the rural telephone act

The Rural Telephone Act

being

Chapter 137 of The Revised Statutes of Saskatchewan, 1940(effective February 1, 1941).

NOTE:This consolidation is not official. Amendments have been incorporated for convenience of reference and the original statutes and regulations should be consulted for all purposes of interpretation and application of the law. In order to preserve the integrity of the original statutes and regulations, errors that may have appeared are reproduced in this consolidation.

Table of Contents

SHORT TITLE1 Short title

INTERPRETATION2 Interpretation

PART IORGANIZATION

3 Organization of company4 Petition5 Company registered under Companies Act

6 Limit of capital7 Shares8 Disqualifications of shareholders

PART IIPowers and Duties of Companies

SERVICE AND INTERCHANGE OF SERVICE9 Duties as to service10 Common lead line11 Interchange of telephone service12 Agreement on order of minister

EXTENSION AND SALE OF SYSTEMS13 Extension of system14 Areas for systems15 Extension within municipality16 Sale of systems

ACQUIRING, TRANSFERRING ANDENTERING UPON LAND

17 Power to acquire lands18 Transfer of lands to another company19 Power to enter lands and premises20 Power to enter premises of subscribers

BOOKS AND ACCOUNTS21 Books and accounts

ADDITIONAL POWERS22 Additional powers of companies

MISCELLANEOUS DUTIES23 Annual guarantee bond24 Yearly statement to minister

PART IIIFinancial Provisions

LOANS AND DEBENTURES25 Power to borrow for construction, purchase or

extension of system26 Resolution authorizing loan27 Liability of occupant of Crown lands28 Notice of resolution29 Objections30 Documents transmitted to minister31 Submission by minister to Local Government Board32 Authorization by Local Government Board

33 Loan raised by debentures34 Requisites of debentures35 Debentures create lien on land36 Registration37 Effect of countersigning by minister38 Debenture register39 Application of proceeds40 Companies incorporated under authority of previous statutes

EXECUTIONS FOR NON-PAYMENT41 Non-payment of debenture when due

LEVY AND ASSESSMENT42 Annual levy43 Special levy by old companies44 Distribution of levy45 Annual statement46 Assessments47 Notice by minister48 Payment of taxes by council49 Arrears of taxes50 Charging back taxes51 Use of proceeds of increased levy

PART IVMISCELLANEOUS PROVISIONS

52 The Companies Act applicable53 Approval of Lieutenant Governor necessary54 Powers and liabilities of old companies continued55 Exemption from assessment and taxation56 Government assistance57 Regulations58 Forms59 Penalty

PART VVOLUNTARY WINDING UP OF COMPANIES

60 Modification of Companies Winding Up Act

61 Resolution authorizing application for Minister’s consent62 Notice of meeting63 Persons entitled to vote64 Notice of passing of resolution65 Objections66 Documents forwarded to minister67 Power of minister to authorize winding up68 Winding up prohibited unless authorized69 Liquidator to be approved by minister70 Winding up proceedings prohibited unless debentures fully paid71 Removal of pole lines, etc.72 Distribution of certain moneys73 Regulations74 Certain companies excepted

SCHEDULE

CHAPTER 137

An Act respecting Rural Telephone Systems

SHORT TITLE

Short title

1 This Act may be cited as The Rural Telephone Act.R.S.S. 1930, c.113, s.1; R.S.S. 1940, c.137, s.1.

INTERPRETATION

Interpretation

2 In this Act, unless the context otherwise requires, the expression:

“Company”

1. “Company” means a company organized under the provisions of this Act;

“Department”

2. “Department” means the Department of Telephones and Telegraphs;

“Foreign telephone system”

3. “Foreign telephone system” means a telephone system in operation outside Saskatchewan;

“Minister”

4. “Minister” means the Minister of Telephones and Telegraphs, or any other member of the Executive Council to whom the Lieutenant Governor in Council may for the time being assign the administration of this Act;

“Municipal telephone system”

5. “Municipal telephone system” means a telephone system constructed, maintained and operated under the provisions of The Municipal Telephone Act;

“Person”

6. “Person” includes a firm, company, corporation, municipal corporation, Government or an association or aggregation of individuals;

“Pole mile”

7. “Pole mile” means a lineal mile in any rural telephone system necessarily occupied by telephone poles strung with one or more wires for the use of such system;

“Private telephone system”

8. “Private telephone system” means a telephone system which by the law of the province any person has been authorized to construct, control or operate in Saskatchewan;

“Public telephone system”

9. “Public telephone system” means a telephone system under the control, management and operation of the minister;

“Resident occupant”

10. “Resident occupant” means a person actually residing on land which is chargeable with a levy for telephone purposes under this Act, as owner, tenant, lessee or purchaser under an agreement for sale;

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RURAL TELEPHONE SYSTEMSc. 137

“Resident shareholder”

11. “Resident shareholder” means a shareholder actually residing on land which is chargeable with a levy for telephone purposes under this Act, as owner, tenant, lessee or purchaser under an agreement for sale;

“Rural telephone system”

12. “Rural telephone system” means a telephone system owned, controlled and operated by a company under the provisions of this Act;

“Secretary”

13. “Secretary” means the secretary of a company, who shall also act as treasurer;

“Telegraph system”

14. “Telegraph system” means a system of telegraph or telephone lines or other means used for the transmission of telegraph messages and includes all plant, trunk lines, branch lines, stations, toll offices, exchanges, depots, instruments, equipment, poles, wires, property real and personal and works connected therewith;

“Telephone system”

15. “Telephone system” means a system of telephone lines or other means used for the transmission of communications by telephone and includes all plant, long distance lines, branch lines, stations, toll offices, exchanges, depots, instruments, equipment, poles, wires, cables, property real and personal and works connected therewith.

R.S.S. 1930, c.113, s.2; 1934, c.22, s.2; R.S.S. 1940, c.137, s.2.

PART I

ORGANIZATION

Organization of company

3 Any five or more persons residing in the province may petition the minister for permission to organize a company for the construction, maintenance and operation of a rural telephone system for their mutual benefit.

R.S.S. 1930, c.113, s.3; R.S.S. 1940, c.137, s.3.

Petition

4 Every petition shall be accompanied by:

(a) all plans, specifications, drawings and estimates of the proposed system required by the regulations of the department;

(b) a statement of the amount at which it is proposed to capitalize the company;

(c) a statement of the amount to be raised by the sale of debentures or otherwise for the purpose of providing for the system;

(d) satisfactory evidence that the majority of the resident occupants liable to be charged or taxed under this Act for telephone purposes are to be shareholders of the company;

(e) satisfactory evidence that there has been collected from the subscribers of the capital stock of the company a sum in cash amounting to at least $5 for each pole mile of the system proposed to be constructed.

R.S.S. 1930, c.113, s.4; R.S.S. 1940, c.137, s.4.

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RURAL TELEPHONE SYSTEMS c. 137

Company registered under Companies Act5(1) Upon receipt of the petition and upon being satisfied that the prayer of the petitioners should be granted, the minister shall grant the necessary permission, and notify to that effect the petitioners who may thereafter take all steps necessary to secure the organization, incorporation and registration of the company under The Companies Act.

(2) No fees or charges of any kind shall be payable in connection with the formation, incorporation or registration of a company, notwithstanding anything contained in The Companies Act to the contrary.

R.S.S. 1930, c.113, s.5; R.S.S. 1940, c.137, s.5.

Limit of capital

6 The capital of a company shall not exceed $10 for each pole mile of line to be constructed, but may with the approval of the minister be increased from time to time provided the reasons given in the application for the increase are satisfactory.

R.S.S. 1930, c.113, s.6; R.S.S. 1940, c.137, s.6.

Shares

7(1) The capital of every company shall be divided into shares of $5 each.

(2) No more than four shares nor less than one shall be allotted to any one subscriber.

(3) No subscriber shall take less than one share.

(4) The amount of the capital stock collected from the shareholders shall be available for defraying all costs and expenses of organization, and any balance thereafter remaining may be used for any of the purposes of the company.

(5) Shares may be inherited or, with the previous approval of the company, may be transferred in cases where a shareholder, in vacating premises and in relinquishing telephone service established thereon, wishes to transfer his share or shares to a succeeding occupant who applies to the company for continuance or reconnection of service at the same premises.

(6) Shares of companies incorporated under the provisions of chapter 7 of the statutes of 1908 or chapter 96 of The Revised Statutes of Saskatchewan, 1909, may be inherited, or may be transferred in cases where a shareholder, in vacating premises and in relinquishing telephone service established thereon, wishes to transfer his share or shares to a succeeding occupant who applies to the company for a continuance or reconnection of service at the same premises.

R.S.S. 1930, 113, s.7; 1936, c.40, s.2; R.S.S. 1940, c.137, s.7.

Disqualifications of shareholders

8(1) No shareholder from whose premises the telephone has been removed for non-payment of rental or for any other infraction of the company’s regulations shall be eligible for election as a director nor shall he be permitted to vote at any meeting of the company except in case of an addition to or sale of an existing system.

(2) No shareholder who ceases to be an occupant of land assessed by the company shall vote at any special or general meeting.

R.S.S. 1930, c.113, s.8; R.S.S. 1940, c.137, s.8.

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PART II

Powers and Duties of Companies

SERVICE AND INTERCHANGE OF SERVICE

Duties as to service

9(1) A company which provides a telephone system under this Act shall upon written request of any resident occupant furnish him with telephone service and charge for the same at the same rate as such service is supplied to other subscribers.

(2) Any person making such request shall:

(a) become a shareholder of the company and shall pay to the company upon his share or shares an amount at least equal to the minimum amount paid by any other shareholder; or

(b) have acquired a share or shares by inheritance, or by transfer with the previous approval of the company in the case of shares mentioned in subsection (5) of section 7.

(3) The sum required for the construction costs of furnishing telephone service to a resident occupant who applies to a company which has a system in operation may be raised by annual levy and may be taken into account in determining the amount to be levied on each parcel of land as set out in subsections (1) and (2) of section 44 and in section 45.

R.S.S. 1930, c.113, s.9; 1932, c.30, s.3; 1936, c.40, s.3; R.S.S. 1940, c.137, s.9.

Common lead line

10(1) An agreement that two or more companies shall construct or use a common telephone lead or reconstruct or improve such lead, or that a company shall make use of any long distance lead owned by the province may be entered into.

(2) Any sum payable under such an agreement, as an annual charge, other than for maintenance and repair, shall be regarded as part of the original cost of the telephone system and as such shall be taken into account in determining the amount to be levied annually on each parcel of land as set out in section 45.

R.S.S. 1930, c.113, s.10; R.S.S. 1940, c.137, s.10.

Interchange of telephone service

11 A company may subject to the approval of the minister enter into an agreement or agreements with any person owning, controlling or operating a private, foreign or other telephone system for the connection, intercommunication, joint operation, reciprocal use or transmission of business as between such system and the company’s rural telephone system, including such arrangements as shall be deemed advisable for the proper apportionment of expenditures and commissions, the division of receipts and profits, and the payment of compensation or such other adjustments as may be necessary.

R.S.S. 1930, c.113, s.11; R.S.S. 1940, c.137, s.11.

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Agreement on order of minister

12 If a company organized under this Act or a person owning, controlling or operating a private or other telephone system within Saskatchewan refuses or neglects to enter into an agreement for any or all of the purposes mentioned in sections 10 and 11, the minister may issue an order providing for the doing of any of the things mentioned in the said sections, upon such terms and conditions as he may deem advisable.

R.S.S. 1930, c.113, s.12; R.S.S. 1940, c.137, s.12.

EXTENSION AND SALE OF SYSTEMS

Extension of system

13(1) A company may undertake an extension of its telephone system with the approval of the minister upon furnishing him with the information called for by section 4 in so far as applicable to the proposed extension, and satisfactory evidence that:

(a) it has secured as shareholders a majority of the occupants residing on lands affected by the extension and liable, along with the lands included in previous debenture issues of the company, to be charged with payment of the debenture for the cost of the entire system including such extension, as provided by section 26; and

(b) each such shareholder has paid to the company in cash the price of at least one share of stock.

(2) The provisions of sections 30 to 33 shall apply to such extension in the same manner as to the construction of an original line.

(3) Subject to the approval of the minister, a company may, notwithstanding anything contained in this Act, pay the cost of constructing an extension to its system out of special tax levy funds if it furnishes him with satisfactory evidence that:

(a) it has secured as shareholders a majority of the resident occupants of lands affected by the extension; and

(b) each such shareholder has paid to the company in cash the price of at least one share of stock.

R.S.S. 1930, c.113, s.13; 1933, c.29, s.2; R.S.S. 1940, c.137, s.13.

Areas for systems

14 The minister may determine and define the area within which the system of any company shall be constructed.

R.S.S. 1930, c.113, s.14; R.S.S. 1940, c.137, s.14.

Extension within municipality

15 The Lieutenant Governor in Council may, subject to such terms and conditions as may be deemed advisable, grant to any company power and authority to construct, extend, maintain and operate any portion of its telephone system within the limits of any municipality.

R.S.S. 1930, c.113, s.15; R.S.S. 1940, c.137, s.15.

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Sale of systems

16(1) No sale or disposal by a company of any portion of its telephone system shall be made without the approval of the minister.

(2) In the order giving such approval due provision shall be made to protect the holders of every debenture issued by the company from being prejudiced with regard to their rights or securities.

(3) Every such order shall be binding upon all parties concerned to the same extent as though its provisions were part of this Act.

R.S.S. 1930, c.113, s.16; R.S.S. 1940, c.137, s.16.

ACQUIRING, TRANSFERRING AND ENTERING UPON LAND

Power to acquire lands

17(1) A company may by its surveyors, engineers, agents, workmen or servants at any time enter upon, take, use or acquire land or property in whomsoever vested required for its use, and may through its officers, agents and servants do all such acts and things on or in relation to such land or property as may be necessary, advisable or expedient for the construction, maintenance, extension or improvement of its telephone system.

(2) A company shall when required so to do compensate the owner or owners or persons interested therein for loss of or injury to land or property which it enters upon, takes, uses or acquires as provided by this section, and for all damages sustained by such owners or persons by the execution of the powers conferred upon the company.

(3) In case the amount of compensation cannot be mutually agreed upon by the parties concerned the same shall be determined in the manner provided by The Arbitration Act.

R.S.S. 1930, c.113, s.17; R.S.S. 1940, c.137, s.17.

Transfer of lands to another company

18(1) A transfer from one company to another of lands which by this Act are charged with a levy for telephone purposes may be arranged for and made by the minister by a written order setting forth the terms and conditions under which the transfer shall take place.

(2) In every order provision shall be made to protect any debenture holder concerned from being prejudicially affected in his security.

R.S.S. 1930, c.113, s.18; R.S.S. 1940, c.137, s.18.

Power to enter lands and premises

19(1) A company by its surveyors, engineers, agents, workmen or servants may, as often as is thought proper in the exercise of its powers, and without the consent of any municipal council or other authority enter upon and break and open up any highway, road, street, lane or other public place not within the limits of a city, town or village for the purpose of erecting poles and stringing wires or cables thereon or thereto.

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(2) In all cases the surface of the ground so broken or opened up shall be restored as far as possible to its former condition by and at the expense of the company.

(3) The company shall not interfere or permit or sanction the interference with the public right of travel, or in any way obstruct or permit the obstruction of the entrance to any door or gateway or the free access to any building or property, or unnecessarily cut down or mutilate or permit the cutting down or mutilation of trees.

R.S.S. 1930, c.113, s.19; R.S.S. 1940, c.137, s.19.

Power to enter premises of subscribers

20(1) A company may by its agents, workmen or servants enter into or upon the premises of any subscriber for the purpose of removing a telephone instrument for non-payment of rental or for any other infraction of the company’s regulations governing the use of the telephone.

(2) A person obstructing an agent, workman or servant in the performance of his duties under this section shall be guilty of an offence and liable on summary conviction to a fine not exceeding $20.

R.S.S. 1930, c.113, s.20; R.S.S. 1940, c.137, s.20.

BOOKS AND ACCOUNTS

Books and accounts

21(1) Every company operating a telephone system under this Act shall cause to be kept books and accounts of the assets and liabilities, receipts and disbursements for and on account of the system.

(2) Such books and accounts shall be kept in such form as may be prescribed by the minister, and shall be closed and balanced on the thirty-first day of December in each year.

(3) The company shall, as soon as may be after the thirty-first day of December in each year, have an audit of its books and accounts for the year ending on that date made by some duly qualified person, but no one who at the time the appointment is made or during the preceding year, is or was secretary of the company or who has any share or interest in a contract made by the company for the doing of any work or the supplying of labour or materials, or who is employed by the company in any other capacity than that of auditor, shall be appointed auditor.

(4) The company may appoint an incorporated company or partnership as auditor.

(5) The auditor shall, immediately upon completion of his audit, forward a copy of his report to the minister, certified correct, and, in default of so doing, shall be guilty of an offence and liable on summary conviction to a fine not exceeding $2 per day for every day during which the default continues.

(6) If within a period of three months after the thirty-first day of December in any year, a company fails to have an audit made of its books and accounts, as required by subsection (3), or if a company fails to transmit a statement of its standing and operation as required by subsection (1) of section 24, the minister may cause such audit and such statement to be made and the costs thereof, not exceeding $25, to be charged against the company.

R.S.S. 1930, c.113, s.21; 1933, c.29, s.3; R.S.S. 1940, c.137, s.21.

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ADDITIONAL POWERS

Additional powers of companies

22 In addition to all other powers conferred upon companies by this Act every company may subject to the approval of the minister:

(a) acquire by purchase, lease or otherwise any private or rural telephone system;

(b) dispose by sale, lease or otherwise of the whole or any portion of its system;

(c) make such rules and regulations for the maintenance, operation and management of its system as it deems advisable.

R.S.S. 1930, c.113, s.22; R.S.S. 1940, c.137, s.22.

MISCELLANEOUS DUTIES

Annual guarantee bond

23(1) In addition to the guarantee bond referred to in subsection (4) of section 37, every company shall obtain annually a bond or covenant of some guarantee company licensed to do business in the province for an amount sufficient to secure the due accounting by the secretary of the company for all moneys that come to his hands other than the proceeds of debentures.

(2) In case a company desires the department to arrange for and obtain such bond on its behalf the department shall do so upon receipt from the company of the amount required to be paid as premium for such guarantee.

(3) All bonds required by this section shall be in such form as shall be approved by the minister and shall be deposited and kept in the department for the benefit of the company.

R.S.S. 1930, c.113, s.23; R.S.S. 1940, c.137, s.23.

Yearly statement to minister

24(1) During the last week in January of each year the secretary of every company shall transmit to the minister, in such form as shall be prescribed by him, a statement of its standing and operation for the preceding year.

(2) The secretary of every company shall from time to time when called upon so to do furnish such additional information respecting the company and its telephone system as may be required by the department or any of its officers.

R.S.S. 1930, c.113, s.24; R.S.S. 1940, c.137, s.24.

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PART III

Financial Provisions

LOANS AND DEBENTURES

Power to borrow for construction, purchase or extension of system

25(1) Every company may raise by way of loan on debenture such amount as may be required for:

(a) constructing, reconstructing or improving a telephone system;

(b) purchasing or otherwise acquiring the use of the whole or any part of an existing system; and

(c) adding to or extending any such system.

(2) The total amount which may be borrowed under the provisions of this section shall not exceed, except by order of the minister, $350 per mile of the company’s system including any extension thereof.

R.S.S. 1930, c.113, s.25; R.S.S. 1940, c.137, s.25.

Resolution authorizing loan

26(1) Every loan shall be authorized by the directors at a regularly called meeting by passing a resolution in that behalf (form A), which resolution shall be duly entered in the minutes of the meeting.

(2) Subject to the provisions of subsection (4), every resolution shall contain an enumeration and description of all parcels of land which are to be charged with payment of the proposed loan, and of any instalment still to accrue of debenture indebtedness in respect of the original system and previous extensions.

(3) The land so to be described shall include:

(a) every quarter section on either side of the route of the proposed telephone line or lines or of any extension thereof where such extension is provided for under section 13;

(b) every quarter section any part of which lies within a distance of 100 yards from the proposed line or lines or any extension thereof when such extension is provided for under section 13;

(c) every parcel of land less than one quarter section in area when situated as described in clause (a) or (b).

(4) If any portion of a rural telephone system lies or is to be constructed within a city, town or village, none of the lands within such municipality shall be enumerated or described in the resolution.

(5) A parcel of land which is made subject under the provisions of this Act, to a levy for telephone purposes by a company shall not be subject to a levy by any other company until the debenture indebtedness of the first company is fully paid.

(6) The lots or blocks of land in a hamlet shall not be chargeable with a levy for the purposes of a rural telephone company nor shall it be obligatory upon a company to furnish a service to such lots or blocks.

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(7) When a company dismantles and entirely removes a portion of its system, or has heretofore done so, the company may, following a resolution of its board of directors to that effect, make application to the minister for the release of lands, located on any route on which all lines have been dismantled and removed, from liability to telephone tax levies.

(8) Such resolution and application shall be in accordance with form B, and the secretary of the company shall transmit to the minister a copy thereof, duly signed and bearing the seal of the company.

(9) Any release authorized under subsection (7) shall be subject to the following conditions:

1. No lands shall be released until the final yearly repayments of every debenture of the company, issued prior to the date of the complete removal of the disused portion of the system, have been fully made or provided for;

2. Until the final repayments mentioned in paragraph 1 have been fully made or provided for the tax levies on the lands shall be the same in each year as those made against all other assessable lands;

3. Notwithstanding the provisions of section 9, the company shall not be obliged to furnish service to lands which have been released from liability to telephone tax levies; and service applications may then be considered as involving an extension to the system and dealt with in accordance with the provisions of section 13;

4. A company shall not be required to dismantle and remove any portion of its system at the instance of any person whose object is to release lands from liability to telephone tax levies;

5. Where the directors of a company allow any temporarily disused portion of its lines to remain in place for the purpose of ultimately re-establishing services to former subscribers or other resident occupants, such lines shall not be allowed to fall into a neglected and hazardous condition.

R.S.S. 1930, c.113, s.26; 1933, c.29, s.4; R.S.S. 1940, c.137, s.26.

Liability of occupant of Crown lands

27 Where the title to a parcel of land, otherwise chargeable with payment of a proposed loan, is in the Crown, the land itself shall not be liable for any levy under this Act, but the occupant may be personally charged therewith in respect of his occupancy.

R.S.S. 1930, c.113, s.27; R.S.S. 1940, c.137, s.27.

Notice of resolution

28(1) Upon the passing of a resolution as provided for in section 26, the secretary of the company shall forthwith send by registered mail to the address of each resident shareholder and other resident occupant of the lands enumerated in the resolution, a notice (form C) setting forth the decision of the company respecting the proposed loan.

(2) The secretary of the company shall also, within three days of the passing of the resolution, post notices (form C) in all school houses, post offices and other public places throughout the district in which the lands to be taxed are situated.

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(3) The foregoing provisions of this section shall not apply where the money to be raised by the issue of a debenture is to be expended for the purpose of giving service only to lands already subject to assessment and taxation by the company.

R.S.S. 1930, c.113, s.28; R.S.S. 1940, c.137, s.28.

Objections

29 If a resident shareholder or other resident occupant objects to the proposed loan he shall within twenty days from the date of the mailing of the notice furnish the secretary of the company with a written statement of his objections.

R.S.S. 1930, c.113, s.29; R.S.S. 1940, c.137, s.29.

Documents transmitted to minister

30 After the lapse of twenty days from the date on which the last notices were mailed under section 28, the secretary shall transmit to the minister:

(a) a copy of the said resolution certified as correct and attested by the signatures of the president and secretary of the company;

(b) a statutory declaration by the secretary of the company (form D) that all notices have been delivered as provided by section 28;

(c) any objections to the proposed loan received by the secretary under the provisions of section 29;

(d) a copy of the notice posted with a list of the places where such posting was done, giving in each case the quarter section, township and range.

R.S.S. 1930, c.113, s.30; R.S.S. 1940, c.137, s.30.

Submission by minister to Local Government Board

31 Upon receipt of the documents referred to in section 30 and upon being satisfied that:

(a) the several conditions required by this Act have been substantially complied with; and

(b) the estimated expenditure for the proposed work is reasonable and necessary for the purposes for which it is to be made;

the minister shall submit to the Local Government Board a statement to that effect.

R.S.S. 1930, c.113, s.31; R.S.S. 1940, c.137, s.31.

Authorization by Local Government Board

32(1) Notwithstanding anything in The Local Government Board Act, the Local Government Board, upon receipt of such statement and upon satisfying itself that the security for the debenture is sound, shall authorize in writing the issue of debentures to an amount which will, in the opinion of the board, yield on sale the sum stated by the minister to be necessary, and shall publish notice of such authorization in The Saskatchewan Gazette.

(2) Every notice shall contain, in addition to other particulars, a description and enumeration of the lands to be charged with the repayment of the debentures authorized.

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(3) In case:

(a) lands liable to be charged, under section 26, with repayment of debentures authorized are not included in the notice referred to in subsections (1) and (2); or

(b) a company, from the proceeds of sale of debentures or special tax levy funds, constructs an extension to its system under the provisions of section 13 making further lands liable to be charged with repayment of the debentures, or otherwise liable to be taxed for telephone purposes under this Act;

the Local Government Board may publish a list of such lands in the Gazette, whereupon the lands shall be charged with repayment of the debentures; and all telephone taxes previously levied against the said lands shall thereby be validated and the lands shall thereafter be liable for levy in the same manner as if they had been included in the original notice.

R.S.S. 1930, c.113, s.32; 1933, c.29, s.5; R.S.S. 1940, c.137, s.32.

Loan raised by debentures

33(1) Every loan shall be raised by the issue and sale of a debenture or debentures of the company (form E) and the proceeds of the sale together with any interest that may accrue thereon shall be deposited in a chartered bank to the credit of the company in a special account to be drawn on from time to time as expenditures are made for the purpose of constructing, adding to or improving its telephone system.

(2) No such expenditure shall be made on account of ordinary maintenance and repair or for operation.

R.S.S. 1930, c.113, s.33; R.S.S. 1940, c.137, s.33.

Requisites of debentures

34(1) Every debenture issued under the provisions of this Act:

(a) shall run for such period not exceeding fifteen years as set forth in the resolution referred to in section 26;

(b) shall not bear interest at a greater rate than eight per cent. per annum;

(c) shall be sealed with the corporate seal and signed by the president and secretary of the company;

(d) shall be registered by the department and countersigned by the minister as provided by section 37.

(2) Debentures may be dated at any time within twelve months from the date on which notice of the authorization appears in the Gazette, and the first instalment of principal and interest may be made payable at any time within eighteen months of the date of the debenture.

(3) If the first instalment of principal and interest of a debenture is made payable at any time after one year from its date as provided in subsection (2), the debenture may run for such longer term than fifteen years as may be necessary to allow repayment in fourteen years from the date of the payment of the first instalment.

R.S.S. 1930, c.113, s.34; R.S.S. 1940, c.137, s.34.

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Debentures create lien on land

35 Every debenture issued under the provisions of this Act and countersigned by the minister shall bind the company for any loan raised or borrowed on the security thereof and shall create a charge or lien for the payment thereof and the interest thereon against all the property of the company and against every tract or parcel of land enumerated and described in the notice of authorization mentioned in section 32.

R.S.S. 1930, c.113, s.35; R.S.S. 1940, c.137, s.35.

Registration

36 Every debenture before being issued shall be sent for registration to the minister who shall cause a proper record to be kept of the same.

R.S.S. 1930, c.113, s.36; R.S.S. 1940, c.137, s.36.

Effect of countersigning by minister

37(1) Upon receipt of a debenture the minister shall, if satisfied that the requirements of this Act have been substantially complied with, and that the authority to make the loan has not been withdrawn, register and countersign the debenture.

(2) Countersignature by the minister shall be conclusive evidence that all the formalities with respect to the loan and the issue of the debenture have been complied with, and the legality of the issue of the debenture shall be thereby conclusively established so that its validity shall not be questionable by any court in Saskatchewan, and it shall be a good and indefeasable security in the hands of any bona fide holder.

(3) The signature of the Deputy Minister of Telephones and Telegraphs on any debenture heretofore or hereafter issued is and shall be equivalent to countersignature by the minister.

Guarantee bond furnished before delivery of debentures

(4) Every debenture duly countersigned shall be retained by the department until a bond or covenant of a guarantee company authorized to do business in the province has been furnished by the company to secure the due accounting by its secretary for all moneys that come into his hands as the proceeds of such debenture.

(5) The bond shall remain in force for one year or for such further time as the minister may require and shall be in such form and for such amount as he shall approve.

R.S.S. 1930, c.113, s.37; R.S.S. 1940, c.137, s.37.

Debenture register

38(1) Every company issuing a debenture under the provisions of this Act shall keep a book to be known as the debenture register in which shall be entered particulars of every debenture issued.

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(2) Every debenture issued shall have written, printed or stamped thereon a memorandum signed by the secretary with the proper particulars inserted therein in the following form:

Registered in the Debenture Register as No. ______________________________ this

day of _________________________________ , 19 _______ .

............................................................ Secretary Treasurer.

R.S.S. 1930, c.113, s.38; R.S.S. 1940, c.137, s.38.

Application of proceeds

39 A separate record shall be kept of the proceeds of every debenture issued and sold under the provisions of this Act, and it shall be unlawful to use any part of such proceeds to meet organization or other expenses including the cost of maintaining, repairing or operating a telephone system.

R.S.S. 1930, c.113, s.39; R.S.S. 1940, c.137, s.39.

Companies incorporated under authority of previous statutes

40 If a company incorporated under the provisions of chapter 7 of the statutes of 1908, chapter 96 of The Revised Statutes of Saskatchewan, 1909, or chapter 33 of the statutes of 1912-13, desires to take advantage of the provisions of this Act respecting the issue of debentures for any one or more of the following purposes, namely:

(a) providing for the cost of a telephone system already constructed;

(b) extending or adding to an existing system;

(c) improving or reconstructing an existing system; or

(d) purchasing the whole or any part of an existing system;

the company may be permitted to do so on such terms and conditions as shall be set forth in an order to be issued by the minister for that purpose.

R.S.S. 1930, c.113, s.40; R.S.S. 1940, c.137, s.40.

EXECUTIONS FOR NON-PAYMENT

Non-payment of debenture when due

41 If the whole or a part of any payment on account of a debenture is not made when due and the holder obtains judgment against the company for the amount thereof, a writ of execution may be indorsed with a direction to the sheriff to levy the amount by rate and the proceedings thereon shall be as follows:

Service of writ

1. The sheriff of the judicial district in which the registered office of the company is situated shall deliver a copy of the writ and indorsement to the secretary of the company and to the secretary treasurer of each rural municipality within which lands liable for payment lie, or shall leave such copy at the offices or dwellings of such officers with a statement in writing of the sheriff ’s fees and of the amount required to satisfy the execution including interest calculated to a day as near as convenient to the day of service;

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Sheriff strikes a rate

2. If the amount with interest thereon from the day mentioned in the statement is not paid to the sheriff within one month after the service, the sheriff shall examine the assessment roll of such municipality or municipalities and shall, in like manner as rates are struck in accordance with section 44, strike a rate on the lands liable for payment sufficient to satisfy the amount due on the execution with such addition to the same as he deems necessary to cover the interest and his own fees up to the time when such rate will probably be available;

Precept to secretary treasurer

3. He shall thereupon issue a precept or precepts under his hand and seal of office directed to the said secretary treasurer, or treasurers, and shall by such precept, after reciting the writ and that the company has neglected to satisfy the same, command the said secretary treasurer or treasurers to levy or cause to be levied such rate at the time and in the manner by law required in respect of the general municipal taxes;

Levy of special rate

4. At the time of levying the annual rate next after the receipt of the precept the secretary treasurer shall add a column to the tax roll of the municipality headed “Execution rate of A. B. v. The __________________Rural Telephone Company, Limited” (or, as the case may be, adding a column for each execution if more than one), and shall insert therein the amount by the precept required to be levied upon each person respectively and shall levy the amount of the execution rate; and the secretary treasurer so soon as the amount of such execution or executions is collected shall return to the sheriff the precept with the amount levied thereon;

Surplus

5. The sheriff shall after satisfying the executions and all fees thereon return any surplus within ten days after receiving the same to the secretary of the company;

Secretary treasurer an officer of court

6. The secretary treasurer or treasurers shall for all purposes connected with carrying into effect or permitting or assisting the sheriff to carry into effect the provisions of this Act with respect to such executions be deemed an officer of the court out of which the writ issued and as such shall be amenable to the court, and he may be proceeded against by attachment, mandamus or otherwise in order to compel him to perform the duties hereby imposed upon him;

Lands in more than one judicial district

7. Where the lands subject to levy for payment of the execution debt lie in more than one judicial district and the amount required to satisfy the debt with interest and costs has not been paid within one month of the delivery of the writ as provided by paragraph 1, the sheriff of the judicial district in which the registered office of the company is situated shall proceed to strike a rate upon the lands so liable in his judicial district in the manner set forth in paragraph 2, but such rate shall be restricted to an amount sufficient to satisfy a share of the execution debt and interest bearing the same proportion to the total debt and interest as the lands so liable in his judicial district bear to all the lands charged with payment, together with his own fees to the intent that all the lands charged with payment shall be equally rated;

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Service of writ

8. The sheriff of any other judicial district in which lands chargeable with payment of the execution debt lie shall, on receipt of a writ indorsed to levy the amount as above mentioned, deliver a copy of the writ and indorsement to the secretary treasurer of each rural municipality in his judicial district within which such lands are situated, or leave such copy at the office or dwelling of the secretary treasurer with a statement in writing of his fees and of the amount required to satisfy the execution, including a sum for interest calculated to a day as near as convenient to the day of service;

Levy of special rate

9. On the expiration of one month from the date of delivery of a copy of the writ to the secretary of the company as provided by paragraph 1 the sheriff shall proceed to levy a rate in the same manner as hereinabove provided with regard to the sheriff of the judicial district in which the office of the company is situated, but such rate shall be restricted to an amount sufficient to satisfy a share of the execution debt and interest bearing the same proportion to the total debt and interest as the lands so liable in his judicial district bear to all the lands charged with payment together with his own fees to the intent that all the lands charged with payment shall be equally rated;

Balance

10. Such a sheriff upon receiving the amount of the levy shall after payment of his own fees and expenses transmit the balance to the sheriff of the judicial district in which the office of the company is situated.

Application of paragraph 6

11. The provisions of paragraph 6 shall apply to the secretary treasurer of each rural municipality comprised in a judicial district wherein lands lie which are subject to levy under the provisions of this section.

R.S.S. 1930, c.113, s.41; R.S.S. 1940, c.137, s.41.

LEVY AND ASSESSMENT

Annual levy

42(1) Subject to the provisions of subsections (2) and (3), the amounts required to meet the payment of debentures and debenture coupons as they fall due, together with such other payments as are required to be made under section 10, shall be levied as hereinafter provided on all lands charged with repayment of the debenture loan.

(2) A company may, following a resolution of its board of directors to that effect, raise annually in the form of an extra or special levy a sum not exceeding four per cent. of its paid up debenture principal for the purpose of renewals and reconstruction of its system.

(3) The minister may by written order exempt any of the said lands from such levy and no levy shall be made on lands so exempted.

R.S.S. 1930, c.113, s.42; 1932, c.30, s.4; 1939, c.37, s.2; R.S.S. 1940, c.137, s.42.

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Special levy by old companies

43(1) A company incorporated under the provisions of chapter 7 of the statutes of 1908 or chapter 96 of The Revised Statutes of Saskatchewan, 1909, may, notwithstanding that it has not issued debentures, but subject to the provisions of subsections (2) and (3), make special levies in the same manner and for the same purposes as such levies may be made by companies incorporated under this Act.

(2) The procedure set forth in section 26, section 27, subsections (1) and (2) of section 28, section 29 and section 30 shall mutatis mutandis apply to the first proposed special levy; and, upon receipt of the documents referred to in section 30, the minister may, in his discretion, approve of the proposed levy. No such approval shall be required to any subsequent levy.

(3) The amount which may be raised annually as a special levy for the purpose of renewals or reconstruction shall not exceed four per cent. of the paid up capital cost of the company’s system.

(4) If the minister approves of a proposed levy, he shall publish in the Gazette a list showing the land liable.

1934, c.22, s.3; 1939, c.37, s.3; R.S.S. 1940, c.137, s.43.

Distribution of levy

44(1) In order to determine the amount of the levy to be charged against each parcel of land all parcels of land enumerated and described in the notice authorizing the debenture, except such as may be exempted therefrom under the provisions of this Act, shall be charged with and held liable for the total cost of the telephone system exclusive of the cost of house telephones, their installation and connection with the main lines of the system; and the amount required to meet the total cost as it falls due shall be levied annually on the said parcels in proportion to their respective areas or acreage, each quarter section for this purpose being reckoned to contain one hundred and sixty acres.

(2) In addition to the charge specified in subsection (1) all parcels of land, the resident occupants of which are supplied with telephone service, shall be charged with and held liable for the cost of all house telephones, their installation and connection with the main lines of the system. The amount of the annual levy on these lands required to meet this cost as it falls due shall be levied equally on the said parcels irrespective of area or acreage.

(3) Any sum to be raised under the provisions of subsection (2) of section 42 shall be apportioned so that four-fifths thereof will be charged against all the lands referred to in subsection (1) and one-fifth shall be further charged against the lands referred to in subsection (2) of this section.

R.S.S. 1930, c.113, s.43; 1932, c.30, s.5; R.S.S. 1940, c.137, s.44.

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Annual statement

45 The directors of every company shall annually cause to be prepared a statement showing:

(a) the amount to be paid on the debenture coupon or coupons falling due during the twelve months following the first day of September of the year in which the levy is to be made together with any annual or other charges to be met under section 10, and any sums to be met under the provisions of subsection (3) of section 9 and subsection (2) of section 50;

(b) the amount, if any, by which the levy has been increased under the provisions of subsection (2) of section 42;

(c) the proportion of such total amount to be levied on each parcel of land as provided for in section 44.

R.S.S. 1930, c.113, s.44; 1932, c.30, s.6; R.S.S. 1940, c.137, s.45.

Assessments

46(1) On or before the first day of May in each year the secretary of the company shall send notice in writing to the secretary of each municipality in which such lands or any of them are situated, setting forth the sum of money to be levied on each parcel of land for telephone purposes.

(2) If the company has levied extra or special sums under the provisions of subsection (3) of section 9, section 10, subsection (2) of section 42 or subsection (2) of section 50, the secretary of the company shall, in the notice referred to in subsection (1), notify the secretary of each municipality of the amount of such levies with respect to the lands in the municipality.

(3) Upon receipt of the notice the municipality through its proper officers shall make due provision for the levy and collection of every such sum and for that purpose all the provisions of The Rural Municipality Act for the levying and collections of taxes shall apply.

(4) Every sum of money levied or charged against land for telephone purposes as herein provided shall be regarded as a tax lawfully assessed upon the owner or resident occupant of the land and upon the land itself by such municipality, and shall be payable by him and recoverable against the land at the same time as the municipal taxes are payable and recoverable by law.

(5) In case of a company in process of liquidation, the notice required by subsection (1) shall be given by the liquidator.

R.S.S. 1930, c.113, s.45; 1932, c.30, s.7; R.S.S. 1940, c.137, s.46.

Notice by minister

47 Where the secretary or liquidator of the company, as the case may be, fails to give the notice required by section 46 before the first day of May in any year the minister may cause the notice to be given and on receipt thereof the proper officers of the municipality shall proceed in every respect as if the notice had been duly given by the secretary or liquidator.

R.S.S. 1930, c.113, s.46; 1933, c.29, s.6; R.S.S. 1940, c.137, s.47.

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Payment of taxes by council

48(1) On or before the thirty-first day of December in each year or at a later date, but not less than two weeks prior to the date upon which the next debenture payment of the rural telephone company falls due, the council shall, subject to the provisions of subsection (2), pay to any rural telephone company for which it collects taxes the whole amount of the taxes due to the company for the year ending on such thirty-first day of December.

(2) If the company has levied extra or special sums as provided in subsection (3) of section 9, section 10, subsection (2) of section 42 or subsection (2) of section 50, the amount of such levies shall not be paid to the company but shall be deposited by the municipality in a chartered bank to be designated by the company in the joint names of the company and the minister.

(3) The council may borrow moneys, on the credit of the taxes to be collected for the current year for any rural telephone company, to an amount not exceeding eighty per cent. of the total estimated taxes so to be collected.

(4) In any case where the council borrows the amount to be paid to a rural telephone company under this section, the interest on the loan shall be payable to the municipality by the rural telephone company, but in no case shall interest be charged to the company by the municipality after the thirty-first day of December of the year in which the taxes were levied.

(5) Where, through failure of the council to make the payment required by subsection (1), a rural telephone company is compelled to pay interest on an overdue debenture payment the council shall reimburse the company the amount of such interest.

R.S.S. 1930, c.113, s.47; 1932, c.30, s.8; R.S.S. 1940, c.137, s.48.

Arrears of taxes

49 All taxes or moneys actually collected or due by a municipality remaining unpaid to a rural telephone company after the date fixed by this Act for the payment of the same shall be a debt due by the municipality to the telephone company and may be recovered by action at the suit of the company.

R.S.S. 1930, c.113, s.48; R.S.S. 1940, c.137, s.49.

Charging back taxes

50(1) When a municipality has paid taxes to a rural telephone company under the provisions of section 48 and the taxes levied upon the occupant of any parcel of Crown land become uncollectable because of his quitting possession, the municipality may charge back to the company the amount of any taxes paid to it in respect of that parcel.

(2) Where a company has to meet a deficit in any debenture payment caused by the municipality charging back to the company any uncollectable taxes, the sum required may be raised by tax assessment and provision for the same may be made and taken into account in determining the levy against each parcel of land under section 45.

R.S.S. 1930, c.113, s.49; 1932, c.30, s.9; R.S.S. 1940, c.137, s.50.

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Use of proceeds of increased levy

51 Where a company raises extra or special funds by tax assessment under the provisions of subsection (3) of section 9, section 10, subsection (2) of section 42 or subsection (2) of section 50, the fund created shall not be used for any other purposes than those authorized, and in no case shall any expenditure be made without the consent of the minister.

1932, c.30, s.10; R.S.S. 1940, c.137, s.51.

PART IV

MISCELLANEOUS PROVISIONS

The Companies Act applicable52 Except in so far as varied by this Act, the provisions of The Companies Act, shall apply to every company.

R.S.S. 1930, c.113, s.51; R.S.S. 1940, c.137, s.52.

Approval of Lieutenant Governor necessary

53 Unless herein otherwise provided a company shall not be organized, incorporated and registered under The Companies Act for the purpose of carrying on a telephone business in Saskatchewan without the approval of the Lieutenant Governor in Council.

R.S.S. 1930, c.113, s.52; R.S.S. 1940, c.137, s.53.

Powers and liabilities of old companies continued

54 All companies incorporated and registered under the provisions of chapter 7 of the statutes of 1908, chapter 96 of The Revised Statutes of Saskatchewan, 1909, or chapter 33 of the statutes of 1912-13 are hereby confirmed and continued as companies under this Act, and in addition to being subject to the provisions of this Act every such company shall continue to have, exercise and enjoy all the rights and powers and be subject to all the penalties and liabilities conferred or imposed upon such companies by the first mentioned three statutes or such of them as may apply.

R.S.S. 1930, c.113, s.53; R.S.S. 1940, c.137, s.54.

Exemption from assessment and taxation

55(1) Subject to the provisions of subsection (2), every rural telephone system constructed, maintained and operated under the provisions of this Act shall be exempt from all assessments, rates and taxes whatsoever.

(2) Where a telephone exchange building is situated in a city, town or village, the building together with the lot or parcel of land upon which it stands shall be subject to assessment and taxation by the municipality.

R.S.S. 1930, c.113, s.54; R.S.S. 1940, c.137, s.55.

Government assistance

56 The minister may furnish any company from time to time with telephone poles for the construction of its system, provided that the number of poles and the conditions under which they shall be supplied shall be fixed by regulations approved by the Lieutenant Governor in Council.

R.S.S. 1930, c.113, s.55; R.S.S. 1940, c.137, s.56.

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Regulations

57 The minister may issue such orders and make such rules and regulations from time to time as he may deem advisable for better carrying out the spirit and intent of this Act; and such orders, rules and regulations shall be binding upon all parties concerned and have the same force and effect as if incorporated herein.

R.S.S. 1930, c.113, s.56; R.S.S. 1940, c.137, s.57.

Forms

58 The forms referred to in this Act are the forms contained in the schedule hereto.

R.S.S. 1930, c.113, s.57; R.S.S. 1940, c.137, s.58.

Penalty

59 A person who violates any of the provisions of this Act, for violation of which no penalty is herein otherwise provided, or of the regulations thereunder, shall be guilty of an offence and liable on summary conviction to a fine not exceeding $25.

R.S.S. 1930, c.113, s.58; R.S.S. 1940, c.137, s.59.

PART V

VOLUNTARY WINDING UP OF COMPANIES

Modification of Companies Winding Up Act

60 Subject to the provisions of section 74, in the case of a voluntary winding up of a company the following provisions shall apply and the provisions of The Companies Winding Up Act shall be modified accordingly.

1934, c.22, s.4; R.S.S. 1940, c.137, s.60.

Resolution authorizing application for Minister’s consent

61 A resolution authorizing application to the minister for his consent to the winding up of the company shall be passed at a special meeting of the company of which notice has been given as required by section 62.

1934, c.22, s.4; R.S.S. 1940, c.137, s.61.

Notice of meeting

62 Written notice of the meeting shall be mailed to all resident shareholders at least seven days before the date fixed for the meeting, which notice shall state the purpose for which the meeting is being called.

1934, c.22, s.4; R.S.S. 1940, c.137, s.62.

Persons entitled to vote

63 The persons entitled to vote at the meeting shall be the resident shareholders of the company, whether receiving service from the company or not.

1934, c.22, s.4; R.S.S. 1940, c.137, s.63.

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Notice of passing of resolution

64 If a resolution is passed authorizing application to the minister for his consent to the winding up of the company, the secretary shall forthwith mail a written notice to all resident occupants who are not shareholders that such resolution has been passed.

1934, c.22, s.4; R.S.S. 1940, c.137, s.64.

Objections

65 Any such resident occupant who objects to the winding up of the company may, within twenty days from the date of the notice, furnish the secretary of the company with a written statement of his objections and the reasons therefor.

1934, c.22, s.4; R.S.S. 1940, c.137, s.65.

Documents forwarded to minister

66 Forthwith after the expiry of twenty days from the date on which the last notices were mailed under section 64, the secretary shall transmit to the minister:

(a) a copy of the resolution mentioned in section 61, certified as correct and attested by the signatures of the president and secretary;

(b) a statement showing the number of resident shareholders who voted in favour of the resolution, the number who voted against it and the number who did not vote; and

(c) all statements received by the secretary under section 65.1934, c.22, s.4; R.S.S. 1940, c.137, s.66.

Power of minister to authorize winding up

67 Upon receipt of the documents mentioned in section 66 the minister may, if in his opinion it is expedient so to do, authorize the winding up of the company, which shall be deemed to commence on the date of such authorization.

1934, c.22, s.4; R.S.S. 1940, c.137, s.67.

Winding up prohibited unless authorized

68 No proceedings for the voluntary winding up of a company, other than those mentioned in the preceding sections, shall be taken unless the approval of the minister has been obtained under section 67.

1934, c.22, s.4; R.S.S. 1940, c.137, s.68.

Liquidator to be approved by minister

69 No person shall be appointed liquidator unless the minister has approved of the appointment.

1934, c.22, s.4; R.S.S. 1940, c.137, s.69.

Winding up proceedings prohibited unless debentures fully paid

70 No proceedings shall be taken to wind up a company unless all debentures issued by the company and interest thereon have been fully paid up.

1934, c.22, s.4; R.S.S. 1940, c.137, s.70.

Removal of pole lines, etc.

71 Before a company is wound up all pole lines and equipment which have been erected or placed upon or along any highway or road or privately owned land shall be removed therefrom.

1934, c.22, s.4; R.S.S. 1940, c.137, s.71.

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Distribution of certain moneys

72 All moneys derived from the sale of poles and other equipment, any balance of unexpended debenture funds and any surplus from tax levies, shall be paid over by the liquidator to the rural municipality or rural municipalities in which the company’s system is located, four-fifths being apportioned to the lands referred to in subsection (1) of section 44 and one-fifth to the lands referred to in subsection (2) of section 44; and on receipt of such payments the municipality or municipalities shall apply the same rateably on the taxes on all the parcels of land which have been assessable by the company.

1934, c.22, s.4; R.S.S. 1940, c.137, s.72.

Regulations

73 The Lieutenant Governor in Council may make regulations for the purpose of better carrying out the objects of this Part and such regulations may modify or substitute any of the provisions of The Companies Winding Up Act.

1934, c.22, s.4; R.S.S. 1940, c.137, s.73.

Certain companies excepted

74 The foregoing sections shall not apply to a company incorporated under the provisions of chapter 7 of the statutes of 1908 or chapter 96 of The Revised Statutes of Saskatchewan, 1909, and no proceedings shall be taken for the voluntary winding up of such a company without the approval of the minister, which approval may be subject to such terms and conditions as the minister deems expedient.

1934, c.22, s.4; R.S.S. 1940, c.137, s.74.

SCHEDULE

FORM A

(Section 26 (1))

Form of a resolution

Resolved that the board of directors of The _________________ Rural Telephone Company No. ____________________ authorize the issue of a debenture by the company for the purpose of securing the funds necessary to provide for (here state purpose of loan);

That the amount of such debenture shall be such as will on sale, in the opinion of the Local Government Board, as shown by its written authorization, yield the sum of $_______________ or such less sum as shall be stated by the minister to be necessary, and shall be repayable in __________ years;

That the rate of interest upon such debentures shall not exceed eight per cent. per annum;

That the lands so to be charged as security for such debenture as provided by The Rural Telephone Act shall be (here enumerate and describe all such lands).

Dated this__________________________day of_________________,19_____.

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FORM B(Section 26 (8))

Form of a resolution

Whereas _________________________________________ Rural Telephone Company, prior to the _______ day of ___________________________, 19______, did dismantle and entirely remove its telephone lines and equipment (or, if the telephone lines and equipment were otherwise removed, state the facts and add: which removal we the Board of Directors hereby approve and confirm) away from ___________ (state number) parcels of land hereinafter described so that on the date above given a distance of more than one hundred yards intervened between these parcels and the nearest then existing pole line of the company and this distance has continued to, and does now, so intervene:

Now therefore we resolve to apply and hereby do apply to the Minister of Telephones and Telegraphs to release these parcels of land from liability to telephone tax levies commencing

(Here state year next following that in which the last levy is to be made for debentures issued prior to date of removal of telephone lines.)

The route from which lines have been removed is from a point ______________ yards ______________ of the corner of ______________to a point ______________ yards ______________of the corner of ______________and the lands in respect of which this application is made are:

(Here enumerate and describe lands, quarter section, township, range and meridian.)

Dated this__________________________day of_________________,19_____.

Signed on behalf of Board of Directors.

(Seal of the Company) ................................................................. Chairman or President.

_____________________

FORM C(Section 28)

Form of notice

Notice is hereby given that the board of directors of The __________________ Rural Telephone Company has passed a resolution authorizing the issue of a debenture for $___________________repayable in ______ years for the purpose of raising the funds necessary to provide for (here state purpose).

In case you have any objection to said loan a statement of your objections should be furnished to me in writing on or before the _____ day of ________________, 19 ____

Dated this ______ day of___________________,19______.

................................................................ Secretary.

27


FORM D(Section 30 (b))

Form of secretary’s declaration

Canada: Province of Saskatchewan.

I, ___________________________________secretary of The___________________ Rural Telephone Company, do solemnly declare:

That the provisions of section 28 of The Rural Telephone Act have been complied with and that every person entitled to receive the notice referred to in the said section has been served with same.

And I make this solemn declaration conscientiously believing it to be true and knowing that it is of the same force and effect as if made under oath, and by virtue of the Canada Evidence Act.

Declared before me at ___________________ in Saskatchewan this _______ day of ________________________ ,19______.

.................................................. A Commissioner, N.P. or J.P.

_____________________

FORM E(Section 33)

Form of debenture

Debenture No. ____________________________. $_______________________________The ________________________________________________________ Rural Telephone Company of the Province of Saskatchewan promises to pay the bearer of this debenture at (here state place of payment) the sum of _________________dollars of lawful money of Canada with interest at the rate of _____________ per centum per annum, the said payment to be made annually in equal payment of principal and interest combined as specified in the coupons attached hereto.

Dated this ______ day of___________________,19______.

................................................................ President.

................................................................ Secretary.

......................................................Secretary’s Signature.

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COUPONS

Form of coupon

Debenture No. ________________. Coupon No. __________________.

The ____________________________________ Rural Telephone Company of the Province of Saskatchewan will pay to the bearer at (here state place of payment) on the _______day of _______________________, 19 _____, the sum of ____________dollars, being the_________________instalment of principal and interest due on that date on Debenture No. _____________________issued by the said company.

................................................................ President.

................................................................ Secretary.

Regina, SaskatchewanPrinted by the authority of

THE QUEEN’S PRINTER