HomeMy WebLinkAbout1437-03 Debenture - Newell Foundation for Newbrook LodgeCounty ofNewell No. 4
By-law No. 1437-03
A By-law of the County of Newell No. 4, in the Province of Alberta, to authorize the
Council of the County of Newell No. 4 to incur an indebtedness by the issuance of
debentures (the "debentures") to the Alberta Capital Finance Authority ("ACFA") for
the purpose of providing a loan to the Newell Foundation for construction and upgrade
to the Newbrook Lodge in Brooks, Alberta.
Whereas, pursuant to Section 251 of the Municipal Government Act, Statutes of
Alberta, 1994, Chapter M-26.1, the Council of the County of Newell No. 4 has
decided to issue County of Newell No. 4 By-law No. 1436-03 to authorize the
financing of a loan in the amount of nine million dollars ($9,000,000.00) tothe Newell
Foundation for construction and upgrade to the Newbrook Lodge in Brooks, Alberta.
The County ofNewell No. 4 will repay the indebtedness over a period of fifteen (15)
years in annual installments, with interest not exceeding seven percent (7%), or the
interest rate fixed from time-to-time by the ACFA, per annum payable annually.
The amount of the existing debenture debt of the County of Newell No. 4 at December
31, 2002 is $754, 440, no part of which is in arrears.
The estimated lifetime of the loan repayment is fifteen (15) years.
All required approvals for provision of a loan to the Newell Foundation have been
obtained and the conditions of the loan are incompliance with all acts and regulations
of the Province of Alberta.
Therefore, the Council of the County of Newell No. 4 duly assembled enacts as
follows:
That, for the purpose of providing a loan to the Newell Foundation for
construction and upgrade to the Newbrook Lodge in Brooks, Alberta, the sum of
nine million dollars ($9,000,000.00) be borrowed from ACFA by way of
debenture on the credit and security of the County of Newell No. 4, of which
amount the sum of nine million dollars ($9,000,000.00) is to be re-paid by the
County ofNewell No. 4 at large.
2. The debentures to be issued under this By-law shall not exceed the sum of nine
million dollars ($9,000,000.00) and may be in any denomination not exceeding
the amount authorized by this By-law and shall be dated having regard to the
date of the borrowing.
3. The debentures shall bear interest during the currency of the debentures, at a rate
not exceeding seven percent (7%), or the interest rate fixed from time-to-time by
the ACFA, per annum payable annually.
4. The debentures shall be issued in such manner that the principal and interest will
be combined and be made payable in, as nearly as possible, equal annual
installments over a period of fifteen (15) years, in accordance with the schedule
attached and forming a part of each debenture.
5. The debentures shall be payable in lawful money of Canada at ATB Financial in
the Town of Brooks, Alberta or at such other bank or financial institution as the
Council of the County of Newell No. 4 may authorize as its banking agency
during the currency of the debenture.
6. The Chief Elected Official and Chief Administrative Officer of the County of
Newell No. 4 shall authorize such bank or financial institution to make payments
to the holder of the debentures on such date and in such amounts as specified in
the repayment schedule forming part of each debenture.
7. The debentures shall be signed by the Chief Elected Official and the Chief
Administrative Officer of the County of Newell No.4 and bear the corporate seal
of the County of Newell No. 4.
8. There shall be levied and raised in each year of the currency of the debentures
a rate or rates of the assessed value of all lands and improvements shown on the
assessment roll, sufficient to provide an annual tax adequate to pay the principal
and interest falling due in such year on such debentures. The said rates and taxes
are collectible at the time and in the same manner as other rates and taxes.
9. The indebtedness is contracted on the credit and security of the County of Newell
No. 4.
10. The net amount realized by the issue and sale of debentures authorized under this
By-law shall be applied only for the purposes for which the indebtedness was
created.
11. That this By-law shall come into force upon the passing thereof.
July 10, 2003 Moved by Councillor Musgrove that By-law 1437-03 receive first reading. Carried.
August 18, 2003 Moved by Councillor Loewen that By-law 1437-03 receive second reading. Carried.
August 18, 2003 Moved by Councillor Moss that By-law 1437-03 receive third and final reading.
Carried.
~' ~
REEV
l~~~-~ ~'
COUNTY ADMIN STRATOR