Temporary loans
53.(1)The council may agree with any bank or person for temporary advances to meet the cost of the work pending the completion of it. Issue of debentures (2)The council may, (a) when the work undertaken is completed; or (b) when a firm contract for the carrying out of the work has been entered into whereby the cost of completing the undertaking is established and construction of the work has commenced, borrow on the credit of the corporation at large such sums as may be necessary to repay temporary loans made by the corporation pending the completion of the work and to defray the cost of the work undertaken, including the corporation’s portion of the cost, and may issue debentures for the sums so borrowed. Sewer systems (3)Where the council has undertaken the construction of several sewers connected as a system of sewers, (a) the council may not proceed under clause (2) (a) until all the sewers in the system are completed; and (b) the council may not proceed under clause (2) (b) until firm contracts for carrying out the work have been entered into whereby the cost of completing all of the sewers in the system is established and construction of the system has commenced, and there shall be added to the cost of each sewer forming part of the system its proportionate share of the whole of the interest upon the temporary loans made by the corporation pending the construction of all the sewers forming the system as if all the sewers had been constructed at the same time. Application (4)The provisions of the Municipal Act as to by-laws for creating debts apply to by-laws passed under subsection (2), except that it is not necessary, (a) that the by-law be submitted to or receive the assent of the electors; (b) that any rate be imposed for the payment of the principal of so much of the money borrowed as represents the owners’ portion of the cost or of the interest thereon, other than the special rate per metre frontage imposed to meet it, and except that the debentures, save as provided by section 56, shall be payable within the lifetime of the work. Special fund for payment of debentures (5)The special rates imposed for the owners’ portion of the cost shall form a special fund for the payment of the debentures issued under subsection (2) and the interest thereon and shall not be applicable to or be applied for any other purpose. General rate to meet deficiency in special rate (6)If in any year the amount realized from the special rate imposed to provide for the owners’ portion of the cost and interest is insufficient to pay the amount falling due in such year in respect of so much of the debentures as represents the owners’ portion of the cost, the council shall provide for the deficiency in the estimates for the following year and levy and collect the same by a general rate, but this does not relieve the land specially assessed from the special rate thereon. Owners’ portion not to be deemed part of debenture debt of corporation (7)The amount borrowed under subsection (2), in respect of the owners’ portion of the cost, shall not be deemed to be part of the existing debenture debt of the corporation within the meaning of the provisions of the Municipal Act limiting the borrowing powers of the municipality. Corporation’s portion may be included in yearly estimates (8)Instead of borrowing the amount of the corporation’s portion of the cost of a work undertaken, the council may include the same in the estimates of the year. Disposal of excess sums (9)When the amount realized from the debentures exceeds the amount of the cost of the work, the excess sum shall be applied in the manner provided in subsection 168 (3) of the Municipal Act, unless all the rates have been levied under the by-law, in which case the excess sum shall be paid to the owners, at the time such payment is made, of the land on which the rates were levied. Application of subs. (9) (10)Subsection (9) does not apply to a by-law passed prior to the 1st day of January, 1941. R.S.O. 1990, c. L.26, s. 53.