Debt Reserve Funds Replenishment Regulations

Marginal note:Calculation of charges

4 On the expiry of the period referred to in subsection 2(1), the Authority shall send

• (a) to the council of each defaulting member, a notice requiring that member to pay the charge determined under section 3; and

• (b) to the council of each borrowing member that is not a defaulting member, a notice requiring that member to pay a charge equal to the amount determined by the formula

  [A/(B-C)] × (D-E)

  where

  A

  is the gross annual property tax revenue of the borrowing member,

  B

  is the aggregate gross annual property tax revenue of all borrowing members,

  C

  is the aggregate gross annual property tax revenue of defaulting members,

  D

  is the amount of the shortfall in the debt reserve fund set out in the notice referred to in section 2, and

  E

  is the total amount charged to all the defaulting members under section 3.