25. (1) Subject to the following subsections, any municipal corporation, by a resolution requiring approval by the Commission alone, may order temporary loans and contract them on such conditions and for such periods of time as the Commission may determine.
Those conditions shall govern such loans notwithstanding any inconsistent provision of any general law or special act limiting the amount of such loans or fixing the time for their repayment.
(2) However, any municipal corporation, by resolution, for which approval by the Commission is not required, may contract temporary loans for the payment of current administrative expenses, provided they do not amount to more than 70% of the taxes, licences, permits, compensations or other assessments for that year remaining to be collected, less the balance repayable on every previous temporary loan for the same purposes.
No temporary loan contracted for the purposes of current administration before the assessment of taxes, licences, permits, compensations or other assessments requires any approval if it amounts to less than 15% of the revenues assessed the preceding year for those purposes.
(3) The secretary-treasurer shall, in the case of any temporary loan for current administrative purposes, submit to the lender a copy of the resolution ordering the loan, together with a statement indicating the estimated revenues from taxes, licences, permits, compensations or other assessments according to their assessment by council for the year in which they are to be collected or, if they have not yet been assessed, the amount of the revenues assessed for such purposes for the preceding year, as well as the balance repayable on every similar previous loan, and a copy of the approval of the Commission where that is required.
(4) Moreover, any municipal corporation may in the same manner contract temporary loans to pay all or part of the expenditures incurred under a loan by-law or resolution in force, provided they do not amount to more than 90% of the amount of the bonds or notes whose issue is authorized by the by-law or resolution.
(5) Without the authorization of the Commission, the term for repayment of a temporary loan contracted pending the issue of bonds or notes shall not exceed twelve months from the date on which the Commission approves the loan ordered by the by-law or resolution.
(6) The secretary-treasurer shall immediately forward to the Commission and to the Minister notice of every loan contracted under subsection 2 or 4, together with a copy of the resolution adopted therefor and a statement indicating the balance repayable on every temporary loan previously contracted under that subsection.
(7) A member of the council who knowingly, by his vote or otherwise, authorizes the municipal corporation to contract, or contracts himself on behalf of the latter a temporary loan unapproved by the Commission when such approval is required, or a temporary loan amounting to more than the authorized limit, may be declared disqualified to hold any municipal office for two years and may be held personally liable to the municipal corporation for any loss or damage it may have suffered.
The liability mentioned in the first paragraph is joint and several, and it applies to every officer of the municipal corporation who knowingly becomes party to the illegal act.
Proceedings in declaration of disqualification shall be taken in conformity with articles 838 to 843 of the Code of Civil Procedure; an ordinary action shall be taken to obtain compensation for loss or damage. Such recourses may be exercised by any ratepayer.
(8) Subsections 2, 4 and 7 do not apply to a municipal corporation declared in default in accordance with Division VI or placed under the control of the Commission in accordance with Division VII.