Tile Drainage Act, R.S.O. 1990, c. T.8Skip to content
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|O. Reg. 382/12||BORROWING BY-LAWS, DEBENTURES AND LOANS|
|R.R.O. 1990, Reg. 1032||BORROWING BY-LAWS, DEBENTURES AND LOANS|
Tile Drainage Act
R.S.O. 1990, CHAPTER T.8
Historical version for the period January 1, 2007 to December 14, 2009.
Last amendment: 2006, c. 32, Sched. C, s. 65.
1. In this Act,
“drainage work” means a drainage system constructed of tile, pipe or tubing of any material beneath the surface of agricultural land, including integral inlets and outlets, for the purpose of improving the productivity of the land drained; (“travaux de drainage”)
“prescribed” means prescribed by the regulations made under this Act. (“prescrit”) R.S.O. 1990, c. T.8, s. 1; 1998, c. 18, Sched. A, s. 3 (1); 2002, c. 17, Sched. F, Table.
Borrowing powers of municipalities
2. (1) The council of a local municipality may pass by-laws in the prescribed form authorizing,
(a) the borrowing of money from the Minister of Finance for the purpose of lending the money for the construction of drainage works; and
(b) the issuance of debentures in the prescribed form by the local municipality or by an upper-tier municipality on its behalf. 1998, c. 18, Sched. A, s. 3 (2); 2002, c. 17, Sched. F, Table.
When by-law valid
(2) A by-law passed under subsection (1) is valid and binding according to its terms unless an application is made or an action is brought to quash the by-law in a court of competent jurisdiction within four weeks after the by-law is passed. 1998, c. 18, Sched. A, s. 3 (2).
Deposit with Minister of Finance
(3) After the expiration of four weeks since a by-law is passed under subsection (1), the clerk of the municipality shall deposit with the Minister of Finance a certified copy of the by-law, together with an affidavit of the clerk in the prescribed form if,
(a) no application has been made or no action has been brought to quash the by-law; or
(b) an application has been made or an action has been brought to quash the by-law but it has been dismissed. 1998, c. 18, Sched. A, s. 3 (2).
(4) The affidavit of the clerk shall state which one of clauses (3) (a) and (b) applies in respect of the by-law. 1998, c. 18, Sched. A, s. 3 (2).
Offer to sell debentures
(5) After the clerk has complied with subsection (3), the municipality that issued the debentures authorized by the by-law may offer to sell the debentures to the Province of Ontario. 1998, c. 18, Sched. A, s. 3 (2).
Application by owner for loan
3. (1) An owner of agricultural land who is assessed as the owner thereof in the local municipality or, where at any time after the return of the assessment roll and before the return of the assessment roll in the following year, the land is conveyed to some other person, such other person may make application to the council of the local municipality in the prescribed form to borrow money for the purpose of constructing a drainage work on such agricultural land. R.S.O. 1990, c. T.8, s. 3 (1); 2002, c. 17, Sched. F, Table.
Discretion of council
(2) The approval of any application under subsection (1) is in the discretion of the council whose decision is final and written notice of the decision shall forthwith be given to the applicant. R.S.O. 1990, c. T.8, s. 3 (2).
(3)-(6) Repealed: 1999, c. 12, Sched. A, s. 23.
Appointment of inspector
4. The council of a local municipality borrowing money under this Act shall employ an inspector of drainage who shall inspect the drainage work and file with the clerk an inspection and completion certificate in the prescribed form, together with a sketch indicating the location, spacing, direction and depth of the tile as laid, and the cost of such services by the inspector shall be charged against the drainage work inspected and shall be paid out of the money borrowed and deducted from the amount loaned under section 7. R.S.O. 1990, c. T.8, s. 4; 2002, c. 17, Sched. F, Table.
When debentures to be issued
5. (1) After the receipt of the inspection and completion certificate, the council may issue a debenture payable to the Minister of Finance with respect to the funds to be loaned by the local municipality. 2002, c. 17, Sched. F, Table.
(1.1) In the case of a lower-tier municipality that is not authorized to issue debentures, the council of the lower-tier municipality may request the upper-tier municipality to issue the debenture on its behalf. 2002, c. 17, Sched. F, Table.
(2) A local municipality or an upper-tier municipality on behalf of one or more lower-tier municipalities shall not issue more than one debenture in any month, the amount of which may combine amounts to be loaned by the local municipality or lower-tier municipalities with respect to a number of drainage works. 2002, c. 17, Sched. F, Table.
Amount of debentures
(3) The amount of each debenture issued to the Treasurer of Ontario shall be in the sum of $100 or any multiple thereof and shall not exceed the amount of the loan or loans with respect to which the debenture is issued nor 75 per cent of the total cost of the drainage work or works with respect to which the debenture is issued. R.S.O. 1990, c. T.8, s. 5 (3).
Interest rates on debentures
(4) The interest rates applicable to debentures, both before and after maturity, issued under this Act shall be determined from time to time by the Lieutenant Governor in Council. R.S.O. 1990, c. T.8, s. 5 (4).
Term of debentures
(5) The term of the debentures shall be for a period of ten years and shall be repayable by equal annual instalments of principal and interest each due on the anniversary date of the debenture. R.S.O. 1990, c. T.8, s. 5 (5).
(6) The debentures shall provide that the municipality may at any time prepay the whole amount of principal and interest owing at the time of such prepayment. R.S.O. 1990, c. T.8, s. 5 (6); 2002, c. 17, Sched. F, Table.
Date of debentures
(7) Each debenture shall be dated the first day of the month following the month in which it is delivered to the Treasurer of Ontario. R.S.O. 1990, c. T.8, s. 5 (7).
Offer to sell
(8) An application requesting the Treasurer of Ontario to purchase a debenture shall be by way of an offer to sell in the prescribed form and shall accompany the debenture delivered to the Treasurer of Ontario. R.S.O. 1990, c. T.8, s. 5 (8).
Purchase and validation of debentures
6. The Treasurer of Ontario may purchase, acquire and hold debentures issued under the authority of this Act and pay therefor out of the Consolidated Revenue Fund. R.S.O. 1990, c. T.8, s. 6.
Terms on which council shall lend money
7. The council shall lend the money so borrowed under the authority of section 2 in sums of $100 or multiples thereof for a term of ten years at a rate of interest equal to that set out in the debenture by which the funds are borrowed, but the amount loaned to any one applicant shall not exceed the amount applied for nor 75 per cent of the total cost of the drainage work with respect to which the loan is made. R.S.O. 1990, c. T.8, s. 7.
8. The council shall impose by by-law in the prescribed form and, subject to section 13, shall levy and collect for the term of 10 years, over and above all other rates, upon the land in respect of which the money is lent, a special equal annual rate sufficient to discharge in 10 years the principal and interest of the money lent, and the special rates imposed shall have priority lien status, as described in section 1 of the Municipal Act, 2001 or section 3 of the City of Toronto Act, 2006, as the case may be, and shall be added to the tax roll. 2002, c. 17, Sched. F, Table; 2006, c. 32, Sched. C, s. 65.
Repayment where land use is changed
9. (1) Where, at any time before a loan is repaid, the council of a local municipality is satisfied that the land is no longer being used for agriculture, the balance of the loan, together with interest thereon, shall become immediately due and payable and such amount may be added to the taxes for the current year. R.S.O. 1990, c. T.8, s. 9 (1); 2002, c. 17, Sched. F, Table.
Amounts to be remitted to Treasurer
(2) Any amounts collected under subsection (1) shall forthwith be remitted to the Treasurer of Ontario or his or her assignee who shall apply them towards payment of the debentures of the local municipality or upper-tier municipality. R.S.O. 1990, c. T.8, s. 9 (2); 2002, c. 17, Sched. F, Table.
Repayment by municipality to Province
10. (1) The amount payable in each year for principal and interest shall be remitted to the Treasurer of Ontario,
(a) in the case of debentures issued prior to the 1st day of September, 1971, not later than the 10th day of the month next following the month in which the payment fell due; and
(b) in the case of debentures issued on or after the 1st day of September, 1971, on or before the due date. R.S.O. 1990, c. T.8, s. 10 (1).
Interest when default in payment
(2) In the event of default in any such payment, interest thereon shall accrue during the time of such default and the rate of such interest shall be determined from time to time by the Lieutenant Governor in Council. R.S.O. 1990, c. T.8, s. 10 (2).
Loans in territory without municipal organization
11. (1) The Minister of Agriculture and Food, subject to the approval of the Lieutenant Governor in Council may, from time to time, prescribe the manner in which drainage works shall be initiated and carried out in territory without municipal organization and the manner in which and the terms and conditions under which loans may be made to persons out of the money appropriated therefor by the Legislature. R.S.O. 1990, c. T.8, s. 11 (1).
(2) The amount loaned to any one person under subsection (1) shall not exceed 75 per cent of the total cost of the work and shall constitute a lien upon the estate or interest of the owner in the land upon which the work was done and where repayment of the amount so loaned is in default such amount may be deducted from any money payable by Ontario to the person under any other Act and may be recovered by proceedings in any court of competent jurisdiction. R.S.O. 1990, c. T.8, s. 11 (2).
(3) The money required for the purposes of this section shall be paid out of the money appropriated therefor by the Legislature. R.S.O. 1990, c. T.8, s. 11 (3).
Sale of part of land with respect to which money lent
12. (1) Where a part of a parcel of land in respect of which money has been lent under this Act is sold, the council of the local municipality may apportion the special annual rate between the part sold and the part remaining. R.S.O. 1990, c. T.8, s. 12 (1); 2002, c. 17, Sched. F, Table.
(2) The clerk of the local municipality shall give the owners of the parts into which the land is divided at least ten days notice in writing by registered mail of the time and place the council will make the apportionment. R.S.O. 1990, c. T.8, s. 12 (2); 2002, c. 17, Sched. F, Table.
Apportionment of rate
(3) The council in making the apportionment shall have regard to the effect of the drainage work on each part into which the parcel of land is divided and such other matters as it considers appropriate, and the decision of the council with respect to the apportionment is final. R.S.O. 1990, c. T.8, s. 12 (3).
Filing of order of apportionment
(4) The order of apportionment shall be filed with the clerk and thereafter the special annual rate shall be levied and collected in accordance with the apportionment. R.S.O. 1990, c. T.8, s. 12 (4).
Discharge of indebtedness by owner
13. The owner of agricultural land in respect of which money has been borrowed under this Act may at any time obtain a discharge of the indebtedness by paying to the treasurer of the local municipality the amount outstanding together with accrued interest at the rate at which the funds were borrowed, and any amounts so paid shall be forthwith remitted by the treasurer of the local municipality to the Treasurer of Ontario or his or her assignee who shall apply them towards payment of the debentures of the local municipality or upper-tier municipality. R.S.O. 1990, c. T.8, s. 13; 2002, c. 17, Sched. F, Table.
14. The Lieutenant Governor in Council may make regulations for the purposes of this Act prescribing forms and defining any word or expression not defined in this Act. R.S.O. 1990, c. T.8, s. 14.