PART XIII DEBT AND INVESTMENT
418.1
418.1 (1) A municipality may, in accordance with this section and the regulations, invest money that it does not require immediately in any security. 2017, c. 10, Sched. 1, s. 72. Municipality may pass by-law (2) A municipality may pass a by-law to have this section apply to the municipality. 2017, c. 10, Sched. 1, s. 72. Requirements on passing by-law (3) A municipality may only pass a by-law under subsection (2) if the municipality satisfies the requirements prescribed for the purposes of this subsection on the day the municipality passes the by-law. 2017, c. 10, Sched. 1, s. 72. When section applies (4) If a municipality passes a by-law under subsection (2), this section applies to the municipality as of the effective date set out in the by-law. 2017, c. 10, Sched. 1, s. 72. By-law not revocable (5) A by-law passed under subsection (2) cannot be revoked. 2017, c. 10, Sched. 1, s. 72. Section continues to apply (6) This section continues to apply to a municipality regardless of whether the municipality continues to satisfy the requirements prescribed for the purposes of subsection (3). 2017, c. 10, Sched. 1, s. 72. When section no longer applies (7) Despite subsections (4) and (6), this section no longer applies to a municipality if a regulation under clause (16) (d) is made in respect of the municipality. 2017, c. 10, Sched. 1, s. 72. Duty (8) In investing money under this section, a municipality must exercise the care, skill, diligence and judgment that a prudent investor would exercise in making such an investment. 2017, c. 10, Sched. 1, s. 72. Same (9) The duty under subsection (8) includes a duty to obtain the advice that a prudent investor would obtain under comparable circumstances. 2017, c. 10, Sched. 1, s. 72. Criteria (10) The municipality must consider the following criteria in planning investments, in addition to any other criteria that are relevant to the circumstances: 1.  General economic conditions. 2.  The possible effect of inflation or deflation. 3.  The role that each investment or course of action plays within the municipality’s portfolio of investments. 4.  The expected total return from income and the appreciation of capital. 5.  Needs for liquidity, regularity of income and preservation or appreciation of capital. 2017, c. 10, Sched. 1, s. 72. Diversification (11) The municipality must diversify its investments to an extent that is appropriate to general economic and investment market conditions. 2017, c. 10, Sched. 1, s. 72. Interpretation, money not immediately required (12) In this section, money that the municipality does not require immediately includes, (a)  money in a sinking, retirement or reserve fund; (b)  money raised or received for the payment of a debt of the municipality or interest on the debt; and (c)  proceeds from the sale, loan or investment of any debentures. 2017, c. 10, Sched. 1, s. 72. Repayment (13) Any earnings derived from an investment under this section shall be credited to the fund from which the money was invested. 2017, c. 10, Sched. 1, s. 72. Combined investments (14) A municipality may combine money held in any fund and deal with the money in accordance with this section and the regulations. 2017, c. 10, Sched. 1, s. 72. Allocation (15) Earnings from combined investments shall be credited to each separate fund in proportion to the amount invested from it. 2017, c. 10, Sched. 1, s. 72. Regulations (16) The Lieutenant Governor in Council may make regulations, (a)  prescribing requirements for the purposes of subsection (3); (b)  governing the investment of money by a municipality under this section, including prescribing rules, conditions and procedures for or in relation to the investment of money under this section; (c)  providing for transitional matters that, in the opinion of the Lieutenant Governor in Council, are necessary or desirable to facilitate the application of this section to the municipality; (d)  providing that this section no longer applies to a municipality, and prescribing transitional rules that apply to the municipality. 2017, c. 10, Sched. 1, s. 72. Group of municipalities (17) A regulation made under clause (16) (b) may prescribe special rules, conditions and procedures for or in relation to the investment of money by two or more municipalities, acting as a group, under this section, including restrictions and transitional rules that apply in circumstances where a municipality enters into an investment arrangement with a group or withdraws from an investment arrangement with a group. 2017, c. 10, Sched. 1, s. 72. Transitional regulation under s. (16) (c) (18) A regulation made under clause (16) (c) may provide that it applies in respect of the period after a municipality has passed a by-law under subsection (2) and before the effective date set out in the by-law. 2017, c. 10, Sched. 1, s. 72. Section Amendments with date in force (d/m/y) 2017, c. 10, Sched. 1, s. 72 - 01/03/2018 419 Repealed:  2006, c. 32, Sched. A, s. 183. Section Amendments with date in force (d/m/y) 2006, c. 32, Sched. A, s. 183 - 01/01/2007