O. Reg. 297/09: FINANCIAL ACTIVITIES

 

ontario regulation 297/09

made under the

city of toronto act, 2006

Made: July 15, 2009
Filed: July 31, 2009
Published on e-Laws: August 5, 2009
Printed in The Ontario Gazette: August 15, 2009

Amending O. Reg. 610/06

(Financial Activities)

1. (1) Subsection 5 (1) of Ontario Regulation 610/06 is amended by striking out the portion before clause (a) and clause (a) and substituting the following:

Borrowing for expenses

(1) At any time during a fiscal year, the City may authorize temporary borrowing, until the taxes are collected and other revenues are received, of the amounts that the City considers necessary to meet the expenses of the City for the year and of the amounts, whether or not they are expenses for the year, that the City requires in the year for,

(a) reserve, sinking and retirement funds; 

(2) Subsection 5 (4) of the Regulation is revoked and the following substituted:

(4) In subsections (2) and (3), estimated revenues do not include revenues derivable or derived from,

(a) arrears of taxes, fees or charges; or

(b) a payment from a reserve fund of the City, whether or not the payment is for a capital purpose.

(3) Section 5 of the Regulation is amended by adding the following subsection:

(6) In this section, “reserve fund” includes a reserve.

2. Subsection 24 (1) of the Regulation is amended by revoking paragraphs 2, 3 and 5.

3. Subsection 36 (5) of the Regulation is amended by striking out “60 days or more” and substituting “180 days or more”.

4. The Regulation is amended by adding the following section:

Eligible investments, continued

42.1 A security is prescribed for the purposes of section 245 of the Act as a security that the City may invest in if,

(a) the City invested in the security before January 12, 2009; and

(b) the terms of the City’s continued investment in the security have been changed pursuant to the Plan Implementation Order of the Ontario Superior Court of Justice dated January 12, 2009 (Court file number 08-CL-7440) and titled “In the matter of the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36 as amended and in the matter of a plan of compromise and arrangement involving Metcalfe & Mansfield Alternative Investments II Corp. et al”.

5. (1) Subsections 43 (5) and (6) of the Regulation are revoked and the following substituted:

(5) The City shall not invest in a security under paragraph 10 of section 42 unless the security is rated,

(a) by Dominion Bond Rating Service Limited as “AA(low)” or higher;

(b) by Fitch Ratings as “AA-” or higher;

(c) by Moody’s Investors Services Inc. as “Aa3” or higher; or

(d) by Standard and Poor’s as “AA-” or higher.

(6) The City shall not invest in a security under paragraph 11 of section 42 unless the security is rated,

(a) by Dominion Bond Rating Service Limited as “A” or higher;

(b) by Fitch Ratings as “A” or higher;

(c) by Moody’s Investors Services Inc. as “A2”; or

(d) by Standard and Poor’s as “A”.

(2) Subsection 43 (8) of the Regulation is revoked and the following substituted:

(8) If an investment made under subparagraph 1 iii, vii, viii, x, xi or xii of section 42 or paragraph 4, 5, 8, 9, 10, 11 or 12 of section 42 falls below the standard required by this section, the municipality shall sell the investment within 180 days after the day the investment falls below the standard.

(3) Section 43 of the Regulation is amended by adding the following subsection:

(8.1) Subsection (8) does not apply with respect to an investment made by the City under paragraph 9 of section 42 on a day before the day this subsection comes into force.

(4) Subsection 43 (14) of the Regulation is revoked.

6. Subsection 45 (3) of the Regulation is amended by adding the following clause:

(d.1) a foundation established by a college mentioned in clause (d) whose purposes include receiving and maintaining a fund or funds for the benefit of the college;

7. Section 49 of the Regulation is amended by adding the following subsection:

(2.1) The investment report referred to in subsection (1) shall contain a statement by the treasurer as to whether any of the following investments fall below the standard required for that investment during the period covered by the report:

1. An investment described in subparagraph 1 iii, vii, viii, x, xi or xii of section 42.

2. An investment described in paragraph 4, 5, 8, 9, 10, 11 or 12 of section 42.

3. An investment described in subsection 51 (1).

8. (1) Section 51 of the Regulation is amended by adding the following subsection:

(1.1) Despite subsection 43 (5), an investment in a security under paragraph 10 of section 42 made on a day before the day this subsection comes into force may be continued if the security is rated,

(a) by Dominion Bond Rating Service Limited as “A” or higher;

(b) by Fitch Ratings as “A” or higher;

(c) by Moody’s Investors Services Inc. as “A2”; or

(d) by Standard and Poor’s as “A”.

(2) Subsection 51 (2) of the Regulation is amended by striking out “under subsection (1)” and substituting “under subsection (1) or (1.1) and by striking out “within 90 days” and substituting “within 180 days”.

9. Section 55 of the Regulation is amended by adding the following clause:

(c.1) a foundation established by a college mentioned in clause (c) whose purposes include receiving and maintaining a fund or funds for the benefit of the college;

10. This Regulation comes into force on the day it is filed.