Northwest Territories Borrowing Limits Regulations

Marginal note:Meaning

• 2 (1) Subject to subsection (2), for the purposes of subsections 20(2) and (4) of the Northwest Territories Act, each of the following constitutes or is deemed to constitute borrowing:

  • (a) an obligation incurred as a result of any loan of money received by the government, including a loan made by the issuance and sale of bonds, debentures, notes or any other evidence of indebtedness;

  • (b) an obligation incurred as a result of any capital lease entered into by the government if the value of the obligation, determined in accordance with paragraph 3(b), exceeds the threshold for disclosure that is required in the Territorial Accounts;

  • (c) a liability incurred as a result of any sale-leaseback transaction entered into by the government if the government acquires a leased tangible capital asset and the value of the liability, determined in accordance with paragraph 3(c), exceeds the threshold for disclosure that is required in the Territorial Accounts; and

  • (d) a contingent liability incurred as a result of any loan guarantee provided by the government.

• Marginal note:Exclusions

  (2) Each of the following does not constitute or is deemed not to constitute borrowing:

  • (a) an obligation, liability or contingent liability incurred as a result of any transaction referred to in subsection (1) between any two parties within the government; and

  • (b) any portion of an obligation incurred as a result of any loan from the Canada Mortgage and Housing Corporation to the Northwest Territories Housing Corporation — for projects described in section 79 of the National Housing Act or for a purpose described in section 82 of the National Housing Act as it read immediately before June 17, 1999 — that is not disclosed in the Territorial Accounts and for which the Canada Mortgage and Housing Corporation provided funding to the Northwest Territories Housing Corporation that has been used to reduce the amount owed under the loan.