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TOWN OF DRUMHELLER
BYLAW NUMBER 14.25
DEPARTMENT: FINANCE
REPEALS BYLAW 01.23
A BYLAW OF THE TOWN OF DRUMHELLER FOR THE PURPOSE OF BORROWING
MONIES AS PERMITTED BY SECTION 256 OF THE MUNICIPAL GOVERNMENT ACT.
WHEREAS the Council of the Town of Drumheller (hereinafter called the "Corporation") in
the Province of Alberta, considers it necessary to borrow certain sums of money for the
purpose of:
Covering operating or capital expenses pending the collection of monies growing
due; and.
Covering capital expenditures for projects waiting to be funded with long-term debt
funding.
NOW, THEREFORE, pursuant to the provisions of the Municipal Government Act, RSA
2000, Chapter M-26 it is hereby enacted by the Council of the Corporation as a Bylaw that:
1. SHORT NAME
1.1
This Bylaw shall be cited as the "Borrowing Bylaw."
2. DEFINITIONS
2.1
For the purposes of this Bylaw, the following definitions shall apply:
a)
"Act" mean the Municipal Government Act, RSA 2000, c M-26, as amended from
time to time and successor legislation:
b)
"Bylaw" means this Borrowing Bylaw, as amended from time to time, and it's
successor legislation;
c)
'Town" means the Town of Drumheller, a municipal corporation in the Province of
Alberta, and includes the area contained within the corporate boundaries of the
Town, as the context may require.
3. PURPOSE
3.1
The Corporation borrow from Scotiabank up to the principal sum of $10.31 million
repayable upon demand at a rate of interest per annum not to exceed the Prime
Lending Rate from time to time established by Scotiabank, and such interest will be
calculated daily and due and payable monthly on the last day of each and every
month.
3.2
The Chief Elected Officer and the Chief Administrative Officer are authorized for and
on behalf of the Corporation:
Town of Drumheller
Bylaw 14.25
Page 2 of 3
(a)
to apply to Scotiabank for the aforesaid loan to the Corporation and to arrange
with Scotiabank the amount, terms and conditions of the loan and security or
securities to be given to Scotiabank;
(b)
as security for any money borrowed from Scotiabank:
(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 Scotiabank all such securities and promises as
Scotiabank 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 Scotiabank 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 Scotiabank the security or
securities required by it.
3.3
The source or sources of money to be used to repay the principal and interest owing
under the borrowing from Scotiabank are: Taxes, reserves, grants, etc.
3.4
The amount to be borrowed and the term of the loan will not exceed any restrictions
set forth in The Municipal Government Act, RSA 2000, Chapter M-26.
3.5
In the event that The Municipal Government Act, RSA 2000, Chapter M-26 permits
extension of the term of the loan and in the event the Council of the Corporation
decides to extend the loan and Scotiabank is prepared to extend the loan, any
renewal or extension, bill, debenture, promissory note, or other obligations executed
by the officers designated in paragraph 2 hereof and delivered to Scotiabank 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 Scotiabank will not be bound to
inquire into the authority of such officers to execute and deliver any such renewal,
extension document or security.
4. TRANSITION
4.1
This Bylaw shall come into force and effect when it receives third reading and is duly
signed and sealed.
4.2
Bylaw No. 01.23 is hereby repealed.
READ A FIRST TIME THIS 17th DAY OF MARCH, 2025.
READ A SECOND TIME THIS 17th DAY OF MARCH, 2025.
Town of Drumheller
Bylaw 14.25
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READ A THIRD TIME AND PASSED THIS THIS 17th DAY OF MARCH, 2025.
The original document, duly signed and executed, is retained on file.