WHEREAS Section 110 of the Regional Municipalities Act, R.S.O., 1990, Chapter R.8, as amended, (hereinafter referred to as "the 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 chair and treasurer to borrow from time to time by way of promissory note or bankers' acceptance such sums as the Regional Council consider 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 Municipal Board, exceed from January 1st to September 30th of the year, 50 percent of the total, and from October 1st to December 31st, 25 percent of the total 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.

(3.1) For the purposes of subsections (2) and (3), estimated revenue do not include revenues derivable or derived from,

(a) borrowings or issues of debentures;

(b) a surplus, including arrears of levies; or

(c) a transfer of reserve funds or reserves."

AND WHEREAS no estimates have been adopted for 1996 and the estimated revenues adopted for the year 1995, excluding contributions from reserves and any prior year surplus, were $554,425,555.00;

AND WHEREAS Section 114 of the Act provides as follows:

(1) When the Regional Corporation has authorized the borrowing of money and the issue of debentures 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 for the purpose authorized, and may by by-law pending the sale of such debentures or in lieu of selling them authorize the chair and treasurer to raise money by way of loan on the debentures and to hypothecate them for the loan.

(2) When the Regional Corporation has authorized the borrowing of money and the issue of debentures 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 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 chair 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 Section 123 of the Municipal Act, R.S.O., 1990, Chapter M.45, provides as follows:

(2) Where a school board exercises jurisdiction in all or part of a municipality, the school board may apply to the council of the municipality for the issue and sale of debentures on the credit of the municipal corporation for raising such sums as may be required by the school board for permanent improvements, as defined in paragraph 34 of subsection 1(1) of the Education Act.

(4) The council at its first meting after receiving an application under subsection (2), or as soon as possible thereafter, shall consider and approve or disapprove the application.

(5) If the council approves the application under subsection (4), the school board shall apply to the Municipal Board for its approval under section 64 of the Ontario Municipal Board and, if the Municipal Board approves, the council shall pass a by-law authorizing the borrowing of money by the issue and sale of debentures on the credit of the municipal corporation for the purposes stated in the application.

(5.1) Despite subsection (5), if the council approves the application and if the approval of the Municipal Board under section 65 of the Ontario Municipal Board Act would not be required were the school board to issue and sell the debentures, the council shall pass the by-law under subsection (5) without the approval of the Municipal Board.

(7) When the 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 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 chair 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 Council of the Regional Corporation has by resolution adopted on the 25th January, 1996 authorized the enactment of 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;

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

1. The Regional Chair 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 $277,212,778.00 between 1st January, 1996 and 30th September, 1996 and $138,606,389.00 between 1st October, 1996 and 31st December, 1996 to meet the 1996 current expenditures of the Regional Corporation in accordance with the limitations and for the purposes set forth in Section 110 of the Act.

2. In accordance with Section 114 of the Act, and Section 123 of the Municipal Act, the Regional Chair 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 and the sum of such temporary advances outstanding at any point in time shall not 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 1996 current expenditures of the Regional Corporation 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 1996 and for any subsequent years as and when such revenues are received.

4. Interest at a rate sufficient to reimburse the Regional Corporation for the cost of borrowing 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. The cost of borrowing 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, bankers' acceptance or loan agreement issued under this by-law shall be sealed with the seal of the Regional Corporation and signed by the Regional Chair or such other signing officer as may be designated by by-law and the Treasurer and Commissioner of Finance.

Regional Clerk, Regional Chair