B-1.1, r. 8 - Regulation respecting the guarantee plan for new residential buildings

Section 48 Disposition versions

2015-01-01

48. The manager shall maintain an excess amount of assets over liabilities at least equal to the higher of the following amounts:

(1)  the contribution provided for in section 47 during the first year of operations, an amount of $6,500,000 during the second year of operations, an amount of $4,500,000 during the third year of operations, an amount of $2,500,000 during the fourth year of operations and an amount of $1,500,000 during the subsequent years of operations; or

(2)  the aggregate of

(a)  the amount obtained by multiplying the provision for outstanding claims provided for in section 56 by 15%; and

(b)  the amount obtained by multiplying the reserve provided for in section 54 and the additional reserve provided for in section 56 by 15%.

The percentage of 15% referred to in clauses a and b of subparagraph 2 of the first paragraph shall be reduced to 5% if the manager holds additional insurance or any other equivalent guarantee of at least $1,000,000 over and above the reserve account or of 10% of that account, covering the obligations that he assumes for the duration of the coverage provided by the guarantee certificate already obtained. The maximum reduction granted under the 5% rate is $1,000,000.

The minimum excess amount required under this section may be used only for the purposes of the approved plan. The excess must be comprised of the funds deposited in a separate bank account or of investments in one of the form provided for in section 46.

O.C. 841-98, s. 48; O.C. 156-2014, s. 31.

2012-09-01

48. The manager shall maintain an excess amount of assets over liabilities at least equal to the higher of the following amounts:

(1)  the contribution provided for in section 47; or

(2)  the aggregate of

(a)  the amount obtained by multiplying the provision for outstanding claims provided for in section 56 by 15%; and

(b)  the amount obtained by multiplying the reserve provided for in section 54 and the additional reserve provided for in section 56 by 15%.

The percentage of 15% referred to in clauses a and b of subparagraph 2 of the first paragraph shall be reduced to 5% if the manager holds additional insurance or any other equivalent guarantee of at least $1,000,000 over and above the reserve account or of 10% of that account, covering the obligations that he assumes for the duration of the coverage provided by the guarantee certificate already obtained.

The minimum excess amount required under this section may be used only for the purposes of the approved plan.

O.C. 841-98, s. 48.