Debt Reserve Fund Replenishment Regulations

Marginal note:Calculation of charges for other revenues

4.1 With respect to the debt reserve fund solely for financing secured by other revenues, at the end of the period referred to in subsection 2(1), the Authority must send

• (a) to the council of each defaulting member, a notice requiring that member to pay the charge determined under subsection 3(1); and

• (b) to the council of each borrowing member who is not a defaulting member, a notice requiring that member to pay a charge equal to the one determined by the formula

  [A/(B – C)] × (D – E)

  where

  A

  is the amount contributed by the borrowing member to the debt reserve fund,

  B

  is the total amount contributed by all the borrowing members to the debt reserve fund,

  C

  is the total amount contributed by the defaulting members to the debt reserve fund,

  D

  is the amount of the shortfall in the debt reserve fund set out in the notice referred to in section 2, and

  E

  is the total amount charged to the defaulting members under section 3.