| ||This Act establishes the organisation, governance, and makes provisions for the management of business and affairs of rural utilities associations. A rural utility association is an incorporated entity of five or more persons, of which its main purpose is to supply to its members utility services for electricity, gas, water that is used primarily for domestic purposes, and sewage.
Like both the Rural Electrification Loan Act and the Rural Electrification Long Term Financing Act, the Rural Utilities Act contains provisions to enable a rural utility association to finance borrowings through a loan guarantee, which may also be reviewed by the Legislature every 5 years. In practice, no loan or loan guarantee has been issued since the mid 1990s. However, these provisions are retained to ensure that the security relating to earlier loans or loan guarantees remains in force.
Orders in Council
For more information about this Act, contact Tom Kee.