REGULATION NO. 16 - LOCAL LOAN POLICY

16.1  LOANS TO LOCALS

  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.

16.2  Terms and Conditions for a Loan

  1. 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.
  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.

16.3  Request Procedure for a 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.