Financing Secured by Other Revenues Regulations

Marginal note:Adaptation to section 4

23 Section 4 of the Regulations is adapted as follows:

Marginal note:Calculation of charges

4 On the expiry of the period referred to in subsection 2(1), the Authority shall send

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

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

  [A / (B - C)] × (D - E)

  where

  A

  is the amount initially contributed by the borrowing member to the debt replenishment fund at the time the loan was made,

  B

  is the total amount initially contributed by all borrowing members to the debt replenishment fund at the time the loan was made,

  C

  is the sum of the amounts initially contributed by all defaulting members to the debt replenishment fund at the time the loan was made,

  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 amount charged to defaulting members under section 3.