PART XIII DEBT AND INVESTMENT
408.
408 (1) A municipality shall authorize long term borrowing by the issue of debentures or through another municipality under section 403 or 404.  2001, c. 25, s. 408 (1). Content of by-law (2) Subject to this Act and the regulations, a municipality may pass by-laws authorizing, with respect to its debentures or any class of them, (a)  the due dates, amounts of and methods for payment of principal and interest, including electronic transfer of payments; (b)  the maturity dates; (c)  the form of execution and use of the municipal seal; (d)  a registry; (e)  tenders and a process for tendering; (f)  redemption; (g)  refinancing; (h)  cancellation, substitution, exchange and transfer of ownership; (i)  the form of instrument; (j)  notices or other communications to persons with an interest; (k)  the use of electronic, magnetic or other media for records of or related to the debentures or for copies of them.  2001, c. 25, s. 408 (2). Restriction (2.1) A municipality may issue a debenture or other financial instrument for long-term borrowing only to provide financing for a capital work.  2009, c. 18, Sched. 18, s. 7 (1). Term restriction (3) The term of a debt of a municipality or any debenture or other financial instrument for long-term borrowing issued for it shall not extend beyond the lifetime of the capital work for which the debt was incurred and shall not exceed 40 years.  2006, c. 32, Sched. A, s. 176; 2009, c. 18, Sched. 18, s. 7 (2). Principal and interest payments (4) A debenture by-law, (a)  shall provide for raising in each year as part of the general upper-tier levy or the general local municipality levy, as applicable, the amounts of principal and interest payable in each year under the by-law to the extent that the amounts have not been provided for by other taxes or by fees or charges imposed on persons or property by a by-law of any municipality; (b)  shall provide for repayment of the principal in annual instalments and payment of the interest on the unpaid balance in one or more instalments in each year; (c)  may provide for instalments of combined principal and interest; and (d)  despite clause (b), may provide that instalments of principal, interest or both are not payable during the period of construction of an undertaking for which the debt was incurred, as estimated by council, but not to exceed five years.  2001, c. 25, s. 408 (4). Exception (5) The total amount of principal and interest that must be raised in a year under clause (4) (a) does not include any outstanding amount of principal specified as payable on the maturity date of a debenture if one or more refinancing debentures are issued by the municipality on or before the maturity date in respect of the outstanding principal.  2001, c. 25, s. 408 (5). Dates of debentures (6) Debentures may be dated as specified in the issuing by-law, including a date before the by-law is passed if the by-law provides for the first amount for repayment being raised in the year in which the debentures are dated or in the next year.  2001, c. 25, s. 408 (6). All debentures rank equally (7) Despite any Act or any differences in date of issue or maturity, every debenture issued by a municipality shall rank concurrently and equally in respect of payment of principal and interest with all other debentures of the municipality.  2001, c. 25, s. 408 (7). Exception (8) Subsection (7) does not apply to money in a sinking or retirement fund for a particular issue of debentures.  2001, c. 25, s. 408 (8). Consolidating debenture by-laws (9) Despite any Act, if a municipality intends to incur debt for two or more purposes, or if it has passed separate debenture by-laws authorizing borrowing for two or more purposes but has not sold any of the debentures, the municipality may by by-law provide for the issue of one series of debentures for the debt.  2001, c. 25, s. 408 (9). Same (10) A by-law under subsection (9), (a)  shall recite or otherwise refer to the separate by-laws it consolidates; and (b)  may authorize the issue of debentures in one series even if the principal and interest of some of the debentures is payable on different dates than the payment dates for other debentures in the series.  2001, c. 25, s. 408 (10). Admissibility (11) If there is no original written record of or related to a debenture, any writing produced from an electronic or magnetic medium that is in a readily understandable form is admissible in evidence to the same extent as if it were an original written record.  2001, c. 25, s. 408 (11). Regulations (12) The Lieutenant Governor in Council may make regulations governing municipal debentures, including but not limited to, prescribing rules relating to matters referred to in subsection (2) and clause (4) (d).  2001, c. 25, s. 408 (12). Section Amendments with date in force (d/m/y) 2006, c. 32, Sched. A, s. 176 - 01/01/2007 2009, c. 18, Sched. 18, s. 7 (1, 2) - 05/06/2009