Security, new applicant
 25. (1) A person who has not been registered at any time during the previous 12 months shall provide $10,000 in security to the administrative authority when applying for registration.  O. Reg. 26/05, s. 25 (1). (2) When a registrant who has provided security under subsection (1) or (5) has filed two consecutive annual financial documents under section 22, (a)  if the registrar has no concerns about the registrant’s compliance with this Regulation or with the Act, the registrar shall return the security to the registrant within a reasonable time; or (b)  if the registrar has concerns about the registrant’s compliance with this Regulation or with the Act, the registrar shall return the security to the registrant only when the registrar’s concerns have been resolved. O. Reg. 170/16, s. 6 (1); O. Reg. 101/20, s. 3 (1). (3) When the registrar returns the security under subsection (2), an amount shall be deducted for any claims paid or anticipated to be paid to customers of the registrant from the Fund because of the registrant’s bankruptcy, insolvency or ceasing to carry on business.  O. Reg. 26/05, s. 25 (3). (4) A registrant is exempt from this section if, (a)  the conditions set out in subsection 24 (4) are satisfied; and (b)  if the registrant has entered into a transfer payment agreement or other funding agreement with a municipality, (i)  the municipality has entered into a financial arrangement, financial commitment, guarantee, indemnity or similar transaction with the administrative authority that provides that the municipality has a contingent liability to the administrative authority for the amount of any deduction that would be required under subsection (3) if the registrant were not exempt from this section, and (ii)  the registrar has provided confirmation in writing to the registrant that the condition described in subclause (i) has been satisfied. O. Reg. 170/16, s. 6 (2). (5) If a registrant who is exempt from this section ceases to be exempt before the registrant has filed two consecutive annual financial documents under section 22, the registrant shall provide $10,000 in security to the administrative authority as soon as practicable after the registrant ceases to be exempt. O. Reg. 170/16, s. 6 (2); O. Reg. 101/20, s. 3 (2). (6) If a registrant who is exempt from this section ceases to be exempt after the registrant has filed two consecutive annual financial documents under section 22, the registrant shall provide written notice to the registrar as soon as practicable after the registrant ceases to be exempt. O. Reg. 170/16, s. 6 (2); O. Reg. 101/20, s. 3 (3). (7) When a registrant has provided the registrar with the written notice referred to in subsection (6), the registrar shall give the registrant written notice of the following within a reasonable time: 1.  If the registrar has no concerns about the registrant’s compliance with this Regulation or with the Act, a statement of that fact. 2.  If the registrar has concerns about the registrant’s compliance with this Regulation or with the Act, a specification of the time within which the registrant shall provide $10,000 in security to the administrative authority. 3.  If there are any claims anticipated to be paid to customers of the registrant from the Fund because of the registrant’s bankruptcy, insolvency or ceasing to carry on business, a specification of, i.  the amount that the registrant shall pay to the administrative authority for any such claims, which amount shall not exceed $10,000, and ii.  the time within which the registrant shall provide the amount to the administrative authority and the manner in which the amount is to be provided. O. Reg. 170/16, s. 6 (2). (8) A registrant who has been provided with the notice described in paragraph 2 of subsection (7) shall, as soon as practicable, provide $10,000 in security to the administrative authority within the time and in the manner specified in the notice. O. Reg. 170/16, s. 6 (2). (9) When a registrant has provided security under subsection (8) the registrar shall return the security to the registrant only when the registrar’s concerns referred to in paragraph 2 of subsection (7) have been resolved. O. Reg. 170/16, s. 6 (2). (10) When the registrar returns the security under subsection (9), an amount shall be deducted for any claims paid or anticipated to be paid to customers of the registrant from the Fund because of the registrant’s bankruptcy, insolvency or ceasing to carry on business. O. Reg. 170/16, s. 6 (2). (11) A registrant who has been provided with the notice described in paragraph 3 of subsection (7) shall, as soon as practicable, provide the amount specified in the notice, which shall not exceed $10,000, to the administrative authority within the time and in the manner specified in the notice. O. Reg. 170/16, s. 6 (2). (12) Subsections (5) to (11) do not apply to a registrant if the registrar has provided confirmation in writing to the registrant that the condition described in subclause (4) (b) (i) has been satisfied. O. Reg. 170/16, s. 6 (2).