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Part V — By-laws for Contracting Debts
236. (1) The Council may pass by-laws for contracting debts by borrowing money or otherwise for any authorized purpose, in such currencies whether of Canada or some other country as the Council deems expedient, and for levying taxes on the real property in the city liable to taxation for the payment of such debts, but the aggregate of the debt so contracted shall not at any time be increased so as to exceed twenty per centum of the total assessed value of such real property calculated upon the average assessment for the two years prior to the year in which the by-law is passed. The debentures issued therefor may be made payable at such places, within or without Canada, and in such currencies, whether of Canada or some other country, as the Council deems expedient, and if the debentures are, or have been, made payable in lawful money of the United States of America, a dollar so payable shall, for the purpose of such calculation or of any other calculation directed towards ascertaining whether or not any proposed borrowing is within the power of Council, be deemed to be the equivalent of a dollar payable in lawful money of Canada.
(2) Any tax now or hereafter imposed by a by-law providing for the issue of debentures may be levied and collected, under such by-law, as soon as the by-law is passed.
1953-55-236.
237. The by-law shall name a day in the year in which it is passed upon which the by-law shall take effect.
1953-55-237.
238. All debentures shall be issued within five years after the passing of the by-law, and the whole debt shall be made payable within fifty years at most from the day on which the by-law takes effect.
1953-55-238.
239. (1) In respect of a debt contracted under section 236, the by-law may provide for the issue of debentures or other evidence of debt, the interest on which is payable annually or semi-annually and the principal of which is payable as provided in the by-law.
(2) A by-law under subsection (1) must provide that a sum is to be levied and raised by way of real-property taxes or special levy, charge, rate or tax, in each year sufficient for whichever of the following is applicable:
(a) to make the annual payments for interest and principal;
(b) if it is anticipated that the revenue from the undertaking for which the debt is created will be insufficient to meet the annual payments, to make up that deficiency.
(3) As an exception, if all or part of the money required to be levied and raised in any year under this section has been provided in advance in accordance with either or both of sections 247A and 262, then the money so provided need not be levied and raised in that year.
1997-25-169.
239A. (1) Where, pursuant to this Act, the Council is authorized to borrow sums of money, the Council may by by-law or resolution enter into an agreement with the Metro Vancouver Regional District to provide that any or all of the money so authorized may be borrowed from the said district. The said agreement may contain such terms and conditions as are lawfully required by the said district.
(2) Where the city enters into an agreement with the Metro Vancouver Regional District to borrow money, it shall not be necessary for the city to issue debentures with respect to such borrowing, and section 239 shall not apply to such borrowing.
(3) Where the city enters into an agreement with the Metro Vancouver Regional District to borrow money, the Council shall, prior to receiving the money from the said district, pass a by-law providing that a sum shall be levied and raised by way of real-property taxes in each year sufficient to provide for payment of interest and repayment of the principal sum borrowed.
(4) Where the said district issues debentures to raise the money for the city pursuant to this section, and such debentures require the establishment and maintenance of a sinking fund, the city may pay to the said district in each year all sums of money required to pay the interest on the debentures together with such sums as are required to be paid into the sinking fund.
1969-45-13; 2018-23-53.
240. (1) A by-law passed under the provisions of this Part shall recite
(a) the amount of the debt which the by-law is intended to contract and, in brief and general terms, the object for which it is to be contracted;
(b) the value according to the last assessment roll of all the real property in the city liable to taxation;
(c) the total amount of the existing debenture debt of the city, as at the date of the first reading of the by-law, and how much, if any, of the principal or interest thereof is in arrears as at the said date.
(2) Clauses (b) and (c) shall not apply to a by-law passed pursuant to sections 263 and 264.
1953-55-240; 1970-54-14; 2003-66-58.
241. A by-law passed under the provisions of this Part and the debentures issued thereunder may provide that the debentures, or a portion thereof, may be called in and paid at any time before maturity upon such terms as to notice or otherwise as may be specified in the by-law.
1953-55-241.
242. (1) Except as otherwise provided in this or any other Act, the Council shall not contract any debt, the full payment of which is not provided for in the estimates adopted for the current year, unless a by-law authorizing it has been passed with the assent of the electors.
(2) Subsection (1) shall not apply to any debt contracted for any of the following purposes: —
(a) The construction, installation, maintenance, replacement, repair, and regulation of a waterworks system, including water mains and other water pipes, valves, fittings, hydrants, meters, and other necessary appliances and equipment, for the purpose of the distribution and supply of water, and for acquiring real property and easements therefor:
(b) The construction, installation, maintenance, replacement, repair, and regulation of a system of sewerage and drainage, including all necessary appliances and equipment for such purposes, and for acquiring real property and easements therefor:
(b.1) The design, construction, installation, maintenance and repair of an energy utility system, including all necessary appliances and equipment, and for acquiring real property and easements therefor:
(c) Any debt or obligation contained in a contract for the supply of materials, equipment or services, professional or otherwise, required for the operation of the city:
(d) Any debt or obligation contained in an agreement for the acquisition by lease of real or personal property.
(d.1) A mortgage or other obligation for the purposes of section 190 (1) (a) in order to secure an amount owing under an agreement to acquire real or personal property, if the mortgage or other obligation is for a period of 10 years or less.
(e) Borrowing under any agreement made pursuant to section 192 (a) for the purpose of the development or redevelopment of the False Creek Area or for creating housing (for the purposes of this subsection, the "False Creek area" shall be generally all that area of land and land covered by water bounded by Cambie Street and Connaught Bridge on the east, the south side of Sixth Avenue on the south, Burrard Street and Burrard Bridge on the west, and the Harbour Headline on the north side of False Creek on the north):
(f) The taking of any action under section 190.1 [financing in relation to Southeast False Creek development].
1953-55-242; 1969-45-14; 1970-54-15; 1974-104-49; 1993-74-3; 2007-6-41; 2009-1-2.
243. Any by-law so passed and any debenture issued pursuant thereto shall be absolutely valid and binding according to the terms thereof, and shall not be questioned on any ground whatever unless within one month after the final passing of the by-law
(a) a notice of application to quash the by-law under Part XXV of this Act has been served on the city; or
(b) an action has been commenced in a Court of competent jurisdiction to set the by-law aside.
1953-55-243.
244. When any such by-law is so passed, it shall not be amended or repealed by the Council except with the consent of the Lieutenant-Governor in Council, but, without such consent,
(a) a new by-law may be submitted for the assent of the electors authorizing the diversion to some other purpose of the proceeds of the by-law so passed in whole or in part, and if such new by-law receives the assent of the electors, the proceeds may be diverted to such other purpose; or
(b) if a part of the proceeds of a by-law passed under the provisions of this Part is not required for its objects or purposes, the Council may transfer such part to the sinking fund or to a repayment fund in respect of that by-law;
(c) the Council may, by a two-thirds vote of all its members, divert to some other purpose the proceeds of a by-law passed pursuant to section 245.
1953-55-244.
245. (1) If the assent of the electors is obtained to a question under this section, the Council has the power, without the further assent of the electors, to borrow money for the purposes specified in the question during the period specified in the question, subject to the limit that the specified period may not be longer than 10 years.
(2) A question under this section must set out the following:
(a) the maximum total amount proposed to be borrowed;
(b) the number of years during which Council may exercise its authority under this section to borrow money without the assent of the electors;
(c) the proposed projects for which the money is to be borrowed and the amount allocated for each;
(d) a statement that, if the question receives the assent of the electors, the Council has the power, without the further assent of the electors, to pass by-laws as and when Council considers appropriate to borrow money for the projects described in the question up to an aggregate principal amount that does not exceed the amount authorized by the question.
(2.1) An authority to borrow under subsection (1) is an authority to pass by-laws to borrow by the issue of debentures in an aggregate principal amount not greater than the amount specified in the question and, for these purposes, the provisions of this Part relating to the borrowing of money and the issue of debentures apply.
(3) The Council by a vote of not less than two-thirds of all its members may, without the assent of the electors, during the period of years set out in the question or the extended period referred to in subsection (4), vary the projects and amounts so listed so long as the aggregate is not exceeded.
(4) Notwithstanding the provisions of subsections (1) and (2), if any of the projects, or any part thereof, approved pursuant thereto, is delayed for any reason, the Council shall have the power to pass by-laws to borrow the funds necessary to carry out the said project without the assent of the electors at any time within seven years after the last year mentioned in the question submitted to the electors.
(5) In any question submitted pursuant to subsection (1), the Council may include as a project the increase in the amount of any property acquisition fund.
1953-55-245; 1956-70-7; 1961-76-4; 1963-60-6; 1968-71-13; 1970-54-16; 1974-104-32; 1978-41-18; 1993-54-68.
245A. When a question is submitted to the electors pursuant to the provisions of section 184 or 245, or a by-law requiring the assent of the electors is submitted to the electors pursuant to this Part, it shall be lawful for Council to expend funds for the purpose of providing the electors with information with respect to the question or the by-law.
1964-72-6.
246. The power conferred by section 245 shall not be exercisable
(a) at any time when any portion of any debenture debt of the city which has matured or become payable remains unpaid after a demand in writing for payment of any portion thereof has been made;
(b) unless the city, up to the time of the exercise of such power, has made all levies required by law for sinking fund purposes.
1953-55-246.
247. The Council may provide for the issue of new debentures in order to repurchase, call in or redeem any debentures or stock previously issued by the city, subject to the requirements that the new debentures
(a) must be issued before the date of maturity of the debentures or stock to be repurchased, called in or redeemed, and
(b) must mature not later than 10 years after the date of maturity of the debentures or stock to be repurchased, called in or redeemed.
1993-74-4.
247A. (1) The Council may, by by-law, provide that all or part of any surplus moneys be set aside in a debt repayment fund for the purpose of providing funds in advance of requirements for annual interest payments on outstanding debentures of the city and for the retirement of those debentures at maturity.
(2) If money in a debt repayment fund is invested under section 201 [investment of city funds], the securities and their revenues shall be held to the credit of the fund.
(3) Money in a debt repayment fund shall be used only for the purpose of reducing the annual levy required to be made under section 239 [issue of securities to cover debt] for outstanding debentures.
2002-22-28.
248. (1) Debentures shall be sealed with the common seal of the city, and shall bear the facsimile signature of the Mayor and be signed by the City Treasurer or such other person as may be designated by by-law.
(2) Notwithstanding subsection (1), the by-law authorizing the issuance of debentures may provide that the common seal of the city, the signature of the Mayor and the signature of the City Treasurer or other designated person, may be stamped, printed, lithographed or otherwise reproduced.
(3) The seal of the city, when so reproduced, shall have the same force and effect as if manually affixed, and the reproduced signature of the Mayor or City Treasurer or other designated person shall, for all purposes, be valid and binding on the city, notwithstanding that the person whose signature is so reproduced has ceased to hold office before the date of the debenture or before its date of delivery.
1953-55-248; 1985-89-3.
248A. Where a by-law has been passed authorizing the issue of debentures, then, notwithstanding anything contained in this Act, the Council may engage a person or persons within or without Canada who may be authorized to conduct all business connected with the issue and servicing of the debentures and, without limiting the generality of the foregoing, any of the following matters:
(a) The signing and issuance of the debentures in accordance with the by-law authorizing their issuance;
(b) The receiving from time to time on behalf of the city of all moneys raised by the issue of the debentures;
(c) The registration and transfer of the debentures;
(d) The transfer of the registration of the debentures from one place of registry to another;
(e) The payment of interest and the principal amount of the debentures as the same become payable.
1973-93-10.
249. Debentures may have coupons for the interest attached to them, and such coupons shall bear the facsimile signature of the Mayor and of the City Treasurer or such other person so designated.
1953-55-249.
250. Debentures may be made payable to bearer, or to a named person or bearer.
1953-55-250.
251. Debentures shall be valid and recoverable to the full amount, notwithstanding their negotiation by the city at a discount.
1953-55-251.
252. Debentures may contain or have endorsed upon them a provision to the following effect: "This debenture, or any interest therein, shall not, after a memorandum of ownership has been endorsed thereon by the City Treasurer, be transferable except by entry by the Treasurer or the Treasurer's deputy in the Debenture Registry Book of the city." And in such case the Treasurer, on the application of the owner of the debenture, shall endorse upon the debenture a memorandum of ownership signed by the Treasurer, and shall enter in a book to be known as the "Debenture Registry Book" the particulars contained in such memorandum, and the Treasurer shall also enter in such book the particulars of every transfer of such debenture.
1953-55-252; 2022-15-73,Sch 1; 2022-15-75,Sch 3; 2022-15-76,Sch 4.
253. A memorandum of transfer of ownership shall be endorsed upon a debenture only upon the written authorization of the person last entered in such book as the owner of such debenture, which authorization shall be retained by the City Treasurer.
1953-55-253.
254. After a memorandum of ownership has been endorsed as aforesaid, the debenture shall be transferable only by entry by the City Treasurer, or the Treasurer's deputy, in the Debenture Registry Book.
1953-55-254; 2022-15-76,Sch 4.
255. On the written request of the person named as owner in such memorandum of ownership, the City Treasurer may, notwithstanding the provisions of section 252, cancel such memorandum of ownership and entry in the Debenture Registry Book and thereby constitute the debenture one payable to bearer.
1953-55-255.
256. Neither the city, nor any employee or agent of the city, is bound to see to the execution of a trust, whether express, implied or constructive, to which a city debenture or security is subject.
1984-32-8.
257. Where a debenture is lost, destroyed, or defaced, the Council may provide for the replacing of the same on the production of such proof of its loss, destruction, or defacement and upon such terms as to indemnity and otherwise as the Council may provide.
1953-55-257.
258. The proceeds of the sale by the city of any debenture shall, save as otherwise provided by this Act, be used only for the purpose for which they were raised, and shall not be used for other expenditures of the city.
1953-55-258; 1985-89-4.
259. (1) Until such time as the proceeds from the sale of debentures are expended, the Council may
(a) invest the funds in accordance with section 201 [investment of city funds], or
(b) temporarily use all or part of the funds for other expenditures of the city pending the collection of current taxes each year.
(2) As limits on the authority under subsection (1) (b),
(a) funds may only be used under that subsection during the period from January 1 to July 15 in each year, and
(b) the funds shall be returned to Capital Account on or before July 15 in the year they are so used.
2002-22-29.
260. (1) If money in a sinking fund account is invested under section 201 [investment of city funds], the securities and their revenues shall be held to the credit of the applicable sinking fund account.
(2) If more than one sinking fund account is involved, the securities and revenues referred to in subsection (1) shall be allocated in proportion to the money from the accounts used for the investment.
2002-22-29.
261. It shall be lawful to keep a consolidated account of the accumulated instalments and interest on all debenture debts, but in any case the accounting records shall at all times exhibit the accumulated reserve with respect to every separate debenture debt.
1953-55-261.
262. The Council may provide that any surplus moneys in the hands of the City Treasurer, not appropriated to any specific purpose, shall be transferred to the sinking fund in respect of any debenture by-law, and shall be subject to investment accordingly.
1953-55-262.
263. The Council, without the assent of the electors, may by by-law authorize the Director of Finance or some other person to borrow on behalf of the city for such period as Council may deem fit by way of promissory note or overdraft such sum of money as Council may deem necessary to meet the lawful expenditures of the city pending the collection of real-property taxes and amounts receivable from other governments. In any such by-law, the Council may provide for the hypothecation, subject to any prior charge thereon, to the lender, of any amounts receivable from other governments and the whole or any part of the real-property taxes then remaining unpaid, together with the whole or part of the real-property taxes to be levied for the year in which the by-law is passed. Provided, however, that if the by-law is passed before the passing of the rating by-law, the amount of the current taxes that may be hypothecated shall be not more than seventy-five per centum of the real-property taxes levied in the next preceding year.
1953-55-263; 1970-54-17.
264. Council, without the assent of the electors, may, by by-law, authorize the Director of Finance or some other person to borrow on behalf of the city by way of promissory note or overdraft such sum of money as Council may deem necessary to meet the lawful expenditures of the city pending the sale of debentures. In any such by-law the Council may provide for the hypothecation to the lender of the proceeds of such debentures for the repayment of the sum borrowed and interest thereon.
1953-55-264; 1970-54-17.
Contents | Preamble | Part I | Part II | Part III | Part IV | Part V | Part VI | Part VII | Part VIII | Part IX | Part X | Part XI | Part XII | Part XIII | Part XIV | Part XV | Part XVI | Part XVII | Part XVIII | Part XIX | Part XX | Part XXI | Part XXII | Part XXIII | Part XXIV | Part XXIV-A | Part XXIV-B | Part XXV | Part XXVI | Part XXVII | Part XXVIII | Part XXIX | Part XXX | Part XXXI
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