16.1 LOANS TO LOCALS
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UTE may loan to any Local part or all of a request for funds needed for union business.
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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.
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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.
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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.
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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.
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At no time shall UTE have more than one hundred thousand dollars ($100,000) in outstanding loans to Locals.
16.2 Terms and Conditions for a Loan
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The minimum monthly amount of a loan repayment is one hundred dollars ($100.00). These repayments shall be deducted by UTE from the Local’s monthly dues cheque before forwarding the Local dues to the Local.
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The maximum number of months for any loan repayment is thirty-six (36).
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All loans shall have interest calculated at the current Guaranty Investment Certificate (GIC) rate at the time of the loan.
16.3 Request Procedure for a Loan
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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.
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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.
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The requesting Local shall submit to UTE a current set of Financial Statements.
Adopted September 1998.