Acts and Regulations

84-21 - Deemed Borrowing for Capital Expenses

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Current to 1 January 2024
NEW BRUNSWICK
REGULATION 84-21
under the
Municipal Capital Borrowing Act
(O.C. 84-74)
Filed February 17, 1984
Under section 2 of the Municipal Capital Borrowing Act, the Lieutenant-Governor in Council makes the following Regulation:
1This Regulation may be cited as the Deemed Borrowing for Capital Expenses Regulation - Municipal Capital Borrowing Act.
2In this Regulation
“capital leasing arrangement” means a leasing arrangement determined to be a capital leasing arrangement in accordance with generally accepted accounting principles, and includes a leasing arrangement(entente de location-acquisition)
(a) in which ownership of the property is transferred between the parties during the term of the leasing arrangement,
(b) which contains a purchase option on the part of the lessee,
(c) in which the term of the leasing arrangement covers a major portion of the economic life of the property, or
(d) in which substantially all of the fair market value of the property is covered by the discounted value of the net minimum payments under the leasing arrangement.
3(1)A municipality shall be deemed to be borrowing money for capital expenses where a capital leasing arrangement is entered into by the municipality with respect to land, buildings or land and buildings.
3(2)A municipality shall be deemed to be borrowing money for capital expenses where a purchase arrangement is entered into by the municipality with respect to land, buildings or land and buildings
(a) under which the purchase price is to be paid by the municipality in amounts payable beyond the end of the fiscal year following that in which the arrangement was executed, whether by a regular schedule of payments or not, and regardless of when title to the property passes to the municipality, and
(b) under which the municipality agrees to purchase the land, buildings or land and buildings in a subsequent fiscal year, regardless of when the purchase price is to be paid.
4(1)Subject to subsection (2), a municipality shall be deemed to be borrowing for capital expenses where a capital leasing arrangement or a purchase arrangement is entered into by a municipality with respect to machinery, equipment or machinery and equipment under which the rental or purchase price is to be paid by the municipality in amounts payable beyond the end of the fiscal year following that in which the arrangement was executed, whether by a regular schedule of payments or not.
4(2)A municipality shall not be deemed to be borrowing for capital expenses where the total amount to be paid under a leasing arrangement, a capital leasing arrangement or a purchase arrangement entered into by the municipality with respect to machinery, equipment or machinery and equipment does not exceed twenty thousand dollars.
87-48
N.B. This Regulation is consolidated to June 30, 1987.