Copyright and Disclaimer Print


AR 188/98 CAPITAL BORROWING REGULATION

(Consolidated up to 28/2018)

ALBERTA REGULATION 188/98

School Act

CAPITAL BORROWING REGULATION

Table of Contents

                1      Capital borrowing


                2      Borrowing for construction or purchase of school building

                3      Short term borrowing

                4      Debenture borrowing

                5      Petition for poll

                6      Authority for borrowing

                7      Issuing of debentures

                8      Void borrowing

                9      Repeal

Capital borrowing

1(1)  A board may borrow to meet capital expenditures only in accordance with the School Act and this Regulation.

(2)  The amount of a borrowing to which this Regulation applies

                               (a)    may be secured by a charge on money receivable by the board under Part 6 of the School Act, and

                              (b)    may not be secured by a charge on a grant payable from the General Revenue Fund under the Government Organization Act.

Borrowing for construction or purchase of school building

2(1)  A board shall not borrow money for the construction or purchase of a school building.

(2)  Notwithstanding subsection (1), a board may borrow, by issuing a debenture or otherwise, to meet capital expenditures to refit a school building for energy conservation if

                               (a)    the cost of refitting is guaranteed by the supplier in writing to be recoverable by the board from savings in energy costs in not more than 20 years, and

                              (b)    in the opinion of the Minister, all indebtedness under the loan is required to be retired within 20 years.

(3)  A board that applies to the Minister for approval of a loan to which subsection (2) applies must give the Minister

                               (a)    a statement by the board of the final cost of the refitting and any other information the Minister requires, and

                              (b)    a copy of the guarantee referred to in subsection (2)(a).

(4)  The Minister may approve all or part of a loan to which subsection (2) applies.

AR 188/98 s2;236/2003

Short term borrowing

3(1)  A board may borrow, other than by issuing a debenture, to meet capital expenditures for assets that are not school buildings if, in the opinion of the Minister, all indebtedness under the loan is required to be retired within the lesser of the life expectancy of the asset for which the money is borrowed and 10 years.

(2)  A board that applies to the Minister for approval of a loan to which subsection (1) applies must give the Minister a statement by the board of the final cost of the asset to which the loan applies and any other information the Minister requires.

(3)  The Minister may approve all or part of a loan to which subsection (1) applies.

Debenture borrowing

4(1)  A board may borrow, by issuing a debenture, for the purpose of

                               (a)    securing, purchasing, adding to, extending or improving a site for a building other than a school building,

                              (b)    erecting, purchasing, relocating, renovating, adding to, extending, making structural changes in, furnishing or equipping a building other than a school building,

                               (c)    providing maintenance or utility services to a building other than a school building, or

                              (d)    refitting a school building for energy conservation.

(2)  If the board decides to borrow by debenture for any of the purposes mentioned in subsection (1), it shall pass, in a form approved by the Minister, a by‑law stating its intention.

(3)  Within 30 days from the date of the passing of the by‑law, the board shall give public notice in accordance with section 271 of the School Act of its intention to apply to the Minister for authority to borrow the amount specified in the by‑law on the conditions set out in the by‑law.

AR 188/98 s4;251/2001

Petition for poll

5(1)  If public notice is given under section 4, the electors of the board may petition the board in accordance with section 268 of the School Act.

(2)  If a board

                               (a)    receives a petition meeting the requirements of section 268 of the School Act within 15 days from the date of the last publication in a newspaper of the public notice of the proposed debenture borrowing, and

                              (b)    decides to proceed with the by‑law,

the board shall submit the question to a vote of the electors.

(3)  The board shall

                               (a)    send a copy of each request contained in the petition to the Minister within 5 days from the date on which the petition is received by the board, and

                              (b)    advise the Minister in writing within 14 days from the date of the vote of the outcome of each vote conducted under subsection (2).

(4)  If the result of the vote is to defeat the proposal for debenture borrowing, the board is bound by the vote for a period of 12 months from the date of the vote and during that 12‑month period the board shall not propose debenture borrowing for the same or a similar project.

AR 188/98 s5;251/2001

Authority for borrowing

6(1)  The Minister may,

                               (a)    on receipt of the documents and information the Minister requires, and

                              (b)    on being satisfied that the conditions prescribed by this Regulation have been complied with,

approve the borrowing of any amount mentioned in the by‑law under section 4, or any lesser amount.

(2)  The Minister shall, as soon as possible after giving an approval under subsection (1), cause notice of the approval to be published in The Alberta Gazette.

Issuing of debentures

7(1)  On receiving the Minister’s approval under section 6, if a board is required to do so, the board shall issue a debenture to secure the amount of the principal and interest on the loan, or any lesser amount, on the terms specified in the by‑law.

(2)  A debenture shall not be issued after the expiration of 3 years from the date on which the notice of approval of the loan appears in The Alberta Gazette.

(3)  A debenture shall

                               (a)    be in a form approved by the Minister,

                              (b)    be sealed with the seal of the board, and

                               (c)    be signed

                                        (i)    either by the chairperson or by some person authorized to sign for the chairperson, and

                                      (ii)    by the treasurer of the board.

(4)  Debentures may be issued either all at one time or in instalments at any times the board considers expedient and may be dated accordingly.

Void borrowing

8(1)  If, before the Minister approves any borrowing required, a board enters into an agreement the consideration for which is to be raised by debenture,

                               (a)    the agreement is void, and

                              (b)    any money paid under the agreement shall be repaid to the board.

(2)  Any agreement entered into by the board for the sale, transfer, pledge or other charge of a debenture or any interest in the debenture before the Minister has approved the borrowing represented by the debenture is void.

(3)  A board shall not proceed with a project referred to in section 4(1) before the Minister approves any borrowing required to meet the capital expenditures.

(4)  This section does not apply to any expenditure for the services of an architect engaged to make preliminary plans or to obtain and compile information necessary in the opinion of the board to enable it to make an application to the Minister.

Repeal

9   The Capital Borrowing Regulation (AR 221/95) is repealed.

10   Repealed AR 28/2018 s1.