55.2 (1) This section applies if a prescribed employer is required to make payments into the pension fund with respect to a reduced solvency deficiency.  2010, c. 24, s. 18; 2017, c. 34, Sched. 33, s. 23 (1). Use of letter of credit (2) Instead of making payments into the pension fund with respect to the reduced solvency deficiency, the employer may provide a letter of credit to a prescribed person or entity if the requirements of this section are satisfied.  2010, c. 24, s. 18; 2017, c. 34, Sched. 33, s. 23 (2). Requirements (3) The letter of credit must satisfy such requirements as may be prescribed.  2010, c. 24, s. 18. Restrictions (4) The employer is not entitled to provide a letter of credit if the total amount of all letters of credit provided to the prescribed person or entity for the pension plan would exceed 15 per cent of the solvency liabilities of the pension plan.  2010, c. 24, s. 18. Same (5) For the purposes of subsection (4), the regulations may specify that solvency liabilities must be determined in a manner that may differ from the requirements that otherwise apply.  2010, c. 24, s. 18. Distribution (6) The employer must provide the letter of credit to the prescribed person or entity within such period after it is issued as may be prescribed and the employer must give a copy of the letter of credit to the administrator within the same period.  2010, c. 24, s. 18. Notice to the Chief Executive Officer (7) The administrator shall notify the Chief Executive Officer in the prescribed manner and within the prescribed period that a letter of credit has been provided and, upon request, the administrator shall give the Chief Executive Officer such information about the letter of credit as the Chief Executive Officer may specify.  2010, c. 24, s. 18; 2018, c. 8, Sched. 23, s. 23. Held in trust (8) The prescribed person or entity holds the letter of credit in trust for the pension plan.  2010, c. 24, s. 18. Demand for payment (9) In such circumstances as may be prescribed, the prescribed person or entity shall demand payment of the amount of the letter of credit into the pension fund by the issuer of the letter of credit.  2010, c. 24, s. 18. Costs of letter of credit (10) The fees or expenses associated with obtaining, holding, amending or cancelling a letter of credit are not payable from the pension fund.  However, subject to section 22.1, the fees and expenses associated with enforcing a letter of credit are payable from the pension fund.  2010, c. 24, s. 18. Status of public sector pension plans (11) This section does not apply with respect to a public sector pension plan unless the regulations specify that it applies to the pension plan.  2010, c. 24, s. 18. Other exclusions (12) Despite subsection (11), this section does not apply with respect to a jointly sponsored pension plan or a multi-employer pension plan.  2012, c. 8, Sched. 44, s. 3. Conflict (13) This section prevails over subsection 55 (2).  2010, c. 24, s. 18. Section Amendments with date in force (d/m/y) 2010, c. 24, s. 18 - 01/01/2013 2012, c. 8, Sched. 44, s. 3 - 01/01/2013 2017, c. 34, Sched. 33, s. 23 (1, 2) - 01/05/2018 2018, c. 8, Sched. 23, s. 23 - 08/06/2019