Home > By-Laws > 3721-2024 Authorize a Bank Loan Agreement with Royal Bank of Canada (Lands West of Prescott)

3721-2024 Authorize a Bank Loan Agreement with Royal Bank of Canada (Lands West of Prescott)

3721-2024 Authorize a Bank Loan Agreement with Royal Bank of Canada (Lands West of Prescott)

BEING A BY-LAW TO AUTHORIZE A BANK LOAN AGREEMENT WITH ROYAL BANK OF CANADA

Passed by Council June 18, 2024


THE CORPORATION OF THE TOWNSHIP OF AUGUSTA
BY-LAW NO. 3721-2024
A BY-LAW TO AUTHORIZE A BANK LOAN AGREEMENT
WITH ROYAL BANK OF CANADA

WHEREAS the Municipal Act 2001, SO. 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 acquisition of vacant farm land for future
residential, commercial and industrial development;

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 are hereby authorized to execute a bank loan agreement
with Royal Bank of Canada. The loan is to be used to pay for the purchase of
land described as South Parcel (20 acres) PT LT 5 CON 1 Augusta and North
Parcel (57 acres) PT LT 5 CON 1 Augusta for a total of 77 acres; and

2. The amount to be borrowed shall be $2,185,000.00.

3. The interest rate shall be the RBC rate in effect upon the date the loan is
finalized, currently 4.86% 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 18 day of June, 2024.

Read a first, second, and third time and finally passed this 18th day of June, 2024.

Signed by Mayor Jeff Shaver and Clerk Annette Simonian

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