O. Reg. 292/09: ELIGIBLE INVESTMENTS AND RELATED FINANCIAL AGREEMENTS

 

ontario regulation 292/09

made under the

municipal act, 2001

Made: July 15, 2009
Filed: July 31, 2009
Published on e-Laws: August 5, 2009
Printed in The Ontario Gazette: August 15, 2009

Amending O. Reg. 438/97

(Eligible Investments and Related Financial Agreements)

1. Ontario Regulation 438/97 is amended by adding the following section:

2.1 A security is prescribed for the purposes of subsection 418 (1) of the Act as a security that a municipality may invest in if,

(a) the municipality invested in the security before January 12, 2009; and

(b) the terms of the municipality’s continued investment in the security have been changed pursuant to the Plan Implementation Order of the Ontario Superior Court of Justice dated January 12, 2009 (Court file number 08-CL-7440) and titled “In the matter of the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36 as amended and in the matter of a plan of compromise and arrangement involving Metcalfe & Mansfield Alternative Investments II Corp. et al”.

2. (1) Subsections 3 (4.1) and (4.2) of the Regulation are revoked and the following substituted:

(4.1) A municipality shall not invest in a security under paragraph 7.1 of section 2 unless the security is rated,

(a) by Dominion Bond Rating Service Limited as “AA(low)” or higher;

(b) by Fitch Ratings as “AA-” or higher;

(c) by Moody’s Investors Services Inc. as “Aa3” or higher; or

(d) by Standard and Poor’s as “AA-” or higher.

(4.2) A municipality shall not invest in a security under paragraph 7.2 of section 2 unless the security is rated,

(a) by Dominion Bond Rating Service Limited as “A” or higher;

(b) by Fitch Ratings as “A” or higher;

(c) by Moody’s Investors Services Inc. as “A2”; or

(d) by Standard and Poor’s as “A”.

(2) Subsection 3 (6) of the Regulation is revoked and the following substituted:

(6) If an investment made under subparagraph 1 iii, v.1, v.2, vi.1, vi.2 or vi.3 of section 2 or paragraph 3.1, 4, 6.1, 7, 7.1, 7.2 or 8 of section 2 falls below the standard required by this section, the municipality shall sell the investment within 180 days after the day the investment falls below the standard.

(3) Section 3 of the Regulation is amended by adding the following subsection:

(6.1) Subsection (6) does not apply with respect to an investment made by a municipality under paragraph 7 of section 2 on a day before the day this subsection comes into force.

(4) Subsection 3 (12) of the Regulation is revoked.

3. (1) Subsection 4.1 (2) of the Regulation is amended by adding the following clause:

(d.1) a foundation established by a college mentioned in clause (d) whose purposes include receiving and maintaining a fund or funds for the benefit of the college;

(2) Clause 4.1 (2) (f) of the Regulation is amended by striking out “clauses (a) to (d)” and substituting “clauses (a) to (d.1)”.

4. Section 8 of the Regulation is amended by adding the following subsection:

(2.1) The investment report referred to in subsection (1) shall contain a statement by the treasurer as to whether any of the following investments fall below the standard required for that investment during the period covered by the report:

1. An investment described in subparagraph 1 iii, v.1, v.2, vi.1, vi.2 or vi.3 of section 2.

2. An investment described in paragraph 3.1, 4, 6.1, 7, 7.1, 7.2 or 8 of section 2.

3. An investment described in subsection 9 (1).

5. (1) Section 9 of the Regulation is amended by adding the following subsection:

(1.1) Despite subsection 3 (4.1), an investment in a security under paragraph 7.1 of section 2 made on a day before the day this subsection comes into force may be continued if the security is rated,

(a) by Dominion Bond Rating Service Limited as “A” or higher;

(b) by Fitch Ratings as “A” or higher;

(c) by Moody’s Investors Services Inc. as “A2”; or

(d) by Standard and Poor’s as “A”.

(2) Subsection 9 (2) of the Regulation is amended by striking out “under subsection (1)” and substituting “under subsection (1) or (1.1) and by striking out “within 90 days” and substituting “within 180 days”.

6. This Regulation comes into force on the day it is filed.