HomeMy WebLinkAboutBy-law No. 2025-019THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
BY-LAW NO. 2025-019
BEING A BY-LAW TO AUTHORIZE THE DISCHARGE OF ALL
REMAINING DEBT OBLIGATIONS HELD BY TORONTO-DOMINION
BANK ("TD") AUTHORIZED UNDER BY-LAW NO. 2015-027
(OJIBWA DEBT RETIREMENT)
AND WHEREAS Section 8 of the said Municipal Act provides that a municipality has the capacity,
rights, powers, and privileges of a natural person for the purpose of exercising its authority under
this or any other Act;
AND WHEREAS Section 401(1) of the Municipal Act, 2001, S.O. 2001, c. 25, as amended
provides that a Municipality may incur a debt for municipal purposes, whether by borrowing
money or in any other way, and may issue debentures and prescribed financial instruments
and enter prescribed financial agreements for or in relation to the debt;
AND WHEREAS, on April 5, 2012, the Council of The Corporation of the Municipality of Bayham
passed By-law No. 2012-037, being a by-law to authorize the execution of a guarantor agreement
between the Municipality of Bayham and the Elgin Military Museum;
AND WHEREAS, on August 2, 2012, the Council of The Corporation of the Municipality of
Bayham passed By-law No. 2012-089, being a by-law to authorize an irrevocable standby letter of
credit with the Royal Bank of Canada in the amount of six million dollars ($6,000,000.00);
AND WHEREAS, on March 10, 2015, the Royal Bank of Canada called upon the Municipality of
Bayham standby letter of credit in the amount of six million dollars ($6,000,000.00);
AND WHEREAS, on March 12, 2015, the Council of The Corporation of the Municipality of
Bayham adopted By-law No. 2015-027, being a by-law to authorize the external borrowing upon
debentures in the amount of six -million dollars ($6,000,000.00) from Toronto -Dominion Bank
("TD") for the purposes of the Municipality of Bayham;
AND WHEREAS the debt associated with the borrowing authorized under By-law No. 2015-027
is a 25-year amortization, 2.71 percent per annum interest rate loan on a 10-year fixed term,
expiring in March 2025;
AND WHEREAS, upon term expiry in March 2025, the remaining debt principal will t;c:
$4, 073,431.49;
AND WHEREAS the Municipality established a Guarantorship Reserve to set aside funds to pay
down or fully discharge the remaining debt principal authorized under By-law No. 2015-027;
AND WHEREAS, on February 27, 2025, Council received Report TR-07/25 and, by resolution of
Council, directed a surplus allocation to the Guarantorship Reserve to fully fund discharge of the
remaining debt principal.
AND WHEREAS the Council of The Corporation of the Municipality of Bayham is desirous of
discharging the remaining debt principal, held by TD, as originally authorized under By-law No.
2015-027;
THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
ENACTS AS FOLLOWS:
1. THAT the Mayor and the Treasurer are hereby authorized to execute any and all documents
required to discharge the Municipality's remaining debt obligations authorized under By-law
No. 2015-027 with Toronto -Dominion Bank;
2. AND THAT this by-law shall take effect upon the date of passing.
READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 6tn DAY OF
MARCH 2O25.
MAYOR CLERK