Trust Fund Investments
Trust fund money for a water utility may be invested under approved methods.
Approved vehicles for investing trust fund monies include:
- Cash deposited in a savings account within the province, with either a Canadian chartered bank or a trust company, or a federal loan company, or a credit union authorized to carry on business in the province
- Term deposits or Guaranteed Investment Certificates (gics) held within the province and issued by either a Canadian chartered bank or a trust company, or a federal loan company, or a credit union authorized to carry on business in the province, provided such term deposits or gics do not exceed one year
- Securities of the Government of Canada or the Government of any province of Canada
- Securities, the payment of the principal and interest of which is guaranteed by the Government of Canada of the Government of any province of Canada
May Be Approved
The water utility may apply to the Comptroller for approval of other securities. The Comptroller may stipulate terms, conditions and value. These investments include:
- Bonds of any British Columbia municipality, the principal and interest of which are not guaranteed by the Government of British Columbia
- Corporate bonds provided they are suitable for investment under the Trustee Act of British Columbia
Securities that fluctuate in value such as corporate stocks and bonds are not acceptable.