Debt Reserve Fund Replenishment Regulations

Marginal note:Amount to pay

3 The amount to be paid under subsection 2(1) is

• (a) in the case of a defaulting member, an amount that is determined by the Authority that must not exceed the amount of the shortfall attributable to that defaulting member; and

• (b) in the case of any other borrowing member with an unpaid loan, the amount determined by the formula

  [A ÷ (B – C)] × (D – E)

  where

  A

  is the aggregate amount of the borrowing member’s unpaid loans,

  B

  is the aggregate amount of all borrowing members’ unpaid loans,

  C

  is the aggregate amount of all defaulting members’ unpaid loans,

  D

  is the amount of the shortfall in the debt reserve fund, and

  E

  is the aggregate of the amounts payable by the defaulting members under paragraph (a).