Skip to main content

6.11 Permitted Investments For Money Held In Contingency Reserve Fund And Collected On Special Levies

In This Volume

  • 6.11 In addition to an investment permitted under the Act, for the purposes of section 95(2)(a) or 108(4)(b)(i) of the Act, as applicable, a strata corporation may invest money held in the contingency reserve fund or money collected on a special levy in one or more of the following investments:
  • (a) a savings account or chequing account at a financial institution outside of British Columbia with a deposit, all or part of which is eligible to be insured by the Canada Deposit Insurance Corporation;
  • (b) a term deposit or a guaranteed investment certificate, if all or part of the deposit or certificate
    • (i) is eligible to be insured by the Canada Deposit Insurance Corporation or guaranteed by the Credit Union Deposit Insurance Corporation of British Columbia, and
    • (ii) has a predetermined rate or predetermined rates of interest;
  • (c) a treasury bill issued by the government of Canada;
  • (d) any bond, debenture or other evidence of indebtedness issued or guaranteed by the government of Canada or a province, or issued by a corporation incorporated under the laws of Canada or a province, if, at the time of purchase,
    • (i) the bond, debenture or other evidence of indebtedness has a remaining term to maturity of 5 years or less,
    • (ii) the interest and principal of the bond, debenture or other evidence of indebtedness are payable in Canadian dollars, and
    • (iii) the bond, debenture or other evidence of indebtedness has a rating of A or higher from DBRS Limited;
  • (e) a fixed income exchange-traded fund traded on an exchange in Canada, if, at the time of purchase,
    • (i) the fund’s portfolio does not contain securities other than bonds, debentures and other evidence of indebtedness,
    • (ii) the holdings in the fund portfolio are denominated in Canadian dollars,
    • (iii) the average remaining term to maturity of the holdings in the fund’s portfolio is 5 years or less, and
    • (iv) 98% or more of the value of the holdings in the fund’s portfolio have a rating of BBB or higher as reported by the issuer of that fund.

[en. B.C. Reg. 68/2014, s.1; am. B.C. Reg. 41/2019, Sched., s. 2.]