HomeMy WebLinkAboutBylaw 1872 - Short Term Borrowing3(nClehill
COUNTY
BYLAW NO 1872
SHORT-TERM BORROWING
BEING A BYLAW OF KNEEHILL COUNTY, IN THE PROVINCE OF ALBERTA, TO AUTHORIZE THE
SHORT-TERM BORROWING OF FUNDS, FROM TIME TO TIME, AS MAY BE NECESSARY TO MEET
THE FINANCIAL OBLIGATIONS OF KNEEHILL COUNTY
WHEREAS, under the authority and pursuant to the provisions of the Municipal Government Act,
Revised Statutes of Alberta, 2000, Chapter M-26, the Council may pass a bylaw to borrow money
on a short-term basis for the financing of an operating expenditure and/or capital property
expenditure; and
WHEREAS, it is deemed proper and expedient for the Council of Kneehill County to authorize the
Reeve and Chief Administrative Officer or designate to borrow sums considered necessary to
meet the current operating expenditures and capital obligations of the Corporation as per the
approved annual budgets.
NOW THEREFORE, the Council of Kneehill County, hereinafter called the "Corporation", in the
Province of Alberta, duly assembled, enacts as follows:
1. That the Council of the Corporation does authorize borrowing from Servus Credit Union
a sum or sums not exceeding Two Million Five Hundred Thousand ($2,500,000.00) 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 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
Servus Credit Union.
2. That the sum or sums so borrowed be evidenced and secured by the promissory note or
notes of the Reeve or Deputy Reeve and Chief Administrative Officer or designate of the
Corporation given on its behalf, and the said Reeve or Deputy 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 Servus Credit Union 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 Servus Credit Union 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
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assessed or to be assessed and/or to be levied forth e 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 Five Hundred Thousand ($2,500,000.00) Dollars.
4. The Corporation shall deposit in an account with the said Servus Credit Union 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 Servus Credit Union 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 Servus Credit Union.
7. This Bylaw shall come in effect upon third reading.
READ a first time on this 13" day of December 2022.
READ a second time on this 131h day of December 2022.
UNANIMOUS permission for third reading given in Council on this 131h day of December 2022.
READ a third time and final time of this 13th day of December 2022.
Date Bylaw Signed
Reeve
Jerry Wittstock
Ch�f Administrative Officer
Mike Haugen