R.R.O. 1990, Reg. 942: INTEREST RATE

 

Province of Ontario Savings Office Act
Loi sur la Caisse d’épargne de l’Ontario

R.R.O. 1990, REGULATION 942

INTEREST RATE

Consolidation Period:  From March 1, 1995 to the e-Laws currency date.

Last amendment: 97/95.

Legislative History: 97/95.

This Regulation is made in English only.

1. (1) The rate of interest payable from time to time on money deposited in accounts in the Province of Ontario Savings Office shall be calculated as follows:

1. Where the depositor so elects, the rate of interest payable from time to time shall be calculated on the lowest closing daily balance within the month for each complete calendar month in which there is a balance on deposit and shall be paid on the last days of March and September in each year.

2. Where the depositor so elects, the rate of interest payable from time to time shall be calculated on the closing daily balance on deposit and shall be paid on the last day of each month.  R.R.O. 1990, Reg. 942, s. 1 (1).

(2) The rates of interest payable by the Province of Ontario Savings Office on the types of accounts referred to in subsection (1) shall not exceed by more than ½ of 1 per cent the rates of interest being paid from time to time by financial institutions on similar types of accounts with respect to money deposited with them.  R.R.O. 1990, Reg. 942, s. 1 (2).

(3) Where in an account described in paragraph 2 of subsection (1), the balance on deposit upon which a calculation of interest is based is an amount on which a higher rate of interest is paid by financial institutions with respect to a balance on deposit of that amount, a higher rate of interest may be paid with respect to that balance on deposit than would be payable with respect to a lesser balance on deposit.  R.R.O. 1990, Reg. 942, s. 1 (3).

(4) Subject to subsection (5), the higher rate of interest payable by the Province of Ontario Savings Office on a balance on deposit referred to in subsection (3) shall not exceed by more than ½ of 1 per cent the rate of interest being paid by financial institutions with respect to a balance on deposit of that amount or more on similar types of accounts.  R.R.O. 1990, Reg. 942, s. 1 (4).

(5) Where the balance on deposit in an account referred to in subsection (1) forms part or all of the assets of an Ontario home ownership savings plan of which the Province of Ontario Savings Office is the depositary under the Ontario Home Ownership Savings Plan Act, the rate of interest payable by the Province of Ontario Savings Office on the account may exceed by more than ½ of 1 per cent the rate of interest being paid by financial institutions with respect to a balance on deposit of that amount on similar types of accounts but shall not exceed the highest rate of interest payable by the Province of Ontario Savings Office on accounts having higher balances on deposit.  R.R.O. 1990, Reg. 942, s. 1 (5).

(6) The rates of interest to be paid on money deposited in accounts in a Province of Ontario Savings Office shall be rates that will maintain the Office in a competitive position with other financial institutions.  R.R.O. 1990, Reg. 942, s. 1 (6).

(7) Where there is a change in the rates of interest referred to in subsections (2) and (4) that are generally paid by financial institutions, the rates of interest payable by the Province of Ontario Savings Office shall be examined to determine whether or not a corresponding change is required to be made.  R.R.O. 1990, Reg. 942, s. 1 (7).

(8) For the purpose of this section,

“financial institutions” include banks listed in Schedule I or II to the Bank Act (Canada) and trust corporations carrying on business in Ontario.  R.R.O. 1990, Reg. 942, s. 1 (8).

2. (1) The rate of interest payable on money deposited in guaranteed investment certificates in the Province of Ontario Savings Office shall be for a fixed term from the date of purchase of each guaranteed investment certificate account and shall be calculated as follows:

1. If the depositor elects to be paid interest on a monthly basis, the interest shall be calculated at a predetermined rate that may be below the published annual rate of interest at the time of purchase.

2. If the depositor elects to be paid interest semi-annually, the interest shall be calculated at a predetermined rate that may be below the published annual rate of interest at the time of purchase but shall be paid at a higher rate of interest than a deposit where interest is paid on a monthly basis.

3. If the depositor elects to be paid interest annually, the term of the deposit shall be for twelve months or more up to and including sixty months and the interest shall be calculated on a simple interest basis paid every twelve months and at the appropriate intervals thereafter, where applicable at the published annual rate of interest at the time of purchase.

4. If the depositor elects to be paid interest on a compound interest basis, the term of the deposit shall be for more than twelve months up to and including sixty months and the interest shall be calculated at the published annual rate of interest at the time of purchase, compounded annually and shall be paid out only at maturity.  R.R.O. 1990, Reg. 942, s. 2 (1).

(2) The rates of interest payable by the Province of Ontario Savings Office on the types of guaranteed investment certificate accounts referred to in subsection (1) shall not exceed the rates of interest being paid on similar fixed term instruments by trust corporations carrying on business in Ontario.  R.R.O. 1990, Reg. 942, s. 2 (2).

(3) Where there is a change in the rates of interest generally being paid by trust corporations carrying on business in Ontario on similar fixed term instruments to those referred to in subsection (1), the rates of interest payable by the Province of Ontario Savings Office shall be examined to determine whether or not a corresponding change is required to be made.  R.R.O. 1990, Reg. 942, s. 2 (3).

(4) A guaranteed investment certificate issued by the Province of Ontario Savings Office is non-negotiable and is not transferable or assignable.  R.R.O. 1990, Reg. 942, s. 2 (4).

(5) Subject to subsection (8), principal money deposited in a guaranteed investment certificate account in the Province of Ontario Savings Office is repayable only at the maturity date of the guaranteed investment certificate set at the time of purchase.  R.R.O. 1990, Reg. 942, s. 2 (5).

(6) Where a guaranteed investment certificate is not surrendered or renewed upon maturity or within thirty days after the date of maturity, interest paid on the principal shall be paid at the prevailing rate of interest paid on an account referred to in paragraph 2 of subsection 1 (1).  R.R.O. 1990, Reg. 942, s. 2 (6).

(7) The Province of Ontario Savings Office may establish the minimum and the maximum amounts that may be deposited in guaranteed investment certificate accounts in the Province of Ontario Savings Office.  R.R.O. 1990, Reg. 942, s. 2 (7).

(8) Repayment on deposits in guaranteed investment certificate accounts shall be made from the office known as the “Province of Ontario Savings Office”,

(a) upon surrender of the certificate in person on or after the maturity date of the certificate, to the registered holder of the guaranteed investment certificate; or

(b) upon surrender of the certificate, to the order of the registered holder of the guaranteed investment certificate, or, upon the demise of the registered holder, to the executor, administrator or other person acting in the administration of the estate of the registered holder.  R.R.O. 1990, Reg. 942, s. 2 (8).

(9) Repayment under subsection (8) is guaranteed by the Minister of Finance on behalf of Her Majesty in right of the Province of Ontario.  R.R.O. 1990, Reg. 942, s. 2 (9).

2.1 (1) The rate of interest payable on money deposited in short term deposits in the Province of Ontario Savings Office for periods of not less than 30 days and not more than 364 days shall be calculated annually, determined on the date of purchase of the deposit and payable on the maturity of the deposit.  O. Reg. 97/95, s. 1.

(2) The rates of interest payable by the Province of Ontario Savings Office on the types of deposits referred to in subsection (1) shall not exceed by more than ¼ of 1 per cent the rates of interest being paid on similar short term instruments by trust corporations carrying on business in Ontario.  O. Reg. 97/95, s. 1.

(3) The holder of a short term deposit may request the immediate payment of the deposit at any time prior to the maturity of the deposit, but the rate of interest paid by the Province of Ontario Savings Office on the deposit, calculated annually, shall be reduced to not less than one half of the rate of interest specified at the date of purchase of the deposit, as may be determined at the date of purchase by the Province of Ontario Savings Office for payment of the deposit before maturity.  O. Reg. 97/95, s. 1.

(4) The Province of Ontario Savings Office may establish the minimum and the maximum amounts that may be deposited in short term deposit accounts.  O. Reg. 97/95, s. 1.

(5) Repayment of deposits, as authorized under this section, is guaranteed by the Minister of Finance on behalf of Her Majesty in right of the Province of Ontario.  O. Reg. 97/95, s. 1.

3. In special cases where the nature or amount of a deposit makes it expedient and advisable, the Minister of Finance may authorize interest to be paid and computed on deposits otherwise than semi-annually or on the minimum monthly balance of an account, but the rate of interest so authorized shall not exceed the annual rate of interest from time to time applicable in accordance with subsection 1 (2).  R.R.O. 1990, Reg. 942, s. 3

4. Where the annual rate of interest is changed, the change shall be prominently posted in each Province of Ontario Savings Office and shall set forth the new rate of interest and the day that the new rate of interest is effective.  R.R.O. 1990, Reg. 942, s. 4.

5. Subject to subsection 2 (8) and section 6, repayment on deposits, guaranteed by the Minister of Finance on behalf of Her Majesty in right of the Province of Ontario, shall be made from the office known as “The Province of Ontario Savings Office” to the depositor in person on demand or to the order of the depositor.  R.R.O. 1990, Reg. 942, s. 5.

6. Where money deposited in one or more accounts in the Province of Ontario Savings Office form part or all of the assets of an Ontario home ownership savings plan of which the Province of Ontario Savings Office is the depositary under the Ontario Home Ownership Savings Plan Act, any repayment, payment, release or transfer of the money shall be in compliance with that Act and shall be net of any amount required to be deducted, withheld and remitted to the Minister of Finance under that Act.  R.R.O. 1990, Reg. 942, s. 6.