Bylaw 1162-19 Page 1
Short Term Borrowing of Funds
1. That the Council of the Corporation does authorize borrowing from ATB Financial a sum or sums not exceeding Two Million ($2,000,000.00) Dollars, which the Council deems necessary to expend to meet the current operating expenditures and capital obligations of the Corporation, until such time taxes levied or to be levied therefore can be collected, or as grants can be received from the Province of Alberta or Government of Canada, and as the Corporation applies for and receives funds by way of issuance of long-term debenture, and to pay or agree to pay interest not exceeding Ten Percent (10%) on the sum or sums so borrowed either in advance or at maturity, and in either case after maturity, at such rate as may be agreed upon from time to time between Council and ATB Financial.
2. That the sum or sums so borrowed be evidenced and secured by the promissory note or notes of the Reeve and Chief Administrative Officer or designate of the Corporation given on its behalf, and the said Reeve and Chief Administrative Officer or designate are hereby authorized and empowered to execute and give such promissory note or notes as may be required by ATB Financial and to determine and agree upon from time to time the rate of interest applicable to the amount of same borrowed hereunder, remaining from time to time outstanding.
3. That the Council of the Corporation does hereby pledge to ATB Financial security for the money borrowed hereunder, unpaid taxes and penalties on taxes assessed and/or levied by the Corporation in previous years together with penalties thereon and taxes assessed or to be assessed and/or to be levied for the current year and the following year, equal only to the amount of used promissory note or notes including interest but not to exceed the sum of Two Million ($2,000,000.00) Dollars.
4. The Corporation shall deposit in an account with the said ATB Financial the amount of said taxes, penalties and other designated revenues as collateral security for the money to be borrowed hereunder and interest thereon, and the sum shall be applied as necessary in payment of monies borrowed hereunder and interest thereon.
5. That the said ATB Financial shall not be restricted to the said taxes, penalties and other designated revenues for the payment of the monies borrowed as aforesaid, or to be bound to wait until such taxes, penalties and other designated revenues can be collected, or be required to see that the said taxes, penalties and other designated revenues are deposited as aforesaid.
6. That nothing herein contained shall waive, prejudicially affect or exclude any right, power, benefit or security by statute, common law or otherwise given to or implied in favour of the said ATB Financial.
7. This Bylaw shall come in effect on January 1, 2020 and expire on December 31,
2022.
Joshua Knelsen
Reeve |
Lenard Racher
Chief Administrative Officer |