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This enactment simplifies the provisions of the Blue Water Bridge
Authority Act respecting the borrowing powers of the Blue Water Bridge
Authority and places a monetary limit on them. Borrowing transactions
will require the approval of the Ministers of Transport and Finance.
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Clause 1: Subsection 7(3) reads as follows:
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(3) For greater certainty, it is hereby declared that section 30 of the
Interpretation Act applies to the Bridge Authority.
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Clause 2: Section 13 and the heading before it read as
follows:
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13. (1) Subject to the approval of the Governor in Council or such
other authority in Canada as the Governor in Council may designate and
such authority in the United States as the appropriate authority in the
United States prescribes, the Bridge Authority may issue bonds in
Canada or the United States for the purpose of obtaining funds with
which to perform any of its functions, including refunding, under this
Act.
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(2) If the proceeds from any issue of bonds exceeds the cost, as
finally determined, of carrying out the purposes for which any bonds
were issued, the excess of proceeds over such cost shall be added to the
sinking fund provided for in paragraph (b) of subsection (2) of section
9.
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(3) A bond issued by the Bridge Authority
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(a) shall be sold at such price as the Bridge Authority may determine,
but not less than a price at which the interest-yield basis will equal
six and one-half per cent per annum as computed from standard
tables of bond values;
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(b) shall bear interest at a coupon rate not exceeding six per cent per
annum, payable semi-annually;
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(c) shall be payable solely from funds obtained by the Bridge
Authority pursuant to statutory authority conferred by this or any
other Act of the Parliament of Canada and by the appropriate
authority in the United States;
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(d) shall mature not more than twenty-five years after its date of
issue; and
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(e) shall be issued in such form, not inconsistent with this section, as
the Bridge Authority may determine.
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(4) In the discretion of the Bridge Authority, a bond issued by it
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(a) may be issued with a call provision reserving to the Bridge
Authority the right to redeem the bond before maturity at a price or
prices not exceeding the sum of the accrued interest plus one
hundred and fifty per cent of the par value;
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(b) may be temporary, with or without coupons, and exchangeable
for definitive bonds upon the issuance of the latter; or
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(c) may be issued in bearer form, or registrable as to principal, or
registrable as to principal and interest.
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(5) A bond issued by the Bridge Authority may be made payable in
the currency of Canada or of the United States in the discretion of the
Bridge Authority.
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(6) The Bridge Authority may, in its discretion, issue bond
anticipation notes payable from the proceeds of its bonds when issued;
and a reference in this Act to bonds of the Bridge Authority includes
bond anticipation notes.
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(7) The Bridge Authority may purchase any bond issued by it at a
price not exceeding the sum of the accrued interest plus one hundred
and fifty per cent of the par value of the bond, and may exercise any
contractual rights reserved to itself under the authority of paragraph (a)
of subsection (4) or otherwise when in the judgment of the Bridge
Authority it may be to its financial interest to do so.
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Clause 3: Sections 14 to 16 read as follows:
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14. (1) The Bridge Authority may enter into trust agreements to
secure any bonds issued or to be issued by it.
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(2) A trust agreement for the purpose referred to in subsection (1)
may be made with any bank or trust company in Canada or the United
States legally qualified to execute such a trust agreement.
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(3) In specifying the rights and duties of the Bridge Authority, the
trustee and the bondholders, a trust agreement may, subject to the rights
of the holder of any bonds of the Bridge Authority then outstanding, and
subject to section 17, contain such provisions and covenants affecting
the security or protection of any bonds issued by the Bridge Authority
as may be appropriate, including but not limited to the following:
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(a) setting forth any function that the Bridge Authority may perform
pursuant to this Act and providing that the Bridge Authority will
faithfully perform the same;
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(b) limiting the purposes and uses for which the proceeds of sale of
any bonds issued by the Bridge Authority may be employed and
pledging such proceeds to secure the payment of any bonds issued
by the Bridge Authority;
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(c) specifying the conditions that must exist before additional bonds
may be issued, limiting the amount thereof, and specifying any terms
and conditions that such additional bonds and associated security
instruments shall contain;
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(d) providing that such bonds shall be payable from any or all lawful
revenues of the Bridge Authority and pledging the revenues of the
Bridge Authority for such purpose;
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(e) providing for the appointment of trustees, depositaries, and
paying-agents to receive, hold, disburse, invest, and re-invest all or
any part of the funds of the Bridge Authority, for the approval by a
representative of the bondholders of the security given by any bank
or trust company with which funds of the Bridge Authority may be
deposited and for any other means of safeguarding funds of the
Bridge Authority;
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(f) setting forth procedures, if any, by which the terms of any contract
with bondholders may be granted or abrogated, the amount of the
bonds the holders of which must consent thereto and the manner in
which such consent may be given; and
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(g) imposing reasonable restrictions upon the right of action of
individual bondholders.
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15. (1) Any trust agreement that is entered into by the Bridge
Authority to secure any bonds or refunding bonds issued by it and that
empowers the trustee thereunder to declare the principal amount of any
such outstanding bonds or refunding bonds due and payable as a result
of any default in payment of principal, interest or both in accordance
with the terms thereof, shall provide therein and be subject as follows:
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(a) before declaring the said principal amount due and payable, the
trustee shall give notice in writing of such default to the Minister of
Finance;
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(b) if Parliament is in session at the time the notice referred to in
paragraph (a) is received by the Minister of Finance, the trustee shall
not declare the said principal amount due and payable before the
prorogation of that session, but if Parliament is not in session at the
time such notice is so received, he shall not declare the said principal
amount due and payable before the prorogation of the next ensuing
session of Parliament; and
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(c) if at the session of Parliament referred to in paragraph (b)
Parliament takes any action as the result of which past due principal
and interest with interest on past due interest, together with fees,
counsel fees and expenses of the trustee and of the receiver, if any,
are paid to the trustee not later than sixty days after such prorogation,
the default shall thereby be remedied.
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16. The bonds or other obligations of the Bridge Authority are not
obligations of Her Majesty, nor is Her Majesty liable on any such
obligations.
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