27. No promissory note given by a municipality in payment of an account or other debt exceeding five hundred dollars shall bind the municipality unless the issuing thereof shall have been approved by the Commission.
Every agreement whereby a municipal corporation engages its credit must, in order to bind it, be previously authorized by the Commission, except in the case of an agreement obliging it to pay fees for professional services, or an agreement respecting an act of current administration for a period not exceeding twelve months.
The Commission shall take into consideration the object and expediency of the commitment submitted for its approval. It may further require, if it deems it expedient, that the resolution or by-law ordering the commitment be submitted for approval to the property-owners in accordance with the procedure for the approval of loan by-laws provided in the act governing the municipal corporation.
R. S. 1964, c. 170, s. 25; 1965 (1st sess.), c. 55, s. 6; 1975, c. 65, s. 5; 1977, c. 50, s. 3.