HomeMy WebLinkAboutBy-law No. 1999-010 CORPORATION OF THE
MUNICIPALITY OF BAYHAM
BY-LAW NO. 99-10
BEING A BY-LAW TO AUTHORIZE BORROWING
FROM TIME TO TIME TO MEET CURRENT
EXPENDITURES DURING THE FISCAL YEAR ENDING
DECEMBER 31, 1999.
WHEREAS the Municipal Acts R.S.O. 1990, Chapter M45, Section 187, provides authority for
a council by-law to authorize the head of Council and the Treasurer to borrow from time to time,
by way of promissory note or bankers' acceptance, such sums as the council considers necessary
to meet,until taxes are collected,and until other revenues are received,the current expenditures
of the Corporation for the year,
AND WHEREAS the total amount which may be borrowed from all sources at any one time to
meet the current expenditures of the Corporation,except with the approval of the Municipal
Board, is limited by Section 187 of the Municipal Act.
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS:
Borrowing 1) The head of Council and the Treasurer are hereby authorized to
Authority borrow from time to time by way of promissory note or bankers'
acceptance during the year 1999 (hereinafter referred to as the
current year)such sums as may be necessary to meet,until the
taxes are collected, and until other revenues are received,the
current expenditures of the Corporation and the other amounts that
are set out in subsection 187 (1) of the Municipal Act.
Instruments 2) A promissory note or bankers' acceptance made under Section 1
shall be signed by the head of Council or such other person as is
authorized by by-law to sign it and by the Treasurer.
Lenders 3) The lenders from whom amounts may be borrowed under authority
of this by-law shall be the Canadian Imperial Bank of Commerce
and such other lender(s) and reserve funds of the municipality as
may be determined from time to time by resolution of the Council.
Limit on 4) The total amount which may be borrowed at any one time under
Borrowing this by-law, together with the total of any similar borrowings that
have not been repaid, shall not exceed, from January 1st until
September 30th of the current year, 50 percent of the estimated
revenues of the Corporation as set forth in the estimates adopted
for that year. Such borrowing shall not exceed, from October 1st
until December 31st of the current year, 25 percent of the said
estimated revenues of the Corporation as set forth in the estimates
adopted for that year. For purposes of this by-law,the estimated
revenues of the Corporation shall not include revenues derivable or
derived from
(a) borrowings or issues of debentures,or
(b) a surplus, including arrears of levies, or
(c) a transfer from the capital fund, reserve funds or reserves.
Borrowing 5) The Treasurer shall, at the time when any amount is borrowed
Documents under this by-law, ensure that the lender is or has been furnished
Required with a certified copy of this by-law, a certified copy of the
resolution mentioned in Section 3 determining the lender if
applicable and a certified copy of the estimates of the corporation
adopted for the current year and also showing the total of any other
amounts borrowed from any and all sources under authority of
Section 187 ofthe Municipal Act that have not been repaid.
MUNICIPALITY OF BAYHAM
BY-LAW NO. 99-10
Page 2
When 6) If the estimates for the current year have not been adopted at the
Estimates Not time an amount is borrowed under this by-law.
Adopted
(a) the limitation on total borrowing, as set out in Section 4,
shall be calculated for the time being upon the estimated
revenues of the Corporation as set forth in the estimated
adopted for the next preceding year, and
(b) the certified copy furnished under Section 5 shall show the
nature and amount of the estimated revenues of the
Corporation as set forth in the estimates adopted for the
next preceding year.
Charge on 7) All or any sums borrowed under this by-law shall, with interest
Revenues thereon, be a charge upon the whole of the revenues of the
Corporation for the current year and for any preceding years as and
when such revenues are received but such charge does not defeat
or affect and is subject to any prior charge then subsisting in favour
of any other lender.
Directive to 8) The Treasurer is hereby authorized and directed to apply in
Treasurer payment of all or any sums borrowed under this by-law,together
with interest thereon, all or any of the money hereafter collected or
received, either on account of or realized in respect of the taxes
levied for the current year and preceding years or from any other
source,which may lawfully be applied for such purpose.
Effective Date 9) This by-law shall come into force on the 4th day of February, 1999.
Read a first and second time this 4th day of February, 1999.
-7// , A
.114
MAYO CLERK
Read a third time and finally passed this 4th day of February, 1999.
MAYOR CLERK
July 26 , 1999
Mrs Suzanna Mantel
AG14 i ct '. C e '_ Treasurer
The Corporation of the Municipality of Bayham
Straffordville, Ontario NOJ 1Y0
Dear Madam:
CREDIT AGREEMENT
Canadian Imperial Bank of Commerce ( '°'"CIBC" ) is pleased to
confirm that, subject to the acceptance of The Corporation of the
Municipality of Bayham (the "Customer" ) , CIBC has established in
favour of the Customer various demand credit facilities (each a
"Facility" ) as set out below. The provisions are as follows :
Facility A - Operating Loan
Credit Limit C$700 , 000 . 00
Type & A demand credit facility under which the Customer
Availment may obtain on a revolving basis Canadian dollar
loans
Interest Rate Prime Rate minus . 50 . %. per year
Purpose For the Customer' s 99 current expenditures
Special Demand Loan note form 62D signed in accordance
Provisions/ with signing authorities on file is to be provided
for each advance under this facility
Scheduled The revolving loan will fluctuate in increments
Repayment of C$10 , 000 . 00
2
Facility B Capital Loan
57 , 100 . 00
Type and - ilment A demand credit facility unser w- ' - -
Customer may obtain on a non-revolt'' -• basis
Canadian Dollar loans .
Interest rate Prime e minus . 50% •- year, payable monthly
Purpose To meet ca. ' - penditures
Schedule Payments . .sect to earlier req -d payment on demand
as set out below, the C - .mer will pay to
1 CIBC all principal amounts ou anding in 48
principal instalments commencing ! days
after date of draw down and with the - ? th
payment any other amounts then outstan:i:ng`
'\\-
dor or accrued under this facility
Facility C - Corporate VISA Line
Credit Limit C$6 , 000
Type Corporate VISA line, subject to the Customer
signing CIBC' s usual documentation
Balance to be liquidated monthly
General Provisions
Credit Usage The Customer will ensure that the total of the
Restriction Credit Usages for all Facilities does not at any
time exceed C$763 , 100 . 00 .
Pricing Protection. The customer acknowledges
that each fee, interest rate and other charge for
all the Customer' s banking arrangements with CIBC
is priced dependent upon the others . If the
Customer cancels any of those banking
arrangements, the Customer agrees to be bound to
any increased or added fees, interest rates, and
charges (as CIBC may determine and notify the
Customer) , effective from the date of such
cancellation.
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Increased Costs, Losses, Forgone Return, Etc. If
CIBC determines (in its sole and absolute
discretion) that any new legal requirement or
official regulatory directive or request
(including, without limitation, that calling for
new or increased reserves, special deposits, tax,
capital or other allocation, but excluding that
solely imposing increased tax on CIBC' s general
income) has or will have the direct or indirect
effect of :
(a) increasing the cost to CIBC of maintaining
any commitment or performing any obligation
under this Agreement ;
(b) reducing any amount received or receivable
by CIBC or its effective return in
connection with this Agreement or on its
capital ; or
(c) causing CIBC to make any payment or to
forgo any return based on any amount
received or receivable by CIBC in
connection with this Agreement ;
then the Customer will immediately pay to CIBC
such additional amount or amounts as shall
compensate CIBC for any such cost, reduction,
payment or forgone return. Any certificate of CIBC
as to any such compensation shall, except for
demonstrable error, be conclusive and binding upon
the Customer. In determining such compensation,
CIBC may use any method of averaging and
attribution that it (in its sole and absolute
discretion) considers applicable
4
Loss of Return Due to Capital Requirements Only.
If CIBC determines (in its sole and absolute
discretion) that any new legal requirement or
official regulatory directive or request affects
or would affect the amount of capital required or
expected to be maintained by CIBC and that the
rate of return on CIBC' s capital is, as a result
of CIBC' s commitment or other obligations under
this Agreement, reduced to a level below that
which CIBC could have achieved but for the
occurrence of such new requirement, directive or
request, then and in each such case upon notice
from time to time by CIBC to the Customer, the
Customer will immediately pay to CIBC such
additional amount or amounts as shall compensate
CIBC for any such reduction in rate of return. Any
certificate of CIBC as to any such compensation
shall, except for demonstrable compensation, be
conclusive and binding upon the Customer. In
determining such compensation, CIBC may use any
method of averaging and attribution that it (in
its sole and absolute discretion) considers
applicable.
Prepayment Clause . The Customer may prepay all or
any portion of loans outstanding under Facilities
A, B, so long as (i) such prepayment is from
internally generated cash flow or proceeds of
issuance of subordinated debt or equity . Any non-
scheduled prepayment under a Facility made during
any non-revolving portion of its term will
permanently reduce the Credit Limit for that
Facility and will be applied to any scheduled
repayment instalments under the Facility in
inverse order of maturity.
Confidentiality Clause. The Customer acknowledges
and agrees that the terms and conditions recited
herein are confidential between the Customer and
the CIBC. The Customer agrees not to disclose the
information contained herein to a third party
without the expressed consent of CIBC.
Repayment and CIBC may on demand require immediate payment of
Facility all amounts outstanding or accrued in connection
Cancellation with this Agreement . CIBC may, at any time, for
any reason and without notice, cancel the undrawn
portions of the Facilities
5
•
Security All security CIBC may now and from time to time
hold, plus :
(1) Current Expenditure Borrowing By-Law
for 1999 on CIBC form 100 .
Next June 30 , 2000
Scheduled
Review Date
Please indicate acceptance by returning a signed copy of this
Agreement .
6
Upon acceptance, this Agreement revises the existing Credit
Agreements of The Corporation of the Municipality of Bayham dated
October 16 , 1998 between the Customers and CIBC, with outstanding
availments and security under that Agreement considered to be
continuing availments and Security under this Agreement
Yours truly,
Canadian Imperial Bank )opf Commerce
by:
K. A•: ulJJ y�ak.1i Ac`cbunt M4n.ager
Acknowledgement. The undersigned acknowledges that the Customer has
received a copy of this Credit Agreement (which includes the
attached schedule (s) referred to above) .
Accepted July , 1999 .
The Corporation of the Municipality of Bayham
by: g/Zef-"Jcra2rt
Name :
Title :Mayor _
by: jtjQ �
Name : Suzanna Mantel
Title .Administi artcri/CluT,k-Treasurer
CORPORATION OF THE
MUNICIPALITY OF BAYHAM
BY-LAW NO.99-10
BEING A BY-LAW TO AUTHORIZE BORROWING
FROM TIME TO TIME TO MEET CURRENT
EXPENDITURES DURING THE FISCAL YEAR ENDING
DECEMBER 31, 1999.
WHEREAS the Municipal Act,R.S.O. 1990,Chapter M45,Section 187.provides authority for
a council by-law to authorize the head of Council and the Treasurer to borrow from time to time.
by way of promissory note or bankers' acceptance,such sums as the council considers necessary
to meet,until taxes are collected,and until other revenues are received,the current expenditures
of the Corporation for the year.
AND WHEREAS the total amount which may be borrowed from all sources at any one time to
meet the current expenditures of the Corporation,except with the approval of the Municipal
Board,is limited by Section 187 of the Municipal Act.
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS:
Borrowing 1) The head of Council and the Treasurer are hereby authorized to
Authority borrow from time to time by way of promissory note or bankers'
acceptance during the year 1999(hereinafter referred to as the
current year)such sums as may be necessary to meet,until the
taxes are collected,and until other revenues are received,the
current expenditures of the Corporation and the other amounts that
are set out in subsection 187(I)of the Municipal Act.
Instruments 2) A promissory note or bankers' acceptance made under Section 1
shall be signed by the head of Council or such other person as is
authorized by by-law to sign it and by the Treasurer.
Lenders 3) The lenders from whom amounts may be borrowed under authority
of this by-law shall be the Canadian Imperial Bank of Commerce
and such other lender(s)and reserve funds of the municipality as
may he determined from time to time by resolution of the Council.
Limit on 4) The total amount which may be borrowed at any one time under
Borrowing this by-law.together with the total of any similar borrowings that
have not been repaid,shall not exceed, from January 1st until
September 30th of the current year, 50 percent of the estimated
revenues of the Corporation as set forth in the estimates adopted
1, LYNDA MILLARD, CLERK -Tor that year. Such borrowing shall not exceed, from October 1st
of ft'? Corporation of the MunicIpallty of Bayham,until December 31st of the current year,25 percent of the said
CC ' foregoing is a certified true cop estimated revenues of the Corporation as set forth in the estimates
...;L day of adopted for that year. For purposes of this by-law,the estimated
A f} revenues of the Corporation shall not include revenues derivable or
derived from
(a) borrowings or issues of debentures,or
(b) a surplus,including arrears of levies,or
(c) a transfer from the capital fund,reserve funds or reserves.
Borrowing 5) The Treasurer shall,at the time when any amount is borrowed
Documents under this by-law,ensure that the lender is or has been furnished
Required with a certified copy of this by-law,a certified copy of the
resolution mentioned in Section 3 determining the lender if
applicable and a certified copy of the estimates of the corporation
adopted for the current year and also showing the total of any other
amounts borrowed from any and all sources under authority of
Section 187 ofthe Municipal Act that have not been repaid.
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