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O. Reg. 838/21: FINANCIAL ACTIVITIES
filed December 10, 2021 under City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A
Skip to contentontario regulation 838/21
made under the
City of Toronto Act, 2006
Made: December 9, 2021
Filed: December 10, 2021
Published on e-Laws: December 10, 2021
Printed in The Ontario Gazette: December 25, 2021
Amending O. Reg. 610/06
(FINANCIAL ACTIVITIES)
1. Section 1 of Ontario Regulation 610/06 is amended by adding the following definitions:
“Canada Infrastructure Bank” means the corporation established under subsection 5 (1) of the Canada Infrastructure Bank Act (Canada); (“Banque de l’infrastructure du Canada”)
“conditional loan agreement” means a financial agreement described in clause 3 (d) and section 41.1; (“accord de prêt conditionnel”)
2. Section 3 of the Regulation is amended by adding the following clause:
(d) entering conditional loan agreements with the Canada Infrastructure Bank.
3. (1) Subsection 4 (1) of the Regulation is amended by adding “or conditional loan agreements” after “bank loan agreements” in the portion before clause (a).
(2) Subsections 4 (1) and (2) of the Regulation are amended by adding “or conditional loan agreement” after “bank loan agreement” wherever it appears.
4. (1) Subsections 6 (1) and (2) of the Regulation are amended by adding “or conditional loan agreements” after “bank loan agreements” wherever it appears.
(2) Subsections 6 (3) and (4) of the Regulation are amended by adding “or conditional loan agreement” after “bank loan agreement” wherever it appears.
5. The Regulation is amended by adding the following sections:
Conditional Loan Agreements
Conditional loan agreement with Canada Infrastructure Bank
41.1 (1) The City shall not enter into a conditional loan agreement under clause 3 (d) unless the agreement includes one or more conditions which, if satisfied in accordance with the agreement, would extinguish the requirement for the City to repay all or part of the principal and pay all or part of the interest of the debt.
(2) A by-law authorizing a conditional loan agreement may provide,
(a) that an amount equal to or less than the maximum amount under clause 41.2 (1) (a) may be borrowed;
(b) that the borrowed amount may be advanced to the City in one or more instalments in any year;
(c) for repayment of any amount of principal and payment of any amount of interest of the debt in one or more instalments in any year; and
(d) for instalments of combined principal and interest.
(3) A by-law authorizing a conditional loan agreement shall provide for raising in each year as part of the general levy the amounts of principal and interest payable in each year under the by-law to the extent that the amounts have not been provided for,
(a) by other taxes or by fees or charges levied or imposed on persons or property by a by-law; or
(b) by the amounts payable to the City by a school board in each year in relation to the repayment of principal and payment of any amount of interest of the debt where the City has borrowed for the purposes of the school board under subsection 6 (2).
Conditions
41.2 (1) The City shall not enter into a conditional loan agreement unless the agreement sets out,
(a) the maximum amount of money available to be borrowed;
(b) a fixed rate of interest; and
(c) the manner of determining how any amount that is required to be paid by the City to the Canada Infrastructure Bank will be calculated, including how instalments will be calculated.
(2) The City shall not enter into a conditional loan agreement unless the agreement provides that it shall not be assigned without the prior written consent of the City.
(3) The City shall not enter into a conditional loan agreement that provides for the giving of any security by the City for the debt.
(4) The City shall not enter into a conditional loan agreement unless the loan ranks concurrently and equally in respect of payment of principal and interest with all other debentures and other financial instruments for long-term borrowing of the City.
Reduction of levies, etc.
41.3 The City may reduce an amount to be raised for the repayment of a loan to the extent that all or part of the principal and interest is no longer required to be repaid or paid, as the case may be, because a condition referred to in subsection 41.1 (1) has been satisfied.
Commencement
6. This Regulation comes into force on the day it is filed.