Current borrowings
87. (1) The County Council may by by-law, either before or after the passing of by-laws for imposing levies on the area municipalities for the current year, authorize the warden and treasurer to borrow from time to time by way of promissory note or bankers’ acceptance such sums as the County Council considers necessary to meet, until the levies and other revenues are received, the current expenditures of the County for the year, including the amounts required for principal and interest falling due within the year upon any debt of the County and the sums required by law to be provided by the County Council for any local board of the County. R.S.O. 1990, c. C.42, s. 87 (1). Limit upon borrowings (2) The amount that may be borrowed at any one time for the purposes mentioned in subsection (1), together with borrowings that have not been repaid, shall not, except with the approval of the Municipal Board, exceed from January 1st to September 30th of the year, 50 per cent and from October 1st to December 31st, 25 per cent of the total amount of the estimated revenues of the County as set forth in the estimates adopted for the year. R.S.O. 1990, c. C.42, s. 87 (2); 1992, c. 15, s. 60 (1). Temporary application of estimates of previous year (3) Until such estimates are adopted, the limitation upon borrowing prescribed by subsection (2) shall temporarily be calculated upon the estimated revenues of the County as set forth in the estimates adopted for the next preceding year. R.S.O. 1990, c. C.42, s. 87 (3). Exclusion (3.1) For the purposes of subsections (2) and (3), estimated revenues do not include revenues derivable or derived from, (a) borrowings or issues of debentures; (b) a surplus, including arrears of levies; or (c) a transfer from reserve funds or reserves. 1992, c. 15, s. 60 (2). Protection of lender (4) The lender is not bound to establish the necessity of borrowing the sum lent or to see to its application. Execution of borrowing instruments (5) A promissory note or bankers’ acceptance made under the authority of this section shall be signed by the warden or by some other person authorized by by-law to sign it and by the treasurer. R.S.O. 1990, c. C.42, s. 87 (4, 5). Same (6) The signature of the warden or any other person authorized to sign promissory notes or bankers’ acceptances may be printed, engraved, lithographed or otherwise mechanically reproduced. 1996, c. 32, s. 67 (11). Creation of charge (7) The County Council may by by-law provide or authorize the warden and treasurer to provide by agreement that all or any sums borrowed for any or all of the purposes mentioned in this section shall, with interest thereon, be a charge upon the whole or any part or parts of the revenues of the County for the current year and for any preceding years as and when the revenues are received, provided that the charge does not defeat or affect and is subject to any prior charge then subsisting in favour of any other lender. Execution of agreements (8) Any agreement entered into under subsection (7) shall be signed by the warden and treasurer. Penalties for excess borrowings (9) If the County Council authorizes the borrowing of or borrows any larger amount than is permitted under this section, every member who knowingly votes therefor is disqualified from holding any municipal office for two years. Penalty for misapplication of revenues by County Council (10) If the County Council authorizes the application of any revenues of the County charged under the authority of this section otherwise than in repayment of the loan secured by the charge, the members who knowingly vote for the application are personally liable for the amount so applied, which may be recovered in any court of competent jurisdiction. Penalty for misapplication of revenues by officials (11) If any member of the County Council or officer of the County knowingly applies any revenues so charged otherwise than in repayment of the loan secured by the charge, he or she is personally liable for the amount so applied, which may be recovered in any court of competent jurisdiction. Saving as to penalties (12) Subsections (9), (10) and (11) do not apply to the County Council or any member of the County Council or officer of the County acting under an order or direction issued or made under the authority of the Municipal Affairs Act, nor do they apply in any case where application of the revenues of the County is made with the consent of the lender in whose favour a charge exists. Deeming provision (13) For the purposes of this section, where the County raises money by means of a bankers’ acceptance, the County shall be deemed to be borrowing money. Bankers’ acceptance (14) A bankers’ acceptance authorized under this section, (a) shall be drawn as a bill of exchange under the Bills of Exchange Act (Canada); (b) shall be accepted by a bank to which the Bank Act (Canada) applies; and (c) may be discounted. Interest on promissory note (15) A promissory note authorized under this section may be expressed so as to bear interest only upon such money as may be borrowed thereon from the time when such money is actually lent. R.S.O. 1990, c. C.42, s. 87 (7-15). Debt