Current borrowings
187. (1) A council may by by-law either before or after the passing of the by-law for imposing the rates for the current year authorize the head and treasurer to borrow from time to time by way of promissory note or bankers’ acceptance such sums as the council considers necessary to meet, until the taxes are collected and other revenues are received, the current expenditures of the corporation for the year, including the amounts required for sinking fund, principal and interest falling due within the year upon any debt of the corporation, school purposes, special rates purposes, and for any board, commission or body and other purposes for which the corporation is required by law to provide. R.S.O. 1990, c. M.45, s. 187 (1). Limitation (2) The amount borrowed and not repaid under subsection (1), together with the total of any similar borrowings that have not been repaid, shall not at any point in time exceed, for the period from January 1 to September 30 of the year, 50 per cent of the total and for the period from October 1 to December 31 of the year, 25 per cent of the total of the estimated revenues of the corporation as set out in the estimates adopted for the year. 2000, c. 25, s. 16 (1). Exception (2.1) The amount borrowed and not repaid at any point in time may exceed the limits under subsection (2) with the approval of the Ontario Municipal Board. 2000, c. 25, s. 16 (1). Treasurer to furnish lender with copy of by-law, etc. (3) At the time that any amount is borrowed under this section, the treasurer shall furnish to the lender a copy of the by-law authorizing the borrowing and a statement showing the nature and amount of the estimated revenues of the current year not yet collected or, where the estimates for the year have not been adopted, a statement showing the nature and amount of the estimated revenues of the corporation as set forth in the estimates adopted for the next preceding year, and also showing the total of any amounts borrowed under this section that have not been repaid. R.S.O. 1990, c. M.45, s. 187 (3). Temporary application of estimates of preceding year (4) Until such estimates are adopted, the limitations upon borrowing prescribed by subsection (2) shall temporarily be calculated upon the estimated revenues of the corporation as set forth in the estimates adopted for the next preceding year. R.S.O. 1990, c. M.45, s. 187 (4). Exclusion (4.1) For the purposes of subsections (2) and (4), 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 the capital fund, reserve funds or reserves. 1992, c. 15, s. 15 (2). Lender not bound to establish necessity, etc. (5) The lender is not bound to establish the necessity of borrowing the sum lent or to see to its application. R.S.O. 1990, c. M.45, s. 187 (5). Execution of borrowing instruments (6) A promissory note or bankers’ acceptance made under the authority of this section shall be signed by the treasurer and by the head of the council or by some other person authorized by by-law to sign it. R.S.O. 1990, c. M.45, s. 187 (6). Same (7) The signature of the head of council 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. 48. Creation of charge (8) The council may by by-law provide or authorize the head 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 corporation for the current year and for any preceding years as and when such revenues are received but such charge does not defeat or affect and is subject to any prior charge then subsisting in favour of any other lender. R.S.O. 1990, c. M.45, s. 187 (8). Execution of agreements (9) Any agreement entered into under subsection (8) shall be signed by the head and treasurer. R.S.O. 1990, c. M.45, s. 187 (9). Penalty for excess borrowings (10) If the 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. R.S.O. 1990, c. M.45, s. 187 (10). Penalty for misapplication of revenues by council (11) If the council authorizes the application of any revenues of the corporation charged under the authority of this section otherwise than in repayment of the loan secured by such charge, the members who vote for such application are personally liable for the amount so applied, which may be recovered in a court of competent jurisdiction. R.S.O. 1990, c. M.45, s. 187 (11). Penalty for misapplication of revenues by officials (12) Any member of the council or officer of the corporation who applies any revenues so charged otherwise than in repayment of the loan secured by such charge is personally liable for the amount so applied, which may be recovered in a court of competent jurisdiction. R.S.O. 1990, c. M.45, s. 187 (12). Saving clauses as to penalties (13) Subsections (10), (11) and (12) do not apply, (a) to a council or any member of a council or officer of a corporation acting under an order or direction issued or made under the authority of Part III of the Municipal Affairs Act; or (b) in any case where application of the revenues of the corporation is made with the consent of the lender in whose favour a charge exists. R.S.O. 1990, c. M.45, s. 187 (13). Deeming provision (14) Where a municipality raises money by means of a bankers’ acceptance, the municipality shall be deemed to be borrowing money. R.S.O. 1990, c. M.45, s. 187 (14). Bankers’ acceptance (15) 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. R.S.O. 1990, c. M.45, s. 187 (15). Interest on promissory note (16) 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. M.45, s. 187 (16). Year 2001 (17) In respect of 2001, the references to 25 per cent and 50 per cent in subsection (2) shall be deemed to be references to 45 per cent and 70 per cent, respectively. 2000, c. 25, s. 16 (2). (18) Repealed: 2000, c. 25, s. 16 (3).