Acts and Regulations

M-20 - Municipal Capital Borrowing Act

Section 4
Disposition versions

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Powers of Board, debentures, borrowing
4(1)The Board may authorize a municipality to obtain money for a capital expense either by way of a loan or by the issue of debentures or guarantee the repayment of any loan or issue of debentures made for a capital expense.
4(1.1)The Board may, in respect of an application by a municipality for authorization under this Act, investigate
(a) the nature of the capital expense in respect of which the application is made,
(b) the necessity of the capital expense,
(c) the financial position of the municipality, and
(d) such other matters as the Board considers necessary.
4(1.2)The Board may, in respect of an application by a municipality for authorization under this Act, require the municipality to provide to the Board such information in respect of the application as the Board considers appropriate.
4(1.3)The Board may, in respect of an application by a municipality for authorization under this Act, require the municipality to make public, in such manner as the Board considers appropriate, information concerning
(a) the total cost of the capital facility with respect to which the amount to be borrowed is to be expended,
(b) any operating expenses to be associated with such capital facility,
(c) any increase in taxes or any user charges associated with any facility with respect to which any portion of the amount to be borrowed is to be expended, and
(d) any other matter that the Board considers appropriate.
4(1.4)The Board may refuse to consider an application for authorization under this Act where the municipality has not provided the information required by the Board under subsection (1.2) or has not made public the information required by the Board to be made public under subsection (1.3).
4(1.5)The Board may reject an application by a municipality where, in the opinion of the Board,
(a) the amount of money to be borrowed will impose an excessive financial burden on that municipality, notwithstanding that it does not exceed the restriction imposed under section 89 of the Municipalities Act,
(b) the purpose for which the money is to be borrowed is inconsistent with any Act or regulation in force in the Province or any by-law of the municipality, or
(c) the application is, for any other reason, unsuitable for authorization under this Act.
4(2)Where under this Act or any other Act, power is conferred upon a municipality to issue debentures, it includes pending the issue and sale of debentures, the power to agree with a bank or person for temporary advances from time to time, not exceeding in the aggregate the respective amounts for which debentures may be issued, as may be deemed necessary to carry out the purposes for which the issue of debentures is authorized, at a rate of interest not to exceed the rate approved by the Board upon an application for authorization under this Act, or the rate established in accordance with the other Act, and such temporary advances shall be repaid out of the proceeds of the sale of such debentures.
4(3)Subject to subsection (5), an authorization granted by the Board under subsection (1) is subject to the approval of the Minister.
4(4)Notwithstanding any other provision of this Act, where a municipality borrows money in excess of that authorized under this Act or approved by the Minister, the Lieutenant-Governor in Council may approve the borrowing, but in such case the Lieutenant-Governor in Council may require the excess amount of money borrowed to be repaid by the municipality on a user charge basis or by the levy of tax in respect thereof under such conditions as the Lieutenant-Governor in Council determines.
4(5)Notwithstanding subsection (3), the Board may upon the request of a municipality authorize the municipality to borrow an amount not exceeding ten thousand dollars for a capital expense if, in the opinion of the Board, an emergency exists.
4(5.1)The Minister shall submit annually to the Treasury Board a report respecting authorizations approved by the Minister under subsection (3).
1963 (2nd Sess.), c.8, s.3; 1964, c.44, s.2; 1975, c.88, s.1; 1979, c.46, s.1; 1980, c.35, s.1; 1983, c.54, s.3; 1984, c.8, s.1; 1992, c.61, s.3; 2016, c.37, s.113
Power of Board to authorize borrowing
4(1)The Board may authorize a municipality to obtain money for a capital expense either by way of a loan or by the issue of debentures or guarantee the repayment of any loan or issue of debentures made for a capital expense.
Investigation by Board
4(1.1)The Board may, in respect of an application by a municipality for authorization under this Act, investigate
(a) the nature of the capital expense in respect of which the application is made,
(b) the necessity of the capital expense,
(c) the financial position of the municipality, and
(d) such other matters as the Board considers necessary.
Board may require information
4(1.2)The Board may, in respect of an application by a municipality for authorization under this Act, require the municipality to provide to the Board such information in respect of the application as the Board considers appropriate.
Board may require information to be made public
4(1.3)The Board may, in respect of an application by a municipality for authorization under this Act, require the municipality to make public, in such manner as the Board considers appropriate, information concerning
(a) the total cost of the capital facility with respect to which the amount to be borrowed is to be expended,
(b) any operating expenses to be associated with such capital facility,
(c) any increase in taxes or any user charges associated with any facility with respect to which any portion of the amount to be borrowed is to be expended, and
(d) any other matter that the Board considers appropriate.
Where Board may refuse to consider application
4(1.4)The Board may refuse to consider an application for authorization under this Act where the municipality has not provided the information required by the Board under subsection (1.2) or has not made public the information required by the Board to be made public under subsection (1.3).
Where Board may reject application
4(1.5)The Board may reject an application by a municipality where, in the opinion of the Board,
(a) the amount of money to be borrowed will impose an excessive financial burden on that municipality, notwithstanding that it does not exceed the restriction imposed under section 89 of the Municipalities Act,
(b) the purpose for which the money is to be borrowed is inconsistent with any Act or regulation in force in the Province or any by-law of the municipality, or
(c) the application is, for any other reason, unsuitable for authorization under this Act.
Bank advances by municipality
4(2)Where under this Act or any other Act, power is conferred upon a municipality to issue debentures, it includes pending the issue and sale of debentures, the power to agree with a bank or person for temporary advances from time to time, not exceeding in the aggregate the respective amounts for which debentures may be issued, as may be deemed necessary to carry out the purposes for which the issue of debentures is authorized, at a rate of interest not to exceed the rate approved by the Board upon an application for authorization under this Act, or the rate established in accordance with the other Act, and such temporary advances shall be repaid out of the proceeds of the sale of such debentures.
Minister’s approval of authorization
4(3)Subject to subsection (5), an authorization granted by the Board under subsection (1) is subject to the approval of the Minister.
Where municipality borrows in excess
4(4)Notwithstanding any other provision of this Act, where a municipality borrows money in excess of that authorized under this Act or approved by the Minister, the Lieutenant-Governor in Council may approve the borrowing, but in such case the Lieutenant-Governor in Council may require the excess amount of money borrowed to be repaid by the municipality on a user charge basis or by the levy of tax in respect thereof under such conditions as the Lieutenant-Governor in Council determines.
Authorization in case of emergency
4(5)Notwithstanding subsection (3), the Board may upon the request of a municipality authorize the municipality to borrow an amount not exceeding ten thousand dollars for a capital expense if, in the opinion of the Board, an emergency exists.
4(5.1)The Minister shall submit annually to the Board of Management a report respecting authorizations approved by the Minister under subsection (3).
1963 (2nd Sess.), c.8, s.3; 1964, c.44, s.2; 1975, c.88, s.1; 1979, c.46, s.1; 1980, c.35, s.1; 1983, c.54, s.3; 1984, c.8, s.1; 1992, c.61, s.3
Power of Board to authorize borrowing
4(1)The Board may authorize a municipality to obtain money for a capital expense either by way of a loan or by the issue of debentures or guarantee the repayment of any loan or issue of debentures made for a capital expense.
Investigation by Board
4(1.1)The Board may, in respect of an application by a municipality for authorization under this Act, investigate
(a) the nature of the capital expense in respect of which the application is made,
(b) the necessity of the capital expense,
(c) the financial position of the municipality, and
(d) such other matters as the Board considers necessary.
Board may require information
4(1.2)The Board may, in respect of an application by a municipality for authorization under this Act, require the municipality to provide to the Board such information in respect of the application as the Board considers appropriate.
Board may require information to be made public
4(1.3)The Board may, in respect of an application by a municipality for authorization under this Act, require the municipality to make public, in such manner as the Board considers appropriate, information concerning
(a) the total cost of the capital facility with respect to which the amount to be borrowed is to be expended,
(b) any operating expenses to be associated with such capital facility,
(c) any increase in taxes or any user charges associated with any facility with respect to which any portion of the amount to be borrowed is to be expended, and
(d) any other matter that the Board considers appropriate.
Where Board may refuse to consider application
4(1.4)The Board may refuse to consider an application for authorization under this Act where the municipality has not provided the information required by the Board under subsection (1.2) or has not made public the information required by the Board to be made public under subsection (1.3).
Where Board may reject application
4(1.5)The Board may reject an application by a municipality where, in the opinion of the Board,
(a) the amount of money to be borrowed will impose an excessive financial burden on that municipality, notwithstanding that it does not exceed the restriction imposed under section 89 of the Municipalities Act,
(b) the purpose for which the money is to be borrowed is inconsistent with any Act or regulation in force in the Province or any by-law of the municipality, or
(c) the application is, for any other reason, unsuitable for authorization under this Act.
Bank advances by municipality
4(2)Where under this Act or any other Act, power is conferred upon a municipality to issue debentures, it includes pending the issue and sale of debentures, the power to agree with a bank or person for temporary advances from time to time, not exceeding in the aggregate the respective amounts for which debentures may be issued, as may be deemed necessary to carry out the purposes for which the issue of debentures is authorized, at a rate of interest not to exceed the rate approved by the Board upon an application for authorization under this Act, or the rate established in accordance with the other Act, and such temporary advances shall be repaid out of the proceeds of the sale of such debentures.
Minister’s approval of authorization
4(3)Subject to subsection (5), an authorization granted by the Board under subsection (1) is subject to the approval of the Minister.
Where municipality borrows in excess
4(4)Notwithstanding any other provision of this Act, where a municipality borrows money in excess of that authorized under this Act or approved by the Minister, the Lieutenant-Governor in Council may approve the borrowing, but in such case the Lieutenant-Governor in Council may require the excess amount of money borrowed to be repaid by the municipality on a user charge basis or by the levy of tax in respect thereof under such conditions as the Lieutenant-Governor in Council determines.
Authorization in case of emergency
4(5)Notwithstanding subsection (3), the Board may upon the request of a municipality authorize the municipality to borrow an amount not exceeding ten thousand dollars for a capital expense if, in the opinion of the Board, an emergency exists.
4(5.1)The Minister shall submit annually to the Board of Management a report respecting authorizations approved by the Minister under subsection (3).
1963(2nd Sess.), c.8, s.3; 1964, c.44, s.2; 1975, c.88, s.1; 1979, c.46, s.1; 1980, c.35, s.1; 1983, c.54, s.3; 1984, c.8, s.1; 1992, c.61, s.3