSA 1980 cR‑18 s14

Regulations - patented land on Metis settlements

19(1)  The Lieutenant Governor in Council may make regulations respecting

                                 (a)    liens and lien notes that affect an interest in patented land as defined in the Metis Settlements Act, and

                                 (b)    the enforcement of those liens and lien notes.

(2)  The provisions of this Act relating to liens and lien notes and their enforcement are subject to the regulations made under this section.

1998 c22 s38

Notice of lien

20(1)  Within 60 days after a loan is approved by the Director, the Director shall file a notice of lien in the prescribed form against the land described in the lien note in the appropriate land titles office.

(2)  Where, as a result of a change in circumstances, it becomes necessary to have a new notice of lien on other land owned by the borrower or in which the borrower has a registered interest, the Director may file the new notice of lien against that other land in the appropriate land titles office and may give notice in the prescribed form withdrawing the original notice of lien.

(3)  The Registrar of Land Titles shall, without fee, endorse a memorandum in the prescribed form on the title to the land described in the notice of lien referred to in subsection (1) or (2).

(4)  On receiving notice in writing in the prescribed form from the Director that a lien note in respect of which a memorandum has been endorsed against the title of any land has been discharged or on receiving the notice referred to in subsection (2), the Registrar of Land Titles shall, without fee, cancel the memorandum on the title to the land.

(5)  A lien may be postponed at the discretion of the Director in accordance with section 107(1) of the Land Titles Act.

(6)  Notwithstanding that a lien note has been cancelled and notwithstanding any other Act, a lien created pursuant to this Act in respect of land or an interest in land continues to be a lien against that land or interest until the total indebtedness, including interest, in respect of which the lien was registered has been repaid in full.

(7)  Notwithstanding the Limitations Act, a lien created pursuant to this Act remains enforceable until

                                 (a)    the total indebtedness, including interest, owing on the current lien note has been repaid in full, or

                                 (b)    a settlement is concluded between the debtor and the lienholder.

RSA 1980 cR‑18 s15;1984 c37 s3;1991 c31 s7;1999 c32 s11

Creation of lien

21(1)  On a notice of lien being filed in the appropriate land titles office,

                                 (a)    if the agreement referred to in section 14 is with an association, the association has a lien on the land described in the notice of lien or on the interest of the maker of the lien note in the land described in the notice of lien for the total indebtedness, including interest, in respect of which the notice of lien is registered, or

                                 (b)    if the agreement referred to in section 14 is with a person, the Crown in right of Alberta has a lien on the land described in the notice of lien or on the interest of the maker of the lien note in the land described in the notice of lien for the total indebtedness, including interest, in respect of which the notice of lien is registered.

(2)  Where there is a notice of lien registered in the appropriate land titles office, the Registrar of Land Titles shall maintain the registration of the notice of lien in respect of the land until the notice of lien has been cancelled, notwithstanding

                                 (a)    any voluntary or involuntary change in ownership of the land that occurs after the commencement of this section,

                                 (b)    that the notice of lien may have been registered after any mortgage or encumbrance giving rise to an involuntary change in ownership,

                                 (c)    that the notice of lien and any such mortgage or encumbrance may have been registered before the commencement of this subsection, and

                                 (d)    section 48 of the Law of Property Act and any other law.

(3)  Subsection (2) does not apply to the extent that a lien is postponed under section 20(5) to a mortgage or encumbrance.

(4)  Land in respect of which notice of lien has been filed is, for the purposes of this Act, deemed not to be a homestead within the meaning of the Dower Act.

RSA 1980 cR‑18 s16;1984 c37 s3;1991 c31 s8

Duration of lien

22   A lien filed under this Act is not merged, waived, satisfied, prejudiced or destroyed by the pursuit of any proceedings for the recovery of personal judgment unless and until payment in full is received.

RSA 1980 cR‑18 s17

Cancellation of lien by Court

23(1)  The Court of Queen’s Bench may, on application,

                                 (a)    order that the registration of a lien be cancelled on the giving of security for or the payment into Court of the amount of the claim and any costs that the Court may fix, or

                                 (b)    order that the registration of a lien be cancelled on any proper ground.

(2)  Money paid into Court replaces the land discharged and is subject to the claim for lien to the same extent as if the money had been realized by a sale of the land in an action to enforce the lien.

RSA 2000 cR‑19 s23;2009 c53 s164

Enforcement of lien

24(1)  Proceedings to enforce a lien may be commenced in the Court of Queen’s Bench either by a statement of claim or by application.

(2)  The statement of claim or application shall be served on all persons who by the records of the land titles office appear to have an interest in the land in question and on any other persons the Court may direct.

RSA 2000 cR‑19 s24;2009 c53 s164

Procedure in adjudicating claims

25(1)  The procedure in adjudicating on the claims must be of a summary character, so far as is possible, having regard to the amount of the lien in question and the enforcement of it at the least expense.

(2)  The Court shall decide all questions that are necessary to be tried in order to dispose completely of the action and to adjust the rights and liabilities of the parties concerned.

(3)  If the Crown or an association fails to establish a valid lien, the Crown or the association, as the case may be, may nevertheless recover a personal judgment against a party to the proceedings for any sum that is due to the Crown or the association and that the Crown or the association may recover in an action against that party.

RSA 1980 cR‑18 s20;1984 c37 s3

Court order to sell

26(1)  The Court may in its judgment order that the estate or interest in land that is charged with a lien be sold.

(2)  When a judgment orders a sale, the Court

                                 (a)    may direct that the sale take place at any time after the judgment, allowing a reasonable time for advertising the sale, and

                                 (b)    may make all necessary orders for the completion of the sale and the vesting of the estate or interest in the purchaser.

(3)  The Court may also direct the sale and removal of any works.

RSA 1980 cR‑18 s21

Enforcement of deficiency by writ proceedings

27   If sufficient money to satisfy the judgment and costs is not realized from the sale, the Court shall certify

                                 (a)    the amount of the deficiency,

                                 (b)    the name of the association or person, if any, entitled to recover the deficiency, and

                                 (c)    the persons by the judgment adjudged to pay the deficiency

and, if the lienholder is an association, the association may or, if the lienholder is the Crown, the Director may enforce payment by writ proceedings under the Civil Enforcement Act.

RSA 1980 cR‑18 s22;1984 c37 s3;1991 c31 s9;1994 cC‑10.5 s167;
1997 c18 s27

Receiver

28(1)  The Court may, on application of a judgment creditor made at any time before the sale of the property, appoint a receiver to take charge of the property and to rent or operate it on any terms and conditions the receiver thinks fit.

(2)  The proceeds received by a receiver appointed under subsection (1) shall, after deduction of all rates, taxes, insurance or other expense necessary for the maintenance of the property including the costs of management, be applied in any manner that may be directed by the Court.

RSA 1980 cR‑18 s23

Appeal

29(1)  An appeal lies to the Court of Appeal from the decision of the Court of Queen’s Bench in all matters where the amount of the lien is $200 or more.

(2)  If the amount of the lien is less than $200, the decision of the court of first instance is final.

RSA 1980 cR‑18 s24

Computation of refund

30(1)  If the estimated cost of constructing the works of the association exceeds the actual cost and the power company constructing the works makes a refund to the association, the association shall, after making any provision that the association considers fit for its deposit reserve, compute the amount of refund remaining and the amount of it that is due to each member.

(2)  When a lien note of a member is held by the association, that member’s share of the refund shall be credited as a payment on the total outstanding balance of the amount owing by the member to the association.

(3)  When no lien note is held by the association in respect of a member, the member’s share of the refund shall be paid to the member in cash.

(4)  Any sums credited to the instalments of members pursuant to subsection (2) shall be remitted to the Director by the association irrespective of the dates, specified in the agreement referred to in section 14, for remittance by the association to the Director.

RSA 1980 cR‑18 s25

Refund

31   If the estimated cost of providing a person with electricity exceeds the actual cost,

                                 (a)    any refund payable by the power company shall be applied in repayment of any loan made to the person under this Part or Part 2,

                                 (b)    the power company shall pay the refund to the Director as a debt due to the Crown in right of Alberta to the extent that any amount should be applied under clause (a),

                                 (c)    the Director shall credit the payment received from the power company as payment on the total outstanding balance of the amount loaned to the person under this Part or Part 2, and

                                 (d)    the power company shall pay the balance of the refund, if any, to the person.

1984 c37 s3

Payment in advance of maturity

32(1)  A member may at any time with the approval of the association or the Director and on an adjustment of interest that is equitable pay a lien note in full in advance of payment of all unpaid instalments of principal.

(2)  A person may at any time with the approval of the Director and on an adjustment of interest that is equitable pay a lien note in full in advance of payment of all unpaid instalments of principal.

(3)  The sums received by the association from any member who pays a lien note in full in advance of all instalments of principal shall be remitted forthwith to the Director irrespective of the dates for remittance specified in the agreement referred to in section 14.

(4)  On receipt of any sums pursuant to subsection (3), the Director and the association shall vary the amounts payable under the agreement in order to compensate for the change in the interest payable annually by the association arising out of the depletion of the principal of the loan by a member’s payment of a lien note in full.

RSA 1980 cR‑18 s26;1984 c37 s3

Regulations

33   Subject to this Act, the Lieutenant Governor in Council may, by regulation,

                                 (a)    prescribe forms to be used under this Act;

                                 (b)    provide for the assignment, compromise, release or discharge of any security given for a loan;

                                 (c)    prescribe or provide for the setting of the interest rate referred to in section 4(4)(b);

                                 (d)    make provision for any other matters concerning which regulations are considered necessary or advisable to carry out the purpose and intention of this Act.

RSA 1980 cR‑18 s27;1991 c31 s10;1994 c23 s41

Priority of construction of works

34   When an electric power company has entered into an agreement with 2 or more associations that have made applications for and received loans under this Act whereby the electric power company has agreed to construct, maintain, repair or administer works to supply electricity to the associations and their members, the Alberta Utilities Commission may direct the company to proceed with the construction of the works of the associations in the order that to it seems advisable in the public interest.

RSA 2000 cR‑19 s34;2012 cR‑17.3 s105

Supervision of Alberta Utilities Commission

35   Nothing in this Act shall be construed to restrict any power of the Alberta Utilities Commission to fix rates and otherwise supervise the operation of electric power companies in Alberta.

RSA 2000 cR‑19 s35;2007 cA‑37.2 s82(26)

Part 2

Loans

36(1)  Notwithstanding Part 1, loans not bearing interest may be made to associations or persons in accordance with the requirements of this Part.

(2)  Loans authorized under this section shall not be in substitution for loans under Part 1 or under the Rural Electrification Long‑term Financing Act, as the case may be.

RSA 1980 cR‑18 s30;1984 c37 s3;1987 c33 s2;1994 c31 s10

Recommendation to make loan

37   When, in the opinion of the Director, a loan if made to an association or a person would materially assist

                                 (a)    in extending works by the association or to the person, or

                                 (b)    in replacing or increasing the capacity of the works of the association,

the Director may recommend that a loan be made under this Part to that association or person, as the case may be.

RSA 1980 cR‑18 s31;1984 c37 s3;1987 c33 s3

Advancing of loan

38(1)  If

                                 (a)    the Director recommends that a loan be made under this Part

                                           (i)    to an association or a person for the purpose of extending works, and the loan is to exceed $15 000, or

                                          (ii)    to an association for the purpose of replacing or increasing the capacity of its works, and the loan is to exceed 30% of the expenditure to be made,

                                     and

                                 (b)    the Lieutenant Governor in Council is satisfied that

                                           (i)    the loan would materially assist the association or person, as the case may be, in carrying out a purpose referred to in clause (a), and

                                          (ii)    the making of the loan is in the public interest,

the Lieutenant Governor in Council may direct the Minister to advance the amount of a loan from the General Revenue Fund on the terms and conditions, if any, prescribed by regulation.

(2)  If

                                 (a)    the Director recommends that a loan be made under this Part

                                           (i)    to an association or a person for the purpose of extending works, and the loan is not to exceed $15 000, or

                                          (ii)    to an association for the purpose of replacing or increasing the capacity of its works, and the loan is not to exceed 30% of the expenditure to be made,

                                     and

                                 (b)    the Minister is satisfied that

                                           (i)    the loan would materially assist the association or person, as the case may be, in carrying out a purpose referred to in clause (a), and

                                          (ii)    the making of the loan is in the public interest,

the Minister may advance the amount of a loan from the General Revenue Fund on the terms and conditions, if any, prescribed by regulation.

RSA 2000 cR‑19 s38;2006 c23 s70

Security

39   When a loan is made under this Part to an association, the loan creates a charge on the works of the association to the extent of the amount of the loan at any time outstanding, notwithstanding any other security that may be given to secure the loan.

RSA 1980 cR‑18 s32;1987 c33 s4

Repayment

40   If a loan is made to a person under this Part and the money advanced is not used to provide that person with electricity in accordance with the terms and conditions prescribed within one year of the date on which the money was advanced, or any longer period to which the Director consents, the money advanced becomes due and payable to the Crown in right of Alberta.

1984 c37 s3;1987 c33 s5

Rules and regulations

41   The Lieutenant Governor in Council may make regulations

                                 (a)    prescribing forms for use under this Part;

                                 (b)    setting out the terms and conditions applying to loans;

                                 (c)    limiting the amounts or fixing the amounts of loans to associations generally or particularly;

                                 (d)    prescribing the duration of loans;

                                 (e)    prescribing any additional or collateral security considered advisable;

                                 (f)    governing any other matters or things necessary to carry out the intent of this Part.

RSA 1980 cR‑18 s33;1987 c33 s6

Review of loans by Legislative Assembly

42   At least every 5th calendar year, if during that period sections 3 and 36 have not been repealed and a Government Bill has not been introduced into the Legislative Assembly that, if passed, would have the effect of repealing those enactments, the Minister shall ensure that a member of the Executive Council introduces into the Legislative Assembly a motion that would have the effect of facilitating a debate in the Assembly on the question of whether the enactments should be repealed.

1996 c10 s10