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Rural Electrification Long Term Financing Act - Rural Electrification Loan Act and Regulation | |
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| | Rural Electrification Loan Act
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This act deals with the financing various aspects of the provision of electric utilities in rural areas. An association may make application for a loan to the Minister of Finance and Enterprise to construct, maintain, repair or administer works to supply electricity power in rural areas. Alternatively, an individual wishing to purchase services from an electric company may also apply for a loan.
The maximum term for a loan made under this Act is 10 years. An approved loan will give rise to a liens or charges being placed upon the lands described in the application until the loan is repaid in full or cancelled by a Court Order. Enforcement of a lien may occur through a variety of methods in the event of default.
The Act contains provisions to enable an 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.
Act
Regulation
Rural Electrification Long Term Financing Act
This Act is very similar in nature to the Rural Electrification Act, with the primary difference being that of the term of a loan that may be made in respect of implementing, supporting, and maintaining the infrastructure required for the provision of electrical services in rural areas. Under the long term financing arrangements, the maximum term for a loan is 25 years. An association or individual may apply for a loan under either Act. The two Acts share governing authority for the Rural Electrification Loan Regulation.
Like the Rural Electrification Loan Act, this Act contains provisions to enable an 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.
Act
For more information about the Acts, contact Maureen Magee. |
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For more information about the content of this document, contact Stacey Tames.
This information published to the web on November 5, 2004.
Last Reviewed/Revised on May 16, 2012.
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