(1) UTE may loan to any local part
or all of a request for funds needed for Union business.
(2) There shall be a written ‘’loan
agreement’’ between UTE and the local requesting the loan. UTE
shall prescribe the details of a standard ‘’loan agreement’’ document.
The standard ‘’loan agreement’’ shall be signed
by the President and the 1st Vice-President, as well as, two local
authorized persons.
(3) All requests for a loan shall
be subject to the review of the UTE National Finance Committee. The
UTE National Finance Committee shall take into consideration the local’s
ability to repay when considering a request for a loan.
(4) If a loan request is approved
by the UTE National Finance Committee they shall recommend the
payment of the loan to the Executive Council. A loan shall be granted
upon a two thirds (2/3) majority vote in favour by the Executive Council
in session.
(5) If a loan request is denied by the
UTE National Finance Committee they shall state their reasons for the
denial, in writing, to the requesting local.
(6) At no time shall UTE have more
than one hundred thousand dollars ($100,000) in outstanding loans to
locals.
(1) The minimum monthly amount of
a loan repayment is one hundred dollars ($100). These repayments shall
be deducted by UTE from the local’s monthly dues cheque before
forwarding the local dues to the local.
(2) The maximum number of months
for any loan repayment is thirty-six (36).
(3) All loans shall have interest
calculated at the current Guaranty Investment Certificate (GIC) rate
at the time of the loan.
(1) The requesting local shall submit
to UTE a Business Case for the loan. The Business Case, at a minimum,
shall include: the amount of the loan, the reason for the loan,
a repayment schedule and the amount, if any, that the local is expending
themselves.
(2) The requesting local shall submit
to UTE a copy of the minutes from an Annual General Meeting or Special
Meeting where the authorization for the loan was discussed and passed
by the membership.
(3) The requesting local shall submit
to UTE a current set of Financial Statements.
Adopted September 1998.
