HomeMy WebLinkAbout05 159 CIBC Kin to Inver Water
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THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
BY-LAW
~JREPEALED FN
BYLAWNO. ~~ - O</J...,
DATED /Jj-J . 5"/0 ~
BY ~LAW NO. 2005 - 159
BEING A BY-LAW TO AUTHORIZE THE BORROWING UPON
PROMISSORY NOTES TOWARDS THE COST OF THE
CONSTRUCTION OF THE KINCARDINE TO INVERHURON WATER
SUPPLY PROJECT
WHEREAS the Municipal Act, 2001, S.O. 2001, c. 25, section 401 as amended
(the "Act") 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 pursuant to the said Municipal Act, section 408 sets out the
requirements of the borrowing by-law,
AND WHEREAS Regulation 276/02 sets out requirements for borrowing by way
of a bank loan,
AND WHEREAS the Council of The Corporation of the Municipality of Kincardine
(the "Municipality") has passed the by-laws enumerated in column (1) of
Schedule "A" attached hereto and forming part of this by-law authorizing the
project described in column (2) of Schedule "A",
AND WHEREAS before authorizing the Project the Municipality had its Treasurer
update its most recent annual debt and financial obligation limit received from the
Ministry of Municipal Affairs and Housing in accordance with the applicable
regulation and, prior to authorizing each Project, the Treasurer determined that
the estimated annual amount payable in respect of the Project would not cause
. the Municipality to exceed the updated limit and that the approval of the Project
by the Ontario Municipal Board was not required;
AND WHEREAS to provide long-term financing for the Project and to repay
certain temporary advances in respect of the Project made by The Canadian
Imperial Bank of Commerce (CIBC), it is now expedient to borrow by way of a
bank loan as evidenced by the issue of promissory notes in the amount of
$1,024,000.00 in lawful money of Canada
NOW THEREFORE the Council of The Corporation of the Municipality of
Kincardine ENACTS as follows:
1.
For the Project, the borrowing upon the credit of the Municipality of the
sum of $377,800.00 and the issue of a promissory note therefore upon the
credit of the Municipality to be repaid in one lump sum together with
interest as hereinafter set forth, is hereby authorized.
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THE CORPORATION OF THE MUNICIPALITY OF KINCA INE
BY-LAW
BY-LAW NO. 2005 -159
BEING A BY-LAW TO AUTHORIZE THE BORROWI G UPON
PROMISSORY NOTES TOWARDS THE COST F THE
CONSTRUCTION OF THE KINCARDINE TO INVERHU ON WATER
SUPPLY PROJECT
WHEREAS the Municipal Act, 2001, S.O. 2001, c. 25, section 4 1 as amended
(the "Act") provides that a municipality may incur a debt for mun cipal purposes,
whether by borrowing money or in any other way, and may issue ebentures and
prescribed financial instruments and enter prescribed financial a reements for or
in relation to the debt;
AND WHEREAS pursuant to the said Municipal Act, section 4 8 sets out the
requirements of the borrowing by-law,
AND WHEREAS Regulation 276/02 sets out requirements for b rrowing by way
of a bank loan,
AND WHEREAS the Council of The Corporation of the Municipal ty of Kincardine
(the "Municipality") has passed the by-laws enumerated in column (1) of
Schedule "A" attached hereto and forming part of this by-law authorizing the
project described in column (2) of Schedule "A",
AND WHEREAS before authorizing the Project the Municipality h d its Treasurer
update its most recent annual debt and financial obligation limit r ceived from the
Ministry of Municipal Affairs and Housing in accordance with the applicable
regulation and, prior to authorizing each Project, the Treasurer etermined that
the estimated annual amount payable in respect of the Project ould not cause
. the Municipality to exceed the updated limit and that the approv I of the Project
by the Ontario Municipal Board was not required;
AND WHEREAS to provide long-term financing for the Proje t and to repay
certain temporary advances in respect of the Project made b The Canadian
Imperial Bank of Commerce (CIBC), it is now expedient to bor w by way of a
bank loan as evidenced by the issue of promissory notes in the amount of
$1,024,000.00 in lawful money of Canada
NOW THEREFORE the Council of The Corporation of the Municipality of
Kincardine ENACTS as follows:
1.
For the Project, the borrowing upon the credit of the M nicipality of the
sum of $377,800.00 and the issue of a promissory note th refore upon the
credit of the Municipality to be repaid in one lump su together with
interest as hereinafter set forth, is hereby authorized.
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By-law No. 2005 - 159
CIBC Kincardine to Inverhuron Water Supply Borrowing y-Iaw
2.
For the Project, the borrowing upon the credit of the Mu icipality of the
sum of $646,200.00 and the issue of a promissory note to be repaid in
semi-annual instalments of combined (blended) principal nd interest as
hereinafter set forth is hereby authorized.
3. The Mayor and the Treasurer of the Municipality are here y authorized to
cause any number of promissory notes to be issued fo such sums of
money as may be required for the Projects in defini ive forms, not
exceeding in total the said sum of $1,024,000.00 (the "Not s"). The Notes
shall bear the Municipality's municipal seal and the si natures of the
Mayor and the Treasurer of the Municipality, all in acco dance with the
provisions of the Act. The municipal seal of the Muni ipality and the
signatures referred to in this section may be printe , lithographed,
engraved or otherwise mechanically reproduced. T e Notes are
sufficiently signed if they bear the required signatures a d each person
signing has the authority to do so on the date he or she sig s.
4.
The Notes shall be in the aggregate principal amount of $ ,024,000.00, in
the name of CIBC, substantially in the form attached a Schedule "B"
hereto and forming part of this By-law with provision or payment of
principal and interest by pre-authorized debit in respect 0 such principal
and interest to the credit of CIBC on such terms as to whic CIBC and the
Municipality may agree.
5. The Notes shall be issued within one month after the da on which this
By-law is enacted, and as to both principal and interest sh II be expressed
and be payable in lawful money of Canada.
6. The Notes totalling $377,800 shall bear interest from the d te of issue at a
rate not the exceed 4.00% per annum payable in one lum sum one year
from the date of interest together with interest. These Not s shall be paid
in full no later than October 21, 2006
The Notes totalling $646,200 shall bear interest from the d te of issue at a
rate not to exceed 5.15% per annum for a period of 10 yea from the date
of issue payable semi-annually in arrears, as part of t e semi-annual
instalments as set forth in the amortization schedule set fo h as Schedule
"C" attached hereto and forming part of this By-law. Th se Notes shall
mature no later than October 21, 2015. The total or any pa thereof of the
principal due on maturity may be refinanced for a period ot to exceed 5
years on such terms and conditions as may be agreed be een CIBC and
the Municipality.
7.
8.
Payments in respect of principal of and interest on the Notes shall be
made only on a day on which banking institutions in Toro to, Ontario, are
not authorized or obligated by law or executive order t be closed (a
"Toronto Business Day") and if any date for payment i not a Toronto
Business Day, payment shall be made on the next fo lowing Toronto
Business Day.
9.
. Interest shall be payable to the date of maturity of the Notes and on
default shall be payable both before and after default and judgment. Any
amounts payable by the Municipality as interest on over ue principal or
interest in respect of the Notes shall be paid out of current evenue.
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By-law No. 2005 - 159
CIBC Kincardine to Inverhuron Water Supply Borrowing y-Iaw
10. In each year in which a payment of an instalment of com ined (blended)
principal and interest becomes due, there shall be raise as part of the
general levy the amounts of principal and interest payable in each year as
set out in Schedule "C" to the extent that the amounts have not been
provided for by any other available source including other axes or fees or
charges imposed on persons or property by a by-law of an municipality.
11. The Mayor and the Treasurer are hereby authorized to ca se the Notes to
be issued, the Clerk and Treasurer are individually here y authorized to
generally do all things and to execute all documents and other papers in
the name of the Municipality in order to carry out the iss e of the Notes
and the Treasurer is authorized to affix the Municipality's unicipal seal to
any of such documents and papers.
19. The proceeds realized in respect of the Notes, after p oviding for the
expenses related to their issue, if any, shall be apportioned and applied for
the Project and for no other purpose except as permitted b the Act.
20. This By-law shall come into full force and effect upon its fi al passage.
21. This By-law may be cited as the "CIBC Kincardine to Inve uron Water
Supply Borrowing By-law".
READ a FIRST, SECOND and THIRD TIME and FINALLY PASSED this 21st day of
September, 2005.
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By-law No. 2005 - 159
CIBC Kincardine to Inverhuron Water Supply Borrowing y-Iaw
By-law
(1)
2003-103
2003-130
2004-75
Project
Description
(2)
Construction
of the
Kincardine to
Inverhuron
Water Supply
Project
Schedule "A"
Approved
Amount to
be Financed
Through the
Issue of
Debentures
(3)
$1,800,000.
Amount of
Debentures
Previously
Issued
(4)
NIL
ount of
ntures
Issued
(5)
$1 800,000.
Term of
Years of
Debentures
(6)
15