A-6.001, r. 3 - Regulation respecting borrowings made by a body

Updated to 12 December 2023

This document has official status.

chapter A-6.001, r. 3

Regulation respecting borrowings made by a body

Financial Administration Act

(chapter A-6.001, s. 77.1).

1. In this Regulation, “short-term borrowing” means a borrowing whose maturity date is less than 365 days.

O.C. 955-2008, s. 1.

2. The authorization of the Minister of Finance referred to in the first paragraph of section 77.1 of the Financial Administration Act (chapter A-6.001) is not required in respect of the following borrowings of a body:

(1)  a borrowing negotiated by the Minister of Finance under a mandate assigned by the body;

(2)  a borrowing made with the Minister of Finance, as manager of the financing fund, or with Financement-Québec;

(3)  a short-term borrowing or a borrowing by line of credit that meets the following conditions:

(a)  the borrowing is made with one of the following lenders:

i.  a financial institution authorized to carry on its activities under the laws applicable in Québec or Canada;

ii.  the Caisse de dépôt et placement du Québec;

iii.  a pension fund of a body referred to in section 77 of the Financial Administration Act;

iv.  (subparagraph revoked);

(b)  the interest rate of the borrowing does not exceed the rate of Canadian bankers’ acceptances on the CDOR page of the Reuters system on the date of the borrowing, increased by 0.3%, including all fees;

(c)  the borrowing is made to finance operational needs or a capital project for which the body does not receive a government subsidy;

(4)  a bank overdraft or any other credit facility that may be used to finance a bank overdraft and granted to a body by its financial institution, with a maximum term of 5 working days and whose applicable interest rate does not exceed the prime rate of the lending financial institution.

O.C. 955-2008, s. 2; O.C. 105-2022, s. 1.

3. The authorization of the Minister of Finance is not required for a borrowing of less than $20,000,000 contracted by a university establishment for the carrying out of a capital project that is not subsidized under the University Investments Act (chapter I-17).

No university establishment may split or segment its procurement requirements or change a borrowing or capital project to be exempted from the obligation to obtain the authorizations provided for in the Act.

If a borrowing groups together more than one capital project for an amount equal to or greater than $20,000,000, the establishment must obtain the authorization of the Minister of Finance.

O.C. 955-2008, s. 3.

4. The authorization of the Minister of Finance is not required for a borrowing contracted by an institution referred to in the first paragraph of section 296 of the Act respecting health services and social services (chapter S-4.2) for the payment of capital costs charged to the institution’s operating fund, where the amount corresponds to the lesser of $5,000,000 or 5% of the operating expenditures of the most recently completed fiscal year of the institution.

No institution may split or segment its procurement requirements or change a borrowing or capital project for the purpose of avoiding the application of this section.

O.C. 955-2008, s. 4.

5. (Omitted).

O.C. 955-2008, s. 5.

REFERENCES

O.C. 955-2008, 2008 G.O. 2, 4999

S.Q. 2011, c. 16, s. 244

S.Q. 2013, c. 23, s. 164

O.C. 105-2022, 2022 G.O. 2, 415