Sinking fund debentures
144.(1)Despite subsections 140 (2) to (19) and sections 141 and 145, a municipality may provide in any money by-law for the issuing of debentures that all or a portion of the debentures are sinking fund debentures which have the principal payable on a fixed date and interest payable in one or more instalments in each year. 1992, c. 15, s. 5 (1); 1996, c. 32, s. 26 (1). Amount to be raised annually (2)The by-law shall provide for the raising in each year during the currency of the debentures, by a special rate on all the rateable property in the municipality, of (a) a specific amount, sufficient to pay the interest on the debentures; and (b) a specific amount for the sinking fund which, with interest at a rate not to exceed 8 per cent per annum, compounded yearly, will be sufficient to pay the principal of the debentures at maturity, 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. 144 (2). Refinancing debentures (2.1)If a by-law passed under this section authorizes sinking fund debentures to be issued, the by-law may authorize the issuing of debentures to refund at maturity the outstanding sinking fund debentures. 1992, c. 15, s. 5 (2). Term (2.2)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. 1996, c. 32, s. 26 (2). Effect (2.3)If refunding debentures are issued, it is not necessary to raise by special rate in the year of maturity of the outstanding debentures the principal that is being refunded. Rates (2.4)The principal and interest payable under subsection (2.1) shall be raised in accordance with subsection (2). 1992, c. 15, s. 5 (2). Amounts raised to be deposited with a bank, trust corporation or credit union (3)Every money by-law passed under this section shall provide that the municipality shall deposit the annual amount to be raised under clause (2) (b), (a) with a bank listed in Schedule I or II to the Bank Act (Canada) or a trust corporation that is registered under the Loan and Trust Corporations Act; or (b) subject to the Credit Unions and Caisses Populaires Act, with a credit union as defined in that Act, and such amount shall be so deposited on or before the anniversary date in each year of the currency of the debentures. Powers (4)The bank, trust corporation or credit union shall receive all specific amounts raised for sinking fund purposes and the income from all the investments of the sinking fund and shall from time to time invest the money so received and may vary any investment. R.S.O. 1990, c. M.45, s. 144 (3, 4). Authorized investments (5)The bank, trust corporation or credit union may invest only in securities in which the municipality would be permitted to invest under section 167. 1996, c. 32, s. 26 (3). Annual financial statement to be submitted (6)The bank, trust corporation or credit union shall, not later than the 31st day of January in each year, submit to the Ministry and to the auditor of the municipality a financial statement of the sinking fund at the close of the previous calendar year and such statement shall contain a list of the investments held in the sinking fund. Surplus in sinking fund (7)When, at the 31st day of December in any year, there is a balance in the sinking fund in excess of the amount then required for the retirement of the sinking fund debentures as certified by the auditor, such balance or part thereof shall, upon the written request of the municipality, be applied by the bank, trust corporation or credit union to the payment of the amount required for such sinking fund in the next succeeding year and the amount of the payment required to be paid to the bank, trust corporation or credit union in such year in accordance with subsection (3) and the levy for the sinking fund in such year shall be reduced accordingly. Deficiency in sinking fund (8)When, at the 31st day of December in any year, the amount of a sinking fund is less than the amount then required for the retirement of the sinking fund debentures as certified by the auditor, the municipality shall pay to the bank, trust corporation or credit union an amount sufficient to make up the deficiency in the sinking fund. Disposition of sinking fund at maturity of debentures (9)At the maturity of the debentures for which the sinking fund was established, the bank, trust corporation or credit union shall pay to the treasurer of the municipality the amount accumulated in the sinking fund. R.S.O. 1990, c. M.45, s. 144 (6-9).