Current borrowings
247. (1) The Metropolitan 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 chair and treasurer to borrow from time to time by way of promissory note or banker’s acceptance such sums as the Metropolitan Council considers necessary to meet, until the levies and other revenues are received, the current expenditures of the Metropolitan Corporation for the year, including the amounts required for principal and interest falling due within the year upon any debt of the Metropolitan Corporation and the sums required by law to be provided by the Metropolitan Council for school purposes and for any local board of the Metropolitan Corporation. R.S.O. 1990, c. M.62, s. 247 (1). Limit upon borrowings (2) The amount that may be borrowed at any one time for the purposes mentioned in subsection (1) plus any similar 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 Metropolitan Corporation as set forth in the estimates adopted for the year. 1992, c. 15, s. 44. Temporary application of estimates of preceding 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 Metropolitan Corporation as set forth in the estimates adopted for the next preceding year. Exclusion from estimated revenues (4) For the purposes of subsections (2) and (3), estimated revenues shall not include revenues derivable or derived from the sale of assets, borrowings or issues of debentures or from a surplus including arrears of levies and proceeds from the sale of assets. Protection of lender (5) The lender is not bound to establish the necessity of borrowing the sum lent or to see to its application. Execution of borrowing instruments (6) A promissory note or banker’s acceptance made under the authority of this section shall be signed by the chair or by some other person authorized by by-law to sign it and by the treasurer. R.S.O. 1990, c. M.62, s. 247 (3-6). Same (7) The signature of the chair 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. 78 (24). Creation of charge (8) The Metropolitan Council may by by-law provide or authorize the chair 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 Metropolitan Corporation for the current year and for any preceding years as and when such revenues are received, provided that such charge does not defeat or affect and is subject to any prior charge then subsisting in favour of any other lender. Execution of agreements (9) Any agreement entered into under subsection (8) shall be signed by the chair and treasurer. Penalty for excess borrowings (10) If the Metropolitan 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 Metropolitan Council (11) If the Metropolitan Council authorizes the application of any revenues of the Metropolitan 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 any court of competent jurisdiction. Penalty for misapplication of revenues by officials (12) If any member of the Metropolitan Council or officer of the Metropolitan Corporation applies any revenues so charged otherwise than in repayment of the loan secured by such charge, he or she is personally liable for the amount so applied, which may be recovered in any court of competent jurisdiction. Savings as to penalties (13) Subsections (10), (11) and (12) do not apply to the Metropolitan Council or any member of the Metropolitan Council or officer of the Metropolitan Corporation acting under an order or direction issued or made under the authority of Part III of the Municipal Affairs Act, nor do they apply in any case where application of the revenues of the Metropolitan Corporation is made with the consent of the lender in whose favour a charge exists. Deeming provision (14) For the purposes of this section, where the Metropolitan Corporation raises money by means of a banker’s acceptance, the Metropolitan Corporation shall be deemed to be borrowing money. Bankers’ acceptance (15) A banker’s 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 (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.62, s. 247 (8-16). DEBT