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HomeMy WebLinkAboutBy-law 2355/87THE CORPORATION OF THE TOWN OF PICKERING BY-LAW NUMBER 2355 /87 Being a by-law to provide for interest to be added to tax arrears. WHEREAS pursuant to the provisions of section 3 of the Municipal Interest and Discount Rates Act, 1982, a municipality may, by by-law, provide that the interest rate payable on overdue payments of taxes owing to it shall be at the rate specified therein, which rate shall not exceed the prime rate of the chartered bank that has the highest prime rate on the day the by-law is passed or any day within the 14 day period immediately prior to the date the by-law is passed, plus 1 1/2 per cent per annum; and WHEREAS the prime rate of interest of the Canadian Imperial Bank of Commerce during this period was 9.75 per cent; NOW THEREFORE THE Council of the Corporation of the Town of Pickering HEREBY ENACTS as follows: The interest rate payable on overdue payments of taxes owing to the Corporation of the Town of Pickering on the effective date of this by-law shall be 11.25 per cent per annum. The Treasurer shall add to the amount of all overdue payments of taxes owing to the Corporation of the Town of Pickering interest at the rate of 0.9375 per cent per month for each month or fraction thereof, from the effective date of this by-law until the earlier of: a) the day a by-law in respect of interest payable on overdue payments comes into force in 1988; or b) March 31st, 1988 3. No interest added to taxes shall be compounded. 4. Section 2210.4 of the Town of Pickering Municipal Code is hereby repealed and replaced by the provisions of this by-law. BY-LAW READ a first, second and third time and finally PASSED this 19th day of January, 1987.