Interpretation

1  In this regulation:

"corporation" means the Insurance Corporation of British Columbia;

"currency" means the currency of a country or any other unit of monetary value;

"securities" means bonds, debentures, deposit certificates, promissory notes, treasury bills or other evidences of indebtedness, shares and stock, and includes any documents commonly known as securities;

"Schedule" means Schedule III of the Pension Benefits Standards Regulations 1985, SOR/87-19, made under the Pension Benefits Standards Act, 1985 (Canada).

 Investments

2  The corporation has the authority to invest or lend its funds, or parts of them,

(a) in any of the classes of investments or classes of loans under the Schedule as the Schedule reads on the day this section comes into force, and for this purpose the restrictions, limits and conditions established by the Schedule apply, except that

(i)  the references to the "Superintendent" in the Schedule shall be read as references to the Minister of Finance and Corporate Relations,

(ii)  the references to the "plan" in the Schedule shall be read as references to the corporation,

(iii)  the reference to "% of the book value of the total assets of the plan" in the Schedule shall be read as references to "% of the book value of the total assets of the corporation",

(iv)  section 1 of the Schedule shall be read to include the following paragraph:

(n.1)  bonds, debentures or other evidence of indebtedness issued by a company incorporated under the laws of Canada or of a Province where these securities are rated as investment grade by 2 or more recognized security rating institutions;, and

(b) in any of the following classes of investments or classes of loans:

(i)  securities that are obligations of or guaranteed by Canada, a Province of Canada or the United States of America;

(ii)  deposits, notes, certificates or other paper of or guaranteed by a savings institution rated as investment grade or better by 2 recognized security rating institutions, including swapped deposit transactions in the currency of the United States of America, forward rate agreement and fixed to floating rate and floating to fixed rate swaps;

(iii)  securities issued by the Municipal Finance Authority of British Columbia;

(iv)  financial options and financial futures, including currency and fixed income instruments;

(v)  securities that are obligations of or are guaranteed by the government of a country and have a quality rating, satisfactory to the corporation, from a recognized security rating institution.

[am. B.C. Reg. 294/99.]

 Corporation may loan securities

3  Where the corporation acquires securities under section 2, the corporation may loan the securities, provided that the loan is secured by collateral security that falls within one or more of the classes of investments or of loans permitted under section 2.

 Administration of investments

4  Where the corporation is authorized to make an investment or loan under section 2 or 3, the corporation may

(a) dispose of the investment or loan,

(b) exchange the investment or loan for another investment or loan permitted under section 2 or 3, or

(c) do all things necessary or advisable for the purpose of making, continuing, exchanging or disposing of the investment or loan, including buying and selling currency on a current or future delivery basis.

 Disposition not required

5  Nothing in these regulations requires the corporation to dispose of investments or loans that were lawfully acquired on the date of their acquisition.