1924

CHAPTER 4.

An Act to Establish a Farm Loan Board.

(Assented to April 12, 1924.)

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

SHORT TITLE.

1. This Act may be cited as "The Alberta Farm Loan Short title Act, 1924."

INTERPRETATION.

2. In this Act, unless the context otherwise requires,- Interpreta(a) "Minister" shall mean the Provincial Treasurer.

"Minister"

ALBERTA FARM LOAN BOARD.

of Board

3.-(1) There is hereby constituted a board to be known Constitution as "The Alberta Farm Loan Board," whose members shall be known as directors.

(2) The Board shall be a body corporate.

(3) The Board shall consist of a chairman and two other directors who shall be appointed by the Lieutenant Governor in Council, and shall receive such remuneration, emoluments or expenses and perform such duties as may be determined by the Lieutenant Governor in Council.

acting

4.-(1) The Lieutenant Governor in Council may, from Chairman, time to time, appoint any member of the Board acting chairman chairman.

(2) In case of absence from duty of the chairman, the acting chairman for the time being shall have and may exercise the powers, functions and duties of the chairman.

attestation

5. All transfer, assignments, discharges, deeds and other Seal instruments of whatever nature and kind shall be deemed to be duly executed by and on behalf of the Board if its corporate seal is affixed thereto and if they are attested by the signature of the chairman, or acting chairman, and the counter-signature of one member.

Employments forbidden to member of

board

Working capital

Appropriation for organization

Books, etc.

Audit

Auditor's report

Statement

of accounts

6. No member of the Board shall, during his continuance in office, be an officer or director of any other institution, association or partnership engaged in banking or in the business of making land mortgage loans or selling land mortgages.

7. The working capital of the Board shall be such moneys as may be raised from time to time by the issue of bonds under this Act, and such other moneys as may be appropriated from time to time for the purposes of the board by the Legislative Assembly, and such moneys as may otherwise become available from time to time under the operation of this or any other Act of the Province, or the Dominion.

8. The sum of ten thousand dollars is hereby appropriated for the purposes of this section and the Lieutenant Governor in Council may advance to the Board from the general revenue fund of the Province, the said sum to apply on the expenses incurred in the organization of the Board and the putting into effect of this Act.

9. The Board shall keep or cause to be kept in its office such proper books and records relating to the Board as will fully exhibit at all times its transactions and affairs.

10. It shall be the duty of the Provincial Auditor, or some other competent person duly authorized by him, to investigate and audit all books and accounts kept by the Board, and to verify the correctness of all bank accounts kept by the Board and the existence of all mortgage securities for loans made by the Board, and for the purposes aforesaid, the Provincial Auditor, or any one acting by his authority, in respect to every such audit and investigation shall have all the powers conferred upon him by The Treasury Department Act.

11. It shall be the duty of the Provincial Auditor or other person aforesaid, to prepare and transmit without delay to the Provincial Treasurer a true report of the result of each such audit and investigation made by him, together with such statements as will fully show the then precise financial condition of the Board.

12. (1) The financial year of the Board shall end on the thirty-first day of December in each year, and as soon as possible thereafter the Board shall furnish to the Provincial Treasurer, certified by the Provincial Auditor, a statement of accounts showing

(a) the assets and liabilities of the Board as of the thirty-first day of December, preceding;

(b) the profit and loss account for the preceding calendar year, together with a statement under a convenient heading of the receipt and expenditures during the same period; and

(c) the precise standing and condition on the said date of all accounts of the Board.

(2) Such statement as aforesaid shall be laid on the table of the Legislative Assembly within fifteen days after its receipt by the Provincial Treasurer, or if the Legislative Assembly is not then in session, then within fifteen days from the commencement of the next ensuing session thereof.

FARM LOAN BONDS.

farm loan

13.-(1) The Lieutenant Governor in Council may Alberta authorize and empower the Board from time to time to bonds make, execute, issue and deliver for and in the name of the Board, bonds to be known as "Alberta Farm Loan Bonds" for the purpose of raising such sum or sums as may be required for the purposes of this Act.

(2) The bonds shall be signed for and on behalf of the Board by the chairman or acting chairman, and countersigned by a member of the Board and the corporate seal of the Board shall be affixed thereto.

(3) Interest coupons attached to the bonds shall be sufficiently executed by the lithographed signature of the chairman or acting chairman only.

bond

14. The kind of bond to be guaranteed and the form, Terms of amounts and other terms thereof, and the form and terms of the deed or deeds of trust by way of mortgage, securing them, if any, and the times and manner of the issue of the bonds, and the disposition of the money to be raised thereon by sale, pledge or otherwise, pending the expenditure of such moneys for the purposes of the Board, and the form and manner of the guarantee or guarantees from time to guarantee time, or at any time given in respect thereof, shall be such as the Lieutenant Governor in Council may approve.

Terms of

15. (1) The bonds shall be unconditionally guaranteed Provincial by the Crown in the right of the Province of Alberta.

(2) The guarantee in such case shall be signed by the Provincial Treasurer, or such other person as may be designated by the Lieutenant Governor in Council, and upon being so signed the Province of Alberta shall become liable for the payment of the principal and interest of the bonds guaranteed, according to the tenor thereof, and the Lieutenant Governor in Council is hereby authorized to make arrangements for supplying the money necessary to fulfil the requirements of the said guarantee and to advance the

guarantee

Form of guarantee

Charge of bonds upon assets

Collateral security

Hypothecation of bonds

Additional bonds

Supplementary deeds of trust

amount necessary for that purpose out of the general revenue of the Province, and in the hands of any purchaser, pledgee or other person acquiring any of such bonds, the said guarantee or guarantees so signed shall be conclusive evidence that the requirements of this Act, with respect to guaranteed bonds and the deed of trust and all matters relating thereto, have been complied with.

(3) Such guarantee may be in the following form, to be printed on some appropriate place on each of the said bonds: "By virtue of the powers conferred by the Legislative Assembly of the Province of Alberta, Canada, and of an Order of the Lieutenant Governor in Council, the Province of Alberta does hereby guarantee payment of the principal and interest thereof according to its tenor.

Provincial Treasurer."

16. The collective amount of bonds issued pursuant to this Act, together with the interest coupons attached thereto, shall be a first charge upon all the assets and revenue of every nature and kind of the Board.

17. For the purposes of this Act, the Board may, by deed or deeds of trust, as hereinafter described, assign, transfer to and deposit with the Provincial Auditor in trust, or with any such other trustee as the Lieutenant Governor in Council may designate, as collateral security for the bonds issued pursuant to this Act, the mortgages, bonds and other property and assets held by the Board.

18. Pending the sale of its permanent bonds, the Board may borrow such sum or sums of money and on such terms as may be authorized by the Lieutenant Governor in Council, and as security therefor may pledge and hypothecate such bonds through a trustee or otherwise.

19. (1) Subject to the provisions herein contained, the deed or deeds of trust (hereinafter called "the original instruments") securing the bonds issued pursuant to this Act, may provide for the issue from time to time, and ranking pari passu with the said bonds and without preference or priority one over the other, of additional bonds of similar kind, tenor and effect.

(2) Supplementary deeds of trust (hereinafter called "supplementary instruments"), in form approved by the Lieutenant Governor in Council, shall from time to time be taken to the trustees for the time being of the original instruments, and such additional bonds shall be issued under the terms of the original instruments and supplementary instruments, which, together with the mortgaged premises shall form the security for all the bonds.

of board's

20.-(1) Any payment by the Province of principal or Preservative interest on the said bonds, pursuant to the guarantee there- liability of, shall not in any event be taken to affect the liability of the Board therefor under the bonds so paid or under the deed or deeds of trust securing the payment thereof, but such liability shall remain unimpaired and enforceable by the Province against the Board.

of Province

(2) The Province shall be subrogated as against the Subrogation Board to all rights, privileges and powers to which the holders of the respective bonds so paid were entitled by virtue of such bonds, or of the said deed or deeds of trust prior to payment by the Province under its guarantee, and shall with respect to the bonds so paid, be in the same position as a holder of bonds upon which the Board has made default.

21. (1) All bonds issued by the Board under the au- Custody of thority of this Act shall, until sold and disposed of, be de- unsold bonds posited with and remain in the custody of the Provincial Treasurer, who may sell and dispose of the same or any part thereof, either within or without the Province, and at such price and in such manner as he may deem expedient.

sale

(2) The Provincial Treasurer may appoint agents to Agents for negotiate such sale on such terms and conditions as he may see fit, and he may fix the rate of commission to be paid such agents and any other expenses incidental to such sales.

22.-All bonds issued under the provisions of this Act shall, notwithstanding any provision or lack of provision in any Act or Ordinance, be a lawful investment for all Provincial, municipal and school district sinking funds, and for all fiduciary and trust funds created under any private Act, or otherwise.

Investment

FARM LOANS.

money upon

23. (1) The Board may lend money secured by duly Loan of registered first mortgages on farm lands in the Province mortgage of Alberta free from all prior liens and encumbrances.

(2) Every such mortgage shall be for a period of thirty years or thereabouts, and shall contain a covenant on the part of the Farm Loan Association as hereinafter provided, and the mortgagor providing for the payment of thirty annual equal instalments, or thereabouts, sufficient to pay the interest as herein provided and such amounts for application on the principal, as will extinguish the debt within the agreed period of thirty years, or thereabouts, and subject to the provisions of The Land Titles Act, shall be in such form and shall contain such other terms and conditions as to insurance and any other matter whatsoever as may be prescribed from time to time by the Board;