Variable fee
 10.10 (1) The Financial Services Manager shall establish a variable fee mentioned in subsection 10.8 (1) for a year as follows: 1. Apply the following formula in respect of each funding tranche that forms part of the net annual funding obligation for the year: (A × (B − C)) × 0.10 where, A = the principal amount of the funding tranche, B = the forecast interest rate for the funding tranche, and C = the actual interest rate for the funding tranche. 2. Calculate the sum of the amounts determined by applying the formula under paragraph 1. 3. If the result calculated under paragraph 2 is greater than the following, decrease the result to the following:  the amount that is 2 per cent of the amount that is 5 per cent of the sum of the principal amounts of funding tranches issued in the period, other than any funding tranches that constitute a refinancing. 4. If the result calculated under paragraph 2 is less than the following amount, increase the result to the following: the amount that is -2 per cent of the amount that is 5 per cent of the sum of the principal amounts of funding tranches issued in the period, other than any funding tranches that constitute a refinancing. O. Reg. 415/17, s. 4. (2) The Board may, (a) approve the proposed variable fee; or (b) refuse to approve a proposed variable fee if the Board is of the view that any forecast interest rate used for the purposes of subsection (1) is materially inconsistent with market comparable forecast interest rates. O. Reg. 415/17, s. 4. (3) If the Board refuses to approve the proposed variable fee, (a) the Board may make recommendations to the Financial Services Manager regarding each forecast interest rate that the Board found was materially inconsistent with market comparable forecast interest rates; and (b) the Financial Services Manager shall submit to the Board, (i) a revised proposed fee that takes into consideration the recommendations of the Board, if any, and (ii) a description of the methodology that the Financial Services Manager has applied to determine revised forecast interest rates for each funding tranche in respect of which the Board found an inconsistency with market comparable forecast interest rates. O. Reg. 415/17, s. 4. (4) If, subsequent to the initial submission to the Board under subsection (1), the Financial Services Manager determines that a funding tranche may be issued that was not contemplated in the initial submission, the following rules apply: 1. If the Board has not approved the proposed fee, the Financial Services Manager may notify the Board of the funding tranche and, on a day that is later than February 28 but before such day as may be specified by the Board, submit an amendment to the submission that sets out a forecast interest rate for that funding tranche. 2. If the Board has approved the proposed fee, the Financial Services Manager may notify the Board of the funding tranche and, before such day as may be specified by the Board, submit to the Board a forecast interest rate for that funding tranche as part of a proposal to amend the fee to include that funding tranche. O. Reg. 415/17, s. 4. (5) A proposal to amend a fee under paragraph 2 of subsection (4) shall be deemed, for the purpose of the Board’s review of the proposal, to be a new proposed fee under this section. O. Reg. 415/17, s. 4.