Ratings, financial indicators
 3. (1) A municipality shall not invest in a security under subparagraph 1 iii, v.1, v.2, vi.1, vi.2 or vi.3 or paragraph 4 of section 2 unless the bond, debenture, promissory note or evidence of indebtedness is rated, (a)  Revoked:  O. Reg. 265/02, s. 2 (1). (b) by Dominion Bond Rating Service Limited as “AA(low)” or higher; (b.1) by Fitch Ratings as “AA-” or higher; (c) by Moody’s Investors Services Inc. as “Aa3” or higher; or (d) by Standard and Poor’s as “AA-” or higher.  O. Reg. 438/97, s. 3 (1); O. Reg. 265/02, s. 2 (1); O. Reg. 399/02, s. 3 (1); O. Reg. 655/05, s. 3 (1, 2); O. Reg. 607/06, s. 2; O. Reg. 39/07, s. 2; O. Reg. 43/18, s. 4 (1). (2) A municipality shall not invest in a security under paragraph 3.1 or 4.1 of section 2 unless the bond, debenture, promissory note or evidence of indebtedness is rated, (a) by Dominion Bond Rating Service Limited as “A(low)” or higher; (b) by Fitch Ratings as “A-” or higher; (c) by Moody’s Investors Services Inc. as “A3” or higher; or (d) by Standard and Poor’s as “A-” or higher. O. Reg. 43/18, s. 4 (2). (2.0.1) If a municipality’s total investments in securities under subparagraph 3 iii and paragraph 4.2 of section 2 have, in the opinion of the treasurer, a value in excess of $250,000, the municipality shall not invest in any additional security under paragraph 4.2 of section 2 unless the credit union or central that issues, guarantees or endorses the security provides, within 30 days before the day the investment is made, (a) audited financial statements indicating that the financial indicators mentioned in subsection (2.0.2) are met by the credit union or central; or (b) certification in writing that all of the financial indicators mentioned in subsection (2.0.2) are met by the credit union or central. O. Reg. 43/18, s. 4 (2); O. Reg. 106/22, s. 2 (1). (2.0.2) For the purposes of subsection (2.0.1), the financial indicators to be met by the credit union or central are the following: 1. Positive retained earnings in its audited financial statements for its most recently completed fiscal year. 2. Regulatory capital of at least the percentage of its total assets set out in subsection (2.0.3) as of the date of the latest audited financial statements, calculated in accordance with the regulations made under the Credit Unions and Caisses Populaires Act, 2020. 3. Regulatory capital of at least the percentage of its total risk weighted assets set out in subsection (2.0.4) as of the date of the latest audited financial statements, calculated in accordance with the regulations made under the Credit Unions and Caisses Populaires Act, 2020. 4. Positive net income in its audited financial statements for three of its five most recently completed fiscal years. O. Reg. 43/18, s. 4 (2); O. Reg. 106/22, s. 2 (2-4). (2.0.3) The percentage mentioned in paragraph 2 of subsection (2.0.2) is the percentage obtained by adding one percent to the minimum percentage set out in paragraph 1 of subsection 20 (1) of Ontario Regulation 105/22 (General). O. Reg. 43/18, s. 4 (2); O. Reg. 106/22, s. 2 (5). (2.0.4) The percentage mentioned in paragraph 3 of subsection (2.0.2) is the percentage obtained by adding one percent to the minimum percentage set out in paragraph 2 of subsection 20 (1) of Ontario Regulation 105/22 (General). O. Reg. 43/18, s. 4 (2); O. Reg. 106/22, s. 2 (6). (2.0.5) A municipality shall not invest in securities under paragraph 4.3 of section 2 unless the credit union or central that issues or guarantees the security satisfies the conditions set out in subsection (2.0.1). O. Reg. 43/18, s. 4 (2); O. Reg. 106/22, s. 2 (7). (2.1) A municipality shall not invest in a security under paragraph 6.1 of section 2 unless the security is rated, (a) by Dominion Bond Rating Service Limited as “AAA”; (b) by Fitch Ratings as “AAA”; (c) by Moody’s Investors Services Inc. as “Aaa”; or (d) by Standard and Poor’s as “AAA”.  O. Reg. 655/05, s. 3 (4). (3) A municipality shall not invest in a security under paragraph 7 of section 2 that matures more than one year from the date of issue unless the security is rated, (a) by Dominion Bond Rating Service Limited as “AAA”; (a.1) by Fitch Ratings as “AAA”; (b) by Moody’s Investors Services Inc. as “Aaa”; or (c) by Standard and Poor’s as “AAA”.  O. Reg. 265/02, s. 2 (2); O. Reg. 399/02, s. 3 (2); O. Reg. 655/05, s. 3 (5); O. Reg. 43/18, s. 4 (3). (4) A municipality shall not invest in a security under paragraph 7 of section 2 that matures one year or less from the date of issue unless the security is rated, (a) by Dominion Bond Rating Service Limited as “R-1(high)”; (a.1) by Fitch Ratings as “F1+”; (b) by Moody’s Investors Services Inc. as “Prime-1”; or (c) by Standard and Poor’s as “A-1+”.  O. Reg. 265/02, s. 2 (2); O. Reg. 399/02, s. 3 (3); O. Reg. 655/05, s. 3 (6); O. Reg. 43/18, s. 4 (4). (4.1) A municipality shall not invest in a security under paragraph 7.1 or 7.2 of section 2 unless the security is rated, (a) by Dominion Bond Rating Service Limited as “A(low)” or higher; (b) by Fitch Ratings as “A-” or higher; (c) by Moody’s Investors Services Inc. as “A3” or higher; or (d) by Standard and Poor’s as “A-” or higher. O. Reg. 43/18, s. 4 (5). (4.2) Revoked: O. Reg. 43/18, s. 4 (5). (5) A municipality shall not invest in a security under paragraph 8 of section 2 unless the promissory note or commercial paper is rated, (a) by Dominion Bond Rating Service Limited as “R-1(mid)” or higher; (a.1) by Fitch Ratings as “F1+”; (b) by Moody’s Investors Services Inc. as “Prime-1”; or (c) by Standard and Poor’s as “A-1+”.  O. Reg. 265/02, s. 2 (2); O. Reg. 399/02, s. 3 (4); O. Reg. 655/05, s. 3 (8). (6) If an investment made under subparagraph 1 iii, v.1, v.2, vi.1, vi.2 or vi.3 of section 2 or paragraph 3.1, 4, 4.1, 6.1, 7, 7.1, 7.2 or 8 of section 2 falls below the standard required by this section, the municipality shall create a plan, including expected timelines, for selling the investment and shall sell the investment in accordance with the plan. O. Reg. 43/18, s. 4 (6). (6.1) Subsection (6) does not apply with respect to an investment made by a municipality under paragraph 7 of section 2 on a day before the day this subsection comes into force.  O. Reg. 292/09, s. 2 (3). (6.1.1) If a municipality’s total investments in securities under subparagraph 3 iii and paragraph 4.2 of section 2 have, in the opinion of the treasurer, a value in excess of the limit mentioned in subsection (2.0.1) of this section and one of the following circumstances applies, the municipality shall create a plan, including expected timelines, for selling investments made under paragraph 4.2 of section 2 in excess of that limit and shall sell the investments in accordance with the plan: 1. The financial indicators mentioned in subsection (2.0.2) are not met. 2. The credit union or central fails to provide audited financial statements or a certification as mentioned in subsection (2.0.1). O. Reg. 43/18, s. 4 (7); O. Reg. 106/22, s. 2 (8). (6.1.2) For the purposes of determining the value of investments under subsection (6.1.1), the value of all investments under subparagraph 3 iii of section 2 shall be counted as part of the total first, followed by the value of all investments made under paragraph 4.2 of section 2. O. Reg. 43/18, s. 4 (7). (6.1.3) If one of the circumstances in paragraph 1 or 2 of subsection (6.1.1) applies, the municipality shall create a plan, including expected timelines, for selling investments made under paragraph 4.3 of section 2 and shall sell the investments in accordance with the plan. O. Reg. 43/18, s. 4 (7). (7) A municipality shall not invest in a security under paragraph 9 of section 2 unless, at the time the investment is made and as long as it continues, the investment ranks, at a minimum, concurrently and equally in respect of payment of principal and interest with all unsecured debt of the corporation.  O. Reg. 265/02, s. 2 (2). (8) A municipality shall not invest in a security under paragraph 9 of section 2 unless, at the time the investment is made, the total amount of the municipality’s investment in debt of any corporation incorporated under section 142 of the Electricity Act, 1998 that would result after the proposed investment is made does not exceed the total amount of investment in debt, including any interest accrued on such debt, of the municipality in such a corporation that existed on the day before the day the proposed investment is to be made.  O. Reg. 265/02, s. 2 (2). (9) Any investment made under paragraph 9 of section 2, including any refinancing, renewal or replacement thereof, may not be held for longer than a total of 10 years from the date such investment is made.  O. Reg. 265/02, s. 2 (2). (10) Subsections (7), (8) and (9) do not prevent a municipality from holding or disposing of a security described in paragraph 9 of section 2 issued by a corporation incorporated under section 142 of the Electricity Act, 1998, if the municipality acquired the security through a transfer by-law or otherwise under that Act.  O. Reg. 655/05, s. 3 (9). (11) If a municipality acquires a security under paragraph 10 of section 2 that is not otherwise prescribed under this Part, the municipality shall create a plan, including expected timelines, for selling the investment and shall sell the investment in accordance with the plan. O. Reg. 43/18, s. 4 (8). (12) Revoked:  O. Reg. 292/09, s. 2 (4).