Conditions
 4.1 (1) A municipality shall not invest in a security under paragraph 7 of section 2 or in a promissory note or commercial paper under paragraph 8 of section 2 unless, on the date that the investment is made, (a) the municipality itself is rated, or all of the municipality’s long-term debt obligations are rated, (i) by Dominion Bond Rating Service Limited as “AA(low)” or higher, (i.1) by Fitch Ratings as “AA-” or higher, (ii)  by Moody’s Investors Services Inc. as “Aa3” or higher, or (iii) by Standard and Poor’s as “AA–” or higher; or (b) the municipality has entered into an agreement with the Local Authority Services and the CHUMS Financing Corporation to act together as the municipality’s agent for the investment in that security, promissory note or commercial paper.  O. Reg. 265/02, s. 3; O. Reg. 399/02, s. 4; O. Reg. 655/05, s. 4 (1, 2); O. Reg. 43/18, s. 5 (1). (1.1) A municipality shall not invest in a security under paragraph 7.1 or 8.1 of section 2 unless, on the date the investment is made, the municipality has entered into an agreement with the Local Authority Services and the CHUMS Financing Corporation to act together as the municipality’s agent for the investment in the security.  O. Reg. 655/05, s. 4 (3); O. Reg. 43/18, s. 5 (2). (1.2) Subsection (1.1) does not apply to investments in securities by the City of Ottawa if all of the following requirements are satisfied: 1. Only the proceeds of the sale by the City of its securities in a corporation incorporated under section 142 of the Electricity Act, 1998 are used to make the investments. 2. The investments are made in a professionally-managed fund. 3. The terms of the investments provide that, i. where the investment is in debt instruments, the principal must be repaid no earlier than seven years after the date on which the City makes the investment, and ii. where the investment is in shares, an amount equal to the principal amount of the investment cannot be withdrawn from the fund for at least seven years after the date on which the City makes the investment. 4. The City establishes and uses a separate reserve fund for the investments. 5. Subject to paragraph 6, the money in the reserve fund, including any returns on the investments or proceeds from their disposition, are used to pay capital costs of the City and for no other purpose. 6. The City may borrow money from the reserve fund but must repay it plus interest.  O. Reg. 655/05, s. 4 (3). (2) The investment made under clause (1) (b) or described in subsection (1.1), as the case may be, must be made in the One Investment Program of the Local Authority Services and the CHUMS Financing Corporation with, (a) another municipality; (b) a public hospital; (c) a university in Ontario that is authorized to engage in an activity described in section 3 of the Post-secondary Education Choice and Excellence Act, 2000; (d) a college established under the Ontario Colleges of Applied Arts and Technology Act, 2002; (d.1) a foundation established by a college mentioned in clause (d) whose purposes include receiving and maintaining a fund or funds for the benefit of the college; (e) a school board; (f) any agent of an institution listed in clauses (a) to (e); (g) Local Authority Services; (h) CHUMS Financing Corporation; (i) Association of Municipalities of Ontario; or (j) Municipal Finance Officers’ Association of Ontario. O. Reg. 265/02, s. 3; O. Reg. 655/05, s. 4 (4); O. Reg. 607/06, s. 3; O. Reg. 292/09, s. 3; O. Reg. 52/11, s. 1; O. Reg. 74/16, s. 1, 3; O. Reg. 43/18, s. 5 (3-5).