Definitions
 1. (1) In this Regulation, “acceleration of a funding obligation” means, (a) a portion of the principal amount owing in respect of the funding obligation has become due and payable by a financing entity before the scheduled payment date, maturity date or redemption date, or (b) a party to a derivative agreement in respect of the funding obligation has elected to close-out or terminate the agreement, resulting in an obligation on a financing entity to pay a termination amount, close-out amount or similar amount; “average monthly funding obligation” means, in respect of a month, the amount determined in accordance with subsection (3); “average annual funding obligation” means, in respect of a year, the sum of the average monthly funding obligations for the year; “capital account” means an account established by or on behalf of a financing entity under the governing documents of a funding obligation for the purpose of accumulating funds to be used to make repayments in respect of the funding obligation; “derivative agreement” means any derivative agreement, including interest rate swaps and cross-currency swaps and any associated collateral, entered into in connection with or to hedge the exposure of a financing entity under a funding obligation; “derivative payment” means any payment required to be made in connection with a derivative agreement, including ordinary course payments, payments on termination and payments made in connection with margining or collateral arrangements; “finance reserve account” means an account established by or on behalf of a financing entity under the governing documents of a funding obligation for the purposes of pre-funding, collateralizing, over-collateralizing or establishing reserves for the payment of funding obligations and other finance amounts or for related contingencies; “financing entity expense” includes, (a) fees, including fees charged by the Financial Services Manager, charges, costs, indemnities, reimbursements, other amounts incurred or committed to, by or on behalf of a financing entity as a result of an activity authorized or permitted under the Act, and (b) any taxes on amounts mentioned in clause (a); “funding cost” means interest, commitment fees or other similar costs payable by or on behalf of a financing entity in respect of funding obligations, including a derivative payment; “funding tranche” means an issuance of funding obligations of a particular class or type, all of which have the same terms, but does not include an issuance of a funding obligation to the Financial Services Manager; “governing documents” means, in respect of a funding obligation, the documents governing the terms of the funding obligation or other matters relating to the funding obligation; “market comparable fees” means fees, expressed as an annual percentage rate, charged by full-service managers of funds, including but not limited to securitization vehicles, pension funds and other investment funds, hedge funds or other similar funds, for services that are similar to the services provided by the Financial Services Manager under the Act in terms of, (a) the type of services provided, (b) the scope of services provided, (c) the level of services provided, and (d) the dollar amount of assets under management; “market comparable forecast interest rates” means, in relation to a funding tranche, interest rates for a debt obligation that, (a) has a principal amount that is comparable to the principal amount of the funding tranche, (b) has a term that is comparable to the term of the funding tranche, (c) is based on a type of instrument that is comparable to the type of instrument of the funding tranche, (d) has payment rights that are similar to the payment rights of the funding tranche, and (e) is issued by an issuer with a risk profile comparable to the risk profile of the financing entity issuing the funding tranche; “maturity date” means, in respect of a funding obligation, the date set out in the governing documents of the funding obligation on which all outstanding principal, interest and other amounts outstanding are due and payable; “net annual funding obligation” means, in respect of a year, the sum of the principal amounts of funding tranches issued in the year, other than any funding tranches that constitute a refinancing; “prescribed matters” means matters in relation to the establishment, management and administration of financing entities and the investment asset, including but not limited to matters in relation to, (a) financing entities that are established or that are planned to be established, and (b) funding obligations that have been incurred or that are planned to be incurred by financing entities; “recovery amount” means the aggregate of all amounts received by or on behalf of financing entities in respect of funding obligations; “redemption amount” means the amount payable by or on behalf of a financing entity to redeem, prepay or repurchase a funding obligation incurred by or on behalf of the financing entity, including any premium, make-whole or other amount payable to give effect to the prepayment, redemption or repurchase; “refinancing amount” means the principal amount of a funding obligation incurred by a financing entity in respect of a refinancing; “repayment” means the payment by or on behalf of a financing entity or the provision by or on behalf of a financing entity for the payment of all or a portion of the principal amount advanced to the financing entity under a funding obligation; “tax” means a tax, duty, fee, premium, excise, assessment, impost, levy or other charge payable to Her Majesty in right of Ontario, Her Majesty in right of Canada or the government of any other country, province, state, municipality or other political territory and imposed or authorized to be imposed by any law of Ontario, Canada, or any other country, province, state, municipality or other political territory and includes, (a) a tax, duty, fee, premium, excise, assessment, impost, levy or other charge, (i) levied on, measured by or described with respect to income, earnings, gross receipts, profits, capital, capital gains, sales or use, or (ii) referred to as branch tax, net worth tax, alternative tax, minimum tax, goods and services tax, harmonized sales tax, value-added tax, excise tax, ad valorem tax, franchise tax, transfer tax, withholding tax, property tax, surtax, payroll tax, employment tax or employer health tax, (b) government pension plan premiums or contributions, social security premiums, workers’ compensation premiums and employment or unemployment insurance or compensation premiums and contributions, (c) an amount or charge under Part VI of the Electricity Act, 1998, (d) an instalment in respect of an amount mentioned in clauses (a) to (c), and (e) interest, penalties, fines, additions to tax or other amounts imposed on or in respect of an amount mentioned in clauses (a) to (c); “tax liability” means all tax paid or payable by or on behalf of a financing entity, incurred directly or indirectly by the financing entity or for which the financing entity is otherwise liable as a result of any activity, undertaking, transaction or event authorized or permitted under the Act; “tax refund” means all amounts received by or on behalf of a financing entity as a refund of tax and to which the financing entity is entitled as a result of any activity, undertaking, transaction or event authorized or permitted under the Act. O. Reg. 206/17, s. 1 (1); O. Reg. 415/17, s. 1 (1); O. Reg. 446/17, s. 1 (1). (2) For the purposes of subsection 21 (8) of the Act and this Regulation, “readjustment amount” means, in respect of a reference period, the amount determined by applying the following steps: 1. Determine the amount, if any, by which the total amount payable by specified consumers for electricity in respect of the reference period is forecast to be reduced as a result of a determination of the Board under Part II of the Act. 2. Determine the amount, if any, by which the determination under paragraph 1 exceeds the absolute value of the fair allocation amount determined by the Minister under subsection 20 (1) of the Act in respect of the reference period. O. Reg. 446/17, s. 1 (2). (3) For the purposes of determining the average monthly funding obligation for a month, the following formula applies: (A + B) ÷ 2 where, A = the sum of the balances on the first day of the month of the principal amount of all outstanding funding obligations incurred by financing entities, B = the sum of the balances on the last day of the month of the principal amount of all outstanding funding obligations incurred by financing entities. O. Reg. 415/17, s. 1 (2).