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HomeMy WebLinkAbout1502-05 Borrowing BylawCounty of Newell No. 4 Bylaw No. 1502-OS A By-law of the County of Newell No. 4 in the Province of Alberta, to provide for the borrowing for the purpose of financing operating expenditures. WHEREAS, pursuant to Section 256 of the Municipal Government Act, Revised Statutes of Alberta, 2000, Chapter M-26, the Council of the County of Newell No. 4 (hereinafter called the "Corporation") considers it necessary to borrow certain sums of money for the purpose of financing operating expenditures. THEREFORE, duly assembled in a regular meeting, the Council of the Corporation, in the Province of Alberta, enacts as follows: 1. The Corporation borrow from the Alberta Treasury Branches ("ATB") up to the principal sum of Five Million Dollars ($5,000,000.00) repayable upon demand at a rate of interest per annum of .25% below ATB's Prime Lending Rate from time to time established by ATB, and such interest will be calculated daily and due and payable monthly on the last day of each and every month. There will be no charge for authorized, unused credit. 2. The Chief Elected Officer and the Chief Administrative Officer are authorized for and on behalf of the Corporation: (a) to apply to ATB for the aforesaid loan to the Corporation and to arrange with ATB the amount, terms and conditions of the loan and security or securities to be given to ATB; (b) as security for any money borrowed from ATB: (i) to execute promissory notes and other negotiable instruments or evidences of debt for such loans and renewals of all such promissory notes and other negotiable instruments or evidences of debts; (ii) to give or furnish to ATB all such securities and promises as ATB may require to secure repayment of such loans and interest thereon; and (iii) to execute all security agreements, hypothecations, debentures, charges, pledges, conveyances, assignments and transfers to and in favour of ATB of all or any property, real or personal, moveable or immovable, now or hereafter owned by the Corporation or in which the Corporation may have any interest, and any other documents or contracts necessary to give or to furnish to ATB the security or securities required by it. County of Newell No. 4 Bylaw #1502-OS Page 2 3. The source or sources of money to be used to repay the principal and interest owing under the borrowing are: taxes, reserves, grants, etc. 4. The amount to be borrowed and the term of the loan will not exceed any restrictions set forth in the Municipal Government Act. 5. In the event that the Municipal Government Act permits extension of the term of the loan and in the event the Council of the Corporation decides to extend the loan and ATB is prepared to extend the loan, any renewal or extension, bill, debenture, promissory note, or other obligation executed by the officers designated in paragraph 2 hereof and delivered to ATB will be valid and conclusive proof as against the Corporation of the decision of the Council to extend the loan in accordance with the terms of such renewal or extension, bill, debenture, promissory note, or other obligation, and ATB will not be bound to inquire into the authority of such officers to execute and deliver any such renewal, extension document or security. 6. That this By-law shall come into force upon the final passing thereof. 7. This By-law shall come into force and take effect on the date it is finally passed. Bylaw 1495-OS is hereby rescinded. February 10, 2005 Moved By Councillor Daniels that Bylaw 1502-OS receive first reading. Carried. February 10, 2005 Moved By Councillor Vermeeren that Bylaw 1502-OS receive second reading. Carried. February 10, 2005 Moved by Councillor Daniels that consent be given to proceed with third and final reading of Bylaw 1502-05. Carried Unanimously. February 10, 2005 Moved by Councillor Schroeder that Bylaw 1502-OS receive third and final reading. Carried. REEVE COUNTY ADMINISTRATOR __.