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

Updated to 1 January 2024

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:

i.  for any borrowing whose reference rate is the CORRA rate, the CORRA rate published by Bank of Canada applicable on the dates of determination of the rate, increased by 0,62%, including all fees;

ii.  for any other borrowing, 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; O.C. 1681-2023, 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. (Revoked).

O.C. 955-2008, s. 4; O.C. 1681-2023, s. 2.

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

O.C. 1681-2023, 2023 G.O. 2, 3136