proceeds. sold, leased, exchanged or disposed of as aforesaid shall be Proviso; apapplied towards the reduction of the bonded debt of the plication of Company or for the improvement of the Company's property covered by the mortgage bonds; but the purchaser of any of the said lands shall not be bound to see to the application of the said proceeds. Minister of 3. The directors of the Company shall make, within three Report to months after each sale, a report to the Minister of Railways and Canals describing the property sold and the terms of the sale and stating the application of the proceeds. OTTAWA: Printed by BROWN CHAMBERLIN, Law Printer to the Queen's Most Preamble. CHAP. 79. An Act to amend the Act incorporating the Kingston, W [Assented to 20th March, 1889.] HEREAS the Kingston, Smith's Falls and Ottawa Railway Company have, by their petition, prayed that 50-51 V., c. 88. certain amendments be made to the Act incorporating the said Company, and it is expedient to grant the prayer of the said petition: Therefore Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Section 2 amended. Section 26 re 1. Section two of the Act passed in the session held in the fiftieth and fifty-first years of Her Majesty's reign, chaptered eighty-eight, is hereby amended by adding thereto : "and to the village of Lanark, in the County of Lanark." 2. Section twenty-six of the said Act is hereby repealed pealed; new and the following substituted therefor: section. Limitation of time. Issue of first preference bonds authorized. "26. The works upon the main line of the railway shall be commenced within two years from the thirtieth day of June, one thousand eight hundred and eighty-nine, and completed within five years from the said date; otherwise the powers granted by the Act incorporating the Company and by this Act shall cease and be null and void as respects so much of the railway as then remains uncompleted." 3. The directors of the Company, with the consent of a majority of the shareholders of the Company, present in person or represented by proxy at a meeting specially called for the purpose, may make and issue first preference bonds or debentures, which shall, except as otherwise provided in the fifth section of this Act, and except as to the payment of any penalty imposed for non-compliance with the requirements of "The Railway Act," respecting returns to be made to the Minister of Railways and Canals. charge on the be and form a first preference claim and charge on the un To be a first undertaking. dertaking, lands, buildings, rolling stock, plant, property, net tolls and income of the Company, after deduction, from the tolls and income, of the working expenses of the railway; and such bonds or debentures shall express and state on their face the total amount of such first preference bonds; and thereafter and until such bonds are redeemed, or the amount of all such bonds outstanding is deposited in some chartered bank of the Dominion, to the credit of the Company, in trust for the redemption of such bonds, no further or other first preference bonds shall be issued. The principal Preference of such preference bonds shall be payable at such times as bonds, when payable. the Company may think expedient, not exceeding thirty years from the date of the issue of such bonds; and such bonds shall bear interest at such rate or rates as the Company may determine; and such bonds shall, without Bonds to be a registration or formal conveyance, be taken and considered first charge. to be, except as aforesaid, the first preferential claims and charges upon the undertaking and property aforesaid of the Company, real and personal and then existing and at any time thereafter acquired, and all extensions made or to be made; and each holder of the said bonds shall be deemed to be a mortgagee and incumbrancer, pro ratâ, with all the other holders thereof, upon the aforesaid undertaking and property of the Company and all extensions thereof as aforesaid, in priority to all other charges and incumbrances. second prefer 4. The directors, with the consent of a majority of the Issue of shareholders of the Company, present in person or repre- ence bonds sented by proxy, at a meeting specially called for the pur- authorized. pose, may also make and issue second preference bonds, which shall be and form a second preference claim and Ranking charge on the undertaking, lands, buildings, rolling stock, thereof. plant, property, net tolls and income of the Company, after deduction from the tolls and income of the working expenses of the railway; and such bonds or debentures shall express or state the total amount of such second preference bonds; and thereafter and until such bonds are redeemed, or the amount of all such bonds outstanding is deposited in some chartered bank of the Dominion to the credit of the Company, in trust for the redemption of such bonds, no further or other second preference bonds shall be issued. The When payaprincipal of such preference bonds shall be payable at such times as the Company may think expedient, not exceeding thirty years from the date of the issue of such bonds; and the said bonds shall bear interest at such rate or rates as the Company may determine; and such bonds shall, without registration or formal conveyance, be taken and Bonds to be a considered to be the second preferential claims and charges charge. upon the undertaking and property aforesaid of the Company, real and personal and then existing and at any time. thereafter acquired, and all extensions made or to be made; and each holder of the said bonds shall be deemed to be a ble. second Conditions as to issue of first preference bonds. Amount of issue limited. Section 18 of 50-51 V., c. 88 repealed. Proviso: as to bonds issued and mortgagee and incumbrancer, pro ratâ, with all the other holders thereof, upon the aforesaid undertaking and property of the Company and all extensions thereof as aforesaid, in priority to all other charges and incumbrances, save and except first preference bonds And the directors shall not increase the issue of first preference bonds if any second preference bonds and the bonds or debentures referred to in the fifth section of this Act have been issued and are outstanding, unless and until the said second preference bonds are redeemed, or the amount of all such bonds outstanding is deposited in some chartered bank of the Dominion, to the credit of the Company, in trust for the redemption of such bonds: Provided that the total amount of such first and second preference bonds shall not, in the aggregate, exceed twenty thousand dollars per mile of the said railway constructed, or under contract to be constructed, under and by virtue of the Act incorporating the Company, or of this Act. 5. The eighteenth section of the Act passed in the session held in the fiftieth and fifty-first years of Her Majesty's reign, chaptered eighty-eight, is hereby repealed; but all bonds or debentures heretofore issued under and by virtue of the said section are hereby declared to be, until redeemed. sales of stock a first charge on the undertaking, lands, buildings, tolls and income of the Company as provided for in the said Act, and all sales of bonds and stock heretofore made by the Company are hereby declared valid and binding upon the terms and conditions upon which the same may have been made. effected. OTTAWA: Printed by BROWN CHAMBERLIN, Law Printer to the Queen's Most CHAP. 80. An Act to amend the Act to incorporate the Prescott W [Assented to 16th April, 1889.] HEREAS the Prescott County Railway Company have, Preamble. by their petition, represented that they are desirous that the name of the said Company be changed, and have also prayed for an Act to amend, as hereinafter men tioned, the Act incorporating the said Company, passed in 50-51 V., c. 82. the session held in the fiftieth and fifty-first years of Her Majesty's reign, and chaptered eighty two; and whereas it is expedient to grant the prayer of the said petition: Therefore Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:- 1. The name of the Company is hereby changed from Name "The Prescott County Railway Company" to "The Central changed. Counties Railway Company"; but such change in name shall not in any way alter or affect the rights or liabilities Existing of the Company, nor in any wise affect any suit or proceed- rights and obing now pending either by or against the Company, or judg- to be affected. ment existing, which, notwithstanding such change in the name of the Company, may be prosecuted or continued, completed and enforced as if this Act had not been passed. ligations not 2. The third section of the Act cited in the preamble is Section 3 hereby amended by adding the following subsections amended. thereto : "2. The Company may also extend their line of railway Extension from some point in the county of Stormont or Russell, on may be built. the line of the Canada Atlantic Railway Company, to the village of Rockland. |