Municipalities must receive written approval from the Minister or their delegate to borrow from a financial institution. The request to borrow would relate to a capital works project, consolidations of current municipal loans, the purchase of capital equipment, or funds for approved Canada Community Building Fund projects. Requests for an Approval to Borrow must include:
- An approved resolution from council, which can be provided as a complete copy or an extraction from the approved minutes. The resolution must include the:
- Name of the lending institution,
- Loan amount,
- Fixed loan term,
- Loan amortization period, and
- Purpose of the loan.
- A signed Letter of Request for an Approval to Borrow from the Municipality or Local Service District.
- A signed Bank Letter from the lending institution which includes the:
- Loan amount,
- Interest rate,
- Fixed loan term,
- Loan amortization period, and
- Loan payment amount.
- Any other documentation deemed necessary by the Municipal Analyst in the applicable Regional Office of the applicant.
Should the Municipality or Local Service District have any further questions or concerns, please contact the local Regional Office for assistance.