Principal and interest payments
93. (1) Subject to subsection (2), a money by-law for the issuing of debentures shall provide that the principal shall be repaid in annual instalments with interest payable in one or more instalments in each year, and the by-law may provide for annual instalments of combined principal and interest. R.S.O. 1990, c. C.42, s. 93 (1); 1996, c. 32, s. 67 (16). Sinking fund debentures (2) A money by-law for the issuing of debentures may provide that the principal shall be repaid at a fixed date with interest payable in one or more instalments in each year, in which case debentures issued under the by-law shall be known as sinking fund debentures. R.S.O. 1990, c. C.42, s. 93 (2); 1996, c. 32, s. 67 (17). When debentures payable (3) The whole debt and the debentures to be issued therefor shall be made payable within a term not to exceed the lifetime of the undertaking up to a maximum of forty years. 1992, c. 15, s. 63 (1). Special levy against area municipalities (4) The by-law may provide for raising in each year, by special levy or levies against one or more area municipalities, the whole or specified portions of the sums of principal and interest payable under the by-law in the year, and each area municipality shall pay to the County such sums at the times and in the amounts specified in the by-law. General levy (5) The by-law shall provide for raising in each year, by a special levy on all the area municipalities, the sums of principal and interest payable under the by-law in the year to the extent that the sums have not been provided for by any special levy or levies against any area municipality or municipalities made especially liable therefor by the by-law. Levy by area municipalities (6) Any special levy against an area municipality imposed by the by-law under the authority of subsection (4) may be levied by the area municipality against persons or property in the same manner and subject to the same limitations as if it were passing a by-law authorizing the issue of debentures of the area municipality for the same purpose for the portion of the debt levied against it under subsection (4). R.S.O. 1990, c. C.42, s. 93 (4-6). Instalment debentures and debentures to refund existing debentures at maturity (7) Despite subsection (5), the County Council may by by-law, (a) authorize the borrowing of money by the issue of instalment debentures, the last instalment of which shall mature not earlier than five years after the date upon which they are issued, and a specified sum of principal payable thereunder in the final year shall be raised by the issue of refunding debentures as provided in clause (b), and it shall not be necessary to raise by special rate in the year of maturity of the debentures to be refunded an amount equal to the specified principal amount of the debentures which are being refunded; and (b) authorize the issue of debentures to refund at maturity outstanding debentures of the municipality, but the refunding debentures shall be payable within the maximum period of years that was authorized by the County for the repayment of the debt for which debentures were issued, commencing on the date the original debentures were issued, and the by-law shall provide that the sums of principal and interest payable under the by-law shall be raised by a special levy or levies against the area municipality or municipalities as may be specified in the by-law and the levy shall be levied against the same area municipality or municipalities in each case. R.S.O. 1990, c. C.42, s. 93 (7); 1992, c. 15, s. 63 (2); 1996, c. 32, s. 67 (18). Levy (8) Any special levy against an area municipality imposed by the by-law under the authority of subsection (7) may be levied by the area municipality against persons or property in the same manner and subject to the same limitations as if it were passing a by-law authorizing the issue of debentures of the area municipality for the same purpose for the portion of the debt levied against it under subsection (7), and any levy imposed by a by-law under clause (7) (b) shall be levied by the area municipality against the same persons or property as the levy imposed by the related by-law under clause (7) (a) was levied. Levies a debt (9) All levies imposed by the by-law against an area municipality are a debt of the area municipality to the County. By-law to change mode of issuing debentures (10) The County Council may by by-law authorize a change in the mode of issue of the debentures and may provide that the debentures be issued with coupons instead of in amounts of combined principal and interest or vice versa, and where any debentures issued under the by-law have been sold, pledged or hypothecated by the County Council upon again acquiring them or at the request of any holder of them, may cancel them and issue one or more debentures in substitution for them, and make such new debenture or debentures payable by the same or a different mode on the instalment plan, but no change shall be made in the amount payable in each year. R.S.O. 1990, c. C.42, s. 93 (8-10). Dating and issuing of debentures (11) A by-law for the issuing of debentures may provide for issuing them, (a) on any date specified in the by-law; or (b) in sets in the amounts and on the dates required. Same (12) Subject to subsection (13), debentures may bear any date or dates specified in the issuing by-law, including a date before the by-law is passed if the by-law provides for the first levy being made in the year in which the debentures are dated or in the next year. Same (13) Every debenture in a set or issue of debentures shall bear the same date. Extension of time for issue (14) The County Council may by by-law extend the date for an issue of debentures or sets of them. Effective date of by-law (15) A by-law passed under this section comes into force on the day it is passed, unless a later date is specified in the by-law. 1996, c. 32, s. 67 (19). (16) Repealed: 1996, c. 32, s. 67 (19). Consolidation (17) Despite any general or special Act, the County Council may borrow sums for two or more purposes in one debenture by-law and provide for the issue of one series of debentures therefor. Consolidating debenture by-laws (18) Section 143 of the Municipal Act applies with necessary modifications to the County. R.S.O. 1990, c. C.42, s. 93 (17, 18). Redemption before maturity (19) The by-law may provide that all the debentures or a portion thereof shall be redeemable at the option of the County on any date prior to maturity, subject to the following provisions: 1. The by-law and every debenture that is so redeemable shall specify the place or places of payment and the amount at which the debenture may be so redeemed. 2. The principal of every debenture that is so redeemable becomes due and payable on the date set for the redemption thereof, and from and after that date interest ceases to accrue thereon where provision is duly made for the payment of principal thereof, the interest to the date set for redemption and any premium payable on redemption. 3. Notice of intention so to redeem shall be sent by prepaid mail at least thirty days prior to the date set for redemption to the person in whose name the debenture is registered at the address shown in the debenture registry. 4. At least thirty days prior to the date set for redemption notice of intention so to redeem shall be published in The Ontario Gazette and in a daily newspaper of general circulation in the County and in such other manner as the by-law may provide. 5. Where only a portion of the debentures issued under the by-law is so to be redeemed, the portion shall comprise only the debentures that have the latest maturity dates and no debentures issued under the by-law shall be called for redemption in priority to any debentures that have a later maturity date. 6. Where a debenture is redeemed on a date prior to maturity, the redemption does not affect the validity of any by-law by which special assessments are imposed or instalments thereof levied, the validity of the special assessments or levies, or the powers of the County Council to continue to levy and collect from any area municipality the subsequent payments of principal and interest payable by it to the County Council in respect of the debenture so redeemed. R.S.O. 1990, c. C.42, s. 93 (19); 1992, c. 15, s. 63 (3). (20)Repealed: 1996, c. 32, s. 67 (20). (21)Repealed: 1996, c. 32, s. 67 (20). (22)Repealed: 1996, c. 32, s. 67 (20). Principal levies (23) When sinking fund debentures are issued, the amount of principal to be raised in each year shall be a specific amount that, with the estimated interest at a rate not exceeding 8 per cent per year, compounded annually, will be sufficient to pay the principal of the debentures at maturity. 1996, c. 32, s. 67 (21). Consolidated bank accounts (24) When sinking fund debentures are issued, the sinking fund committee shall keep one or more consolidated bank accounts in which, (a) the treasurer of the County shall deposit each year during the term of the debentures the money raised for the sinking fund of all debts that are to be paid by means of sinking funds; and (b) there shall be deposited all earnings derived from, and all proceeds of the sale, redemption or payment of, sinking fund investments. R.S.O. 1990, c. C.42, s. 93 (24). Sinking fund committee (25) When sinking fund debentures are issued, there shall be a sinking fund committee that shall be composed of the treasurer of the County and such other members appointed by the County Council as it considers appropriate, and the appointed members may be paid, out of the current fund of the County, such annual remuneration as the County Council determines. R.S.O. 1990, c. C.42, s. 93 (25); 1991, c. 15, s. 24 (1). Alternate members (26) The County Council may appoint an alternate member for each of the appointed members and any such alternate member has all the powers and duties of the member in the absence or inability to act of such member and any such alternate member may be paid, out of the current fund of the County, such remuneration as the County Council determines. Chair (27) The treasurer of the County shall be the chair and the treasurer of the sinking fund committee and in his or her absence the appointed members may appoint one of themselves as acting chair and treasurer. Security (28) Each member of the sinking fund committee shall, before entering into the duties of his office, give security for the faithful performance of his or her duties and for duly accounting for and paying over all money that come into his or her hands, in such amount as the auditor of the County shall determine, and in other respects the provisions of section 92 of the Municipal Act apply with respect to such security. R.S.O. 1990, c. C.42, s. 93 (26-28). Quorum (29) A majority of the members of the sinking fund committee is a quorum, and all investments and disposals of investments must be approved by a majority of all the members of the committee. R.S.O. 1990, c. C.42, s. 93 (29); 1991, c. 15, s. 24 (2). Control of sinking fund assets (30) All assets of the sinking fund, including all consolidated bank accounts, shall be under the sole control and management of the sinking fund committee. Withdrawals from bank accounts (31) All withdrawals from the consolidated bank accounts shall be authorized by the sinking fund committee, and all cheques on the consolidated bank accounts shall be signed by the chair or acting chair and one other member of the sinking fund committee. Investments (32) The sinking fund committee shall invest any money on deposit from time to time in the consolidated bank accounts and may at any time or times vary any investments. R.S.O. 1990, c. C.42, s. 93 (30-32). Same (33) The money in the consolidated bank accounts shall be invested in securities in which the County is permitted to invest under section 167 of the Municipal Act. 1996, c. 32, s. 67 (22). (34)Repealed: 1996, c. 32, s. 67 (22). (35)Repealed: 1996, c. 32, s. 67 (22). Sinking fund accounts (36) All sinking fund debentures issued on the same date, payable in the same currency, and maturing on the same date, although they are issued under one or more by-laws, shall be deemed one debt and be represented by one sinking fund account. R.S.O. 1990, c. C.42, s. 93 (36). Earnings credited to sinking fund accounts (37) That portion of the amount of all earnings in any year, on an accrual basis, from sinking fund investments obtained by, (a) multiplying the amount of all the earnings by the amount of the compounded interest for that year under subsection (23) with respect to the principal raised up to and including that year for all sinking fund debentures represented by any sinking fund account; and (b) dividing the product obtained under clause (a) by the amount of all compounded interest for that year under subsection (23) with respect to all principal raised up to and including that year for all outstanding sinking fund debentures, shall be credited to the sinking fund account mentioned in clause (a). R.S.O. 1990, c. C.42, s. 93 (37); 1996, c. 32, s. 67 (26). Sinking fund requirements (38) The treasurer of the County shall prepare and lay before the County Council in each year, before the annual County levies are made, a statement showing the sums that the County Council will be required, by by-law, to raise for sinking funds in that year. Offence (39) If the treasurer of the County contravenes subsection (24) or (38), he or she is guilty of an offence. Failure to levy (40) If the County Council neglects in any year to levy the amount required to be raised for a sinking fund, each member of the County Council is disqualified from holding any municipal office for two years, unless he or she shows that he or she made reasonable efforts to procure the levying of such amount. R.S.O. 1990, c. C.42, s. 93 (38-40). Where sinking fund account more than sufficient to pay debt (41) Despite this or any other Act or by-law, if it appears at any time that the amount at the credit of a sinking fund account will, together with the estimated earnings to be credited to it under subsection (37) and the levy required by the by-law or by-laws that authorized the issue of the debentures represented by the sinking fund account, be more than sufficient to pay the principal of the debt when it matures, the County Council or the council of an area municipality may reduce the amount of money to be raised with respect to the debt. 1996, c. 32, s. 67 (27). No diversion of sinking funds (42) No money collected for the purpose of a sinking fund shall be applied towards paying any part of the current or other expenditure of the County or otherwise than is provided in this section. R.S.O. 1990, c. C.42, s. 93 (42). Surplus (43) When there is a surplus in a sinking fund account, the sinking fund committee may, with the approval of the County Council, (a) use the surplus to increase the amount at the credit of another sinking fund account; or (b) authorize the withdrawal of the surplus from the consolidated bank accounts, to be used for one or more of the purposes described in subsection (43.1). Purposes (43.1) The purposes referred to in clause (43) (b) are: 1. Retirement of unmatured debentures of the County or of an area municipality. 2. Reduction of the next annual levy on account of principal and interest payable with respect to debentures of the County or of an area municipality. 3. Reduction of the amount of debentures to be issued for capital expenditures for which the issue of debentures has been approved. 4. Transfer to the general fund of the County or of an area municipality. Proportion (43.2) The surplus shall be used under clause (43) (a) or (b) for the purposes of the County or an area municipality in the proportion that the amount of the contribution for the purposes of each bears to the total contributions to the sinking fund account in which the surplus arose. 1996, c. 32, s. 67 (28). Deficit and surplus (44) Even though sinking fund debentures have been issued for the purposes of one or more area municipalities, any deficit in the sinking fund account shall be provided by the County out of its current funds and any surplus in the sinking fund account shall be used as provided in subsection (43). R.S.O. 1990, c. C.42, s. 93 (44). Application (44.1) Subsections 144 (2.1) to (2.3) of the Municipal Act apply with necessary modifications to the County. 1992, c. 15, s. 63 (7). Term debentures (45) A money by-law may authorize the issue of debentures of which all or a portion shall be payable on a fixed date with interest payable in one or more instalments in each year, in which case the debentures shall be known as term debentures. R.S.O. 1990, c. C.42, s. 93 (45); 1992, c. 15, s. 63 (8); 1996, c. 32, s. 67 (29). Amounts to be raised annually (46) In respect of the term debentures, the by-law shall provide for raising, (a) in each year of the currency of the term debentures a sum sufficient to pay the interest on the term debentures; and (b) in each year of the currency of the term debentures in which no other debentures issued under the same by-law become due and payable, a specific amount to form a retirement fund for the term debentures which, with interest at a rate not to exceed 8 per cent per year compounded yearly, will be sufficient to pay the principal of the term debentures at maturity. Retirement fund (47) The retirement fund for the term debentures shall be administered by the sinking fund committee in all respects in the same manner as a sinking fund established under this section and the provisions of subsections (24) to (44) of this section with respect to a sinking fund shall apply with necessary modifications to the retirement fund. All debentures rank equally (48) Despite any general or special Act or any differences in date of issue or maturity, every debenture issued shall rank concurrently and equally in respect of payment of principal and interest thereon with all other debentures of the County, except as to the availability of any sinking funds applicable to any particular issue of debentures. R.S.O. 1990, c. C.42, s. 93 (46-48).