The Tile Loan Program is authorized by the Tile Drainage Act and is a partnership between municipalities and the province. Farmers who are planning to install a tile drainage system on their property may apply to their local municipality for a “tile loan”. Once the application is accepted, the farmer arranges to have the work completed by a licenced tile drainage contractor and the municipality then prepares a “debenture” for sale to the province in the amount of the loan or loans. The province then issues a cheque to the municipality who in turn passes it on to the farmer applicant. The municipality collects the loan repayments from the farmer through their property taxes and passes these payments back to the province. Currently, the interest rate for this program is 6%.