HomeMy WebLinkAbout1558-06 Short Term Borrowing BylawCOUNTY OF NEWELL NO.4
BYLAW NO. 1558-06
A BYLAW 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 RBC Royal Bank ("RBC") up to the
principal sum of One Million Five Hundred and Twenty Thousand
Dollars ($1,520,000.00) repayable upon demand at a rate of
interest per annum of .50% below RBC's Prime Lending Rate from
time to time established by RBC, 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 RBC for the aforesaid loan to the Corporation
and to arrange with RBC the amount, terms and conditions
of the loan and security or securities to be given to RBC;
(b) as security for any money borrowed from RBC:
(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 RBC all such securities and
promises as RBC 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 favor of RBC 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
Bylaw No. 1558-06 Page 2
any interest, and any other documents or contracts
necessary to give or to furnish to RBC the security or
securities required by it.
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. {n 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 RBC 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 RBC 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 RBC 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 Bylaw shall come into force upon the final passing
thereof, and hereby rescinds Bylaw No. 1453-04.
Jan. 19, 2006 Moved by Councillor Daniels that Bylaw No. 1558-06 receive first reading.
Jan. 19, 2006 Moved by Councillor Vermeeren that Bylaw No. 1558-06 receive second
reading.
Jan. 19, 2006 Moved by Councillor Schroeder that Bylaw No. 1558-06 receive third and
final reading.
Reeve County Administrator