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Financial Administration Act, R.S.O. 1990, c. F.12

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Financial Administration Act

R.S.O. 1990, CHAPTER F.12

Historical version for the period August 20, 2007 to May 13, 2008.

Last amendment: 2007, c. 15, s. 40.

CONTENTS

1.

Definitions

PART I
PUBLIC MONEY

1.1

Ontario Opportunities Fund

2.

Public money to be credited to Minister of Finance

3.

Minister of Finance’s investment powers

4.

Vesting of securities, etc., in Minister of Finance and successors

5.

Settlement of or determination of uncollectability of debts, etc.

6.

Minister of Finance authorized to accept certain gifts and bequests

7.

Money received for special purpose

8.

Recovery of balance of public money

8.1

Additional fee for failure of payment

9.

Refunds

10.

Interest and penalties on unpaid debts to Crown

10.1

Collection, etc., of information

PART II
DISBURSEMENT OF PUBLIC MONEY

11.

Payments out of Consolidated Revenue Fund

11.1

Appropriation required

11.2

Limits on charges to appropriations

11.3

Expenses limited to appropriations

11.4

Certificate for payments

11.4.1

Authority to pay interest on overdue amounts

11.5

Authorized investments

11.6

Estimates

11.7

Payment of certain accrued liabilities

11.8

Payment of certain accrued liabilities

11.9

Authorization of certain non-cash expenses

12.

Payment of guarantee or indemnity

13.

How public money to be paid in certain circumstances

14.

Accountable advances

14.1

Advances

15.

Interim payments from CRF

16.

Expenditure refunds

16.0.1

Refund or repayment of expenditure or advance

16.1

Collection agency fees

16.2

Capital Account

PART II.1
FINANCIAL MANAGEMENT AND CONTROL

16.3

Definition

16.4

Payment of surplus funds into consolidated revenue fund

16.5

Deposits and investment by ministries of surplus funds

16.6

Financial activities

PART III
PUBLIC DEBT

17.

Definition

18.

Loans to be authorized

19.

Money raised a charge on Con. Rev. Fund

20.

Authorization to borrow

21.

Additional borrowing authorized

22.

Guarantee or indemnity authorized

23.

Temporary bank loans not exceeding $4 billion authorized

24.

Recitals and declarations

25.

Borrowing in foreign currencies authorized

26.

Calculation of borrowing limit

26.1

Power to change form of debt

27.

Exemption from taxation

28.

Minister of Finance’s approval before increasing provincial liabilities

29.

Execution of securities

30.

Contents and conditions of securities

31.

Registrars and fiscal agents

32.

Officers not bound to see to trust

33.

Payment of lost securities

34.

Sinking funds

35.

Payment of loan expenses out of Con. Rev. Fund

36.

Power to cancel securities acquired on sinking fund account

37.

Securities to state authority

38.

Regulations

PART IV
CIVIL LIABILITY

39.

Notice to person failing to pay over public money

40.

Unapplied public money for purpose to be applied out of Con. Rev. Fund

41.

Evidence

42.

Liability for loss

43.

Collection of debt by set-off

44.

Books, etc., property of the Crown

45.

Nothing in this Act to impair other remedies of the Crown

PART V
RECIPROCAL TAXATION AGREEMENTS

46.

Reciprocal taxation agreements

Definitions

1. In this Act,

“appropriation” means an authority to pay money out of the Consolidated Revenue Fund or to incur a non-cash expense; (“affectation de crédits”)

“Consolidated Revenue Fund” means the aggregate of all public money that is on deposit at the credit of the Minister of Finance or in the name of any agency of the Crown approved by the Lieutenant Governor in Council; (“Trésor”)

“Crown” means the Crown in right of Ontario; (“Couronne”)

“expenditure” means a payment of money out of the Consolidated Revenue Fund or the incurring by the Crown of a non-cash expense; (“dépense”)

“fiscal agent” means a fiscal agent appointed under section 31; (“agent financier”)

“fiscal year” means the period from the 1st day of April in one year to the 31st day of March in the next year; (“exercice”)

“minister” means a member of the Executive Council; (“ministre”)

“ministry” means a ministry of the Government of Ontario and, unless otherwise provided in this Act, includes a board, commission, authority, corporation and any other agency of the Government of Ontario; (“ministère”)

“money” includes negotiable instruments; (“somme d’argent”)

“money paid to Ontario for a special purpose” includes money that is paid to a public officer under or pursuant to a statute, trust, undertaking, agreement or contract and that is to be disbursed for a purpose specified in or pursuant to such statute, trust, undertaking, agreement or contract; (“somme d’argent versée à l’Ontario à des fins particulières”)

“negotiable instrument” includes a cheque, draft, traveller’s cheque, bill of exchange, money order and any similar instrument; (“effet négociable”)

“non-cash expense” has the meaning prescribed by the regulations made under this Act; (“frais hors caisse”)

“public money” means all money belonging to Ontario received or collected by the Minister of Finance or by any other public officer or by any person authorized to receive and collect such money and includes,

(a) special funds of Ontario and the income and revenue therefrom,

(b) revenues of Ontario,

(c) money raised by way of loan by Ontario or received by Ontario through the issue and sale of securities, and

(d) money paid to Ontario for a special purpose; (“deniers publics”)

“public officer” includes a minister and a person employed in a ministry; (“agent public”)

“registrar” means a registrar appointed under section 31; (“agent comptable”)

“statutory appropriation” means an amount authorized to be paid out of the Consolidated Revenue Fund or to be incurred as a non-cash expense by the Crown pursuant to a provision of this or another Act of the Legislature that describes the amount as payable or capable of being incurred without any legislative authority other than the provision of that Act. (“crédit législatif”) R.S.O. 1990, c. F.12, s. 1; 1994, c. 17, s. 62 (1, 2); 2002, c. 8, Sched. B, s. 1; 2006, c. 33, Sched. J, s. 1.

PART I
PUBLIC MONEY

Ontario Opportunities Fund

1.1 (1) The Minister of Finance shall establish as part of the Public Accounts of Ontario an account to be known as the Ontario Opportunities Fund in which shall be recorded money paid to Ontario by any person for the purpose of deficit reduction, the retirement of any part of the indebtedness of Ontario or the purchase for cancellation of any securities issued by Ontario. 2004, c. 31, Sched. 13, s. 1.

Application of amounts recorded

(2) The amounts recorded in the Fund under subsection (1) shall be applied in the fiscal year in which they are recorded toward the reduction of the provincial deficit for that fiscal year or to the reduction of the outstanding indebtedness of Ontario in a fiscal year in which there is no provincial deficit. 2004, c. 31, Sched. 13, s. 1.

Application of section

(3) This section applies with respect to the fiscal year ended March 31, 2004 and to subsequent fiscal years. 2004, c. 31, Sched. 13, s. 1.

Public money to be credited to Minister of Finance

2. (1) Subject to this Part, all public money shall be deposited to the credit of the Minister of Finance. R.S.O. 1990, c. F.12, s. 2 (1); 1994, c. 17, s. 62 (2).

Establishment of bank accounts

(2) The Minister of Finance shall establish in the name of the Minister of Finance, and may authorize an agency of the Crown to establish in the name of the agency, accounts with any bank, trust corporation, co-operative credit society, credit union, caisse populaire, credit union league or caisse populaire league that is designated by the Minister of Finance for the deposit of public money. 1996, c. 24, s. 33 (1).

Duty of person collecting public money

(3) Every person who collects or receives public money shall pay all money coming into the person’s hands to the credit of the Minister of Finance through such officers, banks or persons and in such manner as the Minister of Finance may direct, and shall keep a record of receipts and deposits thereof in such form and manner as the Minister of Finance may direct. R.S.O. 1990, c. F.12, s. 2 (3); 1994, c. 17, s. 62 (2, 4).

Exception

(4) Despite subsection (3), the Minister of Finance, on any conditions he or she considers appropriate, may in writing authorize a person who receives or collects public money to retain out of such public money all or any part of any amount owed by the Crown in right of Ontario to the person and payable from the Consolidated Revenue Fund. 1996, c. 24, s. 33 (2).

Same

(5) An amount properly retained pursuant to an authorization under subsection (4) shall be deemed to have been received by and paid from the Consolidated Revenue Fund in respect of the person to whom the authorization under subsection (4) was given. 1996, c. 24, s. 33 (2).

Minister of Finance’s investment powers

3. (1) When the Minister of Finance considers it advisable for the sound and efficient management of public money, the public debt, the Consolidated Revenue Fund or any other fund for which the Minister of Finance is responsible, the Minister of Finance may purchase, acquire, hold or enter into,

(a) notes, bonds, debentures and other evidences of indebtedness issued or guaranteed as to principal and interest by,

(i) Canada, Ontario or another province of Canada,

(ii) a municipality in Canada,

(iii) a country other than Canada or a political subdivision of a country other than Canada,

(iv) an agency of the Government of Canada, a province of Canada or a country other than Canada,

(v) a bank or financial institution that is supervised or examined by the central bank or other governmental authority in the jurisdiction in which the bank or financial institution carries on business, or

(vi) a supranational financial institution or governmental organization;

(b) deposit receipts, deposit notes, certificates of deposit, acceptances and other investment instruments issued, guaranteed or endorsed by a financial institution authorized to carry on business in Canada;

(c) bills, notes, acceptances and other investment instruments issued, guaranteed or endorsed by a corporation engaged in commerce that is authorized to carry on business in Canada;

(d) foreign currency exchange agreements, spot foreign currency agreements and forward foreign currency agreements;

(e) interest rate and currency exchange agreements and forward rate agreements;

(f) bond futures agreements, bankers’ acceptance futures agreements, foreign currency exchange futures agreements and other similar financial futures agreements;

(g) agreements to sell or purchase the right to exercise an option, put or call, or any combination of them;

(g.1) securities loan agreements, repurchase or reverse repurchase agreements relating to securities issued by Ontario or to any financial instrument or agreement in which the Minister of Finance is authorized to invest under this subsection;

(h) agreements to sell short a security, financial instrument or agreement in which the Minister of Finance is authorized to invest under this subsection; and

(i) other securities, financial agreements, investments and evidences of indebtedness authorized by or belonging to a class authorized by the Lieutenant Governor in Council. 1991, c. 55, s. 2; 1994, c. 17, s. 62 (2); 1996, c. 24, s. 34 (1).

Terms and conditions

(2) A purchase, acquisition, holding or entering into mentioned in subsection (1) may be subject to such terms and conditions as the Minister of Finance considers advisable. R.S.O. 1990, c. F.12, s. 3 (2); 1994, c. 17, s. 62 (2).

Investment not a loan

(2.1) Any bill, instrument, agreement, investment or evidence of indebtedness that the Minister of Finance purchases, acquires, holds or enters into under subsection (1) shall be deemed not to be a loan for the purposes of section 18. 1996, c. 24, s. 34 (2).

Payment out of Consolidated Revenue Fund

(3) The money required for the purposes of subsection (1), or in respect of the performance of a contract or agreement mentioned in subsection (1), is a charge upon and payable out of the Consolidated Revenue Fund. R.S.O. 1990, c. F.12, s. 3 (3).

Sale or disposal

(4) The Minister of Finance may sell or dispose of anything mentioned in subsection (1) purchased, acquired, held or entered into by the Minister of Finance, and the proceeds of the sale or disposition shall be deposited to the credit of the Consolidated Revenue Fund. R.S.O. 1990, c. F.12, s. 3 (4); 1994, c. 17, s. 62 (2).

Fees, commissions or expenses

(5) Fees, commissions or expenses incurred by the Minister of Finance in respect of the purchase, acquisition, holding, entering into, performance, sale or disposition of anything mentioned in subsection (1) are a charge upon and payable out of the Consolidated Revenue Fund. R.S.O. 1990, c. F.12, s. 3 (5); 1994, c. 17, s. 62 (2).

Vesting of securities, etc., in Minister of Finance and successors

4. (1) Where any security, obligation, debenture or covenant, or any interest in real or personal estate, effects, or property is given, or transferred to, made with, or vested in the Minister of Finance by virtue of his or her office, the security, obligation, debenture or covenant, and any right of action in respect thereto, and all the estate, right and interest of the Minister of Finance in respect thereof, upon the death, resignation or removal from office of the Minister of Finance, vests, subject to the same trusts as they were respectively subject to, in the succeeding Minister of Finance, and may be proceeded on by action or in any other manner, or may be assigned, transferred or discharged, in the name of the succeeding Minister of Finance. R.S.O. 1990, c. F.12, s. 4 (1); 1994, c. 17, s. 62 (2).

Realizing on securities

(2) A security, obligation, debenture, covenant or an interest in real or personal estate, effects and property may be proceeded on in the name of, or assigned, transferred or discharged by, any member of the Executive Council acting under the Executive Council Act. R.S.O. 1990, c. F.12, s. 4 (2).

Application of section

(3) This section applies to every security, obligation, debenture or covenant, and every interest in real or personal estate, effects or property given or transferred to, made with, or vested in any former Minister of Finance, by virtue or on account of his or her office, and transfers all the interest, rights and estate of the former Minister of Finance to the Minister of Finance for the time being to be vested in that Minister of Finance by virtue of his or her office. R.S.O. 1990, c. F.12, s. 4 (3); 1994, c. 17, s. 62 (2).

Settlement of or determination of uncollectability of debts, etc.

5. (1) Where a person has an obligation or debt due to the Crown or the Crown has a claim against a person, the Minister of Finance may, subject to any other Act affecting such obligation, debt or claim,

(a) negotiate and accept a settlement in payment and satisfaction of such obligation, debt or claim;

(b) determine that any such obligation, debt or claim is uncollectable; or

(c) determine that financial hardship, economic considerations or other circumstances do not warrant the collection or enforcement of any such obligation, debt or claim. R.S.O. 1990, c. F.12, s. 5 (1); 1994, c. 17, s. 62 (2).

Deletion from the accounts

(2) The Lieutenant Governor in Council may delete from the accounts of the Government of Ontario any obligation, debt or claim that is the subject of a settlement or determination described in subsection (1) if the Minister of Finance recommends the deletion as being in the public interest. 2002, c. 22, s. 69 (1).

Disclosure of deletion

(3) The aggregate amount for each ministry of all obligations, debts and claims that are deleted from the accounts under subsection (2) during a fiscal year must be reported in the Public Accounts or in the financial information supplementary to the Public Accounts for the fiscal year. 2002, c. 22, s. 69 (2).

Effect of determination and deletion

(3.1) A determination made under clause (1) (b) or (c) with respect to an obligation, debt or claim and its subsequent deletion from the accounts under subsection (2) does not affect the liability of any person that is subject to the obligation, debt or claim. 2002, c. 22, s. 69 (2).

Delegation

(4) The Minister of Finance may, in writing, delegate to a public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in the Ministry of Finance, other than in the Minister’s office, the authority to exercise any of the powers of the Minister of Finance under subsection (1) and may impose such conditions and restrictions on the delegation as the Minister considers appropriate. 1999, c. 9, s. 113; 2006, c. 35, Sched. C, s. 42 (1).

Minister of Finance authorized to accept certain gifts and bequests

6. (1) The Minister of Finance may accept from any person gifts or bequests for the permanent endowment of any charitable or educational object in Ontario, and may invest them in such securities as the Lieutenant Governor in Council may direct. R.S.O. 1990, c. F.12, s. 6 (1); 1994, c. 17, s. 62 (2).

Interest

(2) The Minister of Finance shall pay interest upon such gifts or bequests to such persons, at such rate, at such times and computed in such manner as the Lieutenant Governor in Council from time to time may determine, and such interest is a charge upon and payable out of the Consolidated Revenue Fund. R.S.O. 1990, c. F.12, s. 6 (2); 1994, c. 17, s. 62 (2).

Money received for special purpose

7. (1) Money received by or on behalf of the Crown for a special purpose and paid into the Consolidated Revenue Fund may, subject to any Act applicable thereto, be paid out of the Consolidated Revenue Fund for that purpose. R.S.O. 1990, c. F.12, s. 7 (1).

Interest

(2) The Minister of Finance may pay interest upon any money to which subsection (1) applies, at such rate, at such times and computed in such manner as the Lieutenant Governor in Council may from time to time determine, and such interest is a charge upon and payable out of the Consolidated Revenue Fund. R.S.O. 1990, c. F.12, s. 7 (2); 1994, c. 17, s. 62 (2).

Recovery of balance of public money

8. Every person, on the termination of the person’s charge of an account, or, in the case of his or her death, the person’s representatives, shall forthwith pay over any balance of public money then due to the Crown in respect of such charge to the public officer authorized to receive it. R.S.O. 1990, c. F.12, s. 8.

Additional fee for failure of payment

8.1 If a person purports to pay public money by delivering to a person entitled to collect or receive public money anything other than legal tender, within the meaning of subsection 8 (1) of the Currency Act (Canada), and if, as a result, the Minister of Finance fails to receive full and unconditional payment or settlement, the person is liable to pay to the Minister as a debt due to the Crown the additional fee that the Minister requires and that is prescribed by the regulations made under this Act. 1996, c. 24, s. 35.

Refunds

9. (1) Where a refund is authorized to be made to a person, such refund shall be paid out of the Consolidated Revenue Fund and charged to the appropriate account. R.S.O. 1990, c. F.12, s. 9 (1).

Idem

(2) Where an Act or a regulation made thereunder provides for the payment of a fee and,

(a) the Act or the regulation does not provide for a refund of the fee; and

(b) the Act does not authorize the making of a regulation providing for a refund of the fee,

the Lieutenant Governor in Council may make regulations under the Act providing for a refund of the fee in whole or in part and prescribing the conditions under which the refund may be made. R.S.O. 1990, c. F.12, s. 9 (2).

Interest and penalties on unpaid debts to Crown

10. (1) Where money that is owing by any person to the Crown or a ministry is not paid at the time for payment provided for by law or by the agreement, undertaking or arrangement under which the obligation to pay arose, the Crown or ministry to whom such payment is owed may require the payment of interest or penalty on any such unpaid amount in accordance with this section, and such interest or penalty so required to be paid is a debt due to the Crown recoverable by action or by any other remedy or procedure available by law to the Crown for the collection of debts owed to the Crown. R.S.O. 1990, c. F.12, s. 10 (1).

Exception

(2) This section does not apply to a default in payment under a statute or regulation that expressly provides for interest or penalty on such default, and does not apply to any agreement, undertaking or arrangement that expressly provides for interest or penalty payable on overdue payments, but the fact that a statute makes a default in the payment of money owing under it to the Crown or a ministry an offence does not prevent the imposition of interest or a penalty under this section in respect of money owing under that statute. R.S.O. 1990, c. F.12, s. 10 (2).

Statement of policy

(3) The Minister of Finance may issue general instructions establishing a policy to govern when, at what rate, in what amount, and in what circumstances the payment of interest or penalty may be required under subsection (1). R.S.O. 1990, c. F.12, s. 10 (3); 1994, c. 17, s. 62 (2).

Amount of interest or penalty

(4) The Lieutenant Governor in Council may by order fix a maximum rate of interest or penalty for the purpose of this section either by specifying the rate or, in lieu of a specified rate, by specifying a formula or basis for determining from time to time the rate of interest or penalty payable under this section, and may establish the method and conditions for calculating and charging any such interest or penalty, and may provide for different penalties or rates of interest to be applicable to different classes of payment or to different amounts of payment in default. R.S.O. 1990, c. F.12, s. 10 (4).

Reduction

(5) The Minister of Finance may, in his or her discretion, authorize the forgiveness or noncollection of interest or penalty payable under this section, and may authorize the charging of a lower rate of interest or amount of penalty than the maximum under this section where the Minister of Finance considers that financial hardship, economic considerations or other circumstances warrant such authorization. R.S.O. 1990, c. F.12, s. 10 (5); 1994, c. 17, s. 62 (2).

Application

(6) This section applies to the payment of interest or penalty on any amount owing to the Crown or a ministry on or after the 1st day of April, 1984 whether the obligation to pay such amount arose before or after that date. R.S.O. 1990, c. F.12, s. 10 (6).

Collection, etc., of information

10.1 (1) This section applies to institutions to which the Freedom of Information and Protection of Privacy Act applies and it applies with respect to information to which that Act applies but not personal information relating to an individual’s medical, psychiatric or psychological history. 1997, c. 43, Sched. F, s. 4 (1).

Same

(2) An institution may,

(a) collect information in any manner from another institution, person or entity for a purpose described in subsection (4);

(b) use, for a purpose described in subsection (4), information that is in its custody or under its control;

(c) disclose information that is in its custody or under its control to another institution, person or entity for a purpose described in paragraph 1 or 2 of subsection (4);

(d) disclose, for a purpose described in paragraph 3 or 4 of subsection (4), information that is in its custody or under its control to another institution or to the person with whom the Crown has entered into the arrangement described in the applicable paragraph. 1997, c. 43, Sched. F, s. 4 (1).

Exception for cl. (2) (d)

(3) Clause (2) (d) does not permit the disclosure of information to an institution or person unless a written agreement or undertaking has been entered into or made that, in the opinion of the Minister of Finance, will protect the information from further disclosure by that institution or person. 1997, c. 43, Sched. F, s. 4 (1).

Authorized purposes

(4) The following are the purposes referred to in subsection (2):

1. To collect a fine or a debt owed to the Crown or to an assignee of the Crown.

2. To collect a debt owed to a person or an entity if, under a cost-sharing arrangement between the Crown and the person or entity, the Crown has a financial interest in the collection of the debt.

3. To carry out a written arrangement under which the Crown proposes or agrees to transfer or dispose of assets or liabilities.

4. To carry out a written arrangement under which an activity or a function of the Crown is to be performed by another person or entity. 1997, c. 43, Sched. F, s. 4 (1).

Purpose for which information obtained

(5) For the purposes of the Freedom of Information and Protection of Privacy Act, personal information used by an institution for a purpose described in subsection (4) shall be deemed to have been obtained or compiled for that purpose or for a consistent purpose. 1997, c. 43, Sched. F, s. 4 (1).

Purpose for which information disclosed

(6) For the purposes of the Freedom of Information and Protection of Privacy Act, personal information disclosed by an institution for a purpose described in subsection (4) shall be deemed to have been disclosed for the purpose of complying with this section. 1997, c. 43, Sched. F, s. 4 (1).

Notice re collection

(7) Subsection 39 (2) of the Freedom of Information and Protection of Privacy Act does not apply with respect to the collection of personal information authorized by subsection (2). 1997, c. 43, Sched. F, s. 4 (1).

Disclosure, tax information

(8) Subsection 17 (2) of the Freedom of Information and Protection of Privacy Act does not apply with respect to the disclosure of information authorized by clause (2)(c). 1997, c. 43, Sched. F, s. 4 (1).

Conflict

(9) This section prevails over,

(a) a provision of another Act or a regulation, unless the other Act specifically states that it prevails over this section; and

(b) a provision in an agreement, whether the agreement was entered into before or after this section comes into force. 1997, c. 43, Sched. F, s. 4 (1).

Exception, third party information

(10) Despite subsection (9), this section does not prevail over subsection 17 (1) of the Freedom of Information and Protection of Privacy Act (restriction on disclosing third party information). 1997, c. 43, Sched. F, s. 4 (1).

Definitions

(11) In this section,

“Crown” includes a Crown agency; (“Couronne”)

“entity” includes,

(a) a local board as defined in section 1 of the Municipal Affairs Act, and

(b) the Government of Canada or a department, ministry or agency of the Government. (“entité”) 1997, c. 43, Sched. F, s. 4 (1).

PART II
DISBURSEMENT OF PUBLIC MONEY

Payments out of Consolidated Revenue Fund

11. (1) Every payment out of the Consolidated Revenue Fund shall be made by cheque or by any other method of payment or transfer approved by the Minister of Finance in writing. 1996, c. 24, s. 36.

Signatures

(1.1) Every cheque making a payment from the Consolidated Revenue Fund shall be signed by the Minister of Finance and one of the following persons and every authorization making a payment from the Consolidated Revenue Fund pursuant to a method of payment or transfer approved under subsection (1) shall be given by the Minister of Finance and one of the following persons:

1. The Deputy Minister of Finance.

2. A person employed in the Ministry of Finance or in the Ontario Financing Authority who is authorized by the Minister of Finance in writing to sign the cheque or give the authorization. 1996, c. 24, s. 36.

Other signatures authorized

(1.2) Despite subsection (1.1), the Minister of Finance may authorize in writing, on any conditions he or she considers appropriate,

(a) another minister or an agency head to sign any cheque or class of cheques or to give any authorization or class of authorizations making a payment from the Consolidated Revenue Fund instead of the Minister of Finance; and

(b) any person employed in the ministry presided over by that other minister or by that agency head to sign any such cheque or class of cheques or to give any such authorization or class of authorizations instead of the Deputy Minister of Finance or other person referred to in paragraph 2 of subsection (1.1). 1996, c. 24, s. 36; 1996, c. 29, s. 1.

Definition

(1.2.1) In subsection (1.2),

“agency head” means the chair or similar presiding officer of a board, commission, authority, corporation or other agency of the Government of Ontario. 1996, c. 29, s. 1.

Other payments and deposits

(1.3) For the more efficient management of the Consolidated Revenue Fund, the Minister of Finance may enter into any written arrangements he or she considers appropriate with any person for the making of deposits to, or payments from, the Consolidated Revenue Fund electronically or by the use of a credit card, debit card or similar arrangement. 1996, c. 24, s. 36.

Signature

(2) The Minister of Finance may authorize the use on cheques or written authorizations of facsimile signatures to be affixed thereto by rubber stamp or by printing, lithographing, engraving or by other mechanical means. R.S.O. 1990, c. F.12, s. 11 (2); 1994, c. 17, s. 62 (2).

Destruction

(3) The Minister of Finance, with the approval of the Auditor General, may authorize the destruction from time to time of paid and cancelled cheques. R.S.O. 1990, c. F.12, s. 11 (3); 1994, c. 17, s. 62 (2); 2004, c. 17, s. 32.

Fees, etc., charge on Con. Rev. Fund

(4) With the approval of the Minister of Finance, any fees, commissions or expenses incurred in respect of deposits to, transfers within, or payments from the Consolidated Revenue Fund, or in respect of services furnished to the Crown in the operation of any account established under section 2 are a charge upon and payable out of the Consolidated Revenue Fund. R.S.O. 1990, c. F.12, s. 11 (4); 1991, c. 55, s. 4 (2); 1994, c. 17, s. 62 (2).

Appropriation required

11.1 (1) No money shall be paid out of the Consolidated Revenue Fund and no non-cash expense shall be incurred by the Crown unless authorized by this or another Act of the Legislature. 2002, c. 8, Sched. B, s. 2.

Interim supply

(2) Nothing in this Act prohibits the payment of money out of the Consolidated Revenue Fund under the authority of a resolution passed by the Assembly granting interim supply. 2002, c. 8, Sched. B, s. 2.

Authority to incur prescribed non-cash expenses

(3) The Crown may incur a non-cash expense that is prescribed by the regulations made under this Act or that falls within a class of non-cash expenses prescribed by the regulations made under this Act. 2002, c. 8, Sched. B, s. 2.

Same, by interim supply

(3.1) Nothing in this Act prohibits the Crown from incurring a non-cash expense under the authority of a resolution passed by the Assembly granting interim supply. 2002, c. 22, s. 70.

Application

(4) This section applies only in respect of fiscal years commencing on or after April 1, 2003. 2002, c. 8, Sched. B, s. 2.

Limits on charges to appropriations

11.2 (1) No appropriation shall be charged with an amount,

(a) that is for a purpose other than that for which the appropriation was provided; or

(b) that is in excess of the amount available under the appropriation. 2002, c. 8, Sched. B, s. 2.

Application

(2) This section applies only in respect of fiscal years commencing on or after April 1, 2003. 2002, c. 8, Sched. B, s. 2.

Expenses limited to appropriations

11.3 (1) No agreement or undertaking shall be entered into in a fiscal year that would result in a charge to an appropriation for that fiscal year in excess of the amount available under that appropriation. 2002, c. 8, Sched. B, s. 2.

Agreements subject to appropriations

(2) Every agreement providing for the payment of money by the Crown is deemed to contain a provision stating that the payment by the Crown of moneys that come due under the agreement shall be subject to,

(a) an appropriation to which that payment can be charged being available in the fiscal year in which the payment becomes due; or

(b) the payment having been charged to an appropriation for a previous fiscal year. 2002, c. 8, Sched. B, s. 2.

Application

(3) This section applies only in respect of fiscal years commencing on or after April 1, 2003. 2002, c. 8, Sched. B, s. 2.

Certificate for payments

11.4 (1) No payment shall be made out of the Consolidated Revenue Fund unless, in addition to any other voucher or certificate that may be required, a person referred to in subsection (2) certifies,

(a) in the case of a payment for the supply of goods or the rendering of services after the goods are delivered or the services are rendered, that the goods have been supplied or the services have been rendered and that,

(i) the payment is in accordance with the agreement, or

(ii) the amount of the payment is reasonable, if the amount of the payment is not specified in the agreement;

(b) in the case of a payment for the supply of goods or the rendering of services before the delivery of the goods or the supply of the services, that the payment is in accordance with the agreement; or

(c) in the case of a payment not described in clause (a) or (b), that the payee is eligible for or entitled to the payment. 2002, c. 8, Sched. B, s. 2.

Persons authorized to certify payments

(2) Only the following persons have authority to give a certificate under subsection (1):

1. A minister or deputy minister.

2. The Speaker of the Assembly.

3. The Auditor General.

4. The Chief Electoral Officer.

5. A person authorized by the Management Board of Cabinet.

6. A person authorized by a person referred to in any of paragraphs 1 to 5. 2002, c. 8, Sched. B, s. 2; 2004, c. 17, s. 32; 2007, c. 15, s. 40 (1).

Application

(3) This section applies only in respect of fiscal years commencing on or after April 1, 2003. 2002, c. 8, Sched. B, s. 2.

Authority to pay interest on overdue amounts

Interpretation

11.4.1 (1) In this section,

“ministry” does not include a board, commission, authority, corporation or any other agency of the Government of Ontario. 2006, c. 33, Sched. J, s. 2.

Treasury Board may direct payment of interest

(2) The Treasury Board may authorize and direct the payment of interest, on such terms and conditions as it may specify, on overdue amounts payable by ministries. 2006, c. 33, Sched. J, s. 2.

Exception

(3) Despite subsection (2), the Treasury Board shall not authorize and direct the payment of interest under this section,

(a) in respect of a period before April 1, 2007; or

(b) in respect of a financial obligation,

(i) incurred contrary to subsection 11.3 (1) or section 18, or

(ii) to which subsection 28 (2) applies. 2006, c. 33, Sched. J, s. 2.

Same

(4) This section does not affect the authority of the Minister of Finance to agree to pay interest on an overdue amount in relation to a transaction to which section 3 applies or a borrowing of money in accordance with section 18. 2006, c. 33, Sched. J, s. 2.

Interest deemed to be expenditure for same purpose as overdue amount

(5) An interest payment authorized under this section shall be deemed to be an expenditure for the same purpose as the overdue amount to which it relates and shall be reported as such in the Public Accounts. 2006, c. 33, Sched. J, s. 2.

Not a charge on Consolidated Revenue Fund

(6) Section 19 does not apply to a payment of interest authorized under this section. 2006, c. 33, Sched. J, s. 2.

Authorized investments

11.5 (1) Except as otherwise expressly provided in an Act of the Legislature, an appropriation for a fiscal year does not include the authority to make a loan, advance or other form of investment. 2002, c. 8, Sched. B, s. 2.

Treasury Board may authorize investments

(2) Despite subsection (1), on the recommendation of the Minister of Finance, the Treasury Board may authorize a payment pursuant to an appropriation to be made in the form of a loan, advance or other form of investment on such terms and conditions as the Treasury Board considers advisable. 2002, c. 8, Sched. B, s. 2.

Application

(3) This section applies only in respect of fiscal years commencing on or after April 1, 2003. 2002, c. 8, Sched. B, s. 2.

Estimates

11.6 (1) All estimates submitted to the Legislature in respect of a fiscal year shall,

(a) be for expenditures to be incurred during the fiscal year that are required to be voted on by the Legislature; and

(b) include the amount of expenditures to be incurred during the fiscal year under statutory appropriations and such other information as the Treasury Board considers appropriate. 2002, c. 8, Sched. B, s. 2.

Exception, certain accrued liabilities

(1.1) Despite clause (1) (b), the estimates shall not include expenditures to be made on or after April 1, 2003 in satisfaction of liabilities incurred by the Crown before that date. 2004, c. 7, s. 8.

Lapse of appropriations

(2) The balance of an appropriation granted for a fiscal year that remains unexpended when the books of the Government of Ontario for that fiscal year are closed shall lapse. 2002, c. 8, Sched. B, s. 2.

Accrual of liabilities

(3) Despite section 11.2 and subsection (2), a liability that was incurred during a fiscal year but was not paid by the time the books of the Government of Ontario for the fiscal year are closed may be recorded as an expenditure and charged against an appropriation for the fiscal year if,

(a) the liability was incurred for a purpose authorized by the appropriation;

(b) the liability was less than or equal to the amount available under the appropriation immediately before the books of the Government of Ontario for the fiscal year are closed; and

(c) a statement of account for the liability is received by the Minister of Finance before the books of the Government of Ontario for the fiscal year are closed. 2004, c. 31, Sched. 13, s. 2 (1).

Payment of accrued liabilities

(4) A liability described in subsection (3) may be paid out of the Consolidated Revenue Fund. 2002, c. 8, Sched. B, s. 2.

Reporting

(5) If, before the books of the Government of Ontario for a fiscal year are closed, the Minister of Finance becomes aware that, during the fiscal year, the Crown incurred a liability to make a payment out of the Consolidated Revenue Fund that comes due after the end of the fiscal year but the liability cannot be charged to an appropriation for the fiscal year under subsection (3), the Public Accounts for that fiscal year shall include a statement to that effect. 2004, c. 31, Sched. 13, s. 2 (2).

Late accounts

(6) A liability incurred in a fiscal year that is not paid or accrued under subsection (3) during the fiscal year, but that satisfies the requirements of subsection (7),

(a) may be paid out of the Consolidated Revenue Fund;

(b) may be recorded, despite section 11.2 and subsection (2) and subject to subsection (8), as a charge against,

(i) an appropriation for the fiscal year in which the payment is made that authorizes expenditures for the same purpose or for a purpose determined by the Minister of Finance to be similar, or

(ii) such appropriation for the fiscal year in which the payment is made as the Minister of Finance directs, if the Minister determines that there is no appropriation that satisfies the requirements of subclause (i); and

(c) shall be reported in the Public Accounts for the fiscal year in which the payment is made. 2002, c. 8, Sched. B, s. 2.

Same

(7) For the purposes of subsection (6), the liability must satisfy the following requirements:

1. The liability must be incurred for a purpose authorized by an appropriation for the fiscal year in which it is incurred.

2. The liability must be less than or equal to the amount available under the appropriation referred to in paragraph 1 immediately before the books of the Government of Ontario for the fiscal year are closed. 2002, c. 8, Sched. B, s. 2; 2004, c. 31, Sched. 13, s. 2 (3).

Notice to Treasury Board

(8) A liability may be recorded in accordance with clause (6) (b) only if the Minister of Finance notifies the Treasury Board and specifies in the notice the appropriation against which the liability is charged. 2002, c. 8, Sched. B, s. 2.

Appropriation deemed to include purpose

(9) If a liability is recorded as a charge against an appropriation under clause (6) (b), the appropriation is deemed to include the purpose for which the liability was incurred. 2002, c. 8, Sched. B, s. 2.

Application

(10) This section applies only in respect of a fiscal year commencing on or after April 1, 2003. 2002, c. 8, Sched. B, s. 2.

Payment of certain accrued liabilities

11.7 (1) The Minister of Finance is authorized to make payments out of the Consolidated Revenue Fund during a fiscal year that begins on or after April 1, 2003 in satisfaction of liabilities incurred by the Crown before April 1, 2003, if the payments are payable during the fiscal year and are not otherwise authorized by an Act of the Legislature. 2004, c. 7, s. 9.

Restriction

(2) The aggregate amount of payments authorized by subsection (1) shall not exceed the aggregate amount of the following liabilities as at March 31, 2003 as stated in the Public Accounts of Ontario for the fiscal year ending March 31, 2003, the payment of which is not otherwise provided for by any other Act of the Legislature:

1. Accounts payable and accrued liabilities.

2. Retirement benefits.

3. Other liabilities. 2004, c. 7, s. 9.

Transition

(3) If a payment in satisfaction of a liability described in subsection (1) was charged to an appropriation on or after April 1, 2003 and before the day on which the Budget Measures Act, 2004 received Royal Assent, the payment shall be deemed, as of the day on which it was made, not to have been charged to that appropriation but to have been charged instead to the appropriation provided by subsection (1). 2004, c. 7, s. 9.

Payment of certain accrued liabilities

11.8 (1) The Minister of Finance is authorized to make payments out of the Consolidated Revenue Fund during a fiscal year that begins on or after April 1, 2004 in satisfaction of liabilities incurred by the Crown before April 1, 2004 if,

(a) each payment is in satisfaction of part or all of a liability that is payable during the fiscal year in which the payment is made;

(b) each payment is not otherwise authorized by an Act of the Legislature;

(c) the purpose for which each payment is made satisfies the requirements of subsection (2); and

(d) the total of the payments are within the limits described in subsection (2). 2004, c. 31, Sched. 13, s. 3.

Restriction

(2) The payments authorized by subsection (1) shall only be made for the purposes to which the votes and items in the estimates and supplementary estimates for the fiscal year beginning on April 1, 2003 relate and shall be subject to the maximum amount set out in Column 5 of the following Table opposite the vote and item in Columns 3 and 4:

TABLE
MAXIMUM AMOUNTS

Column 1

Column 2

Column 3

Column 4

Column 5

 

Ministry

Vote

Item

Amount in dollars

1.

Attorney General

306

3

23,413,832

2.

Consumer and Business Services

802

2

440,709

3.

Management Board Secretariat

1805

2

204,883,616

4.

Community Safety and Correctional Services

2604

1

3,346,354

5.

Community Safety and Correctional Services

2606

1

11,784

6.

Transportation

2702

1

3,148,577

2004, c. 31, Sched. 13, s. 3.

Exception

(3) The estimates shall not include expenditures to be made on or after April 1, 2004 under the authority of this section. 2004, c. 31, Sched. 13, s. 3.

Authorization of certain non-cash expenses

11.9 The Minister of Transportation is authorized to incur non-cash expenses in the amount of $34,560,777 for the purposes set out in Vote 2704, Item 2 of the estimates and supplementary estimates for the fiscal year beginning April 1, 2003. 2004, c. 31, Sched. 13, s. 3.

Payment of guarantee or indemnity

12. Any amount required to be paid by or on behalf of the Crown by the terms of a guarantee or indemnity given pursuant to this or any other Act may be paid by the Minister of Finance from the Consolidated Revenue Fund. 1996, c. 29, s. 2.

How public money to be paid in certain circumstances

13. If any public money is appropriated by an Act for any purpose or is directed by the judgment of a court or the award of arbitrators or other lawful authority to be paid by the Crown or the Lieutenant Governor and no other provision is made respecting it, such money is payable under warrant of the Lieutenant Governor, directed to the Minister of Finance, out of the Consolidated Revenue Fund, and all persons entrusted with the expenditure of any such money or a part thereof shall account for it in such manner and form, with such vouchers, at such periods and to such officer as the Minister of Finance may direct. R.S.O. 1990, c. F.12, s. 13; 1994, c. 17, s. 62 (2).

Accountable advances

14. (1) On the application of a minister, the Minister of Finance may authorize an accountable advance out of the Consolidated Revenue Fund for the purpose of meeting disbursements for travelling expenses or other contingencies or of making payments on account of expenses incurred or to be incurred. R.S.O. 1990, c. F.12, s. 14 (1); 1994, c. 17, s. 62 (2).

Idem

(2) If at the termination of the fiscal year in which an advance was made no accounting or repayment of the advance has been received, such advance shall be repaid or accounted for within thirty days thereafter. R.S.O. 1990, c. F.12, s. 14 (2).

Application

(3) This section applies only in respect of fiscal years commencing before April 1, 2003. 2002, c. 8, Sched. B, s. 3.

Advances

14.1 (1) On the application of a minister, the Minister of Finance may authorize an advance out of the Consolidated Revenue Fund for the purpose of incurring expenditures authorized by an appropriation, if it is impracticable to incur such expenditures in accordance with section 11. 2002, c. 8, Sched. B, s. 4.

Accountability for advance

(2) A minister who receives an advance under subsection (1) is accountable to the Minister of Finance for the amount of the advance. 2002, c. 8, Sched. B, s. 4.

Duty to repay or account for advance

(3) If the Minister of Finance does not receive an accounting or repayment of an advance made under subsection (1) by the end of the fiscal year in which the advance is made, the advance shall be repaid or accounted for before the books of the Government of Ontario for that fiscal year are closed. 2002, c. 8, Sched. B, s. 4.

Application

(4) This section applies only in respect of fiscal years commencing on or after April 1, 2003. 2002, c. 8, Sched. B, s. 4.

Interim payments from CRF

Definition

15. (1) In this section,

“ministry” does not include a board, commission, authority, corporation or any other agency of the Government of Ontario the assets or revenues of which do not form part of the Consolidated Revenue Fund. 2005, c. 28, Sched. E, s. 1.

Eligible activities

(2) This section applies if a ministry engages in any of the following activities:

1. Providing goods or services to another ministry, person or entity in exchange for payment of a fee or charge.

2. Permitting another ministry, person or entity to use property owned by the Crown in exchange for payment of a fee or charge.

3. Exercising a regulatory power or performing a regulatory duty and requiring regulated persons or entities to pay a fee, charge or assessment to the Crown for the purposes of cost recovery by the Crown.

4. Engaging in activities with respect to which, under a cost-sharing arrangement, the Crown will become entitled to receive funds from another person or entity or the ministry will become entitled to receive funds from an appropriation made to another ministry. 2005, c. 28, Sched. E, s. 1.

Interim payments

(3) On the recommendation of the Minister of Finance, the Treasury Board may authorize the Minister of Finance to make interim payments from the Consolidated Revenue Fund to a ministry to pay the costs that the ministry incurs during a fiscal year in engaging in an activity described in subsection (2), but only if one or both of the following conditions is satisfied:

1. The corresponding payment, assessment or funds referred to in subsection (2) will be recovered or will become recoverable into the Consolidated Revenue Fund in the fiscal year in which the interim payment is made.

2. The interim payment will be charged or become chargeable to an appropriation relating to the fiscal year in which the interim payment is made. 2005, c. 28, Sched. E, s. 1.

Insufficient recovery

(4) If any part of an interim payment (the “outstanding amount”) is not recovered into the Consolidated Revenue Fund or charged to an appropriation by the time the books of the Government of Ontario for the fiscal year in which the interim payment is made are closed, the outstanding amount shall be repaid to the Consolidated Revenue Fund by a deduction from the ministry’s appropriations for the following fiscal year and the deduction shall be made in such manner as the Minister of Finance considers appropriate. 2005, c. 28, Sched. E, s. 1.

15.1 Repealed: 2005, c. 28, Sched. E, s. 1.

Expenditure refunds

16. (1) An amount received as a refund or repayment of an expenditure or advance and deposited to the credit of the Minister of Finance shall be included in the unexpended balance of the appropriation against which it was charged. R.S.O. 1990, c. F.12, s. 16; 1994, c. 17, s. 62 (2).

Application

(2) Subsection (1) applies only in respect of fiscal years commencing before April 1, 2003. 2002, c. 8, Sched. B, s. 7.

Refund or repayment of expenditure or advance

16.0.1 (1) If a refund or repayment of an expenditure or advance charged to an appropriation or a reduction of a liability charged to an appropriation is received or has become receivable in a known amount before the books of the Government of Ontario for the fiscal year in which the expenditure, advance or liability was incurred are closed, the refund, repayment or reduction shall be credited to the appropriation against which it was charged. 2002, c. 8, Sched. B, s. 8.

Same

(2) The following rules apply if a refund or repayment of an expenditure or advance charged to an appropriation or a reduction of a liability charged to an appropriation does not become receivable in a known amount until after the books of the Government of Ontario are closed for the fiscal year in which the expenditure, advance or liability is incurred:

1. If the Minister of Finance notifies the Treasury Board, all or part of the refund, repayment or reduction, as specified in the notice, shall be credited to an appropriation,

i. that is for the fiscal year in which the refund, repayment or reduction becomes receivable in a known amount, and

ii. that authorizes expenditures for the same purpose as the expenditure, advance or liability to which the refund, repayment or reduction relates or for a purpose determined by the Minister of Finance to be similar.

2. Any part of the refund, repayment or reduction that is not credited to an appropriation under paragraph 1 shall be credited to the revenue of the fiscal year in which the refund, repayment or reduction becomes receivable in a known amount. 2002, c. 8, Sched. B, s. 8.

Application

(3) This section applies only in respect of fiscal years commencing on or after April 1, 2003. 2002, c. 8, Sched. B, s. 8.

Collection agency fees

16.1 The fees and commissions of a collection agency registered under the Collection Agencies Act that are charged for the collection or attempted collection of an amount owed to the Crown or a ministry are payable from the Consolidated Revenue Fund, subject to such terms and conditions as may be established by the Minister of Finance. 1991, c. 55, s. 7; 1994, c. 17, s. 62 (2).

Capital Account

16.2 (1) The Minister of Finance shall maintain in the public accounts an account to be known as the Capital Account in which shall be recorded expenditures from the Consolidated Revenue Fund that, in the opinion of the Minister of Finance, are made for the purpose of acquiring, bringing into existence or significantly extending the useful life of property that is part of the publicly-owned infrastructure of Ontario, including expenditures attributable to the planning, development and design of a building, structure or facility that is part of the publicly-owned infrastructure of Ontario. 1991, c. 55, s. 7; 1994, c. 17, s. 62 (2).

Allocation to ministries

(2) To the extent that it is reasonably possible to do so, the Minister of Finance shall allocate to each ministry expenditures in the Capital Account that are made from the estimates and supplementary estimates of that ministry or under an Act administered by that ministry. 1991, c. 55, s. 7; 1994, c. 17, s. 62 (2).

Allocation of expenditure over time

(3) In the fiscal year commencing on the 1st day of April, 1992 and in each subsequent fiscal year, each expenditure recorded in the Capital Account shall be written off over the number of years and by the amount that is determined by the Treasury Board to reflect the allocation of the expenditure over an appropriate length of time, and the amount written off shall be shown in the Account. 1991, c. 55, s. 7.

Not applicable after 2002-2003 fiscal year

(3.1) This section does not apply to a fiscal year that commences on or after April 1, 2003. 2002, c. 8, Sched. B, s. 9.

Definition

(4) In this section,

“publicly-owned infrastructure of Ontario” includes,

(a) land, buildings, structures and facilities owned by the Crown, a Crown agency, a municipality, a local board as defined in the Municipal Affairs Act, a public hospital as defined in the Public Hospitals Act or any other public institution, to the extent that the land, buildings, structures and facilities can reasonably be regarded as having been paid for, directly or indirectly, by funds received from the Crown,

(b) land, buildings, structures and facilities that contribute to the economic growth and productivity of Ontario and that are prescribed by the regulations made under this Act to be part of the publicly-owned infrastructure of Ontario, and

(c) machinery and equipment that are part of and essential to the functioning of a building, structure or facility referred to in clause (a) or (b) or that are necessary for the use of land referred to in clause (a) or (b) for the purpose intended. 1991, c. 55, s. 7.

PART II.1
FINANCIAL MANAGEMENT AND CONTROL

Definition

16.3 In this part,

“ministry” includes the Accountant of the Superior Court of Justice. 1996, c. 29, s. 3; 2006, c. 19, Sched. C, s. 1 (3).

Payment of surplus funds into consolidated revenue fund

16.4 (1) Despite any other Act or regulation, a ministry may pay into the Consolidated Revenue Fund at any time any amount of its funds held outside the Consolidated Revenue Fund that it determines to be surplus to its current needs. 1996, c. 29, s. 3.

Same

(2) Despite any other Act or regulation, a ministry shall pay into the Consolidated Revenue Fund, when ordered to do so by the Minister of Finance, any amount of its funds held outside the Consolidated Revenue Fund that is determined by the Minister of Finance to be surplus to the current needs of the ministry. 1996, c. 29, s. 3.

Application of subsection (2)

(3) Subsection (2) applies whether or not a payment is or has been made under subsection (1). 1996, c. 29, s. 3.

Reserves

(4) In determining an amount payable under subsection (2), the Minister of Finance may allow such amount to be retained for the future needs of the ministry making the payment as the Minister of Finance considers appropriate. 1996, c. 29, s. 3.

Obligation not impaired

(5) The Minister of Finance shall make such arrangements as he or she considers necessary to provide that a payment ordered under subsection (2) will not impair the ability of the ministry making the payment to meet its financial liabilities or obligations as they come due or to fulfil its contractual commitments. 1996, c. 29, s. 3.

Credit facility authorized

(6) An arrangement under subsection (5) may include the provision to a ministry by Ontario, the Ontario Financing Authority, a bank or a financial institution of a credit facility sufficient to allow the ministry to meet its financial liabilities and obligations or to fulfil its contractual commitments. 1996, c. 29, s. 3.

Deposits and investment by ministries of surplus funds

16.5 (1) Repealed: 2002, c. 8, Sched. B, s. 10.

Investment in Ontario securities

(2) Despite any Act or regulation, every ministry may invest money held outside the Consolidated Revenue Fund and belonging to it or held by it in trust for the Crown in the purchase, acquisition or holding of,

(a) notes, bonds, debentures, deposit receipts, short term securities or other evidences of indebtedness issued or guaranteed as to principal and interest by Ontario; or

(b) any security, financial agreement or evidence of indebtedness, or class of securities, financial agreements or evidences of indebtedness, authorized in writing by the Minister of Finance for the investment by the ministry named in the authorization of funds from time to time held by that ministry outside the Consolidated Revenue Fund.

(c) Repealed: 2004, c. 31, Sched. 13, s. 4 (1).

1996, c. 29, s. 3; 2004, c. 31, Sched. 13, s. 4 (1).

Minister of Finance may issue and sell securities

(3) In addition to the issue and sale of securities authorized under any other Act or under any other provision of this Act, the Minister of Finance may issue and sell on behalf of Ontario in accordance with this section notes, bonds, debentures, deposit receipts, short term securities and other evidences of indebtedness to any ministry for the purposes of an investment that the ministry is authorized to make under clause (2) (a) or (c). 1996, c. 29, s. 3; 2004, c. 31, Sched. 13, s. 4 (2).

Same

(4) For any note, bond, debenture, deposit receipt, short term security or other evidence of indebtedness issued and sold by the Minister of Finance under subsection (3), the Minister of Finance may determine the date of issue and maturity, the rate or rates and the date or dates of the payment of interest, if any, the price or prices for which any of them may be sold, and subject to subsection (5), such other conditions as the Minister of Finance considers appropriate. 1996, c. 29, s. 3.

Same

(5) A note, bond, debenture, deposit receipt, short term security or other evidence of indebtedness issued and sold under subsection (3),

(a) shall state on its face that it is issued under this section;

(b) shall not be paid, renewed, repaid or replaced under section 21;

(c) may provide that it shall not be assigned or pledged as security by the holder thereof and may be sold only to Ontario or the Ontario Financing Authority; and

(d) shall be deemed not to be a loan for the purpose of section 18. 1996, c. 29, s. 3.

Authorized investments

(6) An investment pursuant to this section or section 16.6 by, or on behalf of, a ministry of all or any part of the assets belonging to it or held by it in trust for the Crown shall not be deemed to be contrary to or prevented by any rule of law or enactment. 1996, c. 29, s. 3.

Financial activities

Definitions

16.6 (1) In this section,

“designated minister or ministry” means a minister or ministry that has been designated for the purpose of this section by order of the Lieutenant Governor in Council; (“ministre ou ministère désigné”)

“financial activities” includes borrowing, leasing, investing and banking and the management of cash, financial assets, financial risks and financial liabilities. (“activités financières”) 1996, c. 29, s. 3.

Control of financial activities

(2) Despite any other Act or the regulations under any other Act, the Minister of Finance may authorize the Ontario Financing Authority to direct, control or carry out some or all of the financial activities that any designated minister or ministry is authorized by any Act, regulation or agreement to undertake or carry out. 1996, c. 29, s. 3.

Authorization

(3) An authorization under subsection (2),

(a) shall be in writing;

(b) shall state the minister or ministry to which it applies and specify the order of the Lieutenant Governor in Council designating that minister or ministry;

(c) shall indicate the financial activities that the Ontario Financing Authority is authorized to direct, control or carry out; and

(d) shall set out such other terms and conditions as the Minister of Finance considers appropriate for the purpose of the authorization. 1996, c. 29, s. 3.

Same

(4) The Minister of Finance, from time to time in writing, may vary the provisions of an authorization, as he or she considers appropriate, and may rescind any authorization at any time. 1996, c. 29, s. 3.

Power of Ontario Financing Authority

(5) For the purpose of directing, controlling or carrying out any financial activities mentioned in an authorization under subsection (2), the Ontario Financing Authority may in the name of and on behalf of the minister or ministry to which the authorization applies,

(a) negotiate, enter into, carry out or perform any agreement concerning financial activities that it is authorized under subsection (2) to direct, control or carry out;

(b) exercise the rights and discharge the obligations of the minister or ministry to which the authorization applies under any agreement to which that ministry or minister or the Crown is a party; and

(c) execute all documents and do such other acts and things as the Ontario Financing Authority considers necessary or desirable to direct, control or carry out the financial activities authorized under subsection (2). 1996, c. 29, s. 3.

Investment in market securities

(6) Unless otherwise agreed by a minister or a ministry, securities issued by Ontario and purchased as an investment by or on behalf of the minister or ministry pursuant to an authorization under subsection (2) shall be purchased at prices, and bear interest, if any, comparable to the prices and rates of interest for similar securities issued and sold by Ontario in the public capital markets of Canada. 1996, c. 29, s. 3.

No action to be commenced

(7) Subject to subsection (8), no action or proceeding of any kind shall be commenced against the Ontario Financing Authority, a minister or ministry, or against an employee, officer, director or agent of the Ontario Financing Authority, a minister or ministry, for any act, omission, neglect or default in good faith done or omitted to be done in connection with implementing or complying with an authorization under subsection (2). 1996, c. 29, s. 3.

Agreements not affected

(8) Subsection (7) shall not be construed to limit the validity or enforceability of any agreement made or purporting to be made pursuant to an authorization under subsection (2). 1996, c. 29, s. 3.

PART III
PUBLIC DEBT

Definition

17. In this Part,

“securities” means securities of Ontario, and includes Ontario Government stock, bonds, debentures, interest bearing and non-interest bearing treasury bills, notes and any other security representing part of the public debt of Ontario. R.S.O. 1990, c. F.12, s. 17.

Loans to be authorized

18. No money shall be raised by way of loan by the Crown except under this or any other Act of the Legislature. R.S.O. 1990, c. F.12, s. 18.

Money raised a charge on Con. Rev. Fund

19. All money raised by way of loan and the interest thereon and the principal amount of and interest and premiums on all securities issued are a charge on and are payable out of the Consolidated Revenue Fund. R.S.O. 1990, c. F.12, s. 19.

Authorization to borrow

20. (1) If this or any other Act authorizes a sum of money to be borrowed or raised by way of loan on behalf of Ontario, the Lieutenant Governor in Council may by order authorize the Minister of Finance to borrow a specified sum not exceeding the maximum amount authorized by the Act or Acts that authorize the borrowing, and, for the purpose of borrowing that sum, the Minister of Finance is authorized on behalf of Ontario,

(a) to issue and sell from time to time one or more issues of securities to the maximum aggregate principal amount specified and at such discount or premium as the Minister of Finance considers advisable;

(b) to determine the rate or rates of interest payable by Ontario in respect of a security issued and sold by Ontario, or to issue and sell a security without interest and at such price or prices less than the principal amount repayable on the maturity of the security as, in the opinion of the Minister of Finance, reflect the rate of interest and market conditions current for the security at the time of its issue and sale and in the place or places where it is issued and sold;

(c) to determine, as a term of a security and on such terms and conditions as the Minister of Finance approves, that some or all of the principal repayable on the security or the rate of interest payable shall be calculated and paid by reference to changes in the value of,

(i) a stock or commodity specified by the Minister of Finance or an index of stocks or commodities specified by the Minister of Finance,

(ii) the Consumer Price Index for Canada, as published by Statistics Canada under the Statistics Act (Canada), or

(iii) any other index or basis of reference specified by the Minister of Finance;

(d) to determine with respect to a security to be issued and sold the form in which it is issued and sold, the length of the term to maturity, the time and manner of the payment of interest, if any, the amount and conditions of any payment of any premium payable, and the currency in which any interest, premium or principal is to be paid;

(e) to make a security redeemable or payable in advance of maturity on such terms and conditions as to time and place as the Minister of Finance considers appropriate at the time of the issue and sale of the security;

(f) to approve, and cause to be delivered or filed when required, any registration statement, prospectus, offering circular or other document, including any amendment or supplement to any of them, required in any jurisdiction with respect to the issue and sale of securities by Ontario, and to supply all financial and other information required to be shown in any of them;

(g) to enter into an underwriting, fiscal agency, exchange rate agency, paying agency, trust, registrar or other agreement considered by the Minister of Finance to be necessary or desirable with respect to the issue and sale of securities;

(h) to execute all documents and instruments, and do all other acts and things, for the issue and sale of any securities or to effect or maintain their registration, qualification, exemption from registration or exemption from qualification for issue, offer, sale or trade in accordance with any applicable legislation, and when considered desirable by the Minister of Finance, for the listing of any securities on a Canadian or other stock exchange;

(i) to settle the commission to be paid to an underwriter or to an agent acting for Ontario with respect to the issue and sale of securities;

(j) to provide, as a term of a security, for the payment by Ontario of additional amounts to compensate for present or future withholding taxes, duties, assessments or charges imposed by law on or with respect to a payment under the security to the holder of it;

(k) to provide, as a term of a security and on such terms and conditions as the Minister of Finance approves, that the security may be exchanged for another security previously issued and sold by Ontario to raise money by way of loan under this or any other Act if the exchange will not increase the total outstanding principal amount of debt owed by Ontario;

(l) to borrow money from a bank, corporation, government, person or authority by way of loan repayable on demand or at a fixed time and raised by way of bank overdraft, loan agreement or the giving of short term security by Ontario as the Minister of Finance considers advisable and expedient within such maximum principal amount as may be specified by the Lieutenant Governor in Council in the order under this subsection. 1991, c. 55, s. 8; 1994, c. 17, s. 62 (2).

Maximum borrowing authority to be stated

(2) If an order is made under this section for the purpose of borrowing or raising by way of loan money authorized to be borrowed or raised by way of loan by one or more Acts other than this Act, the order shall state the maximum aggregate amount that the Minister of Finance may borrow under the authority of the order to be an amount that does not exceed the maximum amount authorized and not borrowed under the Act or Acts at the date of the order. 1991, c. 55, s. 8; 1994, c. 17, s. 62 (2).

Borrowing under two or more Acts

(3) An order under this section may authorize the Minister of Finance to issue and sell securities to borrow or raise by way of loan a sum of money representing the amounts that, at the time the order is made, are authorized to be borrowed or raised by way of loan under two or more Acts, and the securities issued and sold under that authority are exchangeable for other securities issued and sold under that authority on the terms and conditions established by the Minister of Finance or as otherwise provided by this Act. 1991, c. 55, s. 8; 1994, c. 17, s. 62 (2).

Payment of interest and discounts

(4) An order of the Lieutenant Governor in Council under this section may specify a maximum rate of interest that may be paid by the Minister of Finance on an interest bearing security or a maximum rate of interest by which the principal amount repayable on a security bearing no interest may be discounted in determining the price to be paid to Ontario for the issue and sale of the security before any deduction for commissions or expenses. 1991, c. 55, s. 8; 1994, c. 17, s. 62 (2).

Limitation on Minister of Finance’s authority

(5) In an order under this section, the Lieutenant Governor in Council may impose any condition, restriction or limitation specified in the order with respect to the exercise by the Minister of Finance of a power or authority contained in this section. 1991, c. 55, s. 8; 1994, c. 17, s. 62 (2).

Delegation

(6) In an order under this section, the Lieutenant Governor in Council may delegate to a public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in the Ministry of Finance, other than in the office of the Minister of Finance, or to a solicitor engaged to act for the Minister of Finance, any or all of the powers of the Minister of Finance under this section. 1991, c. 55, s. 8; 1994, c. 17, s. 62 (2); 2006, c. 35, Sched. C, s. 42 (2).

Short term securities

(7) If an order of the Lieutenant Governor in Council under this section expressly refers to this subsection and authorizes the Minister of Finance to raise by way of loan a maximum amount of money by the issue and sale of short term securities during a specified period not exceeding twenty-five years, the following terms and conditions apply:

1. Throughout the specified period, the Minister of Finance may issue, reissue, renew or replace securities issued under the order during the period if the maximum aggregate principal amount, determined in accordance with this Act, of securities issued under the order and outstanding from time to time does not at any time exceed the maximum amount specified in the order.

2. Every security issued under the authority of the order shall bear a date of maturity not later than three years from its date of issue.

3. Subject to paragraph 2, the Minister of Finance may determine the date of issue and maturity of the security, the rate and date or dates of payment of interest, if any, on the security, and may sell the security for such price or prices and upon such other terms and conditions as the Minister of Finance considers appropriate.

4. A security to which this subsection applies shall not be paid, renewed, repaid or replaced under section 21.

5. The borrowing limitation under any Act under the authority of which money has been borrowed by the issue of short term securities under this subsection shall be reduced by the maximum amount stated in the order referred to in this subsection. 1991, c. 55, s. 8; 1994, c. 17, s. 62 (2).

Additional borrowing authorized

21. In addition to all money authorized by any other Act to be borrowed or raised by way of loan, the Lieutenant Governor in Council may raise money by way of loan or by the issue and sale of securities for any of the following purposes:

1. The payment, renewal, repayment or replacement of the whole or any part of any loan raised or securities issued under this or any other Act, if the money is borrowed or the securities are issued for that purpose within the period commencing one year before and ending one year after the date the loan or security being paid, renewed, repaid or replaced becomes due or matures or is purchased and cancelled by Ontario before the date it becomes due or matures, even if the money borrowed or the issue and sale of securities for that purpose may increase the amount of the public debt or extend the term of years, if any, fixed by the Act that authorized the raising of the loan or the issue and sale of the securities being paid, renewed, repaid or replaced.

2. Payment of the whole or any part of a loan, security, liability or other obligation of any kind, payment of which is guaranteed or assumed by Ontario or that Ontario has agreed to indemnify.

3. The provision of funds, in an amount determined by the Lieutenant Governor in Council on the recommendation of the Minister of Finance, that are required for the expenditures of the Government of Ontario for a period not exceeding twelve months if, at the time the borrowing is authorized by the Lieutenant Governor in Council, the Legislature is prorogued or dissolved and there is insufficient authority under any other Act to borrow the amount, but no loan authorized or securities authorized to be issued and sold for the raising of the amount shall be for a period longer than one year or be paid, renewed, repaid or replaced under paragraph 1. 1991, c. 55, s. 9; 1994, c. 17, s. 62 (2); 2006, c. 33, Sched. J, s. 3.

Guarantee or indemnity authorized

22. (1) The Lieutenant Governor in Council may by order authorize the Minister of Finance, on behalf of Ontario, to agree to guarantee or indemnify the debts, obligations, securities or undertakings of any person. 1991, c. 55, s. 9; 1994, c. 17, s. 62 (2).

Terms and conditions

(2) In respect of a guarantee or indemnity authorized under subsection (1), the Lieutenant Governor in Council may fix such terms and conditions as are considered advisable or may authorize the Minister of Finance, subject to any maximum liability specified for the guarantee or indemnity by the Lieutenant Governor in Council, to determine the terms, conditions and amount on which the guarantee or indemnity will be given. 1991, c. 55, s. 9; 1994, c. 17, s. 62 (2).

Application

(3) This section does not apply to authorize the giving of a guarantee or indemnity that the Lieutenant Governor in Council or the Crown or the Minister of Finance is authorized by any other Act to give. 1991, c. 55, s. 9; 1994, c. 17, s. 62 (2).

Guarantee fee

(4) In respect of a guarantee or indemnity authorized under this section or under any other Act, the Lieutenant Governor in Council may require the payment to the Minister of Finance of an annual or other fee fixed by the order authorizing the guarantee or indemnity or computed in accordance with the regulations made under this Act, and the fee is payable as a debt due to the Crown. 1991, c. 55, s. 9; 1994, c. 17, s. 62 (2).

Temporary bank loans not exceeding $4 billion authorized

23. (1) In addition to all money authorized to be raised by way of loan by this or any other Act, the Minister of Finance, subject to the approval of the Lieutenant Governor in Council, may borrow from time to time for the purposes,

(a) of discharging any indebtedness or obligation of Ontario;

(b) of making any payment authorized or required by any Act to be made out of the Consolidated Revenue Fund; or

(c) of reimbursing the Consolidated Revenue Fund for any moneys expended for any such purposes,

by way of temporary loan for not more than 365 days from any bank, corporation, government, person or authority, such sums not exceeding at any one time $4,000,000,000, as the Minister of Finance considers necessary, either by way of bank overdraft or loan or in any other manner whatsoever. R.S.O. 1990, c. F.12, s. 23 (1); 1991, c. 55, s. 10; 1994, c. 17, s. 62 (2); 1996, c. 24, s. 37 (1).

Execution of instruments

(2) Any cheques, written authorizations, promissory notes or other instruments that may be necessary or desirable for the purposes of subsection (1) may be executed by the Minister of Finance in such manner as the Minister of Finance may determine. R.S.O. 1990, c. F.12, s. 23 (2); 1994, c. 17, s. 62 (2).

Limitation

(3) A loan under this section shall not be paid, renewed, repaid or replaced under paragraph 1 of section 21. 1996, c. 24, s. 37 (2).

Recitals and declarations

24. (1) A recital or declaration of any thing in an order of the Lieutenant Governor in Council made under this Part is conclusive evidence of the thing and is binding on Ontario in respect of any act done, money paid or lent or agreement entered into in reliance on the recital or declaration. 1991, c. 55, s. 11.

Official Notices Publication Act

(2) Clause 2 (c) of the Official Notices Publication Act does not apply with respect to an advertisement, notice or publication that is required by a security issued and sold under this Act, by a loan made to Ontario under this Act or by an agreement entered into, or a document or instrument issued, by or for the Minister of Finance in connection with such a security or loan. 1997, c. 43, Sched. F, s. 4 (2).

Borrowing in foreign currencies authorized

25. A security issued and sold under the authority of this Act, and money borrowed under the authority of this or any other Act, may be made payable or repayable in the currency or currencies of any country or in a currency prescribed by the regulations made under this Act. 1991, c. 55, s. 12.

Calculation of borrowing limit

26. (1) For the purpose of computing a borrowing limit under this or any other Act, the amount borrowed or raised by way of loan or by the issue and sale of securities is the amount expressed in Canadian dollars determined in accordance with subsections (2), (3) and (4) in cases to which they apply and, in all other cases, is the principal amount in Canadian dollars that is to be paid by Ontario on the maturity date of the loan or security. 1991, c. 55, s. 12; 1996, c. 24, s. 38 (1).

Loans in foreign currency

(2) If, under the authority of this or any other Act, money is borrowed or securities are issued and sold in a currency other than Canadian dollars, the amount borrowed or the amount for which the securities were sold shall be deemed, in Canadian dollars, to be the amount that would be realized by converting to Canadian dollars the amount of the loan or the amount received by Ontario on the sale of the securities, before any deduction for commission, expenses or other similar costs of their issue and sale, at the Bank of Canada Canadian dollar noon spot exchange rate for that currency on the day that is,

(a) a day on which the Bank of Canada provided a Canadian dollar noon spot exchange rate for that currency; and

(b) before and as close as possible to the day when the money is borrowed or securities are sold. 1996, c. 24, s. 38 (2).

Securities sold at a discount or premium

(3) If, under the authority of this Act, a security is issued and sold for an amount payable to Ontario before deduction for commission, expenses or similar costs of issue and sale that is not the amount of principal stated in the security to be payable on its maturity, the amount for which the security was sold by Ontario shall be deemed to be the amount received by Ontario for the sale before deduction for commission, expenses or similar costs of issue and sale, converted to Canadian dollars, where applicable, in accordance with subsection (2). 1991, c. 55, s. 12.

Foreign currency securities refinanced under section 21

(4) The Canadian dollar equivalent of the sum that may be raised under section 21 for the payment, renewal, repayment or replacement of a loan or security denominated in a currency other than Canadian dollars is,

(a) when the sum is raised on or before the day the loan or security becomes due or matures, the amount that would be realized by converting to Canadian dollars the amount of the loan or security at the Bank of Canada Canadian dollar noon spot exchange rate for the currency in which the loan or security is denominated on the day that is,

(i) a day on which the Bank of Canada provided a Canadian dollar noon spot exchange rate for that currency, and

(ii) before and as close as possible to the day when the money is borrowed or the security is sold to raise the sum; or

(b) when the sum is raised after the day the loan or security became due or matured, the amount that would be realized by converting to Canadian dollars the amount of the loan or security at the Bank of Canada Canadian dollar noon spot exchange rate for the currency in which the loan or security is denominated on the day that is,

(i) a day on which the Bank of Canada provided a Canadian dollar noon spot exchange rate for that currency, and

(ii) before and as close as possible to the day when the loan or security became due or matured. 1996, c. 24, s. 38 (3).

Bank of Canada rate not available

(5) If, in respect of a foreign currency to be converted to Canadian dollars in accordance with subsection (2) or (4), the Bank of Canada has not quoted a Canadian dollar noon spot exchange rate in the 10 days immediately preceding the day described in clause (2) (b), subclause (4) (a) (ii) or subclause (4) (b) (ii), as the case requires, the conversion shall be at the Canadian dollar exchange rate for that currency quoted on a day and by a financial service or financial institution acceptable to the Minister of Finance. 1996, c. 29, s. 4 (1).

Power to change form of debt

26.1 (1) In addition to any authority in any other Act for money to be borrowed or raised by way of loan, the Lieutenant Governor in Council may change the form of any part of the debt of Ontario by authorizing the issue under this Act of a security or class of securities to be exchanged for any securities or class of securities if,

(a) the present value of the security to be exchanged is equivalent to the present value of the security for which it is exchanged; and

(b) the consent of the registered holder of the security to be exchanged is obtained before the exchange takes place. 1991, c. 55, s. 12.

Exchange for unissued securities

(2) Despite this or any other Act, the Minister of Finance, on any terms and conditions he or she approves, may determine as a term of a security issued under this Act that the security may be exchanged for one or more securities of Ontario to be subsequently issued with a maturity, rate of interest or other terms and conditions different from those contained in the security for which it is to be exchanged if the exchange will not increase the total outstanding principal amount of debt owed by Ontario. 1996, c. 24, s. 39.

Same

(3) The Minister of Finance may, without further order of the Lieutenant Governor in Council, issue securities of Ontario to effect the exchange in accordance with the terms and conditions of the security that provide for the exchange. 1996, c. 24, s. 39.

Borrowing limit not affected

(4) The subsequent issue of securities under subsection (3) shall not be taken into account in computing a borrowing limit under this or any other Act. 1996, c. 24, s. 39.

Application of section 21

(5) Section 21 does not apply with respect to securities exchanged for subsequently issued securities pursuant to subsection (2). 1996, c. 24, s. 39.

Exemption from taxation

27. The Lieutenant Governor in Council may direct that securities, the money invested therein and the interest thereon shall be free from all taxes, succession duties, charges and impositions now or hereafter imposed by Ontario and by any taxing authority thereof or therein. R.S.O. 1990, c. F.12, s. 27.

Minister of Finance’s approval before increasing provincial liabilities

28. (1) Despite any other Act, a ministry shall not enter into any financial arrangement, financial commitment, guarantee, indemnity or similar transaction that would increase, directly or indirectly, the indebtedness or contingent liabilities of Ontario, or seek the approval of the Lieutenant Governor in Council to enter into any such arrangement, commitment, guarantee, indemnity or transaction, unless,

(a) the ministry has obtained the written approval of the Minister of Finance; or

(b) the arrangement, commitment, guarantee, indemnity or transaction belongs to a class that has been approved by the Minister of Finance in writing for the purpose of this section. 1991, c. 55, s. 13; 1994, c. 17, s. 62 (2).

Liability not binding or enforceable without approval, unless exempted

(2) A financial arrangement, financial commitment, guarantee, indemnity or similar transaction that a ministry purports to enter into contrary to subsection (1) on or after the date this subsection comes into force is not binding on or enforceable against any ministry, unless the Minister of Finance exempts it in writing from the application of this subsection. 2002, c. 8, Sched. B, s. 11; 2002, c. 22, s. 71.

Approvals and exemptions may be subject to terms and conditions

(3) The Minister of Finance may make written approvals under subsection (1) and written exemptions under subsection (2), subject to such terms and conditions as the Minister of Finance considers advisable. 2002, c. 8, Sched. B, s. 11.

Execution of securities

29. The Lieutenant Governor in Council may provide for the manner of executing securities and the coupons, if any, attached thereto, and may provide that any signature or signatures upon the securities and the coupons attached thereto may be engraved, lithographed, printed or otherwise mechanically reproduced. R.S.O. 1990, c. F.12, s. 29.

Contents and conditions of securities

30. The Lieutenant Governor in Council may provide that any securities to be issued shall contain or be subject to such conditions or provisions, including conditions or provisions with respect to the registration and transfer thereof and with respect to the exchange of securities of one form or denomination for securities of a different form or denomination of equivalent aggregate principal amount and bearing the same rate of interest, as he or she considers expedient. R.S.O. 1990, c. F.12, s. 30.

Registrars and fiscal agents

31. (1) The Lieutenant Governor in Council may,

(a) appoint one or more registrars to perform such services in respect of the registration of securities as he or she prescribes;

(b) appoint one or more fiscal agents to perform such services in respect of loans as he or she prescribes;

(c) prescribe the duties of registrars and fiscal agents;

(d) fix the remuneration or compensation of any such registrar or fiscal agent. R.S.O. 1990, c. F.12, s. 31 (1).

Accounting by fiscal agents and registrars

(2) Every registrar and fiscal agent shall as often as required by the Minister of Finance give to the Minister of Finance an accounting, in such form and containing such information as the Minister of Finance may prescribe, of all the registrar’s or fiscal agents transactions as registrar or fiscal agent. R.S.O. 1990, c. F.12, s. 31 (2); 1994, c. 17, s. 62 (2).

Officers not bound to see to trust

32. No officer or person employed in the inscription, registration, transfer, management or redemption of any securities, or in the payment of any interest thereon, is bound to see to the execution of any trust, expressed or implied, to which such securities are subject, or is liable in any way to any person for anything so done by the officer or person so employed. R.S.O. 1990, c. F.12, s. 32.

Payment of lost securities

33. In the event of the loss of any securities or interest coupons thereon by a holder thereof, the Minister of Finance may pay the amount thereof out of the Consolidated Revenue Fund and may take a bond in such amount and in such form as the Minister of Finance considers advisable indemnifying Ontario against loss in respect of such payment. R.S.O. 1990, c. F.12, s. 33; 1994, c. 17, s. 62 (2).

Sinking funds

34. The Lieutenant Governor in Council may provide for the creation and management of a special sinking fund with respect to any issue of securities or of a general sinking fund with respect to such securities as have been or are hereafter issued without provision for a sinking fund with respect to them. R.S.O. 1990, c. F.12, s. 34.

Payment of loan expenses out of Con. Rev. Fund

35. All money required to provide a sinking fund or otherwise required to secure repayment of securities, the remuneration and compensation of registrars and fiscal agents and all costs, expenses and charges incurred in the negotiation or raising of loans or in the issue, redemption, servicing, payment and management of any loan and any securities issued in respect thereof may be paid out of the Consolidated Revenue Fund. R.S.O. 1990, c. F.12, s. 35.

Power to cancel securities acquired on sinking fund account

36. The Minister of Finance may cancel securities that come into the Minister of Finance’s hands through purchase for sinking fund or otherwise, and upon cancellation such securities cease to be a charge upon the Consolidated Revenue Fund. R.S.O. 1990, c. F.12, s. 36; 1994, c. 17, s. 62 (2).

Securities to state authority

37. Every security issued pursuant to this Act shall contain in the body of the security a statement to that effect. R.S.O. 1990, c. F.12, s. 37.

Regulations

38. The Lieutenant Governor in Council may make such regulations as he or she considers necessary,

(a) for the management of the public debt;

(b) for the inscription of any securities;

(c) for the registration, transfer, exchange, redemption, cancellation and destruction of securities;

(c.1) prescribing fees for the purpose of section 8.1;

(c.2) defining “non-cash expense” and prescribing non-cash expenses and classes of non-cash expenses for the purposes of subsection 11.1 (3);

(c.3) prescribing the manner in which fees shall be computed for the purpose of subsection 22 (4);

(c.4) prescribing as a currency for the purpose of section 25 the European Currency Unit or any monetary unit or composite monetary unit generally recognized in international commerce;

(d) prescribing a rate of interest per annum for the purpose of subsection 39 (3). R.S.O. 1990, c. F.12, s. 38; 1991, c. 55, s. 14; 2002, c. 8, Sched. B, s. 12.

PART IV
CIVIL LIABILITY

Notice to person failing to pay over public money

39. (1) Where the Minister of Finance has reason to believe that a person,

(a) has received money for the Crown and has not paid it over;

(b) has received money for which the person is accountable to the Crown and has not accounted for it; or

(c) has in the person’s hands any public money applicable to a purpose and has not applied it to that purpose,

the Minister of Finance may give notice to such person, or to his or her personal representative in case of his or her death, requiring the person within such time from the service of the notice as is stated therein, to pay over, account for, or so apply such money, as the case may be, and to transmit to the Minister of Finance proper vouchers that the person has done so. R.S.O. 1990, c. F.12, s. 39 (1); 1994, c. 17, s. 62 (2).

Service of notice

(2) The notice may be served by delivering a copy to the person to whom it is addressed or by leaving it for the person at the person’s usual place of residence. R.S.O. 1990, c. F.12, s. 39 (2).

Proceedings where notice not complied with

(3) Where a person fails to comply with the notice given under subsection (1) within the time stated therein, the Minister of Finance may state an account between the Crown and such person showing the amount of the money not paid over, accounted for or applied, as the case may be, and, in the discretion of the Minister of Finance, charging interest on the whole or any part thereof at a rate of interest per annum prescribed by the Lieutenant Governor in Council from such date as the Minister of Finance may determine, and in any proceedings for the recovery of such money a copy of the account so stated by the Minister of Finance, certified by him or her, is admissible in evidence as proof, in the absence of evidence to the contrary, that the amount stated therein, together with interest, is due and payable to the Crown, without proof of the signature of the Minister of Finance or his or her official character, and without further proof thereof, and such amount and interest may be recovered as a debt due to the Crown in any court of competent jurisdiction. R.S.O. 1990, c. F.12, s. 39 (3); 1994, c. 17, s. 62 (2).

Unapplied public money for purpose to be applied out of Con. Rev. Fund

40. Where a person has received public money to be applied to a purpose and has not so applied it and a notice has been given under subsection 39 (1), an equal sum out of the Consolidated Revenue Fund may in the meantime be applied to the purpose to which such sum ought to have been applied. R.S.O. 1990, c. F.12, s. 40.

Evidence

41. Where it appears,

(a) by the books or accounts kept by or in the office of any person employed in the collection or management of the revenue;

(b) in any accounting by such person; or

(c) by the person’s written acknowledgment or confession,

that such person has, by virtue of the person’s office or employment, received money belonging to the Crown and has neglected or refused to pay it over to the proper persons at the proper times, an affidavit deposing to such facts, taken by any person having knowledge thereof, is, in any proceedings for the recovery of such money, admissible in evidence as proof, in the absence of evidence to the contrary, of the facts stated therein. R.S.O. 1990, c. F.12, s. 41.

Liability for loss

42. Where by reason of any malfeasance, nonfeasance or misfeasance by a person employed in collecting or receiving any public money, any sum of money is lost to the Crown, such person is accountable for such sum as if the person had collected and received it and it may be recovered from the person as if the person had collected and received it. R.S.O. 1990, c. F.12, s. 42.

Collection of debt by set-off

Definitions

43. (1) In this section,

“Crown” includes any agency of the Crown; (“Couronne”)

“overpayment” means a payment of money to which the recipient is not entitled at the time of the payment or to which the recipient ceases to be entitled at any time after the payment. (“paiement en trop”) R.S.O. 1990, c. F.12, s. 43 (1); 2006, c. 33, Sched. J, s. 4 (1).

Set-off

(2) If, in the opinion of the Minister of Finance, a person is indebted to the Crown or the Crown in right of Canada in any specific sum of money or has received an overpayment of a specified sum from the Crown, the Minister of Finance may,

(a) retain by way of deduction or set-off, out of any money that is due and payable by the Crown in right of Ontario to such person, such sum as the Minister of Finance sees fit in the circumstances; and

(b) pay such sum to such public officer as the Minister of Finance thinks appropriate to receive it. R.S.O. 1990, c. F.12, s. 43 (2); 1994, c. 17, s. 62 (2); 2006, c. 33, Sched. J, s. 4 (2).

Books, etc., property of the Crown

44. All books, papers, accounts and documents kept or used by, or received or taken into the possession of any person who is or has been employed in connection with the collection, management, disbursement or accounting of public money, by virtue of that employment, shall be deemed to be chattels belonging to the Crown, and all money and valuable securities received or taken into the possession of any such person by virtue of the person’s employment shall be deemed to be money and valuable securities belonging to the Crown. R.S.O. 1990, c. F.12, s. 44.

Nothing in this Act to impair other remedies of the Crown

45. Nothing in this Act affects any remedy that the Crown by virtue of any other Act or law has for recovering or enforcing the payment or delivering of any money or property belonging to the Crown and in the possession of any person or any remedy that the Crown or any person has against such person or the person’s sureties or against any other person. R.S.O. 1990, c. F.12, s. 45.

PART V
RECIPROCAL TAXATION AGREEMENTS

Reciprocal taxation agreements

46. (1) The Minister of Finance may enter into reciprocal taxation agreements with the Government of Canada relating to the payment, collection and remittance of taxes, including provisions relating to,

(a) the payment by the Crown of tax payable under the Excise Tax Act (Canada), other than tax payable under Part IX of that Act, as though that Act, other than Part IX, applied to Ontario;

(b) the payment by the Crown of tax under Part IX of the Excise Tax Act (Canada), as if that Act applied to Ontario in respect of,

(i) supplies of property or services acquired by provincial entities, and

(ii) supplies of property or services acquired in the name of a person or entity other than the Crown;

(c) the application by Ontario provincial entities to receive refunds, input tax credits, rebates and remissions under the Excise Tax Act (Canada);

(d) the collection and remittance by the Crown of tax payable by third parties under the Excise Tax Act (Canada);

(e) the payment of interest, but not penalties, in respect of any amount collectible by the Crown under the Excise Tax Act (Canada);

(f) the payment or the collection and remittance by the Crown in right of Canada of any tax, interest or fee imposed under the laws of Ontario or required to be collected and remitted under the laws of Ontario. 2006, c. 33, Sched. J, s. 5.

Payment out of Consolidated Revenue Fund

(2) All amounts authorized to be paid by the Crown under a reciprocal taxation agreement may be paid out of the Consolidated Revenue Fund at such times and in such manner as the agreement provides. 2006, c. 33, Sched. J, s. 5.

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