Page 288 - Annuaire Statistique Québec - 1918

246 FINANCES

BORROWINO POWER OF MUNICIPALlTlES.

The municipalities have the power ta borrow sums of money '.vith
the consent of the electors who are owners of taxable imm.ovables,
and the approva1 of the Lieutenant-Governor-in-Council. The by-
law of the council decreeing the loan must state the abject of the loan
with the mode of reimbursement and the period of maturity. The
rate of interest must not exceed 6% per annum.. The amounts required
for the payment of the interest and the creation of the sinking fund are
taken from the ordinal'Y revenues, in the cities and towns, provided they
do not exceecl 50% of the receipts from taxation or are levied by means of
a special tax. In rural municipalities a special tax iB always required.
The moneys for the sinking fund are deposited in the office of the Provincial
Treasurer 01' are used for the reimbursement of part of the loan. The
loans are generally contracted in the form of bonds (with interest
coupons) signed by the mayor and the clerk and bear the aeal of the
corporation. These bonds must also be signed by the Minister of
Municipal Affairs and thereby becorne incontestable, according ta law.
The entire debt of a municipality i5 limited, in ordinary cases. ta
twenty percent of the value of the properties entered on the valua-
tion roll as taxable or temporarily exempted immovables. Nevel'-
theJes:o, a city or town may bOlTOW amounts gl'eater than t.venty
percent of the real estate 1311 bjeet ta taxation in virtlJ.e of a by-law
approved by at least one tellth of the proprietors paying taxes, w hen
t(1,eir number exceeds tvvo th.ousand by one eighth of these propriet.ors
J
in municipalities where their number does not amount ta two thousand
and by at leftst one fifth,' if the number of the proprietors is less that
one thousand. Moreover, the by-law must be aocepted by at least
two thirds Ü1 number and in immovable value of the voters, The same
fOl'malities are required in cities and towns for the loan when the neces-
sary amounts for the payment of interest and for the creation of the
sinking fund exceed one half of the oeneral revenues, and the by-Iaw
must be voted by the majority .in number and ÎJ1 immovable value of
the voters, A mere resolution of the council approved by the Lieute-
nant ,Governor-in-Council is sufficient ta motlify a loan as long as the
modifications do Hot change the abject, the amount, the rate of interest
or the term of repayment of the loan.

The entire debt of a county municipality must not exoeed five
pereent of the e:;(.jmated value of its taxable real-estate; that of a rural
municipality must not exceed ten percent of the value of its taxable
property, inclliding its proportion of the debt ta, the county corporation.

Rev·iscd StaJu.'ea 0/ t1~e PT(J~illr;;, of Quebec. 19!t6, chap. L012 a,-;.l 111.