Hibernia Development Project Act

Marginal note:Authority to enter into agreements

• 3 (1) The Minister may, with the approval of the Governor in Council, enter into one or more agreements on behalf of Her Majesty in respect of the Hibernia Development Project.

• Marginal note:Contents of agreements

  (2) The agreements entered into under this section may include

  • (a) undertakings for the provision of assistance by Canada, including

    • (i) the payment of a contribution in respect of the capital costs of the Project, in an amount not exceeding in the aggregate one billion forty million dollars,

    • (ii) the guaranteeing from time to time, in accordance with terms and conditions approved by the Minister of Finance, of the payment of amounts, not exceeding in the aggregate at any time one billion six hundred and sixty million dollars in respect of principal, payable under or pursuant to loans, notes, bills of exchange or other financial instruments or arrangements made, given or issued in relation to the financing or refinancing of the whole or a portion of the Project,

    • (iii) the provision of other assistance in an amount not exceeding in the aggregate three hundred million dollars,

    • (iv) the guaranteeing from time to time, in accordance with terms and conditions approved by the Minister of Finance, of the payment of amounts, not exceeding in the aggregate at any time one hundred and seventy-five million dollars, payable under or pursuant to loans, notes, bills of exchange or other financial instruments or arrangements made, given or issued in relation to the provision of a temporary financing facility,

    • (v) the guaranteeing of the payment of the redemption premiums, if any, payable under the loans, notes, bills of exchange or other financial instruments or arrangements referred to in subparagraph (ii), of the amounts, if any, payable under any interest rate swap contract entered into in respect of any such instrument or arrangement, and of the interest payable in respect of any such instrument or arrangement for one interest period of twelve months or less, and

    • (vi) the guaranteeing from time to time, in accordance with terms and conditions approved by the Minister of Finance, of the payment of interest payable in respect of amounts that become payable pursuant to guarantees of loans, notes, bills of exchange or other financial instruments or arrangements referred to in subparagraph (ii), or guarantees of redemption premiums, amounts or interest referred to in subparagraph (v), for periods not exceeding fifteen days from the dates those instruments, arrangements, redemption premiums, amounts or interest become due until they are paid;

  • (b) provisions for the appointment of one or more trustees or other persons to perform such duties as may be required by the Minister, including the signing, as agent of Her Majesty, of certificates that represent the right of the proper holders of the certificates to participate in, and to have the benefit of, a guarantee entered into by the Minister under subparagraph (2)(a)(ii), (iv), (v) or (vi), provided that the maximum amounts referred to therein are not exceeded, which signatures shall have the same effect as that of the Minister;

  • (c) provisions for the payment of a net profit interest to Her Majesty;

  • (d) undertakings in relation to industrial and employment benefits;

  • (e) undertakings in relation to access to domestic and international markets for oil produced from the Project, subject to compliance with any other Act of Parliament including the National Energy Board Act and the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and with any regulations thereunder, and access to international market prices for oil produced from the Project; and

  • (f) such other terms and conditions as the Minister considers desirable.

• Marginal note:Currency of guarantee

  (3) Subparagraphs (2)(a)(ii), (v) and (vi) shall be deemed to authorize the guaranteeing, in whole or in part, of an equivalent amount in the currency of any country other than Canada and, notwithstanding subsection 48(2) of the Financial Administration Act, the equivalent amount shall be calculated using

  • (a) where the guarantee is in respect of an amount that together with all guaranteed principal amounts outstanding at the time is in excess of the maximum aggregate principal amount guaranteed at any prior time, the daily average rate of exchange between the Canadian dollar and the currency concerned quoted by the Bank of Canada on the day immediately preceding the day on which the benefit of the guarantee is extended by certificate under paragraph (2)(b) to the amount in excess; or

  • (b) where the guarantee is in respect of the payment of an amount that finances or refinances the whole or a portion of an obligation in the currency of a country other than Canada that has been previously guaranteed under any of those subparagraphs, the weighted average of the rates of exchange determined under paragraph (a) in respect of all of the amounts that were previously guaranteed in the currency concerned.

• Marginal note:Definition of interest

  (4) In this section, interest includes, in respect of a financial instrument, the difference between the face amount of the financial instrument and the sum received by the issuer, amortized over the term of the financial instrument to its maturity.