BYLAW NO. 820: A BYLAW TO ESTABLISH THE MANNER IN WHICH INTEREST IS CALUCATED ON SECURITY DEPOSITS

TOWN OF VIEW ROYAL BYLAW NO. 820

A BYLAW TO ESTABLISH THE MANNER IN WHICH INTEREST IS CALUCATED ON SECURITY DEPOSITS

WHEREAS Section 19 of the Community Charter requires that interest earned on a security deposit becomes part of the security; and

AND WHEREAS Section 925 of the Local Government Act requires that interest earned on security deposits collected under authority of Section 925 accrue to the holder of the permit; and

AND WHEREAS Section 193.1 of the Community Charter gives the municipality authority to establish by bylaw the manner in which interest is calculated where it is not otherwise provided for.

NOW THEREFORE the Council for the Town of View Royal, in open meeting assembled, enacts as follows:

1. The interest rate for security deposits shall be at the rate of three percentage points below the Town’s banker’s prime rate to a minimum of 0.25%.
2. Interest shall be calculated monthly on the last day of any month using the interest rate in effect on the first of the month.
3. Interest will be compounded annually.
4. Interest will not be paid if: a. The total security deposit is $1,000 or less; or b. The Town holds the total security deposit for less than three calendar months.
5. This Bylaw may be cited for all purposes as Interest Calculation Bylaw No 820, 2012.

READ A FIRST TIME THIS ____ DAY OF ____, 2011.

READ A SECOND TIME THIS ____ DAY OF ____, 2011.

READ A THIRD TIME THIS ____ DAY OF ____, 2011.

ADOPTED BY COUNCIL, SIGNED BY THE MAYOR AND THE CLERK AND SEALED WITH THE SEAL OF THE TOWN OF VIEW ROYAL THIS ____ DAY OF ____, 2012.