XN000022-1974-01-22 — Page 6

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Tuesday, January 22, 1974

Premium for the Corporation's new facility is expected to bo

calculated on a sliding scale according to the length of the period of

guarantee. The guarantee would also be given only to contracts involving

not less than a specified amcunt and on credit terms exceeding 180 days.

Although it would not be necessary to seek the Financial Secretary's

approval for a particular guarantee, all guarantees would have to be in

accordance with a policy approved by the Financial Secretary.

Under other provisions of the Bill, the capital the Corporation may

hold would be doubled from $10 million to $20 million, and the officers of

the Corporation whose appointments would have to be approved by the Governor

would be those whose salaries exceed $85,000 per annum as opposed to the

prosent ceiling of $50,000.

The former is to enable the Corporation to restore the ratio of

its cash resources to contingent liability to an acceptable level.

The latter, which affects the appointment of officers at the

Assistant Manager and higher grades, is made to up-date the original figure

which was set in 1966.

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