THE REGIONAL MUNICIPALITY OF PEEL

BY-LAW NUMBER 1-91

A by-law to Authorize the Temporary Borrowing of Monies to meet the Current
Expenditures pending receipt of Revenues and Capital Expenditures pending the sale of Debentures.  

 

WHEREAS Section 92 of the Regional Municipality of Peel Act, R.S.O., 1980, Chapter 440, as amended (hereinafter referred to as "the Regional Act") provides as follows:

"(1) The Regional Council may by by-law, either before or after the passing of by-laws for imposing levies on the area municipalities for the current year, authorize the Chairman and Treasurer to borrow from time to time by way of promissory note such sums as the Regional Council considers necessary to meet, until the levies and other revenues are received, the current expenditures of the Regional Corporation for the year, including the amounts required for principal and interest falling due within the year upon any debt of the Regional Corporation and the sums required by law to be provided by the Regional Council for any local board of the Regional Corporation.

(2) The amount that may be borrowed at any one time for the purposes mentioned in subsection (1), together with any similar borrowings that have not been repaid, shall not, except with the approval of the Ontario Municipal Board, exceed 70 percent of the uncollected balance of the estimated revenues of the Regional Corporation as set forth in the estimates adopted for the year.

(3) Until such estimates are adopted, the limitation upon borrowing prescribed by subsection (2) shall temporarily be calculated upon the estimated revenues of the Regional Corporation as set forth in the estimates adopted for the next preceding year."

AND WHEREAS no estimates have been adopted for 1991 and the estimated revenues adopted for the year 1990 were $412,200,418.00;

AND WHEREAS Section 97 of the Regional Act provides as follows:

"(1) When the Ontario Municipal Board has authorized the borrowing of money and the issue of debentures by the Regional Corporation for its purposes, the Regional Council pending the issue and sale of the debentures may agree with a bank or person for temporary advances from time to time to meet expenditures incurred for the purpose authorized, and may by by-law pending the sale of such debentures or in lieu of selling them authorize the Chairman and Treasurer to raise money by way of loan on the debentures and to hypothecate them for the loan.

(2) When the Ontario Municipal Board has authorized the borrowing of money and the issue of debentures by the Regional Corporation for the purposes of an area municipality, the Regional Council or the council of the area municipality, pending the issue and sale of the debentures may, and the Regional Council on the request of the area municipality shall, agree with a bank or person for temporary advances from time to time to meet expenditures incurred for the purposes authorized, and the Regional Council may, or on the request of the area municipality shall, pending the sale of such debentures or in lieu of selling them, authorize the Chairman and Treasurer to raise money by way of loan on the debentures and to hypothecate them for the loan, and shall transfer the proceeds of such advance or loan to the area municipality."

AND WHEREAS the amount of debentures for Regional or area municipality purposes that have been authorized for issue by the Ontario Municipal Board but not yet issued will vary from time to time;

AND WHEREAS Section 124 of the Municipal Act, R.S.O., 1980, Chapter 302, provides as follows:

"(7) When the Ontario Municipal Board has authorized the borrowing of money and the issue of debentures by the municipality for the purposes of a school board, the council of the municipality or the school board pending the issue and sale of the debentures may, and the council of the municipality on the request of the school board shall, agree with a bank or person for temporary advances from time to time to meet expenditures incurred for the purposes authorized, and the council of the municipality may, or on the request of the school board shall, pending the sale of such debentures or in lieu of selling them, authorize the Chairman and Treasurer to raise money by way of loan on the debentures and to hypothecate them for the loan, and shall transfer the proceeds of such advance or loan to the school board.

(8) Where the council of a municipality has raised money for a school board under this section by temporary financing pending the sale of debentures, it shall charge the cost of the borrowing to the school board for the period before the sale for which the money is borrowed or for a period of one year, whichever is less."

AND WHEREAS the amount of debentures for school board purposes that have been authorized for issue by the Ontario Municipal Board but not yet issued will vary from time to time;

AND WHEREAS the Council of the Regional Corporation has by resolution passed on 10th January, 1991 authorized the enactment of a by-law, hereinafter referred to as "this by-law" to authorize the temporary borrowing of monies to meet the current expenditures pending receipt of revenues and capital expenditures pending the sale of debentures;

NOW THEREFORE the Council of the Regional Corporation enacts as follows:

1. The Chairman and the Treasurer and Commissioner of Finance of the Regional Corporation are hereby authorized to borrow from time to time by way of promissory note such sum or sums at any one time not exceeding the total amount of $288,540,000.00 to meet the 1991 current expenditures of the Regional Corporation in accordance with the limitations and for the purposes set forth in Section 92 of the said Regional Act.

2. In accordance with Section 97 of the said Regional Act, and Section 124 of the said Municipal Act, the Chairman and the Treasurer and Commissioner of Finance of the Regional Corporation are hereby authorized to agree with a bank or person for temporary advances from time to time, pending the issue and sale of debentures for Regional purposes or area municipality purposes or school board purposes the sum of such temporary advances outstanding at any point in time not to exceed the amount of said debentures authorized for issue by the Ontario Municipal Board.

3. All sums borrowed pursuant to the authority of this by-law for 1991 current expenditures of the Regional Corporation or for temporary advances pending the issue and sale of debentures for Regional purposes shall, with interest thereon, be a charge upon the whole or any part or parts of the revenues of the Regional Corporation for the current year and for any preceding years as and when such revenues are received, provided that such charge does not deplete or affect and is subject to any prior charge when subsisting in favour of any other lender.

4. All sums borrowed pursuant to the authority of this by-law for temporary advances pending the issue and sale of debentures for area municipality purposes shall be a charge to the area municipality requesting such advance.

5. All sums borrowed pursuant to this by-law for temporary advances pending the issue and sale of debentures for school board purposes shall be a charge to the school board for the period before the sale of the debentures for which the money is borrowed or for a period of one year, whichever is less.

6. The proceeds of every advance or loan pursuant to this by-law shall be applied to the purpose for which such loan or advance was authorized.

7. Any promissory note issued under this by-law shall be sealed with the seal of the Regional Corporation and signed by the Chairman and the Treasurer and Commissioner of Finance or their respective designates.  

 

READ THREE TIMES AND FINALLY PASSED IN OPEN COUNCIL this 10th January, 1991.

 

Regional Clerk and Director of Administration, Chairman