35. (1) Subject to subsection (2), a special examination shall be carried out by the auditor of a port authority.
(2) Where, in the opinion of the Minister, a person other than the auditor of a port authority should carry Out a special examination, the Minister may, after consulting with the board of directors, appoint another auditor and may, after again consulting with the board, remove that auditor at any time.
Property
36. (1) For the purposes of the Federal Real Property Act, the Minister has the administration of the federal real property of a port in respect of which letters patent have been issued to the port authority, other than federal real property the administration of which is under any other member of the Queen's Privy Council for Canada.
(2) The Minister may, by the issuance of letters patent or supplementary letters patent, give to a port authority the management of any federal real property that the Minister administers under subsection (1).
(3) Where the Minister gives the management of federal real property to a port authority, the Federal Real Property Act, other than sections 12 to 14, paragraphs 16(l)(g) to (i) and (2)(g) and subsection 18(6), does not apply to that property and the Surplus Crown Assets Act does not apply to the personal property related to that property.
(4) Where a port authority is of the opinion that certain real property is no longer required for port purposes, it shall so inform the Minister.
(5) A port authority may manage, occupy or hold only the real property set out in its letters patent.
37. (1) Where the Minister has given the management of federal real property to a port authority, the port authority
(a) need not pay compensation for the use of that property;
(b) may. notwithstanding the Financial Administration Act, retain and use the revenue received in respect of that property for the purpose of operating the port;
(c) shall undertake and defend any legal proceedings with respect to that property; and
(d) shall discharge all obligations and liabilities with respect to that property.
(2) A civil, criminal or administrative action or proceeding with respect to federal real property that a port authority manages, or any property that it holds, or with respect to any act or omission occurring on the property, shall be taken by or against the port authority and not by or against the Crown.
(3) A port authority may lease or licence the real property that it manages, holds or occupies only for the purpose of operating the port and only for a term of not more than sixty years.
(4) A lease or licence of federal real property may be effected by any instrument by which real property may be leased or a licence may be granted by a private person in respect of real property under the laws in force in the province in which the property is situated.
38. (1) A port authority may not dispose of any federal real property that it manages but it may grant road allowances or easements, rights of way or licences for utilities, services or access.
(2) A port authority may dispose of any real property that it occupies or holds, other than federal real property, subject to the issuance of supplementary letters patent, and, without the issuance of supplementary letters patent, it may grant road allowances or easements, rights of way or licences for utilities, services or access.
