3451-2019 Authorize a Bank Loan Agreement with Royal Bank (Fire Station #1)
BEING A BY-LAW TO AUTHORIZE A BANK LOAN AGREEMENT WITH ROYAL BANK OF CANADA
Passed by Council December 16, 2019
THE CORPORATION OF THE TOWNSHIP OF AUGUSTA
BY-LAW NO. 3451-2019
A BY -LAW TO AUTHORIZE A BANK LOAN AGREEMENT
WITH ROYAL BANK OF CANADA
WHEREAS the Municipal Act 2001, S.O. 2001 , Chapter 25, Section 401
authorizes a municipality to incur a debt for municipal purposes, whether by
borrowing money or in any other way, and may issue debentures and prescribed
financial instruments and enter into prescribed financial agreements for or in
relation to the debt;
AND WHEREAS Ontario Regulation 276/02, as amended, permits a municipality
to enter into a bank loan agreement for the purpose of long term borrowing;
AND WHEREAS the Council of the Corporation of the Township of Augusta
requires a bank loan for a municipal purpose, namely the construction of Fire Hall
#1 in Maitland, Ontario;
AND WHEREAS the Council of the Corporation of the Township of Augusta has
accepted a bank loan as offered by Royal Bank of Canada;
AND WHEREAS the amount to be loaned is within the debt and financial
obligation limit of the Corporation of the Township of Augusta as established by
legislation;
NOW THEREFORE the Council of the Corporation of the Township of Augusta
enacts as follows:
1. The Mayor and CAO/Treasurer are hereby authorized to execute a bank
loan agreement with Royal Bank of Canada. The loan is to be used to pay
for the construction of Fire Hall #1 in Maitland, Ontario.
2. The amount to be borrowed shall be $3,400,000.00.
3. The interest rate shall be the RBC rate in effect upon the date the loan is
finalized, currently 2.91% per annum.
4. The interest term of the loan shall be 5 years and the amortization shall be
20 years.
5. The loan shall be repaid by monthly payments of principal and interest.
Read a first and second time in open Council this 16th day of December, 2019.
Read a third and final time, passed, signed and sealed in open Council this 16th
day of December, 2019.
Signed by Mayor Doug Malanka and Clerk Annette Simonian