Debentures
141.(1)Despite subsections 140 (2) to (19) and sections 144 and 145, a municipality may provide in any money by-law for the issuing of debentures that all or a portion of the debentures to be issued shall be payable at a fixed date with interest payable in one or more instalments in each year, but the municipality shall, (a) extend the term of all or any of the debentures at the request of the holder given to the treasurer of the municipality at any times fixed in the by-law before the maturity date of the debentures and subject to any conditions that may be set out in the by-law, which debentures shall be known as extendible term debentures; or (b) if the debentures have a maturity date longer than five years, redeem all or any of the debentures at the request of the holder at earlier dates than fixed in the by-law subject to any conditions that may be set out in the by-law, which debentures shall be known as retractable term debentures. 1992, c. 15, s. 3 (1); 1996, c. 32, s. 25 (1). Change of interest rate (2)A by-law passed under subsection (1) shall, (a) with respect to extendible term debentures, (i) fix the rate of interest payable thereon during the initial term, and (ii) provide that the rate of interest payable thereon with respect to any extended term, (A) shall be the same as the amount fixed under subclause (i), (B) shall be such different rate as is set out in the by-law, or (C) shall be a rate determined by a further by-law of the municipality passed not less than six months prior to the maturity date of the debentures; and (b) with respect to retractable term debentures, (i) fix the rate of interest payable thereon prior to the first early redemption date, (ii) provide that the rate of interest payable thereon with respect to any period commencing the day immediately following an early redemption date and expiring with the next early redemption date or with the maturity date, as the case may be, (A) shall be the same as the amount fixed under subclause (i), (B) shall be such different rate as is set out in the by-law, or (C) shall be a rate determined by a further by-law of the municipality passed not less than six months prior to the beginning of the period. R.S.O. 1990, c. M.45, s. 141 (2). Notice of change (3)Where a by-law passed under subsection (1) contains a provision authorized by sub-subclause (2) (a) (ii) (C) or (b) (ii) (C), notice of the change in the interest rate shall be sent by the treasurer of the municipality by prepaid mail at least seventy days prior to the date set for such change to the person, if any, in whose name the debenture is registered at the address shown in the debenture registry and shall be published at least sixty days prior to the maturity or redemption date in such manner as the by-law may provide. R.S.O. 1990, c. M.45, s. 141 (3); 1992, c. 15, s. 3 (2). Mandatory provisions in by-law (4)A by-law passed under subsection (1) shall, with respect to extendible or retactable term debentures, provide for raising by a special rate on all the rateable property in the municipality, (a) in each year of the currency of the debentures, a sum sufficient to pay the interest thereon; and (b) in each year of the currency of the debentures, a specified amount to form a retirement fund for the debentures which amount shall be equal to or greater than the amount that would have been required to have been raised in each year in respect of principal if the principal amount of the debentures had been payable in equal annual instalments and the debentures had been issued for the maximum period of years that was authorized by by-law of the municipality for the repayment of debentures issued for the debt for which the debentures were issued, commencing on the date of the debentures, to the extent that such sums have not been provided for by any special rate or rates imposed on persons or property made especially liable therefor by the by-law or by any other by-law or by-laws passed by the municipality or any other municipality in accordance with any general or special Act. R.S.O. 1990, c. M.45, s. 141 (4); 1992, c. 15, s. 3 (3). Retirement fund (5)The retirement fund referred to in clause (4) (b) shall be administered in all respects in the same manner as a sinking fund established under section 144, and subsections 144 (3) to (9) apply with necessary modifications to the retirement fund. Debentures to refund existing debentures at maturity (6)To the extent that it has not otherwise been raised or is not otherwise available, the money required to refund extendible or retractable term debentures issued under a by-law passed under this section shall be raised by the issue of debentures under the appropriate clause of subsection (7). Exchange and refund (7)A municipality may, by by-law, authorize the issue of debentures, (a) to be exchanged for extendible term debentures extended by the holders thereof in accordance with this section and the by-law authorizing the issue of such debentures; (b) to refund at maturity extendible term debentures; and (c) to refund retractable term debentures at maturity and at early redemption dates. R.S.O. 1990, c. M.45, s. 141 (5-7). Maximum term of debentures (8)Debentures issued under subsection (7) 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. 1996, c. 32, s. 25 (2). Mandatory provision in by-law (9)A by-law passed under subsection (7) shall provide for the amounts of principal and interest payable on the debentures to be raised by a rate or rates on the rateable property of the same class or classes of ratepayers as were subject to the rates levied to raise amounts to pay the principal and interest payable on the debentures that are being refunded or for which the exchange is being made. Method of expressing interest rate (10)A by-law passed under subsection (2) to fix rates of interest or to change rates of interest shall express the rates in terms of a specific percentage rate and not in terms of a percentage rate based on another rate or amount to be ascertained in the future. R.S.O. 1990, c. M.45, s. 141 (9, 10). Term of extensions (11)The period by which an extendible term debenture may be extended under clause (1) (a) shall expire within the maximum period of years that was authorized by the by-law of the municipality for the repayment of debentures issued for the debt for which the extendible debenture was issued, commencing on the date of the extendible debenture. 1992, c. 15, s. 3 (5). (12), (13)Repealed: 1992, c. 15, s. 3 (6).