HomeMy WebLinkAboutBy-law No. 2012-089 THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM
BY-LAW 2012-089
BEING A BY-LAW TO AUTHORIZE AN IRREVOCABLE STANDBY LETTER OF
CREDIT FACILITY WITH THE ROYAL BANK OF CANADA
WHEREAS Section 11 (2) (5) of the Municipal Act, 2001, S.O. 2001, c.25, as amended, provides
that a lower-tier municipality may pass by-laws respecting the economic, social and
environmental well-being of the municipality, and;
WHEREAS Section 11 (3) (5) of the Municipal Act, 2001, S.O. 2001, c.25, as amended, provides
that a lower-tier municipality may pass by-laws respecting matters within the culture, parks,
recreation and heritage sphere of jurisdiction, and
WHEREAS Section 107 (1) of the Municipal Act, 2001, S.O. 2001, c.25, as amended, provides a
municipality may make grants, on such terms as to security and otherwise as the council
considers appropriate, to any person, group or body, including a fund, within or outside the
boundaries of the municipality for any purpose that council considers to be in the interests of the
municipality, and
WHEREAS Section 107 (2) (a) of the Municipal Act, 2001, S.O. 2001, c.25, as amended, provides
that such grants include the power to guarantee a loan and to make a grant by way of loan and to
charge interest on the loan, and;
WHEREAS the Council of the Municipality of Bayham approved a Guarantor Agreement with
the Elgin Military Museum with By-law 2012-37;
THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF
BAYHAM ENACTS AS FOLLOWS:
1. THAT the Mayor and Treasurer be authorized to sign the Irrevocable Standby Letter of
Credit Facility with the Royal Bank of Canada, in the amount of up to $6,000,000, as set
out in Schedule 'A'.
2. THAT this by-law shall come into force and effect upon its passing.
READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED this 2"d Day of
August,2012.
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Schedule A to application for Standby Letter of Credit dated August 3,2012
We hereby issue this 1,-evocable standby latter of c+ d:t no. in your f' our for the account
of The Corporation of the Municipality of Ba sham to secure barkina fa I::t'es by way of loans and any
ether banking se vices wnetsoever 7anted ar to.3e granted by your bank to Toe Erg n Ml1 tart'Museum
!tic. ikentiited as"Project aj.bwa"expenses. General operating accoants and ban facilities am
e,.c.udcd from this guarantee.
&gust 3,2012
AGREMEML iCANF
TO: ROYAL BANK OF CAECA
SPEC'": AP`'I.ICATION AND AGREEMMT FOR STANDBY 1.E^'ER OF Ci l T OR
G.;ARACEE DATED August 3,2312(THEnAPPLICATION")mini)BY"'HE UMDERSIGNED
CIE"CUSTOMER')AND ADDRESSED TO ROYAL BANK OF CANADA E°BANK)
In consideration of the Bank issuing the Crud t referre4 to on the reverse sit.e of Jle Application,
the Customer acknowiedg•es and agrees as°Alows:
1. The Bank in is capattly as the BerafIcloy of the Cred:t ',the de net,to ba ard treated
for all purposes r.s a party that Is separate and distinct frog the Bar in Its capacity as
the issuer of the Crecit,and therefore as a"tt*rd party"viiitten the meantng of?CC SOO.
2. The covenants and.greemer+ts 3"`tne Custvnex set out on the reties sada of e+e
Alrgicction wEl app;;,le accordance a with their irms,and the Customer waves any
defence th t might at my time e:r«st or arise by reason of the Sant.tang bat tt a Issuer
and the BeiIcia y o the Credit.
Corparat o!of the Mtmidpality cf Bay,am
Pew: L4
Per; �� _!.
rtdt—
'Ttea..urec-
Pcknowledged and opted
'