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An Act respecting the Guaranteed Securities of the

Pacific Great Eastern Railway Company.

[Assented to 11th December, 1925.]

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THEREAS pursuant to " Pacific Great Eastern Agreements Act," Preamble.

being chapter 34 of the Statutes of 1912, and amending Acts; “ Pacific Great Eastern Incorporation Act,” being chapter 36 of the Statutes of 1912, and amending Acts; and “ Pacific Great Eastern Aid Act, 1914," being chapter 65 of the Statutes of 1914, the Province did lawfully guarantee payment of the principal and interest of debenture stock and bonds (hereinafter called “guaranteed securities ") of the Pacific Great Eastern Railway Company (hereinafter called “the Company ") bearing interest at the rate of four and one-half per cent. per annum and maturing on the fifteenth day of July, 1942, issued under and secured by certain trust deeds, and presently outstanding in the form and amounts, as follows:Mortgage and Deed of Trust, dated 10th July, 1912,

and supplementary Mortgage and Deed of
Trust, dated 1st March, 1913, between Pacific
Great Eastern Railway Company, The Do-
minion Trust Company, Limited (now The
Northern Trusts Company), Trustee, and His
Majesty the King on behalf of the Province of
British Columbia :-

First Mortgage 412 per Cent. Guaranteed
Debenture Stock £2,925,000, which is equivalent
at the rate of $4.8666 to £ Sterling to.................. $14,234,805

First Mortgage 412 per Cent. Guaranteed
Bonds

$ 1,515,195
(which is equivalent at the rate of $4.8666 to £
Sterling to £311,345.14.1)

SECURITIES.

Mortgage and Deed of Trust, dated 30th November,

1914, between Pacific Great Eastern Railway
Company, The Northern Trusts Company, Trus-
tee, and His Majesty the King on behalf of the
Province of British Columbia :-

First Mortgage 412 per Cent. Guaranteed
Bonds

$ 1,050,000 (which is equivalent at the rate of $4.8666 to £

Sterling to £215,756.7.7)
Mortgage and Deed of Trust, dated 30th November,

1914, made between Pacific Great Eastern Rail-
way Company, The Northern Trusts Company,
Trustee, and His Majesty the King on behalf of
the Province of British Columbia :-
412 per Cent. Guaranteed Bonds

$ 3,360,000 (which is equivalent at the rate of $4.8666 to £

Sterling to £690,420.8.4) And whereas all of the above-mentioned guaranteed securities have been lawfully issued and are now outstanding:

And whereas pursuant to “ Pacific Great Eastern Settlement Act," being chapter 66 of the Statutes of 1918, the Province has acquired and holds all the issued shares in the capital of the Company and the Province is liable under its said guarantee to pay the interest on all of the said guaranteed securities and the principal thereof at maturity:

And whereas it is advisable to establish an annual sinking fund to be applied toward such payment of the principal of the said guaranteed securities as the Province may be called upon to make under its said guarantees :

Therefore, His Majesty, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Short title.

1. This Act may be cited as the “ Pacific Great Eastern Securities Act."

Establishment of sinking fund.

2. A sinking fund shall be established in respect of the liability of the Province under its guarantee to pay the principal of the guaranteed securities mentioned in the preamble of this Act, and for such purpose there shall be appropriated annually out of the Consolidated Revenue Fund of British Columbia, commencing with the fiscal year ending thirty-first March, 1927, the sum of three hundred and twenty-five thousand nine hundred and thirty dollars and seventy-five cents.

Application of moneys in sinking fund.

3. The moneys in the said sinking fund shall be applied solely toward meeting any payment of the principal of the said guaranteed

SECURITIES.

securities or any of them which the Province shall be liable for or called upon to make under its said guarantees: Provided that if or to the extent that the Province is not called upon to make payments of principal of the said guaranteed securities under its said guarantees, any moneys remaining in the sinking fund after the said guaranteed securities have been paid off and the said trust deeds released or discharged shall be repaid to the Consolidated Revenue Fund of British Columbia.

4. The moneys from time to time in the said sinking fund shall Investment of be invested and reinvested in the said guaranteed securities: Pro- sinking fund. vided that if and to the extent that the said guaranteed securities cannot be acquired for such purpose at prices satisfactory to the Minister of Finance of British Columbia, the moneys in the sinking fund may be invested and reinvested in securities of or guaranteed by the Province of British Columbia or the Dominion of Canada, or any other Province of Canada, or trustee investments, other than mortgages.

5. Nothing in this Act contained shall affect, detract from, or Saving clause. alter the liability of the Province under its said guarantees.

6. The guaranteed securities mentioned in the first recital in the Declaration of preamble of this Act and the guarantee by the Province of British Columbia of payment of the principal and interest thereof are hereby declared to be legal, valid, and binding upon the said Pacific Great Eastern Railway Company and the Province of British Columbia respectively. The several mortgages and deeds of trust mentioned in the preamble of this Act under which the said guaranteed securities are issued and secured are hereby declared to be legal, valid, and binding upon the several parties thereto, their and each of their successors and assigns.

validity of
securities.

VICTORIA, B.C. :
Printed by CHARLES F. BANFIELD, Printer to the King's Most Excellent Majesty.

1925.

LAND GRANT.

from taxation.

6. (1.) Subject to subsection (2), all lands included in any grant Exemption of lands under this Act shall be exempt for a period of twenty years from the date of the grant from taxation under the provisions of Part II. of the “ Taxation Act” or any provisions substituted therefor.

(2.) The exemption from taxation conferred by subsection (1) shall not apply to lands held under lease at the date of the grant, and shall cease to apply to any lands which are thereafter leased, sold, or otherwise disposed of, or which are held under agreement of sale or which are occupied or used otherwise than by the railway of the Pacific Great Eastern Railway Company. The exemption from taxation conferred by subsection (1) shall not apply to taxation for school purposes within the area of any school district heretofore existing or which may hereafter be established.

and licence fees

7. Where, under the provisions of this Act, public lands held Transfer of rentals under lease, licence, or permit are included in any grant, all rentals with granted lands. and fees thereafter payable in respect thereof shall be payable to the Pacific Great Eastern Railway Company instead of to the Crown.

.

8. All rentals and fees in respect of minerals, precious or base, Transfer of revenue including coal, petroleum, and natural gas, contained in lands from minerals. granted under this Act, which are payable to the Crown under any Act relating to the acquisition of minerals from the Crown, shall, when collected, be paid over to the Pacific Great Eastern Railway Company.

9. The Lieutenant-Governor in Council may enter into such Power to enter into agreements with the Pacific Great Eastern Railway Company as

agreements. he deems advisable for the purpose of carrying out the provisions and intent of this Act, and every agreement so entered into shall be binding on the parties thereto, according to its terms.

River lands.

10. In case any lands now held by the Dominion in the Peace Grants from Peace River District are reconveyed to the Province, they shall be deemed to be public lands of the Province for all purposes of this Act. Any area of such lands included in any reconveyance may, with the approval of the Lieutenant-Governor in Council, be granted to the Pacific Great Eastern Railway Company in substitution for lands within the area mentioned in Schedule B.

Saving clause.

11. Nothing in this Act shall in any way affect:--
(a.) Any royalty payable to the Crown under any Statute now

in force or which may hereafter be enacted:
(6.) Any timber tax or forest-protection tax otherwise payable

to the Crown in respect of timber cut on any ind included

in any grant issued under this Act:
(c.) Any tax imposed under the “Taxation Act" except as
otherwise expressly provided in this Act.

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