Definitions
123.(1)In this section, “municipality” includes a regional, metropolitan and district municipality and the County of Oxford, but does not include an area municipality within the meaning of any Act establishing a metropolitan, regional or district municipality or of the County of Oxford Act; (“municipalité”) “school board” means a “board” as defined in subsection 1 (1) of the Education Act. (“conseil scolaire”) R.S.O. 1990, c. M.45, s. 123 (1); 1996, c. 32, s. 19 (1). School boards may apply for issue and sale of debentures (2)Where a school board exercises jurisdiction in all or part of a municipality, the school board may apply to the council of the municipality for the issue and sale of debentures on the credit of the municipal corporation for raising such sums as may be required by the school board for permanent improvements, as defined in subsection 1 (1) of the Education Act. R.S.O. 1990, c. M.45, s. 123 (2). Contents of application (3)An application under subsection (2) shall state the purpose of the proposed borrowing and the nature and the estimated costs of the proposed permanent improvements. R.S.O. 1990, c. M.45, s. 123 (3); 1996, c. 32, s. 19 (2). Duties of council (4)The council, at its first meeting after receiving an application under subsection (2), or as soon as possible thereafter, shall consider and approve or disapprove the application. R.S.O. 1990, c. M.45, s. 123 (4). Approval (5)If the council approves the application under subsection (4), the council shall pass a by-law authorizing the borrowing of money by the issue and sale of debentures on the credit of the municipal corporation for the purposes stated in the application. R.S.O. 1990, c. M.45, s. 123 (5); 1997, c. 31, s. 155 (5). (5.1)Repealed: 1997, c. 31, s. 155 (6). Application of other Acts (6)The provisions of any Act that apply to the council of a municipality in respect of its powers to raise money for municipal purposes by the issue and sale of debentures, including any obligation or prohibition imposed in connection therewith, apply with necessary modifications to the council of the municipality where it is passing a by-law for the raising of money by the issue and sale of debentures under this section. R.S.O. 1990, c. M.45, s. 123 (6). Borrowing pending issue and sale of debentures (7)The council of the municipality or the school board pending the issue and sale of the debentures may, and the council of the municipality on the request of the school board shall, agree with a bank or person for temporary advances from time to time for the purposes authorized, and the council of the municipality may, or on the request of the school board shall, pending the sale of such debentures or in lieu of selling them, authorize the chair and treasurer to raise money by way of loan on the debentures and to hypothecate them for the loan, and shall transfer the proceeds of such advance or loan to the school board. R.S.O. 1990, c. M.45, s. 123 (7); 1997, c. 31, s. 155 (7). (7.1)Repealed: 1997, c. 31, s. 155 (8). Interest on temporary borrowing (8)Where the council of a municipality has raised money for a school board under this section by temporary financing pending the sale of debentures, it shall charge the cost of the borrowing to the school board for the period before the sale for which the money is borrowed or for a period of one year, whichever is less. Application of proceeds of loan (9)The proceeds of every advance or loan under subsection (7) shall be applied to the purposes for which the debentures were authorized, but the lender shall not be bound to see to the application of the proceeds and, if the debentures are subsequently sold, the proceeds of the sale shall be applied first in repayment of the loan and the balance shall be transferred to the school board. Notice of principal and interest (10)Where the council of a municipality has passed a by-law under this section for issuing debentures, the treasurer of the municipality shall notify the treasurer of the school board in writing before the 1st day of January in each year of the amount of the principal and interest, including any amount required to be raised for a sinking fund or retirement fund, due and payable in that year in respect of the debentures so issued, and the dates on which the payments of such amounts become due. Amounts to be included in estimates of school board (11)The amount that the treasurer of the school board receives notice of under subsection (10) shall be included in the estimates of the school board for that year, and the treasurer of the school board shall pay that amount to the treasurer of the municipality on or before the due dates of payment as specified in the notice and such amount may be recovered as a debt due by the school board to the municipality. R.S.O. 1990, c. M.45, s. 123 (8-11). Joint and several liability (12)All debentures issued under the authority of this section are direct, joint and several obligations of the municipality and the school board, and, in the case of debentures issued by a metropolitan, regional or district municipality or the County of Oxford, are direct, joint and several obligations of that municipality, the school board and the area municipalities as defined in the Act establishing that municipality, but nothing in this subsection affects the rights of that municipality, the school board and such area municipalities as among themselves. R.S.O. 1990, c. M.45, s. 123 (12); 1996, c. 32, s. 19 (3). Ranking of debentures (13)Despite any general or special Act or any differences in date of issue or maturity, every debenture issued by a municipality under the authority of this section shall rank concurrently and equally in respect of payment of principal and interest thereon with all other debentures of the municipality, except as to the availability of any sinking funds applicable to any particular issue of debentures. R.S.O. 1990, c. M.45, s. 123 (13); 1996, c. 32, s. 19 (4). Default (14)A by-law under subsection (5) shall, (a) in the case of a by-law of a metropolitan, regional or district municipality or of the County of Oxford, 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 that year to the extent that such sums have not been paid over to the municipality by the appropriate school board in accordance with subsection (11); (b) in the case of a by-law of a county, provide for raising in each year by inclusion with the amounts required for county purposes under section 365, the sums of principal and interest payable under the by-law in that year to the extent that such sums have not been paid over to the municipality by the appropriate school board in accordance with subsection (11); and (c) in the case of a by-law of a local municipality, provide for raising in each year by a special rate on all the rateable property in the municipality the sums of principal and interest payable under the by-law in that year to the extent that such sums have not been paid over to the municipality by the appropriate school board in accordance with subsection (11). R.S.O. 1990, c. M.45, s. 123 (14); 1996, c. 32, s. 19 (5); 1997, c. 5, s. 43. Recovery of costs (15)The expenses of the municipality in preparing, printing and publishing any by-laws or debentures under this section, and all other expenses incident thereto, may be charged to the school board. R.S.O. 1990, c. M.45, s. 123 (15).