When debentures payable
140.(1)A money by-law shall provide that the whole debt and any debentures to be issued for it 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. 2 (1). Principal and interest payments (2)A money by-law for the issuing of debentures, (a) shall provide for, (i) repayment of the principal in annual instalments, (ii) payment of interest on the unpaid balance, in one or more instalments in each year; and (b) may provide for instalments of combined principal and interest. Amount to be raised annually (3)A money by-law for the issuing of debentures shall provide for raising, in each year, the amounts of principal and interest payable under the by-law, by a special rate on all the rateable property in the municipality, to the extent that the amounts have not been provided for by special rates imposed on persons or property made specially liable for them by a by-law of any municipality. 1996, c. 32, s. 24 (1). Instalment debentures and debentures to refund existing debentures at maturity (4)Despite subsection (3), a municipality 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 municipality for the repayment of the debt for which debentures were issued, commencing on the date the original debentures were issued, and any such by-law shall provide that the sums of principal and interest payable under the by-law shall be raised by a rate or rates imposed on such persons or property as may be specified in the by-law and such rate or rates shall be levied upon the same persons or property in each case. R.S.O. 1990, c. M.45, s. 140 (4); 1992, c. 15, s. 2 (2); 1996, c. 32, s. 24 (2). By-law to change mode of issuing debentures (5)The 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 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. M.45, s. 140 (5). Dating and issuing of debentures (6)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 (7)Subject to subsection (8), 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 (8)Every debenture in a set or issue of debentures shall bear the same date. Extension of time for issue (9)The council may by by-law extend the date for an issue of debentures or sets of them. Effective date of by-law (10)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. 24 (3). (11)Repealed: 1996, c. 32, s. 24 (3). Consolidation (12)Despite any other Act, the 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. R.S.O. 1990, c. M.45, s. 140 (12). Redemption before maturity (13)The by-law may provide that all the debentures or a portion thereof shall be redeemable at the option of the corporation on any date prior to maturity, subject to the following provisions: Place of payment and value 1. The by-law and every debenture that is so redeemable shall specify the place of payment and the value at which such debenture may be so redeemed. Interest 2. The principal of every debenture that is so redeemable shall become due and payable on the date set for the redemption thereof, and from and after such date interest ceases to accrue thereon where provision is duly made for the payment of the amount thereof. Notice to registered owner 3. Notice of intention so to redeem shall be sent by post at least thirty days prior to the date set for such redemption to the person in whose name the debenture is registered at the address shown in the debenture registry. Publication of notice 4. At least thirty days prior to the date set for such redemption, notice of intention so to redeem shall be published in The Ontario Gazette and in a newspaper of general circulation, if any, in the municipality and in such other manner as the by-law may provide. Order of redemption 5. If only part of an issue of debentures is to be redeemed, the part shall comprise only the debentures with the latest maturity dates, and no debenture issued under the by-law shall be called for redemption in priority to a debenture issued under the by-law with a later maturity date. Effect of redemption 6. Where a debenture is redeemed on a date prior to maturity, such redemption does not affect the validity of any by-law by which special assessments are imposed or instalments thereof levied, the validity of such special assessments or levies, or the powers of the council to continue to levy and collect such special assessments and instalments thereof. R.S.O. 1990, c. M.45, s. 140 (13); 1992, c. 15, s. 2 (3); 1996, c. 32, s. 24 (4). Joint municipal projects (14)Despite this section, if a municipality will be liable for a portion of the annual carrying charges on a debt intended to be created on behalf of two or more municipalities, such municipality may pass a by-law providing for raising, by a special rate on all the rateable property liable therefor in the municipality in each year of the currency of the debt, its share of the principal and interest falling due in each such year, and the by-law shall provide that such share shall be determined as provided in the Act, authorizing the issue of the debentures and need not provide for the raising of a specific sum in each year of the currency of the debt. R.S.O. 1990, c. M.45, s. 140 (14). Exchange of debentures permitted (15)The treasurer of a municipality may, on the request of the holder of a debenture issued by the municipality, issue and deliver to the holder a new debenture or debentures in exchange, for the same aggregate principal amount. 1996, c. 32, s. 24 (5). Fully registered debentures (16)Any new debenture mentioned in subsection (15) may be registered as to both principal and interest with provision for payment of interest by cheque or, if authorized in writing by the owner of the debenture, by electronic transfer or may be payable to bearer with provision for registration as to principal only and have coupons attached for the payment of interest, but in all other respects shall be of the same force and effect as the debentures surrendered for exchange. R.S.O. 1990, c. M.45, s. 140 (16); 1992, c. 15, s. 2 (5). Duty of treasurer (17)When a debenture is surrendered for exchange under subsection (15), the treasurer shall, (a) cancel and destroy it; (b) certify the cancellation and destruction in the debenture registry; and (c) enter in the debenture registry particulars of the new debenture or debentures issued in exchange. 1996, c. 32, s. 24 (6). By-law to provide for exchange of debentures (18)A money by-law may provide for exchanges of debentures as provided for in subsection (15) on such terms and conditions as to notice or otherwise as the by-law may provide. R.S.O. 1990, c. M.45, s. 140 (18). All debentures rank proportionately (19)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 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. 140 (19); 1996, c. 32, s. 24 (7).