HomeMy Public PortalAbout2018-08-14_Form_Water Supply Upgrade Lending Program_Financing AgreementMunicipality of the District of Chester
Water Supply Upgrade Lending Program
Financing Agreement
NOTE:TO BE COMPLETED BY THE MUNICPALITY IF THE PROPERTY OWNER IS APPROVED
FOR THIS PROGRAMProperty Owner (1):Name ________________________________________________________________________Property Owner (2):Name ________________________________________________________________________Property Owner (3):Name ________________________________________________________________________
Civic Address:Civic Number and Street __________________________________________________(property address ofthewell)Town/Community _________________________________________________________Province ___________Postal Code ____________________Property Tax Information:Assessment Roll Number __________________________________________________Parcel Identification Description (PID) __________________________________Mailing Address:______________________________________________________________________________(if different from above)Town/Community _________________________________________________________Province ___________Postal Code _____________________
Financing Amount:___________________________________________________________Interest Rate:____________________________________________________________Repayment Period:____________________________________________________________Payment Frequency:____________________________________________________________
Payment Schedule:See schedule attached
Water Supply Upgrade Project #: _________________________________________________________
THIS FINANCING AGREEMENT is made this ___ day of ___________ 20__(“Effective Date”).
BETWEEN:
QUALIFYING PROPERTY OWNER-and-
MUNICIPALITY OF THE DISTRICT OF CHESTER[Hereafter called the “Municipality” and, together with the Qualifying Property Owner, the“Parties”]In consideration of the mutual covenants herein contained, the Parties agree as follows:
Definitions1.In this Financing Agreement:a.Approved Quote means the Contractor quote for the completion of part or all of theapproved Water Supply Upgrade that has been obtained by the Qualifying PropertyOwnerand provided to and approved by the Municipality.b.CAO means the Chief Administrative Office for the Municipality, or her/his designate.c.Contractor means an insured person or corporation licensed by the Department ofEnvironmentandretained by the Qualifying Property Owner to complete the WaterSupply Upgrade.d.Completion means the date that the Water Supply Upgrade work has been done as setout in the Certificate of Completion.e.Director of Finance means the Director of Finance & Treasurer for the Municipality, orher/his designate.f.Effective Date means the date on which this Water Supply Upgrade FinancingAgreement is signed.g.Maximum Eligible Amount means the sum of ten thousand dollars ($10,000.00) thattheMunicipality will lend to a Qualifying Property Owner for a Water Supply Upgrade.h.Municipality means the Municipality of the District of Chester,and includes itsemployees,agents, or designated third party contractor.i.Qualifying Property means an existing, already developed, owner-occupied single unitor two-unit residential property, or a building owned by not-for-profit organizations,located within the Municipality.j.Qualifying Property Owner means the individual, individuals,or entity in possessionof the title for the Qualifying Property. The Qualifying Property Owner may beresponsible for paying taxes in relation to the Qualifying Property.
k.Repayment Period means the period from the date the financing charge first becomesdue and payable to the date the final payment is due,and shall in no case be greaterthan ten (10) years.l.Water Supply Upgrade means the construction of a new dug or drilled well, or anupgrade to an existing well that is required to source potable water for the property; theinstallation of equipment such as a well pump, a water line, and an electrical connectionto support the function of a new or upgraded well; and other equipment, such ascisterns and containers, to improve the supply, use, and conservation of potable wateras required for the Water Supply Upgrade.m.Water Supply Upgrade By-Law means By-Law No.148 -Water Supply UpgradeLending Program By-Law,adopted by the Municipality on August 1, 2018n.Water Supply Upgrade Lending Program or Program means a program establishedby the Municipality under which Qualifying Property Owners may obtain financing forconstruction of a Water Supply Upgrade under the terms and conditions of thisFinancingAgreement.o.Water Supply Upgrade Loan means the local improvement charge levied on theQualifying Property pursuant to section 81A of the Municipal Government Act, and isequal to the value of the Water Supply Upgrade up to the Maximum Eligible Amount.
Term of Agreement2.This Financing Agreement commences on the Effective Date and terminates at the end ofthe Repayment Period or when the Water Supply Upgrade Loan is paid in full.
Program Eligibility3.To be eligible for participation in the Water Supply Upgrade Lending Program, the applicantmust meet the definition of Qualifying Property Owner (1.j), the applicant’s property mustmeet the definition of the Qualifying Property (1.i), and all conditions and responsibilities inthisFinancing Agreement must be met in full.
Water Supply Upgrade Overview4.The Contractor, Qualifying Property, and Qualifying Property Owner must meet therequirements outlined in this Financing Agreement.5.The quote for a proposed Water Supply Upgrade must be provided by the Contractor andsubmitted by the Qualifying Property Owner to the Municipality, along with a completedand signed Water Supply Upgrade Lending Program –Registration Form & Checklist.The Water Supply Upgrade quote provided by the Contractor shall become an ApprovedQuote once approved by the Municipality. The Approved Quote shall determine the WaterSupply Upgrade Loan amount up to the Maximum Eligible Amount, and provide the basisforthe Financing Agreement between the Parties.
6.This Financing Agreement, including a loan payment schedule that takes into account theQualifying Property Owner’s financing preferences, shall be finalized and signed by bothParties during a meeting of the Director of Finance and the Qualified Property Owner.7.The Qualifying Property Owner acknowledges and agrees that only the Water SupplyUpgradeworkapprovedby the Municipality is eligible for financing through the WaterSupply Upgrade Lending Program, and that the Qualifying Property Owner shall be solelyliable for the cost of any unapproved upgrade work completed on the Qualifying Property.8.A Water Supply Upgrade that exceeds the cost of an Approved Quote shall be eligible forfinancingthrough the Water Supply Upgrade Lending program, providing the additionalcosts are for approved upgrade work and therefore eligible, and providing the revised totalWater Supply Upgrade Loan amount does not exceed the Maximum Eligible Amount.9.Should the actual costs for a completed Water Supply Upgrade be more (up to the MaximumEligible Amount)or less than the Approved Quote used for the original FinancingAgreement between the Parties,the Director of Finance and the Qualifying Property Ownershallmeetto complete and sign a Financing Agreement Amendment, which will include arevised loan payment schedule.10.The Qualifying Property Owner acknowledges and agrees to be solely liable for costs inexcess of the Maximum Eligible Amount, regardless of whether these excess costs were forthe installation of an approved Water Supply Upgrade.11.The Municipality shall not be responsible for the installation, ongoing maintenance,andoperating costs of the Water Supply Upgrade.The Water Supply Upgrade financed throughthis Program is owned and maintained by the Qualifying Property Owner.12.After beginning the installation of the Water Supply Upgrade at the Qualifying Property,should a Contractor or the Qualifying Property Owner cause the work to be stopped for anyreason, including reasons related to safety (such as structural deficiencies, hazardousmaterials or other safety hazards)or discovery of unforeseen conditions, the issue must beresolved between the Qualifying Property Owner and the Contractor.
Payment to Contractor13.The Contractor’s invoices shall be made out to the Qualifying Property Owner.TheQualifying Property Owner shall sign all eligible Contractor invoices for completed workand forward them to the Municipality within five (5)business days for payment up to theamount approved in this Financing Agreement.14.The Qualifying Property Owner must ensure the Contractor has provided all invoices for theWater Supply Upgrade before the Contractor completes and signs the Water Supply
Upgrade Lending Program -Certificate of Completion.
Reportable Deficiencies15.Should the Municipality be informed of any deficiencies with the Qualifying Propertyrelative to compliance with codes, standards, or other applicable regulations, the QualifyingPropertyOwner acknowledges that the Municipality will be obligated to report such
deficiencies to the applicable regulatory authority.The Municipality’s failure to report anysuch deficiency will not be treated by the Qualifying Property Owner or any other person orentity as the Municipality’s acceptance or endorsement of such deficiency, and is withoutprejudice to any person or entity’s right or duty to cause to require the deficiency to beremedied, at any time.
Lien Against Property16.The Water Supply Upgrade Loan shall be a first lien on the real property and has the sameeffect as rates and taxes under the Assessment Act.17.The Water Supply Upgrade Loan may consist of:a.The cost of the Water Supply Upgrade (see definition 1.l), including all labour costs,permitting fees, and applicable taxes.b.Interest charges, including any additional interest arising due to any default of payment.
Loan Payment18.The conditions and schedule for payment of the Water Supply Upgrade Loan shall beinformedby the following:a.Interest shall begin accruing on any approved Water Supply Upgrade invoice paid by theMunicipalitythirty (30) days from the date that the Municipality paid that invoice.Theinterest rate applied will be Scotiabank’s prime interest rate as of the date thisFinancing Agreement is signed by the Municipality and the Qualifying Property Owner.b.The Water Supply Upgrade Loan shall become payable on the completion of the contractfor the installation of the Water Supply Upgrade in accordance with the FinancingAgreement and on the Municipality’s receipt of the dated and signed Certificate ofCompletion OR ninety (90) days after the Municipality made the first payment on theWater Supply Upgrade, whichever comes first.c.The Qualifying Property Owner shall make equal monthly or annual payments over amaximumperiod of ten (10)years (the Repayment Period)to pay the Water SupplyUpgradeLoan.The Qualifying Property Owner shall submit a preferred paymentschedule with initial registration, and review that schedule with the Director of Financeprior to signing the Financing Agreement.d.The Municipality shall include the payment schedule as part of the FinancingAgreement, which will be signed by both Parties.Payments may be made by whatevermethods are advertised as acceptable methods to make payments to the Municipality.The Qualifying Property Owner shall be responsible for any charges incurred for non-sufficient funds.e.The Qualifying Property Owner may,at any time, and without penalty, make a lump-sum payment toward the outstanding balance of the Water Supply Loan.The lump sumpayment will be first applied to accrued interest, and the balance remaining to theoutstanding principal.
19.If the Qualifying Property Owner chooses to exit the Program before the Water SupplyUpgradeis completed,the conditions and schedule for payment of the Water SupplyUpgradeLoan for an incomplete upgrade shall be informed by the following:a.Program exit must be submitted as a signed and written statement to that effect by theQualifying Property Owner to the Municipality, confirming the decision not to continuewith the Program as of the given date.b.The Municipality shall not pay any Contractor invoices submitted for payment after thedate of Program exit.c.As with a completed Water Supply Upgrade,interest shall begin accruing on anyapproved Water Supply Upgrade invoice paid by the Municipality thirty (30) days fromthe date that the Municipality paid that invoice. The interest rate applied will beScotiabank’s prime interest rate as of the date this Financing Agreement is signed by theMunicipality and the Qualifying Property Owner.d.The Water Supply Upgrade Loan for the incomplete Water Supply Upgrade shall becomepayable no later than ninety (90) days after the Municipality made the first payment onthe Water Supply Upgrade.e.An incomplete Water Supply Upgrade shall require the Municipality and the QualifyingProperty Owner to complete and sign a Financing Agreement Amendment, which willinclude a revised repayment schedule,for the Water Supply Upgrade Loan incurredprior to Program exit. Payments may be made by whatever methods are advertised asacceptable methods to make payments to the Municipality. The Qualifying PropertyOwner shall be responsible for any charges incurred for non-sufficient funds.20.The Municipality and the Qualifying Property Owner shall complete and sign a FinancingAgreement Amendment (and thus a revised loan payment schedule) for the followingcircumstances:a.When actual costs for the completed Water Supply Upgrade are more or less than theApproved Quote that informed the original Financing Agreement.b.When the Qualifying Property Owner makes a lump-sum payment.c.When the Qualifying Property Owner chooses to exit the Program before the WaterSupply Upgrade is complete.
Late Payments21.In the event of default, the Water Supply Upgrade Loan shall be collected in the same way asoverdue taxes in accordance with the Municipality’s Policy P-001 –Tax Sale Policy and the
Municipal Government Act.
Sale and Release22.The Qualifying Property Owner shall have the unfettered right to sell, transfer,charge andmortgage, encumber or otherwise deal with the Qualifying Property without the priorconsent of the Municipality.23.In the event the Qualifying Property is transferred to a new owner, the lien remains with theQualifying Property and is transferred to the new property owner. The new QualifyingProperty Owner shall be liable to the Municipality for all of the Qualifying Property Owner’sobligationsand liabilities as set out in the Financing Agreement,unless a lump sumpaymentrepresenting the outstanding balance of the Water Supply Upgrade Loan plusaccruedinterest and any applicable charges is received by the Municipality at the time ofthe sale.
Disclaimer24.Neither the Municipality, nor their respective affiliates, agents, successors and assigns shallbe liable to the Qualifying Property Owner for any damages arising in, but not limited totort, including but not limited to negligence, breach of contract, or under any otherprovision of law including property damage, direct and incidental losses, economic loss, orpersonal injury resulting from the installation or use of the Water Supply Upgrade oranything done in accordance with the Water Supply Upgrade Lending Program.
Qualifying Property Owner Responsibilities25.The Qualifying Property Owner will be responsible for:a.Obtaining a quote from a Contractor that meets the definition (1.c) used for thisProgramfor the proposed Water Supply Upgrade and submitting that quote, along witha competed Water Supply Upgrade Lending Program -Registration Form and
Checklist,to the Municipality.b.Advising the Municipality and the Contractor if there are any hazardous substances ator on the property, or other defects, deficiencies or impediments that might impact theinstallation of the Water Supply Upgrade.c.Meeting with Director of Finance to complete and sign a Financing Agreement, whichwill include a loan payment schedule. (NOTE:This step and subsequent steps arecontingent on confirmation from the Municipality that the Qualifying Property Owner’sproposed Water Supply Upgrade is eligible, that the submitted Contractor’s quote isapproved by the Municipality, and that Program funding is available during the givenfiscal year to provide financing for the proposed Water Supply Upgrade.)d.Submitting, in conjunction with the Contractor as required,an application to therelevant government authority for the appropriate permit(s) to complete the WaterSupply Upgrade.e.Signing and submitting to the Municipality, either in person, or via mail, or as scannedemail attachments (minimum 300 dpi)sent to ccollicutt@chester.ca, all eligibleContractor invoices for completed Water Supply Upgrade work within five (5) business
days of receipt.f.Securing from the Contractor, and submitting to the Municipality either in person, or viamail, or as scanned email attachment (minimum 300 dpi) sent to
ccollicutt@chester.ca, a Certificate of Completion.g.Meeting with the Director of Finance to complete and sign a Financing AgreementAmendment, which will include a revised loan payment schedule, should the actualcosts for a completed Water Supply Upgrade be more (up to the Maximum EligibleAmount) or less than the Approved Quote used for the original Financing Agreementbetween the Parties.h.Informing the Qualifying Property’s insurance provider that the Water Supply Upgradeis being installed and purchasing appropriate insurance coverage in this regard, ifapplicable.i.Informing, in writing, anyone who is negotiating with the Qualifying Property Owner topurchase, or otherwise receive an ownership interest in,the Qualifying Property, aboutany unexpired lien that remains against the Qualifying Property as a result of theinstallation of the Water Supply Upgrade.
Assignment by Municipality26.This Financing Agreement binds the Qualifying Property Owner and their successors, heirsand assigns, and will be a right and responsibility assumed by any successors of theMunicipality.
Consent27.The Qualifying Property Owner consents to providing the Municipality with access to thepremises with reasonable notice for the purpose of quality assurance of the Water SupplyUpgrade.
No Warranty28.There is no implied nor express representation or warranty by the Municipa lity or itsrespectiveaffiliates, agents, successors,and assigns related to the design, installation oroperation of the Water Supply Upgrade, and the Municipality and its respective affiliates,agents, successors,and assigns expressly disclaim any and all warrants relating to theWater Supply Upgrade, associated equipment or materials as to workmanship, quality,fitness for purpose or performance.29.The parties hereto acknowledge and agree that the communication of this Water SupplyUpgrade Financing Agreement, along with other documentation required for this Programmay be transmitted by way of e-mail transmission and that the Parties hereto agree toaccept such signatures and documents as legal and binding on the Parties.
Authorized Signature of Qualifying Property Owner30.By signing below, the Qualifying Property Owner agrees to the terms and conditions of thisFinancing Agreement, and hereby confirms that he or she signs this Financing Agreement asaregistered owner of the Qualifying Property.
Property Owner 1Name (print)SignatureDate
Property Owner 2Name (print)SignatureDate
Property Owner 3Name (print)SignatureDate
Director of FinanceName (print)SignatureDateFile ApprovalNumber
Attachment:Water Supply Upgrade Loan Payment Schedule