Prescribed instrument
 2. (1) An agreement that contains the following is prescribed for the purposes of clause 247 (3) (f) of the Act as an instrument that may be executed by a district school board: 1.  The agreement provides for the irrevocable assignment by the board to the assignee named in the agreement of the portion of each legislative grant that is paid under the Act in respect of, i.  the board’s non-permanently financed debt, other than amounts referred to in clause 37 (1) (b) of Ontario Regulation 154/01 (Student Focused Funding — Legislative Grants for the 2001-2002 School Board Fiscal Year) made under the Act or clause 37 (1) (b) of Ontario Regulation 156/02 (Student Focused Funding — Legislative Grants for the 2002-2003 School Board Fiscal Year) made under the Act as those regulations read immediately before they were revoked, or ii.  the portion of the refinanced debt attributable to the board. 2.  The agreement requires the board to give a direction to the Minister to pay the assigned portion of each legislative grant directly to an account specified in the agreement. 3.  The agreement requires the assignee to, i.  assume the board’s liability to pay its non-permanently financed debt, ii.  arrange financing to refinance the non-permanently financed debt of the board and other participating boards by, A.  creating and issuing, pursuant to one or more trust indentures, bonds, debentures or other evidences of the refinanced debt, B.  entering into one or more underwriting agreements in respect of the bonds, debentures or other evidences of the refinanced debt, C.  obtaining ratings of the bonds, debentures or other evidences of the refinanced debt from one or more nationally recognized rating agencies, and D.  causing an offering document to be prepared in respect of the bonds, debentures or other evidence of the refinanced debt and making it available to underwriters and other potential purchasers of the bonds, debentures or other evidences of the refinanced debt, iii.  out of the proceeds of the refinanced debt, pay the board’s non-permanently financed debt, and iv.  obtain from the holder of the non-permanently financed debt a receipt for the payment of the board’s non-permanently financed debt. 4.  If the assignee is the trustee of a trust, the agreement requires the board to do the following: i.  indemnify the trustee in its personal capacity for all unreimbursed costs, if any, to the extent that the assets of the trust out of which the trustee is entitled at law or in equity to be indemnified for the unreimbursed costs are insufficient to satisfy the unreimbursed costs, and ii.  make just and equitable contribution to satisfy the claims giving rise to the unreimbursed costs in an amount that is in the same proportion to the aggregate of the unreimbursed costs that the board’s non-permanently financed debt bears to the sum of the non-permanently financed debt of all the participating boards and the amount of fees paid to the trustee, if the indemnity referred to in subparagraph i is for any reason held by a court to be unenforceable. 5.  The agreement provides that if the board is required, pursuant to a provision in an agreement described in paragraph 4, to indemnify the trustee or make just and equitable contribution to satisfy the claims giving rise to the unreimbursed costs, the liability of the board under the rights of indemnity or contribution, i.  shall be several and not joint, and ii.  shall not exceed the amount by which the board’s non-permanently financed debt exceeds the cumulative amount of the legislative grants in respect of the principal amount of the refinanced debt paid to the account referred to in paragraph 2 established by the board.  O. Reg. 41/10, s. 2 (1). (2) An agreement is prescribed for the purposes of clause 247 (3) (f) of the Act if it satisfies the requirements of subsection (1) and it contains provisions that are not inconsistent with the requirements of subsection (1).  O. Reg. 41/10, s. 2 (2).