HomeMy WebLinkAboutBy-law No. 2008-017 THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM
BY-LAW NO. 2008-017
A BY-LAW TO AUTHORIZE A LOAN TO THE
RICHMOND COMMUNITY WATER INC.
WHEREAS pursuant to provisions of the Municipal Act, 2001, Section 107(1) a municipality is
permitted to make a grant by way of loan and to charge interest in such loan.
AND WHEREAS these loans can be made to "any person, group or body...for any purpose that
council considers to be in the interests of the municipality".
AND WHEREAS Richmond Community Water Inc. has requested a loan from the municipality.
AND WHEREAS the Municipality is desirous of providing such loan.
THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF
BAYHAM ENACTS AS FOLLOWS:
1. THAT the Municipality of Bayham shall provide a loan to Richmond Community Water Inc.
in the amount of$25,000.00.
2. AND THAT such loan shall bear interest at a rate of 5%per annum.
3. AND THAT such loan shall be repaid in accordance with Schedule A as attached.
4. AND THAT the borrower shall sign the Promissory note, attached as Schedule B.
5. AND THAT this By-law shall come into force and effect upon the date of its enactment.
READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 7TH DAY OF
FEBRUARY 2008.
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MAYO CLERK
SCHEDULE A
MUNICIPALITY OF BAYHAM
DEBENTURE SCHEDULE
Richmond Water System
Debenture Amount $ 25,000.00
Interest Rate 5.00%
Tenn in Years 5
Payment Amount 5,774.37
Maximum Payout $ 28,871.85
BEGIN ENDING
YEAR BALANCE PRINCIPAL INTEREST PAYMENT BALANCE
30/06/2008 25,000.00 4,524.37 478.14 5,002.51 20,475.63
30/06/2009 20,475.63 4,750.59 1,023.78 5,774.37 15,725.04
30/06/2010 15,725.04 4,988.12 786.25 5,774.37 10,736.93
30/06/2011 10,736.93 5,237.52 536.85 5,774.37 5,499.40
30/06/2012 5,499.40 5,499.40 274.97 5,774.37 0.00
25,000.00 3,099.99 28,099.99
Schedule"B" to B/L 2008-017
PROMISSORY NOTE
Borrower: Richmond Community Water Inc. of Richmond Ontario (individually and collectively the
"Borrower")
Lender: The Corporation of the Municipality of Bayham(the Corporation)
Principal Amount: $25,000
1. FOR VALUE RECEIVED,the Borrower promises to pay the Municipality of Bayham at 9344
Plank Road Straffordville ON NOJ IY0 the principal sum of twenty-five thousand($25,000)
CAD,with interest payable on the unpaid principal at the rate of 5%per annum calculated
yearly, not in advance.
2. This Note will be repaid in consecutive yearly instalments of$5,774.37 each on June 30 of
each year commencing June 30, 2008and continuing to June 30, 2012 with the balance then
owing under this Note being paid at that time.
a. The first instalment due June 30, 2008 shall be reduced to $5,002.51 to reflect the
shorter time between issuance of the funds and the repayment date.
b. All other annual instalments shall be in the amount stipulated in section 2.
IN WITNESS WHEREOF the parties have caused this Note to be executed as of February 7, 2008.
)Richmond Community Water Inc.
)(The Borrower)
j We-iclaAlt-e53(s
-(Witness)- )
) The Municipality of Bayham
)(The Corporation)
) JA.
)Mayor6
)Clerk