The Pamphlet Collection of Sir Robert Stout: Volume 47

Tile Drainage Debentures

Tile Drainage Debentures.

Chap. 9.—A township Council may, after four week's notice of their meeting in a local paper, pass a by-law authorizing the issue of 20 yrs, 5 p.c, $100 debentures to the extent of $2,000 to $10,000, the proceeds to be used in loans in aid of Tile Drainage. They are to be made in favour of the Prov. Treas and shall have annual coupons attached. So soon as the delay within which application to quash the by-law may be made is expired, the by-law, accompanied by affidavits of its having been duly passed and that no notice to quash has been served—may be filed with the Comr. of Agriculture, with a list of persons to whom it is proposed to lend the moneys. The C. of A. investigates and reports to the L. G. in C. on the propriety of such loans. The Council may issue debentures on application to any person assessed on land, not to exceed in amt. 75 p c. of the estimated expense of the proposed drainage work. The L. G. in C. may invest surplus moneys of the C. R. F. to the extent of $200,000 in the purchase of these debentures, on certificates of the C. of A. as to propriety. After such purchase the validity of the debentures cannot be questioned. Loans are to be made in sums of $100 or multiples thereof, and of not more than $1,000 to each person and not more than an amount, in order to meet the interest and sinking fund on which would raise the assessment on the lot for all purposes, exclusive of school tax, to 3 p.c. They may not be made to members of the Council; but persons having obtained a loan are not disqualified for election. Loans are to be granted in order of application, if approved—the approval or rejection being decided in the same order. The work is to be done under supervision of an Inspector appointed by the Council and paid out of the motleys borrowed. He reports to Council on work when completed. No moneys are to be paid on loans till he reports The Council collects the moneys loaned by a special assessment of 8 p.c. on the amt., to be levied on the land drained. The borrower can, at any time, relieve himself of the assessment by paying up the balance due with Interest, less the sinking fund; and the money so paid to the Treasurer of the municipality is by him to be paid over to the Prov Treas. to be applied in extinction of the debentures of that municipality. The Municipal Council must make annual returns in detail to the L. G. in C. of the sums loaned and the works done, to be laid before the L. A. The Municipal Treasurer must remit all sums falling due on such debentures within one mo. or pay 7 p c. interest on arrears. And in the next year a rate must be levied on the whole municipality to make such arrears good. Such arrears are a first charge on any sums in the hands of the Municipal Treasurer after charges for sinking fund—nor may he or other officer pay moneys out for any but that purpose, lor salaries of employees or debts due to the Province having statutory priority, until such arrears are discharged. In default he becomes liable personally for the amount and a penalty of $500, or twelve mos. imprisonment in default of payment of judgment. And any Reeve or Councillor wilfully neglecting to ensure such payment becomes also personally liable for the arrears and interest.